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Ciena Corporation (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Ciena Corporation

Ciena Corporation (Ciena) is engaged in development of communications network equipment, software and services. The company’s products are used in communications networks operated by telecommunications service providers, cable operators, governments and enterprises. The company primarily operates in the US. It is headquartered in Linthicum, Maryland and employs about 2,200 people.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Strong top line growth
  • Strong R&D capabilities

Weaknesses

  • Lack of scale
  • Dependence on few customers

External

Opportunities

  • Acquisition of World Wide Packets
  • Partnership with Hitachi Data Systems

Threats

  • Highly competitive market
  • Economic slowdown in the US
  • Inventory purchase practices
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