Cisco Systems Inc
) recently entered into a partnership with
) to provide customers the opportunity to connect to wireless
networks at different merchants by simply logging in to their
respective Facebook accounts. This service is called Cisco
Connected Mobile Experience (CMX) with Facebook Wi-fi.
The partnership will help retailers to serve their customers
better, enabling them to understand demographic details. It will
also provide more opportunities to businesses to connect with
their customers by providing more likes and check-ins to the
businesses' Facebook pages. Additionally, shoppers will get free
access to Wi-fi alongwith other lucrative offers.
With the CMX for Facebook Wi-fi feature enabled on a phone, a
customer joining a business' Wi-fi network will be directed to a
Facebook page to check in. From there, the customers will be
redirected to the business' Facebook page where the requisite
information about the business is available.
This CMX feature is expected to provide personalized mobile
services to consumers. This Wi-fi venture is not funded by
Facebook and the cost of network equipment and broadband will
have to be borne by the retailers.
This deal will not only prove beneficial for Cisco but will also
enable Facebook to develop closer relationships with merchants by
providing them essential demographic data to improve services.
Better services, in turn, would ensure customer retention and
also help in acquiring new customers, thereby enhancing profits.
With this effort, Facebook now joins its competitor
) in helping users get direct access to the Internet. Recently,
Google too had declared its intentions of bringing in free
wireless Internet connectivity to approximately 7000
) cafes across the United States. Cisco, on the other hand,
appears to be focusing on selling its network equipment.
Cisco Systems, Inc. is the worldwide leader in networking for the
Internet. Cisco Systems reported fourth quarter 2013 earnings of
49 cents a share, beating the Zacks Consensus Estimate of 47
cents on higher revenues and lower-than-expected operating
expenses. Revenues increased 6.0% year over year and 1.6%
sequentially to $12.4 billion.
Cisco's strategy of pursuing growth opportunities in
international markets has helped in the delivery of positive
results. Despite facing intense competition from various small
players, it continues to remain strong in its domain.
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Currently, Cisco has a Zacks Rank # 3 (Hold).