3Com Corporation: SWOT Analysis &
Reference code: BRTC219CP10-Q4
Published: Feb 2010
John Carpenter House
7 Carmelite Street
London EC4Y 0BS
Tel: +44 (0) 20 7936 6400
Fax: +44 (0) 20 7336 6813
3Com Corporation - SWOT Profile Page 1
3Com Corporation - Company Overview
3Com Corporation (3Com) is engaged in providing secure and converged networking solutions to worldwide businesses.
The company offers a wide range of products and services in the field of networking solutions such as LAN switches,
routers, IP Telephony, and network and access management systems. 3Com also provides intrusion prevention systems,
and network access control. The business of the company is operated through four major business segments, namely,
H3C segment, data voice business unit (DVBU) segment, tipping point segment, and corporate expenses (Corporate)
segment. 3Com operates in 35 countries and 60 locations across the world. The company is headquartered at
Massachusetts, the US.
The company reported revenues of (U.S. Dollars) USD 1,294.88 million during the fiscal year ended May 2008, an
increase of 2.16% over 2007. The operating loss of the company was USD 263.48 million during the fiscal year 2008, as
compared to an operating loss of USD 132.52 million during 2007. The net loss of the company was USD 228.84 million
during the fiscal year 2008, as compared to a net loss of USD 88.59 million during 2007.
3Com Corporation - Key Facts
3Com Corporation, Key Facts
350 Campus Drive, Marlborough,
Massachusetts (MA), 01752- Ticker Symbol, Stock
Corporate Address: COMS (NASDAQ)
3064, United States
Telephone + 1 508 3235000 No. of Employees 6,103
Fax + 1 508 3231111 Financial Year End May
URL www.3com.com Revenue (in USD Million) 1,295.00
Medical Equipment , Technology
Industry and Communications
Australia, China, Hong Kong Special Administrative Region of China, Indonesia, Malaysia, New
Zealand, Republic of Korea, Singapore, Taiwan, Thailand, Austria, Belgium, Czech Republic,
Locations Denmark, France, Germany, Greece, Italy, Netherlands, Poland, Portugal, Russian Federation,
Spain, Sweden, United Kingdom, Canada, United States, Brazil, Chile, Colombia, Mexico
Source: Annual Report, Company Website, Primary and Secondary Research
3Com Corporation - SWOT Profile Page 2
3Com Corporation - Business Description
3Com Corporation is a solution provider for the voice, data and other advanced networking technologies for efficient and
secure operation of various critical networks. The company manufactures products and delivers services related to
computer networking. The company markets its products to number of vertical industries, including education, finance,
government, healthcare, insurance, manufacturing and real estate through combination of value added partners,
distributors and direct sales representatives.
The company divided its products categories into Networking, Security, Voice, Services, and Legacy connectivity
products. During 2008, the networking product contributed 81.7% of the company‟s total revenue, followed by security
products (10.3%), voice (4.7%), services (3.1%) and legacy connectivity products (0.2%).
3COM organizes its operations in four reporting segments, namely, H3C segment, data voice business unit (DVBU)
segment, tipping point segment, and corporate expenses (Corporate) segment.
The H3C was acquired by the company during 2007, and formed as a reportable segment. H3C deals with the
engineering and product development of networking products and services, which are sold to the China market. The
products developed by this segment are further classified into four categories, namely, networking, emerging technology,
security, and services. Its networking product portfolio includes LAN switches, routers, and network management software
whereas emerging technology products includes IP storage and IP video surveillance and security covers firewalls. During
2008, the H3C segment contributed 54.1% of the company‟s total revenue.
The data and voice business unit (DVBU) targets the developed networking markets by marketing the networking
products and solutions designed by 3Com. The segment offers products that complement the H3C segment offerings,
which deliver voice and data applications. Its H3C can be classified into three major categories such as networking, IP
telephony, and services. Its products under networking include Ethernet switching, wireless LAN, routers, security and
network management. IP telephony products include IP telephony platforms, convergence application suite and IP
phones. During 2008, DVBU segment contributed 38.6% of the company‟s total revenue.
TippingPoint segment of the company provides security solutions, which are capable of intense protection, namely
Intrusion Preventive Systems (IPS), security services, and network access control. During 2008, TippingPoint segment
contributed 7.3% of the company‟s total revenue.
3Com‟s DVBU and TippingPoint segments‟ products are manufactured by the contract manufacturers and design
manufacturer suppliers to whom the majority of the manufacturing operations are outsourced while the H3C segment
handles the remaining functions.
The company‟s products and services are distributed with the help of a two-tier distribution channel comprising of
distributors and resellers. Further, the company also markets its products by working with global system integrators,
service providers and direct marketers. In addition, it also supports a field sales organization which targets the small,
medium and large enterprises. It has contract manufacturing arrangements with various companies which include Jabil
Circuits and Accton Technology Corp. A majority of the H3C segment‟s products are manufactured by contract
manufacturers such as Flextronics, System Integration Electronics and Flash Electronics. Its H3C segment builds an
inventory for the manufactured products and then ships them for the delivery.
The research and development team of the company concentrates on delivering distinguished products and solutions with
focus on reducing production costs. The company‟s current focus is on security, convergence of applications over IP,
advanced switching, routing solutions and related advanced technologies. During 2008, 3Com invested 15.9% of the total
revenue towards its research and development activities.
The company classified its geographical operations into five regions, namely, China, North America, Asia pacific
(excluding china), Latin and South America, and Europe, Middle East and Africa. During 2008, China contributed 47.1% of
the company‟s total revenue, followed by Europe, Middle East and Africa (22.6%), North America (15.6%), Asia Pacific
(8.2%), and Latin and South America (6.5%).
In August 2009, 3Com introduced a new network-embedded security products, that includes integration of TippingPoint
intrusion prevention system technology, H3C enterprise network and security products.
During October 2009, 3Com signed two contracts with Korean Army and Air Force, to upgrade their local area networks
(LANs) sing its H3C enterprise products.
3Com Corporation - SWOT Profile Page 3
3Com Corporation - Major Products and Services
3COM Corporation is engaged in manufacturing and providing of secure, converged networking solutions.
3Com Corporation, Major Products and Services
Convergence/ IP Telephony
Intrusion Preventive Systems
IP Storage and IP Video surveillance
LAN Switches (IntelliJack Switches)
LAN Switches (Modular)
LAN Switches (Stackable/Edge)
LAN Transceivers/ Cables
Network Interface Cards
Wireless Access Points/ Switches
Network Access Control
Source: Annual Report, Com