Tsmg5340 Huawei

TSMG 5340 Wenzhao Li HUAWEI CISCOS CHINESE CHALLENGER The explosive reaping of fluent Internet, fueled by the technical innovations, has affected e very(prenominal) aspect of our sleep withs. winding devices such(prenominal) as smart phones and organiser and even smart pets ar straight being interwoven into the fabric of our lives. The net goal of both these devices is to bring every people into a networked society. Behind alone these amazing devices, however, are the efforts of the telecom equipment companies, such as Alcatel, Lucent, 3Com and Cisco.Among all of these companies, t here is a Chinese caller, named Huawei, gradually being wariness by the worldwide telecom industry. For Huawei, its inhalation is to catch up with Cisco as a world leader songer(a)wise than a domestic giant, which we know that no(prenominal) Chinese company has ever achieved in an industry as important as telecommunication. In my reading of this issue, trying to comprehensively underst and Huaweis situation in venturing into supranational commercialise, four observations stand out military strength of Huawei, weakness of Huawei, Huaweis opportunities and affrights impertinenced by Huawei. intensity levelFirstly, Chinas telecom equipment commercialize is the background of Huawei. Chinas telecom industry achieved substantial double-digit branch in 1980s, and surpassed US to become the largest telecom market by the end of 2002. The glooming growth in Chinese market is an sign power of Huaweis growth. Table 2 in the case shows that as azoic as 2005, Huawei had achieved the market leader with the manage of 13. 5%. And since China was the largest market, Huawei had become the largest domestic telecom equipment company. Secondly, the special company finishing and foresight shown by the company beget Huawei an extraordinary different company.The military-styled Wolf-Pack integrated gardening and relationship with Chinese goernment are the trump cards of Hua wei. The chairman, Zhengfei, admitted that If there had been no political science form _or_ system of government to protect, Huawei would no overnight exist. But this is not the except reason of Huaweis success. Different from early(a) companies, who following the countrys policy of exchanging market for technology, Huawei put much than efforts on research and development, and investing long punch of money in the upcoming technology (example of investment in 3G).In this way, Huawei becomes more competitive, holding large amounts of cash and patents. As Huawei becoming more and more powerful, they get off the ground to build a national enlisting system with exceptionally high make up by Chinese standards, making them an elevated employer of college graduates. R&D investment, patents, high salariesall of these characteristics belonging to western technology whizz-kid are replicated by Huawei to its model of corporate management. Thirdly, Huawei was undoubted the largest Ch inese telecom equipment manufacturer, with integrated and Omni form products.Weakness The culture gap between Huawei and separate companies may be a chafe to the Huaweis managers. The military-styled wolf-pack corporate culture looks not attractive to the employees overseas, who prefer a piece of work with more relax and less stress. wish wellwise this, the closed relationship between Huawei and Chinese government, especially the military, should be considered by the some other countries of security department issues when they planning to cooperate with Huawei. Opportunities Huaweis move in the markets of developing countries has been be to be successful.Huawei has printed its steps in Russia, southeast Africa, South America and Europe. The market of regular army is an opportunity for Huawei to make their next globular expansion. Threats Incumbent Western firms should be very scared of Huawei. Its reputation as a low-cost vendor is only the panoptical part of the iceberg, As J. Doineau said, Huaweis threat to the transnational telecom equipment suppliers was not to be overlooked. But in Huaweis viewpoint, if all the competitors and potential partner regarding them as an intruder from Chinese Military, they would face serious threats due to the culture misunderstanding.On the other hand, the world leaders, like Cisco, could not freely give up their market shares to Huawei. The threat of face to face competition with them is other challenge to Huawei. Huawei began considering international expansion in 1996 when it was looking for diverse sources of growth beyond the Chinese market. The company make its initial overseas moves in the markets of developing countries, to eliminate head to head competition with its international rivals such as 3Com and Cisco.Huawei made its introductory significant international bargain to a Russian telecom utility provider in 2000, which was quickly followed by Advanced Info Service, Thailands largest mobile servic e provider, and Tele Norte Leste Participacoes, Brazils strict line carrier. Whats more, major contracts win in United Arab Emirates, making UAE the first Arab country with 3G wireless communications. They set up CDMA network in Europe and spread out business in Portugal, Netherlands and GB.Huaweis success in global expansion cannot live without its competitive advantages comparing to the other companies low-cost engineering, wolf-pack culture, and government stomach. As concluded by an industry analyst, Huaweis threat came not from low-cost manufacturing, exactly from low-lost engineering. With an inexpensive and exceedingly satisfactory research and development (R&D) workforce, the company was able to deliver customized, innovative solutions to global enterprises looking to reduce their capital expenditures. The support from the Chinese government is another rock-steady word to Huawei.As cited in the case, the company acquire financial support from the state-owned Chines e growth Bank in the form of a US$10 billion accredit facility for Huaweis international expansions over five year. We never expect that misfortune in an US company. Last but not least, the management philosophy Wolf-Pack is regarded as a precious to Huawei. We can presuppose that a company believing themselves as a pack of wolves-very confident and aggressive. That is wherefore many incumbents feel scared of Huawei like sheep scaring of wolves. However, the competitive advantages cannot sustain forever.The highly qualified employees cannot satisfy the contemporary salary standards, which are high in China, but comparably low in developed countries. The wring of the salary expenditure increasing makes a threat to Huawei in global expansion. The news shows that Huawei has recently come under attacks by the US government. The reason why US government did that mostly considers the national security issues, because Huawei has a close guanxi with Chinese military. As stated by Cisc os CEO John Chambers, Network would retain to be capable of responding to intrusions and viruses before military man operators become aware of them.And security pass on be the most effective and high-octane if a common strategy extends finished all of a corporations wired and mobile networks. US government is alert to anything related to security. And what looks ironic here is that the words coming from CEO of Cisco, who is in the first place competitor of Huawei in US market. With its grownup political resources, Cisco is considered to be director of attacks. Whether the issue could be resolved is fit(p) by the communications between Huawei and US government, and of course, the local incumbents.