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Huawei's market changes, from domestic to international development
We all know that Huawei is a multinational company with a market spread all over the world, serving more than 170 countries and regions with a population of 3.5 billion. However, at first, Huawei was just a small company and only served the Chinese market. From the Chinese market to the international market, Huawei has gone through years of hard work.
Although Huawei is a private enterprise founded in 1987, it has developed very quickly. In just over a decade, its market share in China has become relatively high. The market for traditional switch products in China has become saturated. In 2002, the global communications industry entered a period of continuous downturn.
It is a different scene in China. China Telecom 's Xiaolingtong is in the limelight, but Huawei's situation is very embarrassing. Due to the problem of technical path selection, Huawei's wireless GSM solution is adopted at a very limited scale and the benefits are not significant. However, at the same time, Huawei has almost completely suppressed Bao on 3G technology, and has invested a total of tens of billions of R&D funds in 3G technology, but the domestic 3G market has not been launched for a long time. At this time, Huawei relies entirely on traditional landlines and is also a wired network product to support it. There are not many places to make money, and there are everywhere where money is spent.
The so-called East is not bright, and in the domestic wireless market, especially the three-G market, Huawei had to turn its attention abroad. At the end of 2002, Huawei organized a group of elite soldiers to go overseas and began to implement the three-G technology overseas. This is the starting point for Huawei's wireless equipment to go overseas.
So, what does Huawei’s internationalization path look like? Huawei planned the internationalization path to start from near and far, and then from poor to rich, that is, starting from near Southeast Asia and Russia to gradually extend to farther countries and regions, starting from underdeveloped countries and regions, and then gradually entering developed countries and regions.
Huawei began to enter Russia in 1996, and only after four years of persistence was held, it received an order of dozens of dollars. At that time, multinational giants such as Ericsson and Siemens had already made the first move, and Huawei had no reputation in the local area, so it was difficult to sell the products. In the subsequent 1997, we knew that the Asian economic crisis, Russia's economy also fell into a trough, and Russia's investment in the telecom market almost stagnated.
Due to this economic crisis, Siemens, Alcatel , and other companies have withdrawn their investment from Russia, but Huawei is unmoved and is more active. This year, Huawei and Russia established a joint venture. Russia's economic recovery is very slow. From 1996 to 2000, for four years, Huawei had no income in Russia.
Later, a Russian telecom operator had a broken accessory, but the supplier of that equipment could not provide replacement services immediately. After Huawei knew about this, it immediately took its own accessories to solve the problem for the telecom operator. This accessory worth tens of dollars was Huawei's first business in the Russian market.
Huawei's enthusiasm and persistence obviously impressed Russian telecom operators. So in 2000, Huawei won two major projects in Russia. By 2005, in just five years, Huawei's sales in Russia reached US$614 million, and established close cooperative relations with all the top Russian operators.
Ten years after opening up the Russian market, Huawei has become one of the leaders of the Russian telecom market and has ranked first in the operator market share. After a long period of waiting and hard work, Huawei's harvest period in the overseas market has finally arrived one after another, and revenue from overseas markets has entered a period of rapid growth.
2005 was the watershed of Huawei's internationalization. This year, Huawei's overseas sales exceeded the sales in the domestic market for the first time. Since then, Huawei has no distinction between domestic and foreign markets, and there is no difference between Cisco , Alcatel and other multinational companies in terms of market structure.
During this period, Huawei's overseas market grew rapidly, and overseas business demanded very high. In a few years, Huawei recruited foreign language talents on a large scale in many domestic universities, especially some small language talents, as well as professional talents related to telecommunications, international trade, and finance. Many newcomers were dispatched overseas after very brief training. These young people who do not have much experience, but are enthusiastic, have expanded their territory in unfamiliar countries and created miracles one by one. This is a major tradition of Huawei. Equal opportunities, and ability is more important than qualifications. A major criterion for measuring employee performance is contribution.
For new employees, opportunities are more important than money, and their abilities are more reliable than academic qualifications. Such a good training opportunity can show off one's skills. Then, with the continuous struggle of millions of outstanding employees, Huawei achieved a comprehensive breakthrough in the 3G equipment market in the three major developed regions of North America, Japan and Europe in 2006.
Huawei 3G's global development center is clearly shifting from Middle East and Asia-Pacific to Europe and other mobile communication development regions. Such achievements cannot be achieved simply by relying on technical advantages and cost advantages. The top European operators are very picky in choosing partners and have very high requirements for supplier credibility, competitiveness, delivery and service capabilities. If you want to have so many capabilities at the same time, you must cooperate with them and jointly develop them.
So Huawei has jointly built a joint R&D center with operators in Europe. For example, with Vodafone , it has established four joint R&D centers: mobile network, software and core network. In addition, in Europe, Huawei has also established its only product management department in the world to more closely meet the unique needs of European operators for products and solutions.
Huawei has carried out close cooperation with major operators through this way of setting up joint R&D centers in the European market. In this way, Huawei is a trusted company in the eyes of top European operators.
In 2012, Huawei's sales became the world's largest telecom equipment manufacturer . Huawei has successively established more than 20 capability centers around the world, among which Huawei's consumer business alone has set up 16 R&D centers in China, Russia, Germany, Sweden , India and the United States.
At this time, Huawei was regulating resources on a global scale and using the world's best talents to serve global customers. Huawei's development growth rate is very considerable. I think Huawei is currently the most international and most successful Chinese company. Of course, due to Huawei's internationalization, it is a development model of three-dimensional, comprehensive, highly diverse culture, highly internationalized management, talents come from the world, and market covers the world. Therefore, it is difficult for us to describe Huawei by definition like Chinese companies.
Huawei has actually become a multinational company founded by the Chinese. Simply put, Huawei's internationalization has several inspirations for many companies today. The first point is that the domestic market has made huge profits on a large scale over the years, and has accumulated sufficient food and grass for the development of internationalization, allowing Huawei to overcome the difficulties of losses in many international markets in the early stages of internationalization. This is the first point, which is Huawei's economic foundation, because in the early stages of internationalization, Huawei has no profit in the international market.
Then it costs a lot of money to develop in the international market. Where does this money come from? Only the domestic market provides him with it.
The second point is international development. It is a difficult and long-term process. You must be patient enough. For example, Huawei has been in Russia for four years and has no income, so you must be patient enough.
The third point is not to be internationalized for the sake of internationalization. Many companies follow the trend and blindly go to the international market when they see others developing abroad. This approach is very risky. Internationalization should be the inherent natural demand for corporate development. Internationalization is full of uncertainty, so you must be fully prepared.
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