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1988	
   1995	
   2000	
   2005	
   2010	
  
Embarked	
  on	
  independent	
  
research,	
  ini9ated	
  the	
  first	
  
R&D	
   center,	
   generated	
  
sales	
  of	
  RMB	
  1.5	
  billion.	
  
Interna9onal	
  sales	
  exceeded	
  domes9c	
  
sales	
   for	
   the	
   first	
   9me;	
   Selected	
   as	
   a	
  
preferred	
   21Century	
   Network	
  	
  
supplier	
  by	
  Bri9sh	
  Telecom	
  
Established	
   R&D	
   center	
   in	
  
Bangalore	
   and	
   Stockholm.	
  
USD	
   100	
   million	
   revenue	
  
g e n e r a t e d 	
   f r o m	
  
interna9onal	
  markets	
  .	
  	
  
Achieved	
  a	
  USD	
  28	
  billion	
  	
  
revenue,	
  ranked	
  No.2	
  in	
  
market	
  share	
  only	
  a?er	
  
Eriksson.	
  
Established	
   in	
   Shenzhen	
  
as	
   sales	
   agent	
   for	
   Hong	
  
Kong	
   company	
   producing	
  
Private	
   Branch	
   Exchange	
  
(PBX)	
  switches.	
  	
  
“It	
   is	
   only	
   a	
   problem	
   of	
   9me	
   that	
   Huawei	
  
would	
   surpass	
   Ericsson	
   to	
   become	
   the	
  
industrial	
   leader,	
   not	
   only	
   because	
   of	
  
Huawei’s	
  growth	
  rate	
  (which	
  has	
  always	
  been	
  
higher	
   than	
   Ericsson),	
   but	
   also	
   because	
  
Huawei	
   has	
   a	
   much	
   broader	
   product	
   lines	
  
ensuring	
   more	
   opportuni9es	
   for	
   business	
  
extension	
  and	
  upgrading”.	
  
“Huawei	
  is	
  no	
  longer	
  trea9ng	
  Ericsson	
  as	
  the	
  
chasing	
   objec9ve	
   and	
   NO.1	
   compe9tor,	
  
because	
   Ericsson	
   is	
   a	
   tradi9onal	
   telecom	
  
equipment	
   supplier	
   specializing	
   in	
   mobile	
  
services	
   but	
   Huawei	
   is	
   aimed	
   to	
   become	
   a	
  
covering-­‐all	
   next	
   genera9on	
   ICT	
   company	
  
with	
  a	
  huge	
  product	
  por^olio”	
  
“Huawei	
   is	
   going	
   to	
   become	
   an	
  
informa9on	
   services	
   provider	
   from	
   a	
  
telecom	
  equipment	
  supplier”	
  
'Huawei's	
  new	
  Quid	
  way	
  routers	
  
performed	
   very	
   well	
   in	
   the	
  
stringent	
   tes9ng	
   environment	
  
we	
  set	
  up”.	
  	
  
-­‐-­‐	
  Tony	
  Dann,	
  head	
  of	
  IP	
  test	
  and	
  
evalua9on	
  at	
  BT	
  Exact	
  	
  
“We	
   are	
   delighted	
   that	
   it	
   has	
  
everything	
   that	
   customers	
  
expect	
   from	
   Vodafone	
   –	
   high	
  
l e v e l	
   t e c h n o l o g i e s	
   a n d	
  
excep9onal	
  value”	
  
-­‐-­‐	
  Schulte,	
  Director	
  of	
  Vodafone	
  	
  
“This	
   pla^orm	
   allows	
   us	
   to	
  
integrate	
   a	
   seamless	
   range	
   of	
  
services	
   and	
   help	
   us	
   lead	
  
innova9on	
   for	
   the	
   mobile	
  
market	
  ”	
  
-­‐-­‐Luis,	
   Director	
   of	
   Mobile	
  
Business,	
  Telefonica	
  
-­‐-­‐-­‐Fast	
  Company	
  
-­‐-­‐-­‐Newsweek	
  
Zoom
Product:
Innovation and
investment in R&D
Places:
Marketing Segmentation
a n d A d a p t a t i o n
G e o c e n t r i c
Approach and
Standardization
Promotion:
PR Transformation
Half	
   of	
   the	
   employees	
  
engaged	
   in	
   R&D,	
   an	
  
extraordinary	
  high	
  ra9o	
  
comparing	
   with	
   any	
  
high-­‐tech	
  company.	
  
R&D	
   expenditure	
   has	
  
grown	
   steadily	
   and	
   has	
  
been	
   keeping	
   a	
   10	
  
percent	
  ra9o	
  of	
  its	
  total	
  
revenue	
  every	
  year.	
  
17	
   research	
   ins9tutes	
  
across	
  the	
  world:	
  Silicon	
  
v a l l e y , 	
   D a l l a s ,	
  
Stockholm,	
   Moscow,	
  
Bangalore,	
  Beijing…	
  
42543	
   patents	
   issued,	
  
ranking	
   NO.2	
   in	
   terms	
  
of	
   patents	
   applica9ons	
  
under	
   the	
   WIPO	
   Patent	
  
Coopera9on	
  Treaty.	
  
“ E x c h a n g e	
  
Market	
   with	
  
A d v a n c e d	
  
Technologies”	
  
§  Interna9onal	
  expansion	
  started	
  
from	
  developing	
  coun9res	
  in	
  
MENA,	
  South-­‐East	
  Asia,	
  La9n	
  
America	
  and	
  then	
  sought	
  growth	
  
into	
  developed	
  countries	
  including	
  
EU	
  na9ons.	
  
§  Adapta9on	
  appraoch	
  to	
  conquer	
  
different	
  segmenta9ons.	
  In	
  less	
  
developed	
  markets,	
  focuses	
  on	
  
infrastructure	
  construc9on	
  and	
  
end-­‐to-­‐end	
  turnkey	
  solu9ons;	
  For	
  
developed	
  countries	
  and	
  highly	
  
advanced	
  markets,	
  concentrates	
  
on	
  bringing	
  excellent	
  and	
  
innova9ve	
  next-­‐genera9ons	
  
products	
  and	
  solu9ons	
  to	
  help	
  
clients	
  decrease	
  the	
  costs.	
  
Geocentric	
  Approach	
  
Recognizing	
   both	
   similari9es	
   and	
   differences	
   and	
  
developing	
  a	
  global	
  strategy	
  based	
  on	
  similari9es	
  to	
  
obtain	
   scale	
   economies	
   whist	
   responding	
   to	
   cost	
  
effec9ve	
  differences.	
  	
  
TM	
  TM	
  
-­‐-­‐-­‐Newsweek	
  
Zoom
A	
  Global	
  Company	
  	
  
Without	
  Brand	
  Awareness	
  
Huawei	
  started	
  from	
  a	
  strict	
  B2B	
  company	
  
and	
  has	
  remained	
  its	
  main	
  business	
  in	
  B2B	
  
area	
  9ll	
  today	
  
Clients	
   are	
   limited	
   to	
   a	
   hand	
   of	
   telecom	
  
operators	
   without	
   recogni9on	
   from	
  
consumer	
  markets	
  
CEO	
   is	
   an	
   extremely	
   low	
   profile	
   and	
  
media	
   shy	
   person,	
   whose	
   personal	
   style	
  
has	
   enormously	
   influenced	
   the	
  
company’s	
  media	
  policies	
  and	
  strategies	
  
New	
  business	
  strategy	
  to	
  branch	
  out	
  
to	
   consumer	
   electronics	
   and	
  
enterprises	
   products	
   transforms	
   the	
  
company	
   from	
   a	
   pure	
   B2B	
   company	
  
to	
   a	
   par9ally	
   consumer-­‐facing	
   B2C,	
  
which	
   users	
   in	
   a	
   new	
   era	
   of	
  
leadership	
  communica9on	
  style.	
  	
  
In	
  front	
  of	
  the	
  public	
  opinion,	
  Huawei	
  has	
  
long	
  been	
  acted	
  as	
  an	
  ostrich	
  that	
  buried	
  
its	
  head	
  in	
  the	
  sand.	
  I	
  can	
  personally	
  be	
  an	
  
ostrich,	
   but	
   Huawei	
   cannot	
   afford	
   it	
   and	
  
the	
   company	
   has	
   to	
   face	
   the	
   public	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
-­‐-­‐-­‐	
  CEO	
  Ren	
  Zhengfei	
  	
  
It	
   is	
   impera9ve	
   for	
   the	
   company	
   to	
   con9nue	
   this	
   PR	
   and	
  
corporate	
   communica9on	
   transforma9on	
   and	
   undertake	
   a	
  
more	
   open,	
   dynamic	
   and	
   proac9ve	
   PR	
   strategies.	
  

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Huawei_Company Study

  • 1.
  • 2.
  • 3. 1988   1995   2000   2005   2010   Embarked  on  independent   research,  ini9ated  the  first   R&D   center,   generated   sales  of  RMB  1.5  billion.   Interna9onal  sales  exceeded  domes9c   sales   for   the   first   9me;   Selected   as   a   preferred   21Century   Network     supplier  by  Bri9sh  Telecom   Established   R&D   center   in   Bangalore   and   Stockholm.   USD   100   million   revenue   g e n e r a t e d   f r o m   interna9onal  markets  .     Achieved  a  USD  28  billion     revenue,  ranked  No.2  in   market  share  only  a?er   Eriksson.   Established   in   Shenzhen   as   sales   agent   for   Hong   Kong   company   producing   Private   Branch   Exchange   (PBX)  switches.    
  • 4. “It   is   only   a   problem   of   9me   that   Huawei   would   surpass   Ericsson   to   become   the   industrial   leader,   not   only   because   of   Huawei’s  growth  rate  (which  has  always  been   higher   than   Ericsson),   but   also   because   Huawei   has   a   much   broader   product   lines   ensuring   more   opportuni9es   for   business   extension  and  upgrading”.   “Huawei  is  no  longer  trea9ng  Ericsson  as  the   chasing   objec9ve   and   NO.1   compe9tor,   because   Ericsson   is   a   tradi9onal   telecom   equipment   supplier   specializing   in   mobile   services   but   Huawei   is   aimed   to   become   a   covering-­‐all   next   genera9on   ICT   company   with  a  huge  product  por^olio”   “Huawei   is   going   to   become   an   informa9on   services   provider   from   a   telecom  equipment  supplier”  
  • 5. 'Huawei's  new  Quid  way  routers   performed   very   well   in   the   stringent   tes9ng   environment   we  set  up”.     -­‐-­‐  Tony  Dann,  head  of  IP  test  and   evalua9on  at  BT  Exact     “We   are   delighted   that   it   has   everything   that   customers   expect   from   Vodafone   –   high   l e v e l   t e c h n o l o g i e s   a n d   excep9onal  value”   -­‐-­‐  Schulte,  Director  of  Vodafone     “This   pla^orm   allows   us   to   integrate   a   seamless   range   of   services   and   help   us   lead   innova9on   for   the   mobile   market  ”   -­‐-­‐Luis,   Director   of   Mobile   Business,  Telefonica  
  • 7. Product: Innovation and investment in R&D Places: Marketing Segmentation a n d A d a p t a t i o n G e o c e n t r i c Approach and Standardization Promotion: PR Transformation
  • 8. Half   of   the   employees   engaged   in   R&D,   an   extraordinary  high  ra9o   comparing   with   any   high-­‐tech  company.   R&D   expenditure   has   grown   steadily   and   has   been   keeping   a   10   percent  ra9o  of  its  total   revenue  every  year.   17   research   ins9tutes   across  the  world:  Silicon   v a l l e y ,   D a l l a s ,   Stockholm,   Moscow,   Bangalore,  Beijing…   42543   patents   issued,   ranking   NO.2   in   terms   of   patents   applica9ons   under   the   WIPO   Patent   Coopera9on  Treaty.   “ E x c h a n g e   Market   with   A d v a n c e d   Technologies”  
  • 9. §  Interna9onal  expansion  started   from  developing  coun9res  in   MENA,  South-­‐East  Asia,  La9n   America  and  then  sought  growth   into  developed  countries  including   EU  na9ons.   §  Adapta9on  appraoch  to  conquer   different  segmenta9ons.  In  less   developed  markets,  focuses  on   infrastructure  construc9on  and   end-­‐to-­‐end  turnkey  solu9ons;  For   developed  countries  and  highly   advanced  markets,  concentrates   on  bringing  excellent  and   innova9ve  next-­‐genera9ons   products  and  solu9ons  to  help   clients  decrease  the  costs.  
  • 10. Geocentric  Approach   Recognizing   both   similari9es   and   differences   and   developing  a  global  strategy  based  on  similari9es  to   obtain   scale   economies   whist   responding   to   cost   effec9ve  differences.     TM  TM  
  • 11. -­‐-­‐-­‐Newsweek   Zoom A  Global  Company     Without  Brand  Awareness   Huawei  started  from  a  strict  B2B  company   and  has  remained  its  main  business  in  B2B   area  9ll  today   Clients   are   limited   to   a   hand   of   telecom   operators   without   recogni9on   from   consumer  markets   CEO   is   an   extremely   low   profile   and   media   shy   person,   whose   personal   style   has   enormously   influenced   the   company’s  media  policies  and  strategies  
  • 12. New  business  strategy  to  branch  out   to   consumer   electronics   and   enterprises   products   transforms   the   company   from   a   pure   B2B   company   to   a   par9ally   consumer-­‐facing   B2C,   which   users   in   a   new   era   of   leadership  communica9on  style.     In  front  of  the  public  opinion,  Huawei  has   long  been  acted  as  an  ostrich  that  buried   its  head  in  the  sand.  I  can  personally  be  an   ostrich,   but   Huawei   cannot   afford   it   and   the   company   has   to   face   the   public                                                         -­‐-­‐-­‐  CEO  Ren  Zhengfei     It   is   impera9ve   for   the   company   to   con9nue   this   PR   and   corporate   communica9on   transforma9on   and   undertake   a   more   open,   dynamic   and   proac9ve   PR   strategies.