Chapter 13 Chapter 4: Breaking through the siege: Huawei's version of "Book, Sword, Enmity and Enmity" staged

The important embodiment of a country's economic development level is the enterprise, and the strength of the country is proved by the strength of the enterprise.In order to break the monopoly of foreign giants, the Chinese government began to encourage the development of national industries, and the "Great China" began to rise. Driven by the "Great China", China's communication industry was surging, and by the 1990s, a multi-legged situation had formed.They are actively regaining lost ground from multinational giants and regaining "half of the country" in China's communications industry.

The waves behind the Yangtze River pushed the waves ahead, some enterprises in the front fell down, and some new ones stood up behind them, and new forces continued to join in.The competition in the domestic communication market is becoming increasingly fierce. The reason why Huawei has not fallen is the result of years of battle and brutal fighting. Since the 1980s, in just 20 years, my country's communication market has entered a stage of great development, and has established the world's second largest communication network that runs through the whole country and connects the world, and the speed of development is "fast by leaps and bounds".

Foreign brands are flooding the Chinese communications market, and the Chinese do not have independent core technologies.This is not only related to the honor of the country, but also to the economic security of the country.In order to reverse this passive situation, the government began to pay attention to the development of its own brands and encourage the rise of national industries.Taking the opportunity of developing Wanmenji, Julong Information Technology Co., Ltd. was established in 1995.Subsequently, Datang, ZTE, and Huawei were established one after another, and for a while, the "Great China" galloped north and south.

It is said that the term "Huge China" was called out by Wu Jichuan, Minister of Information Industry.Coincidentally, the first words of the best companies in the field of communication manufacturing at that time - Julong, Datang, ZTE, and Huawei happened to be "Huge China".Later, this name spread, and leaders and media often called it "Great China" to represent the rise of the national communication industry. After the rise of the "Great China", they seized the development opportunity of "agricultural dialect" and took the road of "encircling the cities from the countryside".At that time, foreign manufacturers underestimated the situation in rural China, thinking that the rural economy in China was backward, profits were too small, and there was little room for profit in expanding the rural market, so they only focused on big orders in cities.Under the leadership of "Great China", domestic enterprises seized this gap and quickly regained "lost ground".Due to the rise of domestic manufacturers and increasingly fierce competition, the price of domestic program-controlled switches has dropped sharply, from $300 to $500 per line to $50.Under the leadership of "Great China", China's communications industry has sprung up and regained "half of the country" in one fell swoop.

With the successful development of Wanmenji, "Huge China" began to have its own independent technology and brand. They broke through the siege of foreign manufacturers and began to "resist".Since then, the pattern of "a huge China with four pillars supporting the sky" has been formed, and the "seven countries and eight systems" have completely become history.The era of our admiration for international giants is over, and now we can finally feel proud. Once upon a time, the "Great China" ruled the north and the south and "competed in the Central Plains".The vicissitudes of life, looking back suddenly, the "Great China" has changed.Due to system, technology, product, planning and other reasons, the fate of Huge China is completely different.Due to management mistakes, Julong withdrew from the Chinese altar, and only Huawei, ZTE, and Datang took up the banner and went to the distance.

A "cow" and a "wolf", ZTE and Huawei set up camp in Shenzhen Overseas Chinese Town, one in the east and one in the west.ZTE is Huawei's deadly rival. The two companies are located in Shenzhen Overseas Chinese Town, staring at each other with ulterior motives. The once-prosperous "Great China" is now the only two that are famous among domestic communication equipment manufacturers. Before 1998, ZTE was once far ahead in the access network market, and Huawei was far behind.However, within a year, Huawei had the upper hand. In the first half of 1999, Huawei's HONET achieved a decisive victory with sales of 220 million yuan, far exceeding ZTE ZXA10's 120 million yuan.

Wolves eat meat, cattle eat grass, this is their nature.In the wilderness, what would happen if a simple and honest cow meets a hungry wolf?What happens when the bull and the wolf get entangled? In 1995, the state issued a series of policies to support the development of the national communication industry.Domestic enterprises, especially the four brothers of "Great China" fought side by side and regained the "half of the country" monopolized by foreign giants.However, the crisis was resolved, and the four brothers began to fight each other.With the development of the "Huge China" that is truly competitive in the market, in many contract biddings, there are only two "enemies" left, ZTE and Huawei. In order to expand their respective market shares, the two sides turned against each other.

The usual confrontation is just a small fight, and the real "exchange of fire" between the two was in 1998. In 1998, in order to compete for the market, Huawei produced a comparison book of switch products that was "beneficial to Huawei but detrimental to ZTE", and sent a large number of them to target customers.When the ZTE people learned about it, they were very angry, "tit for tat", and also made a comparison book of power supply products.The contradiction was thus intensified.It is obvious that Huawei "compared" first, but Huawei preemptively took ZTE to court.ZTE is not easy to mess with, the two sides set up court in different places.In this way, the gladiatorial battle between "wolf" and "bull" began.

On July 1, 1998, Huawei took the lead in suing ZTE in the Henan High Court and Changsha Intermediate Court, suing ZTE for making a misleading comparison between "ZTE power supply" and "Huawei power supply". The technical indicators were inaccurate and violated Huawei's legitimate rights and interests. They demanded damages of 12 million yuan and 6 million yuan respectively. ZTE is not to be outdone. On July 27 and August 19, 1998, ZTE filed civil lawsuits in Henan and Changsha for the same reason, suing Huawei, its Zhengzhou office, and Changsha office in order to weaken the competitiveness of ZTE. Distributing "C&C08 and ZXJ10 technical comparison" materials and "HONET and ZXA10 main technical performance comparison" materials, intentionally made a misleading comparison between the two parties' different models of switches and access network products in the form of comparison, and belittled ZTE The business reputation and product reputation violated the "Anti-Unfair Competition Law" and demanded compensation of 15 million yuan and 7.5 million yuan respectively.

In addition, during the trial, ZTE requested an additional 5 million yuan in the lawsuit, and Huawei filed a counterclaim with a counterclaim of 22 million yuan (20 million yuan in the Henan High Court and 2 million yuan in the Changsha Intermediate Court). For these four lawsuits, the Henan Provincial Higher People's Court and the Changsha Intermediate People's Court have made judgments one after another.In the lawsuit in Henan, Huawei v. ZTE, ZTE lost the case and compensated Huawei for economic losses of 530,000 yuan; in the case of ZTE v. Huawei, Huawei lost the lawsuit and compensated ZTE for economic losses of 1.3 million yuan; in the lawsuit in Changsha, Huawei v. Compensation for Huawei's economic loss of 360,000 yuan; ZTE sued Huawei case, Huawei lost the case, and compensated ZTE for 505,000 yuan of economic loss.

So far, ZTE people still have faint anger when they mention this lawsuit: "Huawei was the first to provoke it, but in the end he sued the wicked first. We had no choice but to countersuit." The result was fair, and Huawei was fined. More, ZTE people have found some psychological balance. Interestingly, some media commented on this matter, and even made a fuss about the name of the leader: "Hou Weigui regards peace as the most important thing, and Ren Zhengfei does not distinguish between right and wrong." Hou Weigui has always been puzzled, why did Ren Zhengfei sue him?Ren Zhengfei just wants to take the opportunity of attacking his opponents to increase his popularity. "Borrowing the situation", Ren Zhengfei understood it very deeply, but it made Hou Weigui very painful. In response to these lawsuits, some media commented: "The grievances between ZTE and Huawei cannot be resolved with a few lawsuits. The lawsuits can only intensify the confrontation between the two sides. Price competition is the key to the conflict between ZTE and Huawei. However, the litigation battle is nothing more than the outbreak of long-standing conflicts between the two sides on various fronts such as marketing, publicity, and talents.” Why is there such a big difference between the two?It stems from the difference in personality between the two leaders.The different personalities of Ren Zhengfei and Hou Weigui have created different corporate cultures, and different cultures have created different corporate personalities.Due to cultural differences, the friction between the two will continue. Hou Weigui is a typical Eastern entrepreneur, but he is actively learning from the West; Ren Zhengfei is closer to Western entrepreneurs, but he understands the wisdom of Easterners better. Hou Weigui has always been a modest person and seeks stability in his work. In 1984, he and a few technicians came to the barren Shenzhen to start a business. After suffering all kinds of hardships, he made a breakthrough.Therefore, Hou Weigui has always wanted to make this enterprise more stable, relying on his excellent technology to conquer the world. Ren Zhengfei is a big boss, carefree, and manages Huawei in an army style.He was born with a business mind and a strong sense of crisis. He always shouted: "How long can Huawei's flag last?" Regardless of whether Hou Weigui is willing or not, as long as soldiers go to the battlefield, they will fight.What's more, if you encounter a "wolf" like Ren Zhengfei, you can't even back away. What I hear the most in Huawei are some very stimulating words such as "spirit of struggle", "speed", "sprint", "break the boat", "survive", "self-criticism", "reborn", "be a new person" and so on. .In Huawei, the rules are very strict, and everything speaks according to the system.It is said that once when Ren Zhengfei went to work in the company, he forgot to bring his work badge, and spoke a lot of good things to the guard, but he would not let him in.For this reason, Ren Zhengfei was very moved, and specially praised the employee. Hou Weigui, the president of ZTE, has the gentleness of an intellectual and the rigor of an engineer. He is gentle and unassuming, and he is respected and loved by ZTE people. In ZTE, employees seem to be more "home".Everyone dressed casually, spoke slowly, and the whole office area was full of joy and harmony.It's different in Huawei. Most of the employees are dressed in business attire, smart, capable, and agile.In the words of ZTE people, the eyes of Huawei people are always shining with the light of wanting to grab the market. In the battle for the market, ZTE often seems to be in a passive situation.ZTE people seem to be better at doing technology, and lack more tactics to deal with the market.In the process of grabbing the market, Huawei people have a keen sense of smell, and it can be said that they have gone to great lengths to grab customers.ZTE people said: "One time, our foreign customers came. People from Huawei didn't know how they got the news, so they pretended to be people from ZTE and went to the airport to snatch the customers. Fortunately, we found out quickly and rushed to the airport. go up." Hou Weigui likes to authorize, and Ren Zhengfei likes to centralize power.Therefore, people in the industry said: "If you see a group of people appearing, it must be from Huawei, and if you are alone, it must be from ZTE." Endless "Game" Both have the same ambitions, goals and ability to approach, which sets the tone of their rivalry.Their peers are enemies. Their early competition was mainly at the product level. For a long time at first, ZTE was in the leading position, but in 1995, Huawei started the leading stage by virtue of its Wanmen mobile phone half a year earlier than ZTE.Later, both companies implemented diversification and developed into multiple fields.Up to now, they have had direct competition in only a few fields, and in most fields, the two "brothers" basically have no competitive relationship.Their competition has risen from a specific product or a certain market to competition on the overall scale of the company. In terms of scale, the rapid expansion of the gap between the two mainly occurred between 1996 and 2000. In 2000, Huawei's sales were more than twice that of ZTE.Beginning in 2001, ZTE began to reverse the adversity, and the distance from Huawei became smaller and smaller. On the one hand, the two companies are tied in terms of technical strength; on the one hand, the gap in sales scale is getting wider and wider;With the weakening of the relationship between the two companies and the intensification of the opponent's atmosphere, when no obvious breakthroughs can be found in various aspects such as products, technology, marketing, and management, the two companies will show their final cards - "price tug-of-war" . It is said that in India's CDMA450 bidding in 2003, the two companies dismantled each other, and finally had to decide the outcome based on "whose price was lower". As a result, both parties suffered losses to varying degrees. In 2005, in the bidding in Nepal, the two companies fought fiercely. In the end, ZTE won the contract for the construction of a 1 million-line GSM network at a price of US$3.9 million, which was really reduced to below the cost.When will there be an end to fighting like this? The competition between Huawei and ZTE is "competition in the same city". "Competition in the same city" and incidents of suppression are common among Chinese companies. Similar incidents have occurred between Galanz and Midea, Macro and Wanhe, Haier and Hisense, Meiling and Royalstar, etc. At any cost, by any means, to get rid of it and then quickly.But this is not a good thing, being fierce like a wolf to the opponent is not beneficial to oneself.The right way is to live in the same city, live in peace, and achieve a win-win situation. The lawsuit between ZTE and Huawei was first provoked by Huawei. Huawei was originally at fault, but Huawei's purpose was to attack its opponents and increase its popularity.This also reflects the different characteristics of "wolf culture" and "bull culture" from the side.Wolves will not give up until their goals are achieved, they will do whatever it takes to achieve their goals, and love to take risks; cows are honest and honest, mature and stable. Thousands of years ago, Athens and Sparta on the Greek peninsula could not understand each other. The two sides were constantly fighting each other, and the serious internal friction caused serious damage to their vitality. . "Cooking beans burns Osmunda, and the beans weep in the cauldron. They grow from the same root, so there is no need to fry each other." In the same city, as brothers, competition is necessary, but what is more important is solidarity and mutual assistance.Why don't the two brothers unanimously open up a world together? In 2000, Li Yinan, who was once the youngest vice president of Huawei and possessed the power of "kicking a dead cow with one kick", started his business in the north and founded Harbor Network in Beijing.Ren Zhengfei's right-hand man, trained by himself, began to embark on the road to compete with Huawei. Speaking of Li Yinan, Ren Zhengfei admires him from the bottom of his heart, and the relationship between the two is as close as father and son.But people have to ask, why did it create the embarrassing situation today.Their grievances have to start with Li Yinan's entry into Huawei. Li Yinan, born in Hunan in 1970, was admitted to the junior class of Huazhong University of Science and Technology at the age of 15. In 1992, Li Yinan went to Huawei for an internship. At that time, he was only a second-year master student at Huazhong University of Science and Technology. During the internship, Li Yinan's technical talent left a deep impression on Ren Zhengfei.After graduation, Li Yinan chose to go abroad, but encountered a little trouble in applying for a visa.At this time, Huawei found him through his school teacher and tried his best to persuade him to join Huawei. In June 1993, he joined Huawei. Ren Zhengfei insisted on eclectic promotion of talents based on business capabilities, and 23-year-old Li Yinan quickly became the apple of his eye: within two days, he was promoted to an engineer; two weeks later, he solved a technical problem and was hired as a senior engineer; Excellent, he was promoted to the deputy general manager of Huawei's central research department; two years later, he made outstanding contributions to the development of C&C08 million digital program-controlled switches, and was promoted to the president and chief engineer of Huawei's central research department; four years later, at the age of 27, he jumped Become Huawei's youngest vice president.Li Yinan created an improvement record in Huawei that no one has ever broken through. From 1996 to 1998, Li Yinan was in his prime.Under his leadership, Huawei's research and development efficiency has been greatly improved, and a series of advanced technical equipment has been successfully developed.His outstanding technical talents brought Huawei into an unprecedented "golden age", and Huawei finally "captured the city". Li Yinan gave full play to his technical talents and led the R&D personnel to develop dozens of technological achievements with world advanced level and high commercial value.At the same time, Li Yinan revealed an amazing insight into future technological trends, and Huawei's internal employees couldn't help but marvel: "Li Yinan's every move will affect Huawei's development direction." In 1998, the smug Li Yinan was preparing to show his ambitions again, but was suddenly transferred from the Central Research Department to be in charge of the product department of the marketing department.Li Yinan is a technical genius, and this transfer is not suitable for him at all, and he is not willing to accept it.In Ren Zhengfei's view, this is just a normal transfer. He hopes that Li Yinan can step out of research and development and go to the market. He also hopes that this training will make him more mature and take on more important positions in the future. Li Yinan began to fade out of the eye-catching sight and was left out.The huge gap made him unable to balance his mind. He began to feel that Huawei had come to an end, and he felt extremely disappointed and frustrated.So the idea of ​​going out to start a business was born. Regarding Li Yinan's psychological imbalance, Ren Zhengfei did not have a good psychological communication with him, and Li Yinan did not understand Ren Zhengfei's good intentions, which planted the seeds for Li Yinan's departure later. At the beginning of 2000, Li Yinan formally submitted his resignation to Ren Zhengfei after successively serving as the president of Huawei Electric and the director of Huawei's US Research Institute.Surprised, Ren Zhengfei tried every means to retain him but used the wrong method, which further strengthened Li Yinan's determination to leave. People's self-worth cannot be realized, and leaving may be the best choice.Li Yinan finally chose to leave, and his efforts won Ren Zhengfei's consent. In December 2000, Ren Zhengfei led all the director-level and above leaders of the company to hold a grand farewell party for him at Shenzhen Wuzhou Hotel. Li Yinan left Huawei and went north to Beijing with more than 10 million yuan from Huawei's equity settlement and dividends. At the end of 2000, he founded Gangwan Network Company. Gangwan encountered a "winter" in the telecommunications industry when it first started its business.Li Yinan is worthy of being a technical genius. He quickly narrowed his front and concentrated his efforts on the data communication business.The rapid development of China's Internet business and the exponential growth of Internet users have brought huge business opportunities for the data communication business. At the same time, Cisco is the only company in the data communication field, and it is relatively easy for latecomers to enter. Under Li Yinan's careful management, Gangwan became famous.Harbor's annual R&D investment accounts for 12% to 15% of the overall sales, and R&D personnel account for more than half of the total number of employees. The high investment has yielded fruitful results. From 2001 to 2003, Li Yinan launched a number of top technological achievements in the industry by virtue of his technical talent.Gangwan claims: "The most widely used and most mainstream products in broadband network construction are 12 to 18 months ahead of major domestic competitors." Because Li Yinan is a technical genius, the pioneering technology developed by the leader of the harbor has made great achievements in succession, and it has developed rapidly in the three years from 2001 to 2003. growing at a double rate. Harbor has successfully applied Huawei's strategy, tactics and business philosophy, hence the name "Little Huawei".Li Yinan is eager to start a business successfully, and is not satisfied with just being a distributor of Huawei. He has greater ambitions and is eager to create his own world. The communication industry is an industry that spends money, and financial pressure is the bottleneck of the harbor.Li Yinan's "Huawei background" and the title of "Genius CEO" who led Harbor's extraordinary development are deeply favored by venture capital. From 2001 to 2003, Harbor received a total of US$116 million in funding from several institutions including Warburg Pincus of the United States and Longke Venture Capital under Shanghai Industrial. Li Yinan seems to be too optimistic, did not expect the crisis that is quietly coming.The 2004 sales target formulated by Harbor is 2 billion, and they believe that it will not be difficult to achieve this target. In the first three years of starting a business, the scenery in Hong Kong was good, but in comparison, Huawei was a bit bleak.Huawei invested heavily in 3G R&D and could only wait for it. It even accidentally failed in the CDMA bidding of China Unicom, neglecting PHS, allowing its old rival ZTE to narrow the gap, and even provoked Cisco's "lawsuit of the century." But "ginger is still old and hot", Huawei still has a strong strength to make a comeback. Later facts show that ignoring Huawei will incur a heavy price. In the end, the development of the matter surpassed the consideration of the two people and went to the other extreme. In 2003, Gangwan's annual sales revenue reached 1 billion yuan, posing a threat to Huawei, and the conflict between Huawei and Gangwan finally broke out.As far as the old club is concerned, they will never tolerate their former buddies threatening their status, and suppression is inevitable. In 2003, it entered into a joint venture with 3Com of the United States. In 2004, the lawsuit with Cisco ended. Huawei was finally able to free up its hands. Under the leadership of Ren Zhengfei, Huawei has set up a "Hong Kong Fighting Office". For Huawei's marketing personnel, as long as there is a bidding with Hong Kong's participation, no matter how low the price is, it must be successful, otherwise they will automatically leave and the two sides will compete. The extent of the tragedy has been fully disclosed. After entering 2004, Gangwan began to experience "growing pains": competition became increasingly fierce, competitors continued to squeeze, and employees left.The growth rate of Gangwan’s revenue has slowed down significantly. In 2004, the contracted sales amounted to 1 billion yuan, with a growth rate of zero; in addition, incidents of false accounts and anonymous emails also hit Gangwan from time to time. process. Entering 2005, Hong Kong continued to be suppressed by Huawei, and its prospects were bleak.There is no hope of going public, low morale, and suffering from rumors that funds are tight.In March 2005, there were signs of a turning point in Gangwan. Li Yinan successfully persuaded venture capitalists to invest more, and TVG Investment led Masek Holdings, Warburg Pincus and Longke Investment, the original shareholders of Gangwan, to inject another US$37 million into Gangwan. See the dawn of listing. However, the situation suddenly changed. On September 2, 2005, a letter was sent by Huawei and finally arrived at Harbor Law Department.The letter is very simple, the main content is less than 1,000 words, but the wording is quite strong, asking Harbor Company to explain the intellectual property infringement of many Huawei products as soon as possible. If not, it does not rule out resorting to law. Huawei sent a lawyer's letter to Gangwan, and the listing of Gangwan has suddenly added variables, and the competition between the two companies for several years has become open.An industry insider said that no matter what the outcome is, from the perspective of the general laws of business operations, the development history, operation, and competition strategy of Huawei and Harbor Bay will all leave a strong mark on the MBA teaching plan. In 2005, Huawei put pressure on intellectual property lawsuits, which resulted in the failure of the major asset transfer agreement between Harbor Network and Siemens. Unlike Mengniu back then, Gangwan did not get rid of the fate of being acquired by Huawei in the end. On June 6, 2006, Huawei and Gangwan Network jointly announced that Harbor Network had decided to transfer some assets, business and some personnel to Huawei, and the transferred assets and business included routers, optical networks, integrated access assets, personnel, and business and all intellectual property rights related to the business.This also means that Huawei and Harbor have now "reconciled" after years of "grievances". On May 10, 2006, Ren Zhengfei and Li Yinan met in Hangzhou, the headquarters of Huawei 3Com.This meeting led to a memorandum of cooperation between Huawei and Harbor Bay. The story comes to an end for the time being, and the ending is: In May 2006, Huawei acquired Harbor in the form of acquisition. Recalling the original competition, Ren Zhengfei blamed Western venture capital. "The instigators are Western funds. After the fiasco in the IT bubble burst in the United States, these funds turned to China to hollow out Huawei and steal the intangible wealth accumulated by Huawei to get out of their predicament." However, Hong Kong and Huawei later became rivals, which was probably unexpected by Ren Zhengfei and Li Yinan. Some people say that Li Yinan's departure was related to Zheng Baoyong, the executive vice president of Huawei at the time, and the conflict between the two intensified, which led to the tragedy.In Huawei's "Management Optimization News", Ren Zhengfei admitted that he did not properly coordinate Zheng Baoyong and Li Yinan, which led to the deterioration of the conflict between the two, and he was the most responsible leader.Ren Zhengfei gave himself a C grade for this, and also gave Zheng Baoyong a C grade.However, this is not the main thing.The dispute between Li Yinan and Zheng Baoyu is more about the differences in the company's business and technology, and Ren Zhengfei is the most critical. In Huawei, Li Yinan and Zheng Bao used Ren Zhengfei's "right-hand man" to make great contributions to Huawei's development.If Zheng Baoyong completed the deployment of "surrounding cities from rural areas" for Huawei, then Li Yinan brought Huawei into a "golden age" of technological development.The appearance of the two of them made Huawei get rid of the low grade and establish a high-tech grade. The occurrence of this incident cannot be blamed on Zheng Baoyong, and Ren Zhengfei should bear greater responsibility.Here, the shortcomings of Ren Zhengfei's patriarchal management are highlighted.Ren Zhengfei likes to engage in the "Going to the Mountains and Going to the Countryside" movement and advocates "Phoenix Nirvana", but this is not suitable for Li Yinan.He is a technical genius, and his skills in dealing with people are not high.Ren Zhengfei should make different employees find their own place, and should not be too obsessed with sports.For Zheng Baoyong and Li Yinan, he should find the right position for them, cooperate with each other, and work for Huawei.However, he did not do so, and tragedy was inevitable. The fate of Harbor also reflects the cruelty of Huawei's wolf nature.The wolf pack is expanding, and the new wolf pack will lead the team to build another wolf pack to compete with the old wolf pack for territory, and will be mercilessly wiped out by the old wolf pack. In 1995, Huawei began to enter the program-controlled switch market.At that time, it did not have its own core technology and had little competitiveness, while Shanghai Bell was already a leader in this field, occupying a large share in the Chinese market.After Huawei developed the Wanmen machine, it has a veritable "lethal power", so it naturally pointed the finger at Shanghai Bell. At the beginning, Huawei's Wanmen phone was not perfect, far inferior to Bell's S1240. Huawei's image at this time was also far inferior to Shanghai Bell, and it could not compete with it head-on.Therefore, it adopted a roundabout and outflanking tactic-first capture the rural market, as well as the backward provinces and cities in the northeast, northwest, and southwest.In these "poor" markets, Huawei made a big publicity campaign of the V5 interface, using the HONET access network to counter Shanghai Bell's remote access module.At the same time, profit margins are used as subsidies, and low prices are used as a strategy to provoke vicious price-cutting competition.Adopt the low-price strategy, occupy the rural market with the absolute low price that Bell can't reach, and then compete for the market share in the city, and gradually reduce the profit margin of Shanghai Bell. In 1999, when Huawei entered Sichuan, Shanghai Bell's market share in Sichuan was 90%.At first, Huawei didn't mention sales, and took the initiative to give its own access network to customers for free, so as to spread points on the Internet in various parts of Sichuan, and opponents ignored Huawei's small actions.Immediately afterwards, Huawei grabbed the newly added access network and gradually connected the dots into a plane. After making breakthroughs, Huawei took the opportunity to extend the advantages of the access network to switches.In the end, the two systems of Huawei and Shanghai Bell were neck and neck, and Huawei seized more than 70% of the newly added market in Sichuan. In 1998, Huawei's sales surpassed Shanghai Bell for the first time, ranking tenth in the top 100 electronics companies with 7.18 billion yuan. In 1999, it ranked tenth again with sales of 10.2 billion yuan, further consolidating its leading position relative to Shanghai Bell. Subsequently, with the launch of the "Broadband Metropolitan Area Network", Huawei continued to expand the strategy of "encircling the cities from the countryside" and began to aggressively enter the data communication market.Huawei positions itself as an advocate of "Broadband Metropolitan Area Network" and has successfully established a taller image in the minds of operators. In this field, Shanghai Bell has no ability to compete with it. Nortel Networks is a well-known communication equipment manufacturer in Canada.Its large-scale queuing machine (large-scale call equipment used in paging stations) has the largest market share in the world. Its products are mature in technology and stable in performance. It has been entrenched in the Chinese market for many years, "as stable as Mount Tai". In 1997, Huawei and Nortel began to confront each other head-on.Huawei's product performance has no obvious advantages, but Huawei is good at discerning the details. After? ?After careful research, it was found that Nortel's technology research and development is all located abroad, and all equipment is imported from abroad. Once a problem occurs in the equipment and technical support is needed, it is difficult for technical experts to arrive in time.Huawei quickly grasped Nortel's weakness: slow response and unable to provide high-quality services. Taking advantage of this disadvantage of Nortel, Huawei has set up a flexible and fast response mechanism to serve customers and deploy customers' strategic advantages.If the customer has any urgent needs, Huawei's technical personnel will rush to the scene in the shortest possible time to solve the problem for the customer as soon as possible.In this way, Huawei has raised its product competitiveness to a higher level by providing customers with efficient after-sales services. However, Nortel will not let it go, it is actively preparing for a new round of battle. In 2006, after Nortel CEO Mike Zafirovski took office, he redeployed the global layout and added R&D centers in Beijing and Guangzhou. In April 2007, the first global operation center of excellence in Asia was established in Shanghai, and the supply chain center was also moved to China. In September 2006, Nortel sold the UMTS division to Alcatel-Lucent and threatened to prepare for 4G. It seems that Huawei also has to prepare, and win the market in constant fierce battles before it can gain a firm foothold. As an established communication company, Lucent has the highest market share in the global call center business, and it also ranks first in China's non-communication market.In the non-communication field, Huawei is still in its infancy. In 2000, Huawei already had considerable weight in the domestic market, and a head-on confrontation was inevitable. Lucent maintains close cooperation with some top world companies in the technology field, and most of its customers have been using its products. It is not easy for Huawei to get involved. In 2000, the head office of the Bank of China established a nationwide call center, and the contractor was IBM. Lucent has cooperated with IBM and the Bank of China system for many years.In the eyes of outsiders, of course Lucent was the winning bidder. How could IBM accept Huawei casually? In order to win the contract, after careful planning, Huawei decided to focus on attacking its opponents from the aspect of customer relationship, and use the strategy of customer relationship to attack Lucent.Huawei sent the backbone of the company to carry out public relations activities in various places.After arduous and tortuous negotiations, Huawei finally settled the most critical link - the customer.A Huawei person who participated in this operation said: "We found the head of the Bank of China and did some work, but these jobs can be put on the 'desktop'. Although it was very difficult, we finally Still captured the head office." Using this tactic, Huawei pressed hard everywhere, and never let go of every project. As a result, Lucent lost ground in the Chinese market.Lucent's market in China has been seized by Huawei on a large scale. In hundreds of confrontations, almost all of them ended in failure.