Chapter 21 Break through Europe and enter North America

For a long time, the global communication equipment market has been dominated by world giants such as Ericsson, Nokia, Motorola, Cisco, Lucent, Siemens, and Alcatel.But today, a company from China—Huawei, is striding into this field.Huawei can be seen in every part of the world, and it makes the world's telecom giants sleepless. In 2008, when the global economy encountered a "cold snap", Huawei still achieved steady growth, an increase of 46% over 2007, of which the contribution from overseas markets accounted for 75%.Overseas, Huawei's contracted sales in the European market were US$2.84 billion, an increase of 42% compared with the same period in 2007, and a 58% increase in North America. Other regions also maintained stable and rapid growth.In the midst of the global economic crisis, Huawei has achieved fruitful results in the European and American markets. It is precisely because of Huawei's grasp of the future development trend of communication technology that Huawei's harvest in the European 3G market has grown by leaps and bounds.

With the rapid development of the 3G market, the European market has also become the main source of Huawei's income. In January 2009, Zhou Mingcheng, Marketing Director of Huawei Europe, said in an interview with reporters that the European market is of strategic significance to Huawei, and Huawei plans to invest more in this region.However, despite its success in the European market, Huawei only achieved a sales revenue of US$100 million in the US market in 2007. Industry analysts pointed out that an important reason for Huawei's substantial revenue growth in the European market is WCDMA. In Europe, Asia Pacific, Latin America and other WCDMA fast-growing markets—it is also the traditional dominant market of Ericsson, Nokia, and Siemens. Manufacturers competed for a lot of shares.Taking Europe, the world's most important WCDMA market, as an example, Huawei's WCDMA base stations and core network equipment have successively entered the subsidiaries of the world's largest WCDMA operators in several developed countries in Europe since 2006, including Vodafone in Spain, France Telecom in Belgium, etc. local company.

The nine-story platform starts from the pile of soil.Huawei's breakthrough in the Nordic LTE market is also based on Huawei's extensive early cooperation with European operators in the wireless field. Tan Zhu, Director of Marketing and Engineering Department of Huawei, told the reporter: "In the process of communicating with European operators, our feeling is that whether it is Telenor, Vodafone or France Telecom, the first criterion for selecting a supplier is trustworthiness. Credibility here refers not only to the product, but also to whether the supplier is trustworthy. The second is the competitiveness of the solution. The last is the delivery and service capabilities.”

The establishment of a joint R&D center is a platform for Huawei to deepen cooperation with European operators. Ragnar Kahus, CEO of Telenor Norway, said: "Huawei was chosen because Huawei has extensive experience in large-scale network relocation and can guarantee technical quality and reliability. Another important reason It is Huawei and Telenor who have established a joint innovation center, and on this exciting platform, we can work more closely together to develop future services and networks, while further enhancing our position as a leading mobile operator." The European market is not only one of the earliest regions where Huawei tried to build a joint R&D center with local operators, but also the region with the most intensive joint R&D centers.For example, with Vodafone alone, Huawei has established four joint R&D centers for mobile, network, software and core network.In addition, in Europe, Huawei also set up its only product management department in the world to better meet the unique needs of European operators for products and solutions.

Yu Chengdong, Huawei's vice president in charge of marketing and strategy, told reporters that in 2010, Huawei signed orders for more than 5 million smartphones, and has shipped more than 3 million units so far.The proportion of mobile phone business in Huawei's terminals will continue to increase in the future. It is estimated that Huawei's smartphone shipments in 2011 will exceed 12 million. In 2010, Huawei shipped 120 million terminals throughout the year, a year-on-year increase of more than 30%, and its business sales revenue was US$4.5 billion.Huawei's terminal sales accounted for 16% to 17% of Huawei's overall sales.Huawei's global market share of mobile broadband terminals has reached 55%, ranking first in the industry for three consecutive years; the cumulative shipment of 3G wireless routers MobileWifi (E5) has exceeded 3 million; CDMA mobile phones rank third in the world.

Huawei began to guide SingleRan in 2008, and began to form a market scale in the fourth quarter of 2009. It used a network of 2G, 3G, and LTE to transform the previous single 2G network and 3G network, and supported LTE at the same time.Huawei also seized this opportunity. In 2009, it won contracts with more than a dozen major networks in Western Europe.This was also unique in the past. In terms of IP business, after selling Huawei 3Com, Huawei's IP business weakened for a while, but in 2010, Huawei seized the opportunity of IP network transformation and won the IP transformation of several big T (global large operators) in Western Europe. In terms of IP microwave, Huawei also has a market share close to 50%.

In the field of terminals, Huawei seized the opportunity in the 3G data card era that began in 2007, and is currently the manufacturer with the largest market share.In the current development stage of 3G smart phones, Huawei is currently facing new challenges, but also a new opportunity. Yu Chengdong believes that Huawei starts from every development node and opportunity it faces. In essence, it does not simply win by cost, but more importantly, it helps operators and users solve practical problems.He said bluntly: "Like the early Chinese equipment manufacturers who just arrived in Europe, they didn't trust us, and they couldn't even send them out. If they gave less, others would not want it, and if they gave too much, others would not dare to take it. Only by leading technology and good quality. Services, relying on distributed base stations, we have really entered Europe."

Regarding Huawei's progress in the North American market, Yu Chengdong said frankly that Huawei's terminals in 2010 developed well in the North American market, but it is still seeking breakthroughs in the field of network equipment.There are two core reasons. One is the influence of Sino-US relations and political reasons, and the other is that Huawei still needs to improve its market operations. When talking about the competition currently facing Huawei in the North American market and the European market, Yu Chengdong said: "Compared with the North American market, the European market is relatively open. And in the European market at that time, my predecessor Xu Wenwei made a great contribution, Europe has sent strong cadres. In the North American market, Huawei did not seize the precious time when it was relatively less affected by political factors in the past. If we had seized the opportunity at that time, we may have become the leader As a major supplier, many problems can be easily solved, but now when we are easy to be noticed in terms of scale, it is more difficult to enter. However, Huawei will still work hard to enter the North American market. Huawei is a transparent and open company without any background. , A company that pays attention to information security, Huawei's products have undergone the most stringent security tests in Europe, and respect local laws and security requirements."

It is understood that Huawei's strategy to enter the North American market in the future, in addition to actively striving for and working hard in network equipment, has entered the North American market in the fields of terminals and access products, directly facing the competition of local companies, and forming a large scale.In terms of publicity and public relations, Huawei is also reflecting on this issue: In the past, Huawei's thinking was to reduce publicity and focus on doing things in a low-key manner, but the concept of the North American market is different from ours.The Western approach is that if you remain silent and do not respond, you agree. Huawei will then increase its services, products and public relations in the North American market.

After Huawei breaks through Europe and enters the North American market, although it will face the incentive competition with local North American companies, but with the collapse of Nortel and the sale of Motorola's wireless network business, only Cisco and Hewlett-Packard among North American local companies are competing with Huawei in the enterprise network. , and entering the ICT (information and communication technology) field from a traditional CT (communication technology) supplier will be a valuable opportunity for Huawei to gain market and success.Huawei will give full play to its own advantages and seize the opportunity to seize territory in North America and expand its territory.