Chapter 50 Focus on operating strategic industries

Ren Zhengfei said: "Many companies collapse not because there are few opportunities, but because there are too many opportunities and too many choices. Too many traps disguised as opportunities make many companies fall into the wrong place and cannot extricate themselves. Opportunities are hot strategic resources. However, not all strategic resources can be developed into strategic industries. Some strategic resources can form strategic industries, and some strategic resources can only provide themes and imagination space for capital operation and strategic alliances, but are not suitable as a strategic industry to operate."

To this end, Ren Zhengfei wrote the "Huawei Basic Law" focusing on strategic industrial management. Article 1 of the "Huawei Basic Law" stipulates: "In order to make Huawei a world-class equipment supplier, we will never enter the information service industry. Through the transmission of market pressure without dependence, the internal mechanism will always be activated." This article says What was included has always been a mystery. Wang Yukun, a well-known management expert and director of the Entrepreneur Research Center of Peking University, summed up the Huawei model and believed that only those strategists who are particularly calm will not be led away by impulsiveness and fanaticism, and will avoid those traps disguised as opportunities .Chinese enterprises do not have many strategic resources, and strategic mistakes will cause the loss of the most valuable strategic resources.

Ren Zhengfei has enough self-knowledge. He knows how to distinguish a trap disguised as an opportunity from an opportunity disguised as a trap.Business is a game of human nature. Without a businessman who truly understands the essence of human nature, it is impossible to control human nature and become a banner.A banner must be lonely, and not being lonely is not enough to make a banner.Ren Zhengfei's incomprehension just shows that he has reached a new height.If you only stand at a place you are familiar with and look far away, you will not be able to experience the value of that height anyway.It is no wonder that scholars who are well-versed in both Chinese and Western cultures and young and keen journalists cannot touch the depths of Ren Zhengfei's heart.

Huawei sticks to the strategic industry of communication equipment supply. In addition to a need to maintain high pressure in the company's operations, it also lays the foundation for forming more strategic alliances.Business competition is sometimes very strange. In order to exclude potential competitors, it doesn't matter how much money is spent.In the monopoly industry of communication operations, you can get a small part of the revenue in one area, but in more areas, operators will close the channels you cut in.Ren Zhengfei understands the weakness of human nature and guards Huawei's long-term strategic interests.

Ren Zhengfei once joked to himself that ignorance made him fall into the most fierce competition field of communication equipment, a natural global power, and his competitors were world-renowned companies with tens of billions of dollars in assets.The rules of survival in this arena are simple: you must focus on strategic industries. Wang Yukun believes that sticking to strategic industries makes Huawei permeated with a particularly strong pressure field, so that employees who are weaker will choose to leave, and even choose extreme ways to end their lives.Sensitive media will take every opportunity to ridicule Huawei, but Ren Zhengfei remains unmoved.Without market pressure, there would be no Huawei.He hopes that through the transmission of market pressure, the internal mechanism will always be activated, sensitive and active.