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Communication manufacturing industry: taking advantage of internationalization to seek the road to rise

the steady growth momentum of the global telecommunications market has laid the foundation for the rapid growth of ZTE's overseas business. In the performance announcement issued by ZTE, several groups of figures are particularly noteworthy: first, ZTE's experimental machine is mainly used for Fatigue Inspection of contact parts of electrified railway. In 2007, the annual operating revenue reached 34.777 billion yuan, a year-on-year increase of 50%; Second, in ZTE's performance, the proportion from the international market increased to 57.77%, an increase of 13.35 percentage points over the same period last year. This shows that ZTE is constantly winning new markets and new operator customers with great overseas potential, and has realized the rapid increase of market share

to this end, Yangqing, deputy director of the Institute of communications and information of the Telecommunications Research Institute of the Ministry of information industry, invited Lei Zhenzhou, deputy director of the science and Technology Commission of the Telecommunications Research Institute of the Ministry of information industry, and Liu Peng, deputy general manager of ZTE, to jointly participate in the dialogue on the theme of "taking advantage of the trend to internationalize, the rise of China's manufacturing industry in the world", hoping to provide reference for the internationalization of Chinese manufacturing enterprises

preliminary completion of international layout

"in 2007, ZTE completed the layout of the international market," said Liu Peng. ZTE now has 98 overseas offices, covering 135 countries, and 8000 employees engaged in international sales. At the same time, the localization rate of ZTE, that is, the localization rate of attracting local foreigners or localization employees, has reached 65%. In his opinion, if only 10%, 20% or 30% of the employees join the localization of the enterprise after the enterprise "goes out", but not more than 60%, then the localization of the enterprise will not end, and the enterprise will not be able to fully integrate with the local culture. This is also a very important feature of enterprise internationalization

ZTE has continuously improved its global R & D system layout. Now it has set up 16 R & D centers worldwide, including 3 in the United States and R & D centers in France, Sweden, India, Pakistan and other countries. At present, ZTE has more than 50000 employees, and 16000 R & D personnel, who are engaged in R & D work in different regions of the world. In February, 2008, ZTE applied for 12000 patents

according to Liu Peng, one of ZTE's products with the largest share in the wireless communication field is Unicom CDMA, which has ranked first in the global shipment volume for two consecutive years. In IDC's third-party reports, ZTE ranks second in the world in terms of comprehensive strength. In 2007, ZTE's GSM product shipments reached 340000 carrier frequencies, accounting for 10% of global shipments. This is a very important sign, which means that ZTE will have enough market share to support 3G in the future evolution to WCDMA

in terms of access products, ZTE ranks first in the world in terms of ADSL shipments. At the Athens Olympic Games, ZTE used ADSL to provide all broadband services. In addition, there are several businesses ranking high. ZTE ranks the sixth in the world in terms of shipment volume, the third in terms of new market share of GSM products and the fourth in terms of optical transmission products

Lei Zhenzhou said that it has been 23 years since ZTE started as an unknown small company, and now it has developed into a company that can compete with the world powers. It is really not easy. This year, ZTE and other enterprises have made new achievements, especially in overseas markets, which are hard won. There is still a long way to go in the future. I hope ZTE can always maintain such an enterprise style. I believe the internationalization road will go further and better in the future

the foundation of success has its own characteristics

when talking about the foundation of international success, Liu Peng stressed that ZTE's success in "going global" benefited from the support of the domestic market

first of all, many people in China are concerned about the rise of ZTE, a national enterprise, which is a very important foundation. For ZTE, there are many success factors, and the main factors can be summed up in two

the first is rapid response. In fact, this is the root of ZTE's success. For example, some international operators put forward their demand the day before yesterday. ZTE's service personnel began to visit customers at 8 o'clock in the morning, which surprised the customers, because the employees of foreign enterprises just told the customers what to do. This is ZTE's rapid response to the service

the second is continuous innovation. Gota independently developed by ZTE is the world's first new generation trunking communication product based on CDMA technology, representing the development direction of digital trunking technology in the future. Although Alcatel lucent does not adopt such a standard, gota is now widely used in more than 20 countries around the world. On the one hand, ZTE's innovation has its own patent, which is just a test block of property right surface, which can set obstacles for others. However, it is more about the innovation of some applications. Because many technical standards such as TD-SCDMA, GSM, WCDMA and transmission have long been formulated abroad, ZTE needs to innovate in business

"if our strength in the communication field is not enough, 'going global' is empty talk.", Leizhenzhou said. "Going out" depends on products, quality and technology. From 1992 to now, China's equipment manufacturers have taken the lead in "going global" and are getting better and better

Lei Zhenzhou emphasized that he had a chat with an old friend of Nortel the other day. He admired ZTE and Huawei, and their company was still laying off workers. ZTE relies on talent strategy, internationalization strategy, diversification strategy and standard strategy, but have those companies not done these things? They are also doing it, and they may have done it earlier than us. Why go downhill? Because we have our own characteristics, we can have a foothold in the overseas market. Similarly, why have we developed relatively well in such an environment? Therefore, we need to make features in the "going out" areas

innovation challenger

Liu Peng said that all enterprises that "go global" know the ups and downs, and it is very difficult. Why did ZTE "go out"? The answer is very simple. The resin used in plastic products and films. The great opportunity for the development of China's communication industry should be from the late 1980s to 2000. At that time, the research on the investment scale of domestic operators has been maintained at the level of 200billion yuan for many years. No matter how well domestic enterprises do, their market share can account for 10% to 20%, that is 20billion yuan or 30billion yuan. However, the share of foreign markets will be "eaten up"

moreover, the international market was full of opportunities at that time. In some emerging countries, the mobile communication rate is less than 10%. Although it is developing rapidly now, there were not 2000 mobile communication users in countries like the Democratic Republic of the Congo at that time. For another example, in a country like Afghanistan, large companies are reluctant to go because of the war, which has brought certain opportunities to ZTE. Once the economy of these areas develops, and enterprises occupy such a market, the return is very high

when reviewing the achievements of ZTE's internationalization, Liu Peng said that there are two important things for the development of internationalization

first, China Mobile successfully acquired Paktel last year. ZTE accounts for 40% ~ 60% of Paktel's network, forming a "China" brand effect with China Mobile. This year, Paktel will invest about $900million to improve its platform operation mode, which is a very important landmark event for ZTE

secondly, it has signed terminal and system supply agreements with operators such as Vodafone, Hehuang, France Telecom, Australia Telecom and Spain Telecom. Because foreign operators strictly select cooperation partners. Vodafone will inspect the equipment suppliers again and again, and finally sign the agreement. France Telecom will go to the staff dormitory in Shenzhen to interview the staff, and even to the canteen to inspect the food quality. Europeans have a set of assessment standards. Of course, once the supply agreement is signed, it will last for several years

in response to Yang Qing's question about ZTE's future positioning in the international market, Liu Peng said, "We are positioned as an 'innovative Challenger', which is also the current characteristic of ZTE. ZTE still has a long way to go in internationalization. If one day our list accounts for 20% or 30% of the European and American markets, it will be a phased achievement. Therefore, ZTE still has a long way to go in implementing the" going out "strategy. It needs to innovate and challenge."

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