Look at the electricity dealer price war today

The theme of this article is to look at the history of telecommunications equipment developers, the now Electric Dealer's price war.

The trail of telecommunications equipment makers

8 years ago, Shibe graduated and chose the industry of telecoms equipment manufacturers.

04, is the communications industry has just begun to revive, but also two Chinese telecom equipment manufacturers, the external struggling fight to start. In 8 years, Huawei surpassed Ericsson as the world's first, and ZTE is likely to step into the top three. In turn, it was almost a failure to look at the old equipment dealers abroad.

The secret to the success of Chinese companies is:

Ø Cheap: China's manufacturing out of the country is the only magic weapon, cheap hardware, software cheap, generation-dimensional cheap. Problems, there are all kinds of fines, operators Hanlaobaoshou

Ø fast: The real customer is God, faced with the various needs of operators, as well as equipment failures, the Chinese company's response capability, absolutely let foreign equipment vendors and so on

An uncultivated industry, the usual three-stage growth path: happy Enclosure, Price kill, winner of the King.

China Telecom equipment business to enter the telecommunications equipment industry, has passed the first stage, foreign equipment manufacturers have already enclosure finished. By the price of fighting, sometimes crazy loss of the price of fighting, Huawei and ZTE chewing down the domestic market, all the way to the overseas market.

Huawei and ZTE in the field of telecommunications equipment, the vicious price war, the direct consequence is that the telecommunications equipment, high threshold, high profit, high income industry, quickly turned into a low threshold, low profit, low-income cabbage industry. The income of the workers in the communication industry is slowly reduced to the middle and lower reaches.

Since 2011, the communications industry has entered another winter. Ericsson turned back a few years ago and began to transform into telecom services.

In the 2012, the equipment maker's earnings were miserable, and even the Huawei, which liked the Low-cost Wolf, began to focus on keeping profits, as the existing 2/3g market share was basically stable. (in the era of LTE, because of Samsung's participation, do not rule out the possibility of a repeat price fight war) Huawei and ZTE are also trying to expand the telecommunications services, as well as terminals and corporate network areas, and strive to reach the ceiling after the traditional telecom to find new profit support points.

The profitability of a telecoms device is like a few V-shaped, each technology replacement, the original high profits, as a result of the new factory price war, will be dragged to the bottom of the valley, such as the technology mature and stable, the market share is divided, profits began to pick up gradually, and then there are new technology, the player, again cycle. Only a few of these V-type, each profit can not be restored to the previous time, so that the formation of a more and less amplitude of the wave, and eventually become a small profit industry.

The process of communication industry from aristocracy to civilians can be summed up as a result of technological advances in the reduction of technology barriers (introduced new players) and new players launched a price war, of course, eventually the vast number of operators and users are benefited.

The way the electric dealer is walking

Look at the electricity business Month day of promotion, activities, shop, Shibe, the first reaction is: electric dealers, step by step is the telecommunications equipment merchants walked the old road of price.

Price to kill the practice, is to see who's blood, and so most of the members of the fight after the fall, the remaining few dying, will become the third stage of the oligarch, but the oligarch can not loose, a doze may be bitten by an opponent, and then become a few malnourished oligarchs.

This kind of harm to others hurt their own tactics, is estimated to be very Chinese characteristics and traditions. So that all electric business enterprises, without exception, passive or active, have adopted this kind of brutal tactics, and all think that they will be the one who survived.

The buyers of such brutal tactics may not be the electricity dealers themselves, but the suppliers, especially the small and medium suppliers. Just as a few years ago, the big stores, the cost of a lot of mineral water, only 9 cents allowed to sell. Where the store celebrates what the promotion, the supplier has to pay the participation.

Blood flow more, no matter who, will eventually have a pale fall of the day, even if still alive, is also walking the meager industry of steel wire. and telecommunications equipment business customers are operators, loyalty (of course, sometimes this loyalty is kidnapped) than the electric dealer facing the individual users are much higher.

The future of the electric business

Today's electric dealers, think of the end of the killing, what can be? After the market ceiling in the future, by what continue to profit, or more profitable?

Why did IBM sell its PC business and try to make it into a service consultancy? Why has Ericsson been transformed into a service sector? Why has Huawei and ZTE struggled to consolidate their service offerings? Why does Amazon sell the Kindle and cloud services is his most lucrative part?

In addition to the traditional retail stores like to do the buying hand, rental shops to store, but also to do more. Can sell the whole E-commerce solution to the traditional enterprises, can carry out on behalf of the operation of maintenance services (in Taobao, this has a large market, there are a lot of enterprises, as the electric business platform, with a huge amount of data, have the inherent operational and maintenance advantages). For individual users, can sell all kinds of services, such as, monthly rental book business, electrical maintenance of regular maintenance services, order services by cycle, and so on.

Of course, the basis for this is the upgrading of technology, Ericsson is able to take the lead in the transformation and in the telecommunications services market ahead, and Ericsson's technical strength inseparable. Although the gap between Huawei, ZTE and Ericsson may not be that big on equipment, Huawei and ZTE are still trying to learn from Ericsson, with a 3-5-year gap in the concept and structure of operation.

Domestic electric business big guys, which is the first to improve their technical strength, service concept ahead of others so a little, then a few years later, the rest of the bones are still grabbing a bone, they have been laughing at the side of eating meat.

System architecture once impossible to do bit, but do software, we all know, as far as possible to do a strong scalability, as far as possible modular, building blocks the same unlimited expansion. Although this is an ideal state, it is much stronger than a system that cannot be scaled to accommodate new situations except refactoring. The electric dealer now blindly expands the category, asks the management scale, regardless of infrastructure construction, in future will become the development bottleneck even is the stumbling block.

Finally, say one more word.

In the field of telecommunications, each device has its own system, and an operator will adopt a system of multiple device vendors, with an integrated system (Boss/oss) at the highest level to centralize the management of heterogeneous systems of these multiple manufacturers. Similarly, each electric platform is also a variety of equipment vendors, brand operators are operators, a brand on a number of platforms to operate their own products, and these heterogeneous systems of unified and centralized management, believe that the field of electricity is a blank.

If any of the electric dealers provide a similar centralized operation and maintenance system, I believe it will be in the future of the electronic business services in the field of opportunity. A variety of professional operation and maintenance companies will have a living space, provided that the data and interface between the electrical business needs a set of standards.

The idea of the

Cames Shibe is too advanced.