Huawei is facing 11 major problems

Absrtact: "Huawei's World" "Wolf War" and other classics of it veterans Shongqing today brought us new things. He published a column today, using a fishbone map to analyze the 11 major problems Huawei faces. He is said to have recently been affected by ZTE

Shongqing, the IT veteran of "the world of Huawei" and "Wolf Wars", brought us something new today. He published a column today, using a fishbone map to analyze the 11 major problems Huawei faces. He is said to have recently been inspired by the 13 main problems of the company's Fishbone map, which was written by a former Huawei writer.

Short-term issues

Shongqing analysis of Huawei from the peak of 2010 its 24.7 billion yuan net profit slipped to the beginning of 2012 loss rumors, said that the current Huawei mainly has national security restrictions, the embargo investigation, the business stall too big these three short-term problems.

Huawei began to inflate itself after the 2011 acquisition of its BSS business in Kuwait, after a succession of broadband services in two countries in Qatar and New Zealand, but since March 2012 Huawei has been in Australia, the US, Canada, Britain and even Southeast Asian countries have begun to suffer bans or investigations. These countries are trying to prevent Huawei from gaining access to the national security core of the country's broadband program. The embargo on the front of the fish bones, in addition to the Iranian embargo investigation, also involves the political relationship between the United States and Cuba, very difficult. The last short-term problem enterprise business is the 2010 when Huawei created a net profit record of the foreshadowing, when Huawei invested in enterprise business, the intention to Huawei's huge human resources advantage in this market firm footing. But as Ren said: "Our past successes may be the mother of future failures". While the company's business has brought huge revenue to Huawei, it has laid the stage for the sector to lose money because of its massive redundancy. It is a difficult problem for Huawei to keep on attacking in business.

The medium-term problems facing Huawei are mainly related to the global economic situation, competitors and the company's business structure

The first is macro-environment and exchange rate movements. Shongqing analysis of the only two profit-making equipment manufacturers Ericsson and Huawei, pointing out that excluding sold Sony Ericsson shares of profits, Ericsson's profit margin is less than 3%, Huawei is not good where to go. These are macroeconomic factors. Second, the global deleveraging problem has led to the rise in Huawei's own financing costs and the increase in client financing thresholds, and Huawei's market signing will be directly affected by the weakening of the support of the quasi policy banks for customer financing. Once again, Huawei's rival Cisco has played an important role in the US investigation of Huawei, although it has been the enemy of Cisco, but the gap between the two sides in holding cash and technology patents has doomed the confrontation to just the battle between Quixote and the windmill. In addition, Huawei's business as a pipeline output, but did not form a resultant force, this directions mode will end in a Mashi way. Finally, Huawei may suffer a defeat as the world's only manufacturer with a strong presence in both cable and wireless. Is it possible for these giants, whether Cisco, Microsoft or Intel, to be hugely successful at the same time in both the corporate and consumer markets than Huawei?

Long-term problem is the sword of Damocles on Huawei's head

First, the Telecommunications operating field because of its closed, there is an image of the saying is "Walled Garden". Now the two swords, Weibo and micro-letters, have pierced the walls. Operators are having a hard time, so how can they have meat as a device manufacturer attached to a carrier? Second, Huawei's successor is bound to involve a realignment of power between the late Meng and incumbent executives. But in this crucial transition stage, the interests of all parties, the internal power struggle, but enough to subvert Huawei's giant ship, which is one of Huawei's long-term risks. Third, the "Jiannanchun strike" has begun to affect Huawei, the employee's internal holdings. Shongqing that the proportion of employees inside the company is much higher than the Jiannanchun, and there is no other way to get rid of the shadow than to go public.

As Shongqing in the summary said: "Huawei faces 11 of the main problems, 6 are external problems, 5 internal problems, which indicates that the current communications equipment providers, especially China's telecommunications equipment manufacturers face the grim industry situation." and 5 internal problems, from short to medium term, to long-term problems, a more difficult to solve, which is doomed to the footsteps of Huawei, the more and more heavy. "Will these fish bones be stuck in the throat of Huawei? Huawei can only adjust its strategy quickly to meet the current challenges."