Why Cisco is fighting Huawei

In fact, along with the disclosure of revenue in the first half of this year. The world communication equipment ranking version was also able to reveal. Huawei with excellent sales capacity, topped the industry. Due to the fact that the global economic downturn, the entire communications equipment industry has suffered a bottleneck in the development of the industry, but Huawei has grown against the trend and suffered from the blocking of counterparts, including Cisco, because of its strong performance capabilities. China, as a manufacturing country, has a considerable number of excellent pass equipment manufacturers. However, Huawei, with its unique historical position, has almost become a symbol of China's manufacturing industry. It can be said that Huawei as a famous company enough to represent the image of the country has become the image spokesman of Chinese enterprises overseas. Huawei first made small data switches (related to landlines), due to the good relationship with the state's military enterprises, information resources as the country's important strategic resources, so the country needs a reliable enterprise to provide it with products and services in this area. Huawei's unique background as well as strong strength have been favored by the state. Since the early 1990s, Huawei has been consciously entrusted with a number of projects. As Huawei's strength grew, it took on the role of paving the way for the business development of the country's three major communications carriers. Specifically, it helped them plug their businesses into the country. Later, Huawei also recognized the huge opportunities that existed in those developing countries in the Third World, and Huawei decisively entered those countries to develop its business. This Huawei's development provides a broad space, but also for Huawei and other counterparts in a fierce conflict, laying the root of the trouble. And all of this is ultimately because of Huawei's business characteristics. What are the characteristics of Huawei? Huawei is a manufacturing-based enterprise, this type of business, inevitably need to constantly go to the surrounding environment, want resources, want land, want market. In a word, the key to performance growth in manufacturing is to expand in scale, and to make excess profits through management and output. Although Huawei is a higher value-added technology-based products, but Huawei's nature of the manufacturing industry, making it and other counterparts in a number of areas to start a dead heat. Other companies are also afraid of Huawei because of certain advantages that Huawei has that they can't do. First, Huawei's low labor costs, in fact, Huawei's employees' income is not low at all, is the industry's average income of 1.5 times, but Huawei's employees' average labor time is the industry's average labor time of 2.5 times. Huawei overwork death was once a hot topic on the Internet. Huawei's good corporate welfare, so that employees do not want to work, bringing the performance and R & D capabilities of the enhancement. Second, the ability to focus on strengths and realize technological breakthroughs is strong. In fact, Huawei's ability to innovate has always been criticized, that is to say, he does not have any innovative ability, this is because its innovation is never subversive. Rather, it is constantly improving on the basis of others. But the communications industry has an industry characteristic, that is, who can cover more information on the same traffic you win. Huawei is well aware of this, and he is superb at realizing both data reception and transmission per unit of time. For example, you a 10W machine - Cisco can carry 10G - Huawei will do 15G - three, the price is really cheap. Almost all of the world's communication equipment manufacturers scolded Huawei, disrupting the market. Huawei has made its once-expensive profits into a bargain. Their products are not just 40% cheaper than their counterparts (in fact, many times they are much lower than that). Often times, consumers are directly given the promise that if you let me do this program, other programs will be free. In the face of the third world practitioners, Huawei's pursuit of results, but also the world's practitioners anger. Since Huawei serves mostly governments and state-owned enterprises, Huawei even gives kickbacks to others as a way of promotion. This is unbelievable to many Europeans and Americans. Reasons for Cisco to bite Huawei. Cisco, on the other hand, is a famous communications equipment manufacturer in the United States. Cisco has a large number of patented technologies, and many communication equipment manufacturers also have to pay royalties to Cisco every year. The reason Cisco is not in the list of communication equipment is not because its sales are not enough, in fact, its sales are higher than Huawei plus Ericsson. The thing about Cisco is that he specializes in the Internet space, making only Internet products and serving all kinds of businesses (I really don't know how to draw the line for it). Secondly, Cisco is a technology solutions company, and to be clear, sells both software and hardware, and actually has the upper hand in software. So it's more understandable why Cisco didn't make that list. Cisco's main rivals in the United States are IBM and Sony (Sony has been doing enterprise software for many years), and even the future will not fight with Dell and Microsoft is not clear. Cisco why fight Huawei, first of all, the media exaggerated Cisco's lobbying role on the U.S. Congress. In fact, Cisco's technological advantage is very obvious, although Huawei in the manufacturing industry and patents and Cisco have conflicts, but the harm to Huawei's interests is limited. Until today the products used in some major national programs, more than 90% are Cisco products. Huawei by the Americans to fix, in large part because of Huawei's military background, in fact, the Americans also set obstacles to Ericsson, Ericsson is the formulation of the Swedish military manufacturers. If the real conflict between Cisco and Huawei is there, I think it's in the third world. Is that where Huawei's main growth space is? In the third world countries, doing is the Internet infrastructure services and communications services, this piece of the market is not going to grow, only so big, eat a little less. Cisco also eat this bowl of rice, so to grab. Huawei by entering the U.S. market, to establish the image of a global brand. And from the status quo of over-reliance on the state and large enterprises to the development of civilian enterprise service providers. Will give Cisco in the United States to establish a strong rival. Huawei through its price advantage and flexible to unscrupulous sales strategy in the third world to further destroy Cisco's market share (whether software or hardware market), so that Cisco's plans to expand into the third world business frustration. So yeah, the war between Huawei and Cisco has just begun, and for Huawei, how to transform is the only way to permanently outperform and defeat Cisco.