Haier, Huawei VS: technical superiority and marketing advantages Competition



May 8, 2006, Huawei Technologies Co., Ltd. (hereinafter referred to as Huawei) officially announced the replacement of corporate identity. Interpretation of the industry: first, Huawei's internationalization strategy will further speed; second, do not rule out Huawei's new logo by the occasion to promote the implementation of the brand transition, gradually "cheap Huawei" upgraded "technology and quality of Huawei." Prior to the March 16, Huawei and the world's largest mobile operator Vodafone Czech Republic signed a commercial WCDMA network contract, resulting in a contest with international competitors in the heavyweight gain another victory. Now, more and more people believe that Huawei is from "domestic companies" turn into "an international enterprise."

The essential difference between Huawei and Haier

In the eyes of a considerable number of people, Haier and Huawei are the best companies, they even use the "Heroes" to express the goodwill of the two companies. However, most people see only the appearance, they are difficult to cut into the business of "bones" in a rational analysis.

In fact, the two enterprises in the performance of different international markets, while the two companies are vigorously promoting the internationalization strategy, and even many of Haier's internationalization praiseworthy. However, brand appeal and lack of product competitiveness, Haier's international market development has become difficult, give people the feeling is still marginalized competing market products under the brand ranks among the international mainstream. Huawei is different overseas markets to maintain rapid growth for several years, the market focus gradually shifted from developing countries, began to split Cisco, Siemens, Ericsson, Nokia, Nortel and other benefits inherent in the global communications giant territory.

Appears in the international business community, Huawei Bi Haier terrible is that it does not start eating into the international giants of the market territory, but it got rid of Chinese enterprises "marketing-led company," the mark, out of the low-skilled, low-input, low profitability, low brand predicament, to high input, high output, high efficiency, high brand road. This is precisely the path of international business development, embodied in the "technology, product oriented enterprise" of strategic thinking.

More and more evidence that Haier and Huawei are two different types of enterprises, not because they belong to consumer electronics and communications equipment industry, but because of their development strategy and corporate culture of the differing nature and represents a completely different two modes.

Of Haier's growth history can be found in the course of its development, marketing has become the main force, belongs to the typical "marketing-led enterprise", while Haier insisted that "no price war."

By comparison we find that features a clear preference for Haier's corporate general local enterprises, while Huawei's corporate property are international companies with a strong color. This actually means that Huawei's growth far better than Hale. Look at the current rate of growth of Huawei, 2009, in the "sales" of the indicators may be beyond the Haier Huawei.

In addition, the industry attribute the difference will be the future development of the two companies have a profound effect. Haier is a traditional electric industry, which is not much room for an industrial sustainable development, some developed countries like the United States has opted out, even in Japan, Korea has the world's leading brand appliances countries, but also the implementation of products from low to high transition . The communications equipment market is completely different, its market trends and traditional home appliances are quite different.

Huawei's core competence

A major feature of international business are: high input, high output, high profit. This is the body in the performance of Huawei was also outstanding.

Chinese companies take a long time basically is a low input, low output, low efficiency of road.

Why do Chinese enterprises is still difficult to produce competitive products with the world? It's worth thinking of all Chinese entrepreneurs.

Fortunately, not all Chinese companies are taking such a path.

Such as Huawei, Huawei is China's enterprises have the highest proportion of business R & D investment. In 2005, for example, had R & D investment more than 6 billion yuan, accounting for 13% of sales, than large international companies to 8% ~ 12% is even higher. Huawei's 35,000 employees, 48% of R & D personnel. Samsung Electronics is a relatively high proportion of R & D staff of international companies in the ratio of 42%.

In fact, the competitiveness of an enterprise's R & D R & D investment by the ratio of the absolute value of R & D investment, R & D personnel ratio of total employees, the treatment level of R & D personnel, senior R & D personnel ratio of total R & D personnel, access to and ownership of patents, R & D institutions and the number of layout and many other indicators of the decision. At present, Huawei has accumulated more than 11,000 patents, patent applications for many years to become the largest enterprise in China; in India, the United States, Sweden, Russia set up a research institute in Beijing, Shanghai, Nanjing, Shenzhen, Institute. Huawei's successful large enterprises and international R & D level almost the same.

Huawei appears to have a premise that competition must not forget: Product should be sufficient to support the market, all other competitive products competitive derivatives.

The reason is simple, consumer products companies to buy, actually bought the product brings to their business functions and services, features and services needs of technology and products to maximize performance as a guarantee. Therefore, all enterprises in the final analysis is the product of competition, technological competition, rather than advertising and channel competition.

Haier's international short board

Haier has full access to international markets since 8 years, but the international market, Haier's contribution to the still only 21%. This indicates a problem: the internationalization of Haier is still on the road, far from their destinations.

Why are famous in China's Haier in the international market has always been difficult to obtain a major breakthrough?

The reason is simple, the inherent strategic advantages of Haier and marketing thinking, it is difficult to adapt to the requirements of the international market.