Brief sum-up

    High-tech industry with high risk and high yield is like a gamble. The most serious crises mean everything starts again. Opportunities always favor the minds that are prepared. Under such a background, compare Cisco and Huawei, we can recognize the prosperity of a business does not mean that it can continue to develop. Successful companies have been able to achieve great progress not because of the absence of difficulties or challenges, on the contrary they have the ability to resolve these problem. For the high-tech industry, technology has always been the most core competitiveness. Behind the prosperity or crisis, competitive advantage is not the only one factor to support the company’s continued development, the key is to recognize their own position, and optimize the strategy according to the situation.
    The war between Huawei and Cisco is not is over, we will see more conflicts in somewhere, on some product. But on other hand, this competition promotes the development of technology and also brings consumers more benefits. 

Brand positioning

Putting the brand positioning in the last in my blog is for the purpose of highlighting its importance. I think brand positioning is one of the most important links in the brand strategy management and a top priority to be in the first place.

Brand positioning is commercial decisions made by the enterprise on the basis of market positioning, product positioning, specific brand in cultural orientation and personality differences. It is to create a brand image related to the target market of the process and result. In other words, it is for a particular brand to determine an appropriate market position, making the goods occupy a special place in the minds of the consumers. When a need suddenly appears, for example, you suddenly felt thirsty in hot summer, you will immediately think of "Coca-Cola" s cool and refreshing.

"The father of positioning", the world's top marketing guru Jack Slaughter points out in his book that positioning is to make the brand occupy the advantageous position in the minds of consumers and to make the brand become a category or a feature on behalf of the brand. Therefore, when related requirements appear, consumers will choose positioning brand as preferred brand, that is to say the brand to occupy the position.

For Cisco and Huawei, how to position the brand? First of all, stand on the position of satisfying consumers’ needs and draw the consumers’ eyes; Secondly, the enterprise may, according to the era of progress and trend of the development of new products, try to guide consumers to produce new pursuit.

Meanwhile, during brand positioning we should clear a point that there is no brand to serve all the customers. Therefore, market segments and correct orientation are the inevitable choice of brand competition. Segment of the market is to meet the specific needs of consumers, finding a gap in the market and making it looks "the only" in the market. The "only" has a lot meanings. It can be quality, price, technology, packaging and after-sales service, etc. It can even be some imaginary concepts separated from the product itself. For example, Chinese enterprise network marketing, Huawei or Cisco can show an image of security, reliable and trustworthy.

To sum up, brand positioning has profound influence for enterprises to grasp the brand. Direction is more important than efforts. Therefore, positioning should be put on the first place.

Source:

Brand positioning, Baidu Baike, Dec 2013

http://baike.baidu.com/link?url=q_ZyHpeVO9mJpdwkponEINmte05PKmDMFHREbVI7tz7Cs7SDo2OF5SawUuN5dYvy#4

SUN Jiawei

The charm of advertising

Advertising, just as its name implies, is spreading the word. A good advertising can cause the positive reaction of customers to the brand and create a proper brand relationship with them. Although advertising cannot directly prove the superiority of a product, but its quality is affecting the brand image all the time and this is probably the unique charm of advertising.

Advertising can be divided into two categories: simple product advertising and public relations advertising.

Product advertising, it markets products directly by introducing the characteristics of the product to consumers, which aims to open up an outlet, improve market share and obtain economic benefits.

Public relations advertising, it is corporate campaigns carried out by the enterprise or organization for the purpose of promoting the public understanding of the integrity of the product and increasing the product's visibility and reputation.

Also trying to influence the public by passing information, both types of advertising yet have a difference in the propaganda model.

Product advertising: the public --- product---brand

Public relations advertising: the public---brand---product

Product advertising is to let the public know the product first and then the brand; and public relations advertising is just the opposite. The former imposes a direct stimulation on the customer's desire for consumption, thus achieving the goal of expanding commodity market and increasing sales, which are short-term goals; The latter is to take a circuitous tactics, to arouse the attention and sympathetic of customers to the brand, and to create a good social environment conducive to the development of brand, which belongs to long-term goals.

However, the essences of the two are both to spread, and the souls are to create.

When it comes to creativity, shortly before the broadcast on television showed an advertising on Huawei mobile phones. The whole process is a white horse and an old Greek man running face to face and collide. The horse represents the appearance and the old man represents wisdom, which means the phone is the combination of wisdom and beauty. What's more , it is accompanied on Beethoven's "moonlight sonata". Sounds good?

http://www.tudou.com/programs/view/mfP3TLfljUM/?%20The%20bid%20=%2003%20&%20pid%20=%2001%20&%20resourceId%20=%200%20_03_05_01 (this address).

39-seconds product advertising, almost no explanation or subtitles, is easy to make the advertising strange. More seriously, if the Chinese consumers have no related background knowledge, they may have difficult to understand the white horse, the Greek  man and the music from foreign countries, they would not to buy the product and may be even worse, disgusted with the brand Huawei.

And then take a look at the Cisco: 

http://www.tudou.com/programs/view/jJT3GMyMxI8/.

Isn't it easy to accept? That is the influence of the visible advertising. For Cisco and Huawei, therefore, in order to achieve the final goal market occupation of China enterprise network, high-quality advertising is indispensable.

Good product advertising should pay attention not only to the creation, but also the advertising connotation as well. Therefore, when choosing a representation, it is better to choose something that the consumers familiar with and something generally defined in real life, which can raise customer some common association. it must not like that Huawei's AD. In addition, since the ads focus on product quality, they must have authenticity and cannot exaggerate the product performance.

Besides, I think people can put the brand culture or a concept in public relations advertising. There is better a slogan to motivate people because some people may not buy a certain product, but they can become fans of a brand and to promote for the brand. Maybe one day they become consumers or potential customers. Just like Nike as we mentioned, we will think of its slogan "just do it" immediately. Here a brand is more than just a brand, it becomes a kind of culture, a kind of pursuit, and a kind of faith! Huawei also has some slogans like "Huawei, not only the world's top 500". I think it is a good example which should be expanded to public relations advertising. It can be made to show that Huawei is not only the world's leading in technology, excellent products or perfect services, but also in a sense of social responsibility of private enterprises. Then Huawei can do some charitable act and let them get a sense of their sincerity. As a result, establishing a good brand image that catches everyone's eye, will makes the brand much better and there is less problem dealing with the market, consumer insight and competitors.

Source:

Advertising, Baidu Baike, Dec 2013

http://baike.baidu.com/link?url=5zaz0xVcRWi4_VgpAfuTIddyeKgT_hnPA97jeIqQfBfDx9t3SxXQDa8jZUpdPPXb

SUN Jiawei

little opinion about the competition

  “Cisco trie to suppress Huawei Ten years ago with a intellectual property huawei, huawei spent four or five years to surpass cIsco on international patent, now huawei r&d staffs are more than all the staffs of the cisco.” this sentence said by fang xingdong who is the blog network founder chairman ，describe exactly the present competition environement of Huawei and Cisco.

   As i mentioned last time, these tow giants has been a strong competitive relationship for a lomng term, but as now, we could just say that these two giants are not in the same level.even though for Cisco stays still the leader position in the world, but in 5 years later? The answer is quite clear!

   Considering about the reason which make this situation happen. Well, firstly, the visionaire can be a really impressive point that leads the Huawei into the situation right now, on one hand , keep increasing the R&D part to well keep the leader position in the world, on the other hand, being sensetive about the development of the field. wich can be the POD to make the company special. Furthemore, the company find some parternerships in adventure in the new field which is the POG .

   On the contrary, Cisco knowed that the Huawei will be a really position of competitor. But what are the reaction of them, they want to follow the internet service, but with so many investemens in the R&D department , they get nothing remarqukable.at the same time, they have been attacked so hard in their own filed which they led ago. It’s really a issue of mangement hiearchie.well, we don’t know what happened inside the company. 

    When we talk about the competition between these two companies, the intellectual property and the competition in the field of markt business are the most representative issues. We can still find some some intresting points to well understand that.

 

sunjun

Huawei and Cisco 's direct confrontation in the enterprise market

Huawei and Cisco 's direct confrontation in the enterprise market

    After obtaining good results in the operators and terminal market, Huawei began to use "assassin's mace" in enterprise market. August 8, 2013, Huawei's business department suddenly announced that its world's first switches S12700 (fifth generation), designed to meet the cloud computing, Internet of things, big data such as required.

    Prior to the enterprise network equipment market is dominated by U.S. companies such as Cisco, But this time , Huawei's new generation of switches has advanced technology than the Cisco nearly a year, this was quite a shock for the whole industry . Obviously, Huawei and Cisco will commence confrontation , face to face . Compared with traditional switches, agile switch is fully programmable architecture, any user's needs can be achieved through software upgrades and  it is worth noting that  the function of the traditional switch is immutable.

                                                        S12700 Series Agile Switches

    It's like the difference between functional phones with smart phones, smart phones can upgrade software directly , along with the popularity of smart phones, after all the functional phone is going to withdraw from the market. "said by Huawei's enterprise business BG CEO , XU wenwei. He also said that the new generation switches use the Huawei self-developed chip , named "ENP ", so Huawei is full of confidence with this product .

    This shows the ambition of Huawei to gain the switch market. According to third-party statistics, Cisco's share of the global switches market is as high as 58.8% in the first quarter of this year,, while Huawei's share is only 3%. Mr Xu expect that  the next-generation switch will help Huawei to enhance two points of market share.

    It is also because of Cisco's dominance in the switch market, Cisco does not have enough power to break the current market structure and business model.

    In accordance with the Cisco 's consistent business model, Cisco always develop new chips a few years ago, at the same time submit various industry standard, than launching products, while the other companies which has no ability to developed new chip can only waiting for the commercial chip come out and then they begin to develop new products. but at that moment they are already behind  the market leader.

    Last year, Huawei 's enterprise network equipment revenue is $1.9 billion, increase 26% from a year earlier, its proportion of total revenue in Huawei group was 5%. In contrast, 73% of Huawei's revenue from telecommunications equipment business which accounted for 22% of the mobile phone business revenue.  Enterprise network device, by contrast, is still a in the initial period of the business. But the report predicts, the proportion of enterprise mobile office will reach 35% in 2013, there will be billions of people enjoy the convenience of mobile office, and the size of the global data center network equipment market will exceed $30 billion. Obviously, Huawei also don't want to miss this delicious "cake".

    Mr Xu said, enterprise network business revenue this year is expected to increase 40% to $2.7 billion, domestic and international operations 's revenues will increase nearly 40%. by 2017, Huawei's goal is to enhance enterprise network revenues to more than $ 10 billion.

    It is reported that Huawei's R & D spending on the enterprise network equipment  is $ 600 million in this year , higher than last year's $500 million, and this number will continue to grow. "We have 150000 employees, including 70000 R&D staff , we are really used technology to meet the wave of mobile Internet."

   However, Cisco gains more than 55% of income comes from the United States, but because of the "out of thin air " questions and accusations in the U.S. market, Huawei 's income in the us market is very little, which means that if Huawei enterprise business want to scale beyond Cisco, there is quite a distance.

References:

http://finance.sina.com.cn/roll/20130809/141016400777.shtml

http://www.yicai.com/news/2013/08/2925281.html

 

                                                    By YUAN Peng