Appearance, packing and pricing

Compared to clothes, shoes and other products, there is no need to go for the appearance of the product and packaging of the enterprise network. However, this does not mean that they are not important. As a kind of data equipment, Huawei and Cisco should try their best to make the equipment light and attractive. In this way, the corresponding technology should be kept up, just as the invention of the integrated circuit, for example, laid the foundation of the modern information technology. With regards to the packing problem, I think the customer should be more careful about the nature of the product.  

There was also a very interesting phenomenon in previous analysis which was the Huawei's low-price strategy. Low prices certainly have their advantages without a doubt, for example, it is able to attract more customers. However it should be noticed that excessively relying on lower prices to gain market may also be counterproductive, which will not only make the customers doubt about the quality of the product, but also have an adverse effect on maintaining the company’s brand image.

Pricing, as one of the most important parts of marketing, deals with the price of goods, services as well as the changes of strategy so as to obtain the marketing effectiveness and the best benefits. Influencing factors include: enterprise marketing target, cost, customers, competitors and other external factors.

With regards to network products in Huawei and Cisco, first of all, in order to reduce the price, the cost of production can be cut down by improving technology; Moreover, reasonable marketing targets should be established and mathematical method should be used to establish model and calculate the most to gain pricing area; Third, demand-based pricing method should be adopted according to customer needs and psychologies; Fourth, as competitors, the pricing in Huawei and Cisco depends on the game between the two company themselves.

As a result, according to relevant information, for a company just entered network market like Huawei, penetration pricing can be used, namely, to set a lower price at the beginning of the new release and to obtain the highest sales and largest market share as the target. And for Cisco, although it has a technical guarantee, however as a non-native enterprise, it should also pay attention to the situation of the Chinese market, policy guidance so as to adjust price constantly.

Source:

Pricing, Baidu Baike, Dec 2013

http://baike.baidu.com/link?url=ZbKfX7j4D6UVgLf2rBbcMB_wadR4-parRiZkTcT3-glIZK7vmWYRVunyqPSIP-8L

SUN Jiawei

Building Brand Loyalty based on the CRM strategy in Huawei

Huawei is an independent corporate identity. When the banks were unwilling to finance business conditions and when the  international giants ruled China's telecommunications market all, Huawei  began to rise.
Established in 1988 in Shenzhen, 43 -year-old Ren was pieced together with a few people 24,000 yuan in Shenzhen , holding the dream to become the world 's leading telecommunications company.

Huawei's growth process is actually a marketing history thrilling market . Huawei unique customer relationship management burgeoned in the telecommunications market.

Huawei's marketing strategy is based on customer 's dream is to pursue the implementation of customer relationship management and common interests . Maintain long-term relationships with our customers not only to bring long-term benefits for the enterprise for enterprises to save costs and increase profits , and, therefore , maintain customer relationship management relationship is a prerequisite . I think Huawei in CRM mainly reflected in three aspects .

1.  " universal client" relationship principles

2.  training clients

3. the establishment of a joint venture company with customers

Huawei's customer relations through "three-step " tactical , to create the myth of Chinese enterprises to implement the strategies.

Huawei CRM " three-step" not only train the customer, and more importantly for this particular industry, telecommunications , mobile costs a lot of customers under normal circumstances would guarantee a high degree of loyalty this strategy can receive a good cost-benefit ratio for the stock market, this CRM, making the investment to maximize output . Successful CRM training a high degree of customer loyalty.

From Huawei Look CRM, will give us more inspiration and re-examine the significance of the current enterprise CRM.

Sourcing:
http://wenku.baidu.com/view/748d3e84d4d8d15abe234e91.html

Xiaoxin CHEN

One should have what it takes to accomplish what one is destined for

The proverb "one should have what it takes to accomplish what one is destined for", is quoted from a speech of President Xi Jinping. As far as I concerned, same principle also applies to the actual quality of the product.

Obviously, the quality of the product and the brand's image shows a kind of complementary relationship. The improvement of the product quality can attract more customers to purchase, thus forming a positive brand effect and, at the same time; the ascension of the product quality would also be helpful for enterprises to consolidate the brand effect.

How does Huawei improve the quality of the enterprise network products? Technology is the important factor to make it. Currently, technology is developing by leaps and bounds and Cisco, as a pioneer, does have some advantages. However, its long-term M&A strategy is not stable to some extent. Therefore, it still needs to make a difference from its own technology research and development. Huawei, being later in the enterprise network, their product performance may be poorer; however, their technological may leap just around the corner with considerable R&D investments annually. Therefore, at present, Huawei should absorb talents widely, enhancing the staff sense of belonging and thus forming a benignant circulation.

In addition, as a corporate network product, how to guarantee the security of information is also an essential problem for two enterprises to be considered. At this point, Huawei has a unique advantage as state-owned brand. The rational can be found when Huawei is blocked by the United States on security grounds while entering the U.S. market. As a result, Huawei should pay more attention to the publicity information security (more issues will be discussed in the advertising part).

What discussed above is only the actual quality of the product, another concept is the customer perceived quality. Namely, it is a subjective evaluation of the product or service made by customers. They make such evaluations according to their demands for the intended use of the product and situation as well as comprehensive analysis of all kinds of relevant information of market obtained through formal or informal way. Customer perceived quality is associated with the actual product quality, which enterprises may improve through various ways.

SUN Jiawei

The forever rival in business market

     Reconciliation after 18 months, one day in December 2005, huawei's founder and CEO ,Ren Zhengfei has hosted cisco CEO John Chambers. For the rivals, huawei gave the highest-level reception, Ren Zhengfei is On the day of wear neat instead of usually dress casual wearing  .In the room of  shenzhen huawei's headquarters , two person laugh together, for the first time purchase often-expensive hold together.
　　
    This is the scene that you cannot imagaine,especially after the war that i mentioned previously. Is that the symbole of shutting down the war? Tha answer is definitely not.
　　
    This time, the competition bettween the two giants is happen into the business market.
　　
    Data communications products market, the market is divided into the enterprise market and operators. Almost all companies need to establish the enterprise internal communication network, the capacity of the market or even higher than that of operators, purchase quantity from operators to the enterprise market is the inevitable developing trend of huawei.  when  global winter came telecom after 2000, cisco and IBM is the least influeced , one important reason is that their products and services not only for the global market, and is the market for all enterprises. Which have realized  ren zhengfei, huawei decided to continue to expand the international telecommunications market ，at the same time,began to develop the enterprise product market.
　　
    Unlike operators market concentration, the enterprise market users and more dispersed, so Huawei decide to coporate with some famous companies, with the coporate with Former enterprise equipment giant American 3 com and Symantec,Huawei finaly make sure the future road.
　　
    2009 years later, huawei to accelerate market development to enterprises. In 2011, huawei has been certain about the  development ideas further, from telecommunications market to the enterprise, the consumer market development, and to set up the enterprise business BG (business groups), full access to enterprise basic network, unified communications and collaboration, cloud computing and data center, as well as the enterprise information security field. On November 14, 2011, $530 million deal to buy symantec  held a 49% stake in Huawei, thus completely holds a 100% stake in China
　　
    So in the core field of cisco , he face the chanllenge of huawei again, what’s the story of these two giants in the business market?
　　
    To be continued
　　




                                                            SUNJUN

New change in development strategy

Comparison of the development strategy

Cisco has changed the focus of customer-oriented for the development, using the most high-tech enterprise business logic – the "feature-led" product strategy. It uses a typical centralized product strategy advocated by Microsoft and Intel. In Intel’s case, this strategy is through compliance to the "Moore's Law (computing power of the CPU will double every 18 months)," Intel launch out its new CPU on the basis of this theory for 20 years and leave the opponents far behind. Here, you cannot see any respect for consumers. This will bring a consumer has no choice but to follow. Cisco recognizes the orientation of their own development, which is to make the customer to adapt products, rather than products to meet customers.

Huawei believes in product innovation to maintain technology leadership, but only half a step ahead of the competitors, leading for three steps will become “martyrs". So Huawei explicitly changed technology-oriented strategy into customer demand-oriented strategy. Through the analysis of customer needs and propose solutions, and under the guidance of these solutions to develop low cost, high value-added products. To this end, Huawei has repeatedly stressed the product development roadmap is customer demand-oriented. Customer demand as the goal, with new technical means to achieve customer needs, technology is only a tool. New technologies must be able to promote good quality, good service, low cost, not this is meaningless on commerce. Huawei's core idea of innovation is about how to solve the competitiveness of enterprises, to meet good quality, good service, low operating costs, the priority of customer needs, without excessive emphasis on independent development and innovation. Huawei’s core values ​​are always around the customers.

We can see that Huawei and Cisco go with two completely opposite ways, Cisco is a product-centric , focusing on product development and research that does not cater to the needs of customers , emphasizing its leading capabilities ; while Huawei is customer-centric, it believes technology is not a panacea, but the customer resources is. Just follow the customers' needs, then will be successful.

ZHOU Yang

little opinion about the copyright issue between two big giants

Analysing of the lawsuit between cisco sued huawei.

on one hand，Huawei Is growing , began to appear on the market's competitive position, in order to ensure the market monopoly, cisco involving private protocol of patent technology, don't allow any payment authorized the use of the enterprise, and huaweitake advantage of technology in catch up with multinational companies ,Choose to imitate and follow up multinational off-the-shelf products and technology i,  which is reaching the cisco's interests. 

on the other hand, multinational companies are feeling the impact and challenge, they have to face a very different from the local laws and business practices, market rules and culture, and the conflict by these differences. 

In the United States, cisco's proprietary protocol patents are protected by law, but private agreement is not protected in China, So huawei take following strategy has its special soil in China, to follow strategy in the success of the product.

so the previous text is some personal idea about this famous “copyright war” between these two giants.


sun jun

Early strategy comparison

From the 2 firms’ early strategies we can see that, Cisco benefited from the rise of large-scale development of the Internet. This company was founded in 1984, after listing in 1990, Cisco entered the ‘global top 500’ and in 2000 it surpassed Microsoft to become the company with the highest market value. In just ten years to become the world’s leading companies, only Microsoft and Intel did. But different with them, Cisco neither followed the path which “let the consumers adapt products” nor established strong R&D centers or large-scale factories, but take a consumer-centric “four-wheel” drive strategy.

The turnover of Huawei topped 10 billion Yuan for the first time in 1999, scored to 22billion Yuan in 2000. Although Huawei ranked tenth in China’s high-tech industry, but its profits ranked first.

During the downturn in the telecommunications market in 2001, Huawei's sales have increased to 25.5 billion Yuan, profits of 2.7 billion Yuan, the profit is still ranked first. From the performance perspective, Huawei and Cisco differ greatly because of different starting points of the two, which is the direct cause of two different strategies. But as Chinese typical technical firm, Huawei represents the prevailing situation of Chinese high-tech enterprises, reflecting the lack of Chinese science and technology. From one hand, it seems Huawei is undoubtedly a success.

Cisco linked suppliers and manufacturers, this support its rapid expansion, but the problems appeared when network economy decrease. The reason lies in the management of this system is highly autonomous. At the beginning of every year, under the overall goal, each person or group negotiated targets for next year, once the target set, what kind of resources and how these resources will be mobilized is decided by individual or group. Similarly, customers can be anywhere to order under the network, this order will be transferred to the United States, while the production or delivery instructions of the relevant parts will be send to the factory or supplier. Thus 55% of the product has not via Cisco, but directly to the user's hands from the supplier. With this set of systems, Cisco product cycle thus shortening one to three weeks, profit margins is about 15 % higher than competitors, 45% fewer on inventory, 25% faster to make new products reach the market than the opponent , failure rates down to 2 %. However, due to supply and demand sides of this system is not fully controlled by Cisco, once the delivery became long, users will sometimes be repeated two or three times to order, and the system will automatically accept the order, the result will be formed in a short time the entire supply chain and production chain repeat procurement and production, resulting in a backlog of parts and products.

ZHOU Yang