The literal meaning of the Chinese word H-U-A-W-E-I is “Splendid Achievement”. The company was founded in 1987 and in a relatively short time has become a multinational company exceeding the market share of many of its competitors, including multinational giants like Nokia and Ericsson. Indeed, there are few examples of newly established multinationals that has conquered the global market within a short period of time. How does one explain this fast development? Was it thanks to the huge Chinese market which enabled Huawei to grow before it became global? Li explains that the rapid growth is due to the company’s focus on customer needs and heavy investment in R&D, technology and innovation.
In the past 10 years, the Chinese Telco has invested more than $30 billion into all these focus areas. Huawei has always emphasized the importance of adapting its products to the needs of the customers. In the beginning, Huawei products were hardly present in the market. The company’s technology wasn’t better than that of its competitors. The cities were dominated by foreign companies. But this gradually changed. Huawei focused first on China’s rural areas that had been ignored by its competitors and started to develop better solutions than they did. It also invested heavily in R&D and adapted products to the needs of local customers while competitors reacted slowly.
Today Huawei products are present everywhere in China as well as around the world. Huawei is the vision of Ren Zhengfei, the Chinese businessman who built Huawei into arguably the most disruptive infrastructure player in the mobile market. “When Huawei was still very small”, Li says “the CEO and founder, Ren Zhengfei, said, ‘we can learn. We should learn management experience from other companies’. Read more