Wednesday, July 21, 2010

3COM Huawei is the answer to the puzzle may be in North America Cisco



Huawei's behavior seems like never, like so dazzling. Three pre-sale China, after the shares 3COM, 3COM picture-Ren Zhengfei in the maneuvers between the two companies also allow our imagination to a distinction thus extended to the extreme. The first reaction, halo. However, if a little deliberation, I feel Huawei's point is so clear that the North American market, more specific point that is Cisco - 1 With this acquisition, the two giants of the peak vs. off is opened.

Although the news release issued in Huawei, Ren Zhengfei only its positioning as a "business investment", but this game is at stake, perhaps only he had the clear. Huawei on the North American market has exceptional importance, for every single business in North America will be known as the overseas market, Huawei's groundbreaking event. The number of links specific to the product, its purpose in the global market of non-North America and Europe must go.

As many countries in Europe natural "small plate" pattern, coupled with the uneven level of national economies, making Huawei can still implement its champions - the strategic countryside surrounding the city, one by one, the market penetration in Europe (of course, also help with the European manufacturer Huawei the power of cooperation). The North American market "big block" structure, and the United States the usual protection of the name of security barriers, so difficult to start with a moment of Huawei.

Prior to the lawsuit with Cisco to Huawei's data communications market in North America, almost annihilated, while the original three markets of China, mainly in China and Japan, had the desired route through 3COM into the North American market and did not achieve the target. Huawei acquisition of Harbour's performance in overseas markets is not satisfactory. Harbour is basically to advance with a number of multinational companies overseas market, there also appeared overseas operators do not understand because the demand Harbour, which led a multinational co-operation with the South American market should be marked in a way the accident beheaded. Can be said that the number of links in the field, Huawei has been unable to achieve market penetration in North America.

It should be said that a large cake in North America is Zhengfei always have lingering pain, which currently has a number of Huawei through strength does not match, of course, this is a stumbling block for its international strategy. The mission of leveraging the market now is Zhengfei body count on the 3COM.

Buy three get more than 800 million Chinese dollars, shares acquired 3COM, total 2.2 billion for the plate is, it was no more than 400 million dollars it (if it is a 20% stake in it), which entered an inter- interest to surely goes without saying. More important still is to sell only a subsidiary of 3COM, Huawei not only to improve and adjust their product line structure, you can also get behind the global channel 3COM, 3Com products in the international market, Huawei is the acceptance less than (in the news release issued by Huawei on this is described in 3COM: 3Com to establish a world-class sales, service and technical support system to provide customers with innovative products and create business value for customers), especially In the North American market (though there need to explain, it is only "channel" it is not yet a Huawei's existing "market", the follow-up of the theoretical possibility into a reality will depend on Huawei's own good luck).

Into North America, Huawei is not open this market around the absolute boss - Cisco. Huawei would also be considered this position to attack the performance of Cisco. Ren Zhengfei think after an internal speech: as long as we carry out step by step, not a big problem, we will be able to defeat them. This shows that Huawei's the "20%" said Ren Zhengfei also be a "step by step" an important step. 3COM Huawei shares should "QUICKER" his grand strategy of an international important piece. Want to boss, only punches thrown at the highest level is the only way to win. This war is a toss, but I believe Huawei's move will make Cisco a high degree of vigilance, because this is called can not be struck down by the high-tech companies had been listed as the top rival of Huawei and Huawei long compared to product line, Cisco's single product line has it not afford to lose.

In the future operation of 3COM, Huawei is able to well control the 3COM, and then for their own strategic services is also essential. However, to know the Huawei joint venture company established in the "Small is Big" tradition, though not the boss from the stock point of view, but the voice is often not sidelined. Linked to the original three good because China, 3COM their own R & D headquarters in the United States, almost all the "idle", the U.S. headquarters of the strength of the downturn, China 3 should be where the current driving force behind the growth of 3COM. From this, sell Wah, participation acquisition 3COM, in this seemingly vertiginous action behind the scenes should be true: Huawei will also fight for their own companies to maximize the voice, although it shares only a legend of 20%.

Of course, this is only in the capital markets can be one see the magic, the Huawei need to guard against the risk is that the U.S. government may be imposed by outside factors. And had faced after the Lenovo acquisition of IBM's U.S. government, "impeachment" Some Bu Tong, Huawei previous Haiwai market Tuozhanyijing U.S. Fangmian because they were "recognized" You "military" Beijing has been affected by the U.S. government Duiyuhuawei shares 3COM How big rebound in the end, it is Huawei to pay close attention to things.







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