The king left, it hurts. Therefore, people always dream of the myth of the resurrection of heroes, and hope that the giants can break their arms and save themselves and reproduce the glory of the year. However, dreams are always difficult to shine into reality. Reorganizing mergers and acquisitions and layoffs to reduce costs, etc., behind these keywords, may not be able to reborn.
Ericsson announced that it will lay off about 3,900 people in Sweden. About 3,000 of them are from manufacturing, R&D and other departments, and another 900 are consultants. The BlackBerry, which once created a brilliant mobile phone market, announced the closure of its smartphone business, which is another mobile phone giant after Nokia.
At that time, global equipment giant Ericsson abandoned the mobile phone mobile phone business when it was in the wind, focusing on the network service market. Has not entered the personal retail market Huawei, but at this time into the mobile phone business. Today, Huawei is not only in the mobile phone market, but also surpasses Ericsson in terms of equipment revenue.
The same is the equipment giant, ZTE insisted on the two legs of equipment and mobile phones at the beginning, ZTE's mobile phone and network business, successfully entered the European and American markets, and maintained steady growth, of which mobile phone business is among the best in the US market. .
Huawei ZTE is on the rise, and Ericsson is on the river. In addition to natural disasters is a man-made disaster. There are many reasons for this. Today, for the Cisco Ericsson layoffs, some people say that the communication world is Huawei's? This argument was as terrible as the fall of Nortel and the reorganization of Noci, and the world was as terrible as Ericsson. Therefore, Ren Zhengfei gave the answer very quickly. "We never wanted to turn over Cisco, nor did we want to turn over Apple. Some time ago, it was said that Cisco acquired Ericsson. I was very happy. If someone else carried the flag in front, I would follow the team."
Cisco acquired Ericsson, why is the father happy? The reason is not that simple.
First, Ericsson is not in the sceneryOn October 4, Ericsson announced that it would lay off about 3,900 people in Sweden. About 3,000 of them are from manufacturing, R&D and other departments, and another 900 are consultants. Of the 3,900 employees who are about to be laid off, about 1,000 will come from the manufacturing sector, meaning that most of Ericsson's manufacturing operations in Sweden will be cancelled. Currently, Ericsson's Swedish manufacturing business accounts for approximately 5% of its global manufacturing operations.
In July of this year, Hans Vesterberg stepped down as president, CEO and board member of Ericsson. Currently, Ericsson is still looking for a suitable CEO candidate. As early as 2014, Ericsson announced a cost reduction plan of approximately $1.1 billion.
According to the Swedish daily "Svenska Dagbladet", Ericsson closed the final batch of factories and laid off about 3,000 people. The newspaper quoted internal documents that the Ericsson Bros and Kumla factories would be closed, and Ericsson’s 140-year pre-production history in Sweden was completed. Ericsson employs approximately 120,000 people worldwide and Sweden has a total of 17,000.
Ericsson's shutdown of the factory in Sweden and large-scale layoffs are complicated. In addition to the global economic recession and the slow growth of basic telecom operators, most countries in the world have built the most advanced communication networks, especially in the developed countries. China has insufficient market share.
In the first place, ZTE was under pressure in Japan, Europe and the United States in the early years, and it was difficult, but in the backward regions of Asia, Africa and Latin America, Chinese manufacturers have always been eye-catching. As Chinese manufacturing continues to be accepted by most countries in the world, Chinese companies' R&D investment continues to increase, and Huawei ZTE is still expanding in the online market worldwide. Ericsson's long-term position in the high-end market is not enough to cultivate and deploy the market in underdeveloped regions. Therefore, when capacity is shifting to the low-end market, Ericsson is stretched. According to data from global telecommunications consulting firm OVUM, global telecom operators' capital expenditures fell by 5%-10% in 2015. During the same period, Huawei's operator business sales increased by more than 20%, and ZTE increased by 30.2%, while Ericsson and Nokia respectively. It has dropped by 12% and 3%.
In the Chinese market, Ericsson appears to be more passive in the case of a decline in telecom operators' revenue. According to public information, in 2012, there were Cisco products on the Chinese government procurement list, and in 2014, it has slipped out of the big list. In 2008, at the peak of Ericsson's acquisition of Nortel, its revenue reached twice that of Huawei. In 2016, in the 4G market, ZTE Huawei has formed a duopoly position. It can be seen that ZTE's home advantage in China is more obvious.
Ericsson is different. In the second quarter of 2016, the financial report showed that the income was 54.1 billion Swedish kronor, down 11% year-on-year; the net profit was 1.6 billion Swedish kronor, down 26% year-on-year. Ericsson's share price continued to decline, falling 21.7 from the beginning of 2016 to the end of July. %. Affected by this news, in 2010, taking over as CEO Wei Hansi was forced to resign. Wei Shuai took over Ericsson's handsome seal during the peak period and tried to carry out a series of reforms. However, when the 3G/4G dividend is coming to an end, he can only pin his hopes on the 5G business.
In the 5G field, Ericsson was one of the first giants to enter the standard discussion. The author visited Sweden's 5G lab in Sweden and saw the black technology of Ericsson 5G remote excavator. In the words of senior media person Liu Qicheng, "For the market changes, Ericsson is sensitive and the response speed is very fast. This is the main reason why Ericsson can stand up for 140 years."
However, the 5G technology, which is regarded as the world's leading technology, has been hyped, but there are few applications for landing, and the bonus window has been opened for at least 3-5 years. The 5G commercial road will also go through a lengthy technical testing process. In addition to the United States, Japan and South Korea, the Chinese government has also taken the lead in conducting 5G testing, and the pace of the two domestic equipment manufacturers has also gone quite fast. According to ZTE’s recent press release, it is developing new 5G technologies to promote product maturity; in particular, ZTE is pushing some 5G technologies to commercialize on 4G live networks and expand globally. If Ericsson can't quickly convert advanced technology into market revenue, the stock price continues to decline. It is almost impossible to persuade shareholders not to lay off employees through the difficulties. It is also reasonable for Wei Shuai to take classes. However, once the giants have laid off their guilty controversy, the defeat of the giants, Nortel and Nokia are the lessons of the past. Once Ericsson is acquired by Cisco, it may lose its chance of a comeback like Nokia's acquisition by Microsoft.
Second, Chinese manufacturers bend overtakingWhy is Ren Zhengfei happy? It is not the so-called Huawei entering the "no-man's land", let Cisco acquire Ericsson, and then lead the way to play cannon fodder. Rather, it may happen that after Cisco acquired Ericsson, 1+1 may be less than one. Lucent, Nortel, Motorola, Alcatel, Siemens Communications, etc. are vivid examples.
It is not difficult to find that when the development of international veteran communication equipment manufacturers such as Ericsson, Alcatel and Nokia is facing bottlenecks, it is also the day when Chinese manufacturers such as ZTE and Huawei are on the rise.
In addition to the US market, Huawei has occupied a leading market share in the global market. It has also increasingly surpassed the Ericsson trend in technology. It has provided equipment for operators in Denmark, Singapore, South Africa and other places to achieve a 1Gbps wireless download rate. Recently, ZTE announced that it is building a new and modern wireless network for Belgian operator Telenet. According to previous news, Telenet's previous 2G era supplier is Ericsson, which also shows that Ericsson's overseas market is being eroded by Chinese manufacturers. .
In the early days of bidding for bidding in the Chinese communications equipment market, Ericsson's quotation is generally higher than that of ZTE Huawei. In other countries around the world, Ericsson's offer will be higher. When the economic situation is good, Ericsson's profit should be the biggest. However, in the global economic downturn, in the countries and regions with relatively backward economies, ZTE Huawei will have the upper hand.
It can be seen that many operators have voluntarily abandoned Ericsson in the high-end and considered ZTE and Huawei in consideration of operating costs when upgrading equipment.
Third, user needs are the basis of survivalIn the era of mobile Internet, whether it is a chip manufacturer, equipment manufacturer, operator or terminal manufacturer, solving the pain point of users is the basis of survival.
ZTE Huawei has come to the forefront. The fundamental reason is that the interests of users are the fundamental starting point. Whether it is in equipment products or terminal products, the real user is God. For example, Ren Zhengfei rarely accepts an exclusive interview with the media, but when visiting a small customer on a Huawei platform, he will personally greet him and take a group photo with the customer. This is in line with the high-ranking leaders of some manufacturers, and even in the public, they are rushing forward, and they are hundreds of thousands of miles away. Especially for the small-scale partners dismissive, such as an operator who heard that a startup company's annual profit is less than 500 million yuan, the leader will go.
In front of the partners, it is arrogant, and it is more aggressive in front of ordinary users. The author personally encountered, an Apple user's mobile phone turned into a bend, to Beijing Xidan Joy City maintenance. The staff refused the warranty on the grounds that the mobile phone was purchased in Hong Kong. If you want to repair your own pocket, the price is 1800 yuan. The Apple App Store even more said that if you want to let the APP off the shelf, the big customers like Headlines and NetEase can't escape bad luck. Today, the store is bullying, and the users may be left out in the door tomorrow.
On the issue of partners, ZTE Huawei has a very different service attitude from the top to the general staff. Ren Zhengfei’s father, Li Xian, is worthy of praise. ZTE is more moderate in the era of the younger generation leadership team. Some media commented on the new CEO Zhao Xianming: He is a people-oriented, pioneering and courageous person in research and development and management, showing a diligent, serious, pragmatic and meticulous work style. After Zhao Xianming was the CEO of the company, there were foreign operators who evaluated the “very groundedâ€.
For work reasons, Qiyingmen and ZTE’s CEO Zeng Xuezhong are very familiar and have frequent contacts. At present, ZTE is ranked in the top four in the US market, the top two in the Russian market, and the top three in the Chinese market for three years. However, Zeng Xuezhong actively uses the public platform such as Weibo and WeChat to interact with fans and rarely releases rhetoric in front of the media. The most talked about privately is how to make money with the channel.
At present, ZTE has strong R&D capabilities and technological advantages in 5G technology and independent chips, and together with Huawei has become a label made in China. However, ZTE Huawei has no big company to deceive customers on the issue of treating users. Although it is not willing to talk about killing Apple and Cisco, in fact, they have already surpassed these traditional communication markets in corporate management and corporate culture. Big Mac, as for revenue and profit surpassing, is only a matter of time.
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