A Guide To Investment In China COMPANY PROFILE — Huawei Technologies June 2005 MarketAvenue www marketavenue cn

Document Sample
A Guide To Investment In China COMPANY PROFILE — Huawei Technologies June 2005 MarketAvenue www marketavenue cn Powered By Docstoc
					     A Guide To Investment In China




COMPANY PROFILE


   — Huawei Technologies

               June 2005




        MarketAvenue
        www.marketavenue.cn
                                                         COMPANY PROFILE


                                                           Table of Contents
A Guide To Investment In China




                                 1 General Company Information
                                 2 Corporate Structure
                                 2.1 Organizational Structure
                                 2.2 Financial Structure
                                 2.3 Major Partnerships, JVs & Alliances
                                 3 Market Analysis
                                 3.1 Major Products
                                 3.2 Target Market and Consumers
                                 3.2.1 Major Competitors
                                 3.2.1.1 Domestic Competitors
                                 3.2.1.2 International Competitors
                                 3.2.2 Sales and Market Share
                                 3.2.2.1 Internaltional Sales by Region
                                 3.2.2.2 Internaltional Sales by Product
                                 3.2.2.3 China Market Share by Product
                                 4 Human Resource and R&D
                                 4.1 Human Resource
                                 4.2 R&D
                                 5 Executive Summary




                                                           List of Figures

                                 Figure 2-1: Huawei Organizational Chart
                                 Figure 2-2: Huawei Sales & Marketing Department Organizational Chart
                                 Figure 2-3: Huawei’s Global Sales Regions
                                 Figure 2-4: Huawei Alliances
                                 Figure 3-1: Huawei Technologies Product Lines
                                 Figure 3-2: Chinese Equipment Vendors’ Global Revenues, 2004 (USD M)




                                                                                          www.marketavenue.cn   1
                            COMPANY PROFILE

    Figure 3-3: International Equipment Vendors’ Global Revenues, 2004 (USD B)
    Figure 3-4: Huawei Sales Contracts, 1999-2008 (USD B)
    Figure 3-5: Huawei’s Domestic Sales by Product, 1H 2005 (%)
    Figure 3-6: Huawei International Sales by Region, 2004 (%)
    Figure 3-7: Huawei International Sales by Product, 2004 (%)
    Figure 3-8: Huawei China Access Market Share and Revenue, 2003 - 1H 2005
    Figure 3-9: Huawei China Transmission Market Share and Revenue, 2003 - 1H
               2005
    Figure 3-10: Huawei China Switching Market Share and Revenue, 2003 - 1H
                2005
    Figure 3-11: Huawei China DSLAM Market Share and Revenue, 2003 - 1H 2005
    Figure 3-12: Huawei China Data Communications Market Share and Revenue,
                2003 - 1H 2005
    Figure 3-13: Huawei China GSM Equipment Market Share and Revenue, 2003 -
                1H 2005
    Figure 4-1: Huawei Employees, 1996-2005
    Figure 4-2: Huawei R&D Investment, 2001-2008 (USD M)
    Figure 4-3: Huawei R&D Investment by Product Line, 2004 (%)




                                                                                 A Guide To Investment In China




2   www.marketavenue.cn
                                                      COMPANY PROFILE


                                 1. General Company Information
A Guide To Investment In China




                                  Huawei Technologies is a provider of customized network solutions for telecom
                                 carriers around the world. Huawei specializes in communications equipments
                                 such as 3G, next generation networks (NGN), switching, DSL, optical networks,
                                 and data communications. Huawei is China’s largest telecom vendor and one of
                                 China’s single largest employers.
                                 – Global Headquarters: Shenzhen, China
                                 – Regional Headquarters: Brasilia, Brazil; Plano, Texas; Kuala Lumpur, Malaysia;
                                   London, England; Johannesburg, South Africa; Cairo, Egypt; Moscow, Russia;
                                   and Sydney, Australia
                                 – 55 separate country offices
                                 – Eight main R&D Centers: Shenzhen, Shanghai, Beijing, Nanjing, Stockholm,
                                   Dallas, Bangalore, and Moscow


                                 Huawei Headquarters
                                 Huawei Technologies Co., Ltd.
                                 Bantian, Longgang District
                                 Shenzhen 518129
                                 People’s Republic of China
                                 Tel: +86-755-28780808
                                 Corporate website: www.huawei.com


                                 2. Corporate Structure
                                 2.1 Organizational Structure
                                  The president of Huawei Technologies is Huawei’s founder Ren Zhengfei.
                                 Together with Huawei’s chairwoman Sun Yafang, they have complete decision-
                                 making powers of Huawei. Huawei’s Product Solutions Department is in charge of
                                 manufacturing, R&D, and technical support and maintenance.




                                                                                             www.marketavenue.cn    3
                                                 COMPANY PROFILE

    Figure 2-1: Huawei Organizational Chart

                                                                          Ren Zhengfei
                                                                           President


                                                                           Sun Yafang
                                                                           Chairwoman


                Finance                Human                  Adminstration                Marketing                 Product               Sales &
                 Dept.                Resources               & Operations                  Dept.                   Solutions              Services



     Huawei’s Sales and Services Department employs around 7,500 employees
    throughout China. The majority of sales are conducted directly through the
    Sales & Services Department and the Marketing Department is therefore small
    in size and in importance. Most of the sales are done on the provincial level by
    provincial offices and sales teams. Staff is divided according to major clients
    (China Mobile, China Netcom, China Telecom, and China Unicom). Sales support
    staff, however, are organized by product type.


    Figure 2-2: Huawei Sales & Services Department Organizational Chart
                                                                               Marketing
                                                                              Management
                                                                               Committee


                                                   Domestic        Market Cadre      Engineering       Market Research          Overseas
                                                    Market         Department        Department          Department              Market


               Product            Channel          Client Group       Provincial       Marketing               Regional         Product       Marketing
               Support          Management         Management          Offices        Coordination              Ofiices         Support


                  Mobile             Telecom              China                               China
               Communications     Product Agents         Telecom                             Telecom

                   Optical          Enterprise            China                               China
                  Transport         Networks             Unicom                              Unicom

                   Access                                 China                               China
                  Networks                               Netcom                              Netcom

                  Switching                               China                              China
                  Products                                Mobile                             Mobile




                                                                                                                                                          A Guide To Investment In China
    Huawei’s Global Offices

     Huawei’s global market is divided into eight different zones that report directly
    to the Marketing Management Committee:




4   www.marketavenue.cn
                                                       COMPANY PROFILE


                                 Figure 2-3: Huawei’s Global Sales Regions
A Guide To Investment In China




                                 – China (Headquartered in Shenzhen)
                                 – Latin America (Headquartered in Brasilia, Brazil)
                                 – North America (Futurewei subsidiary, headquartered in Plano, Texas)
                                 – Asia Pacific (Headquartered in Kuala Lumpur, Malaysia)
                                 – Europe (Headquartered in London, England)
                                 – Southern Africa (Headquartered in Johannesburg, South Africa)
                                 – Middle East and North Africa (Headquartered in Cairo, Egypt)
                                 – Commonwealth of Independent States (Headquartered in Moscow, Russia and
                                   includes the Central Asian Republics)
                                 – East Pacific (Headquartered in Sydney, Australia and includes Australia, Hong
                                   Kong, Macao, Taiwan, Japan, and Korea)
                                  A Huawei vice president heads each of Huawei’s eight regional headquarters.
                                 The regional offices are organized by different product lines and have a technical
                                 support department, and two departments in charge of client relations and
                                 business development.


                                 2.2 Financial Structure
                                  Huawei is very secretive about its financials and most information is kept
                                 hidden from the public eye. Huawei’s stocks are unlisted and are owned by
                                 both Huawei employees, presidents and Ren Zhengfei, however the ownership




                                                                                              www.marketavenue.cn     5
                            COMPANY PROFILE

    breakdown is unclear and remains unknown to the public. Huawei employees
    are given an option to purchase stocks when joining the company, and can buy
    additional stock shares every year. These shares must be sold back to Huawei
    upon retirement or when leaving the company and cannot be sold to outsiders.


    2.3 Major Partnerships, JVs, and Alliances

    1. 3Com-Huawei
     3Com and Huawei set up a joint venture in Hangzhou in November 2003.
    Huawei owns 51% of the joint venture’s shares and 3Com the remaining 49%.
    This joint venture operates in China and Japan under a united brand, while 3Com
    and Huawei are branded separately in the rest of the world.
    This joint venture enjoys Huawei’s strength in data communication products
    and 3Com’s Japanese market resources and know-how. The 3Com-Huawei joint
    venture earned revenues of USD 216 million in 2004, but had a net deficit of
    USD 14.5 million.


    2. TD Tech
     TD Tech was set up in February 2004 in Beijing, as a joint venture between
    Huawei (49%) and Siemens (51%). TD Tech mainly conducts TD-SCDMA
    research and employs approximately 600 staff. As of July 2005, TD Tech
    announced that its TD-SCDMA system would be commercially ready by the third
    quarter of 2005.
     Although the future of TD-SCDMA is somewhat unclear, TD Tech is one of the
    best-positioned companies in this sector prior to China’s 3G launch. With the
    combination of high quality R&D backed by Huawei and resources from Siemens,
    MarketAvenue believes that TD Tech will play a key role in the TD-SCDMA
    market.



                                                                                      A Guide To Investment In China
    3. Other Alliances
    Figure 2-4: Huawei Alliances

     Partner                                Function

                                            3G Handset Development together with
     COSMOBIC Technology
                                            NEC and Panasonic

     Infineon                               Developing WCDMA handset platforms




6   www.marketavenue.cn
                                                                        COMPANY PROFILE


                                                                                                                Providing Huawei with FSON (Free
                                 LightPoint
A Guide To Investment In China




                                                                                                                Space Optical Network) products
                                                                                                                Using each other’s market positions to
                                 Marconi
                                                                                                                leverage sales

                                 SUNDAY                                                                         Providing 3G services in Hong Kong

                                                                                                                Developing 3G ASIC (Application-
                                 Philips Semiconductor
                                                                                                                Specific Integrated Circuit)

                                 Texas Instruments                                                              R&D

                                 Motorola                                                                       R&D

                                 Intel                                                                          R&D

                                 Microsoft                                                                      R&D

                                 SUN                                                                            R&D




                                 3 Market Analysis
                                 3.1 Major Products
                                 Figure 3-1: Huawei Technologies Product Lines


                                              Wireles     NGN            Access       Switching       Optical     Datacom      Value Added     Handsets                 Video
                                              Network                   Networks      Networks       Networks     Networks    Service & OSS                          Communication

                                              WCDMA      Softswitches   MSAN          Softswitches   NG-SDH       Router        SMS            CDMA Handsets           MCU
                                              GPRS       UMG            IP DSLAM      STP            NG-SONET     IP Switch     MMS            WCDMA Handsets          Video Phones
                                              GSM        TMG            ADSL Modems   BITS           DWDM         VOIP          CRBT           Wireless Data Cards     Video Conferencing
                                              EDGE       SG             VDSL Modems                  MSTP         WLAN          LBS
                                              CDMA2000   AMG            WiFI                                      VPN           Billing
                                              TD-SCDMA   IAD            BRAS                                                    CRM
                                                                                                                                SLTS
                                                                                                                                Call Centers




                                 Wireless Network Products
                                 HLR, CG, RNC, MSC/GMSC, SGSN, GGSN, Node B, GGSN, CGSN, CG, BSC

                                 NGN Products
                                 SoftX3000-Softswitch, UMG8900-Universal Media Gateway, SHLR-Smart HLR,
                                 MRS6100-Media Resource Server, SG7000-Signaling Gateway, RM9000-Resource




                                                                                                                                                          www.marketavenue.cn               7
                            COMPANY PROFILE

    Manager, UA5000-Intergrated Access Media Gateway, Eudemon 2000 Series-
    Session Border Controller

    Access Network Products
    HONET UA5000 series, SmartAX MA5100 series ATM/IP compatible DSLAM,
    SmartAX MA5300/5600 series IP DSLAM, SmartAX Mini DSLAM, SmartAX MT800
    series, SmartAX MT900 series, SmartAX WA1003 series, SmartAX Outdoor B01D
    Series, Quidway MA5200 series

    Switching Network Products
    C&C08EV, C&C08 STP, SYNLocK BITS

    Optical Transmission Products
    OptiX Series Products: OSN series and METRO series

    Value Added Service Products
    InfoX-SMS, infoX-MMS, infoX-WISG, infoX-Streaming, TELLIN-CRBT, TELLIN-
    WIN, infoX-IMPS, infoX-LBS, infoX-Download, infoX-Gaming, infoX-AAA, infoX-
    MDN, TELLIN-FIN, TELLIN ENIP

    OSS Products
    TopEng Billing System

    Data Communication Products
    Quidway NetEngine series, Quidway AR series, Quidway Series
    BRAS, Access Server and Security Products

    Video Communication Products
    View Point series


    3.2 Target Markets & Customers

                                                                                     A Guide To Investment In China
     Although China is still an important market for Huawei, the international
    market is becoming more important. In 1H 2005, Huawei’s oversea sales have
    exceeded the sales from domestic market for the first time.

     In China, Huawei’s main clients are the telecom operators and financial
    institutions, as well as various other companies that maintain their own
    networks. China Mobile, China Telecom, China Unicom, and China Netcom
    are all major Huawei clients. Government institutions, oil companies such as
    PetroChina, financial institutions such as China Commercial Bank, Industrial &
    Commercial Bank of China, Bank of Communications, and the Ping An Insurance
    Company are other main clients.




8   www.marketavenue.cn
                                                        COMPANY PROFILE


                                  In the international market, Huawei clients include British Telecom, ANTEL,
                                 Royal KPM, OMANTEL, Tele2, Etisalat, and CoTeCal. However, Huawei mostly
A Guide To Investment In China




                                 targets developing countries in Latin America, Africa, the Middle East, and the
                                 former Soviet Union (CIS).

                                 3.2.1 Major Competitors

                                 3.2.1.1 Domestic Competitors

                                  In China, Huawei’s domestic competitors are UTStarcom, ZTE, FiberHome,
                                 Datang, and Alcatel Shanghai Bell. ZTE and Alcatel Shanghai Bell are the most
                                 important competitors in transmission, switching, and DSLAM.

                                 Figure 3-2: Chinese Equipment Vendors’ Global Revenues, 2004 (USD M)


                                                 6000   5566

                                                 5000


                                                 4000


                                                 3000              2700      2651


                                                 2000


                                                 1000
                                                                                      187        145
                                                    0
                                                        Huawei   UTStarcom   ZTE    FiberHome   Harbour




                                 3.2.1.2 International Competitors

                                  Leading international vendors, including Lucent, Alcatel, Nortel, Ericsson,
                                 Motorola, Siemens, Nokia, and Cisco, are currently competing with Huawei in
                                 both foreign markets as well as in China. Although Huawei’s global revenues are
                                 lower than those of its key multinational rivals, Huawei is catching up quickly as
                                 many competitors have seen little or no growth in recent years.




                                                                                                   www.marketavenue.cn   9
                                     COMPANY PROFILE

     Figure 3-3: International Equipment Vendors’ Global Revenues, 2004
     (USD B)

                 40
                      35.6
                 35
                                      31.3
                 30

                 25

                 20                                    17.0
                                                                   14.9
                 15
                                                                                   9.8             9.0
                 10
                                                                                                                  5.6
                  5

                  0
                      Nokia          Motorola      Ericsson       Alcatel         Nortel         Lucent          Huawei



      In the domestic market Huawei’s brand is as famous as the above international
     vendors. Huawei holds a leading position, higher than that of Nokia, Siemens,
     and Nortel, in China in several product lines such as optical transmission and
     switching.

     3.2.2 Sales and Market Share

      Huawei’s total sales have been increasing since 2002 and while domestic sales
     are relatively stable, sales from international markets are expected continue to
     grow steadily. Although MarketAvenue does not expect Huawei to make headway
     in the North American market due to Huawei’s difficulty entering developed
     markets, MarketAvenue believes that Huawei’s sales in Latin America, Africa and
     other developing markets will continue to grow substantially.

     Figure 3-4: Huawei Sales Contracts, 1999-2008 (USD B)
                       16



                                                                                                                          A Guide To Investment In China
                       14

                       12

                       10

                        8

                        6

                        4

                        2

                        0
                              1999     2000     2001     2002   2003    2004   2005E     2006F   2007F   2008F

                                                   Overseas Contracts   Domestic Contracts




10   www.marketavenue.cn
                                                       COMPANY PROFILE



                                            1999 2000 2001 2002 2003 2004 2005E 2006F 2007F 2008F
A Guide To Investment In China




                                 Intl.
                                           0.05   0.13   0.33   0.55   1.05   2.28   5.00   7.20   8.80   10.20
                                 Contracts
                                 Dom.
                                           1.34   2.44   2.74   2.11   2.77   3.29   3.50   3.60   3.50   3.30
                                 Contracts
                                 Total
                                           1.39   2.57   3.07   2.66   3.82   5.57   8.50   10.80 12.30 13.50
                                 Contracts

                                  Huawei’s domestic revenues in the first half of 2005 are mostly from traditional
                                 products like transmission and switching, accounting for more than two thirds of
                                 its total revenue.

                                 Figure 3-5: Huawei’s Domestic Sales by Product, 1H 2005 (%)




                                 3.2.2.1 International Sales by Region

                                  In the international market, the bulk of Huawei’s sales are of wireless
                                 equipment.

                                  In the first half of 2005, Huawei signed foreign contracts worth approximately
                                 USD 2.47 billion, exceeding the total amount of foreign contracts in 2004, and
                                 making up 61% of Huawei’s total contracts in 2005.

                                  Huawei’s international sales are mostly in developing countries. Almost half
                                 of Huawei’s sales are from Africa and the Middle East and more than a third
                                 are from Asia. Developed markets make up just 11% of revenues from foreign
                                 markets.




                                                                                             www.marketavenue.cn     11
                            COMPANY PROFILE

     Figure 3-6: Huawei International Sales by Region, 2004 (%)




     3.2.2.2 International Sales by Product

     Figure 3-7: Huawei International Sales by Product, 2004 (%)




                                                                                     A Guide To Investment In China


       Unlike in the domestic market, mobile products (including GSM, CDMA,
     WCDMA, and TD-SCDMA) contribute almost half of all Huawei’s foreign revenues;
     switching products contribute less than a third. Transmission products face
     tougher competition abroad than they do in the Chinese market and account for
     less than ten percent of foreign revenues.




12    www.marketavenue.cn
                                                   COMPANY PROFILE


                                 3.2.2.3 China Market Share by Product
                                 Figure 3-8: Huawei China Access Market Share and Revenue, 2003 - 1H
A Guide To Investment In China




                                 2005




                                 Figure 3-9: Huawei China Transmission Market Share and Revenue, 2003
                                 - 1H 2005




                                                                                  www.marketavenue.cn   13
                           COMPANY PROFILE


     Figure 3-10: Huawei China Switching Market Share and Revenue, 2003 -
     1H 2005




     Figure 3-11: Huawei China DSLAM Market Share and Revenue, 2003 - 1H
     2005




                                                                            A Guide To Investment In China




14   www.marketavenue.cn
                                                  COMPANY PROFILE


                                 Figure 3-12: Huawei China Data Communications Market Share and
A Guide To Investment In China




                                 Revenue, 03 - 1H05




                                 Figure 3-13: Huawei China GSM Equipment Market Share and Revenue,
                                 2003 - 1H 2005




                                                                                 www.marketavenue.cn   15
                                     COMPANY PROFILE


     4. Human Resources and R&D

     4.1 Human Resources

     Figure 4-1: Huawei Employees, 1996-2005

                     35,000

                     30,000

                     25,000

                     20,000

                     15,000

                     10,000

                      5,000

                         0
                              1996   1997   1998   1999   2000   2001   2002   2003   2004   2005F




      Between 1999 and 2001, almost 5,000 new employees joined Huawei each
     year. At that period, Huawei hired many graduates from China’s top universities
     such as Tsinghua and, Beijing University of Post and Communication. Most new
     employees joined the R&D and sales departments. Huawei offered these new
     graduates high salaries of approximately USD 750 to USD 1000 per month, a
     very high salary in China in those years—particularly for recent college graduates
     without work experience.


     4.2 Research and Development

      Huawei has established and is continuously opening R&D centers both in                         A Guide To Investment In China
     China as well as in international markets including the USA, Russia, India, and
     Israel. Huawei is currently the largest investor in R&D in China, having invested
     between nine percent and thirteen percent of its annual sales revenue into R&D
     in recent years.

      Huawei’s research focuses on WCDMA, CDMA2000, NGN, intelligent optical
     networks, SDH (10G/40G), DSL, backbone routers, as well as WLAN and WiMax.
     Huawei has not made any significant investment in EDGE technology.




16    www.marketavenue.cn
                                                   COMPANY PROFILE


                                 Figure 4-2: Huawei R&D Investment, 2001-2008 (USD M)
A Guide To Investment In China




                                          1000                                                                   15.0%

                                                                                                   830
                                           800
                                                   9.7%                                            9.8%
                                                                       8.6%                                      10.0%
                                           600
                                                                       481

                                           400     371
                                                                                                                 5.0%

                                           200


                                             0                                                                   0.0%
                                                   2003                2004                        2005E

                                                          R&D Investment      R&D Ratio of Sales




                                 Figure 4-3: Huawei R&D Investment by Product Line, 2004 (%)




                                                                                                           www.marketavenue.cn   17
                              COMPANY PROFILE

     5. Executive Summary
     1. Huawei’s Low-cost Advantage

      Huawei’s main forte still remains its low cost advantage. With engineers,
     R&D personnel, marketing staff, and sales people all costing a fraction of their
     counterparts in developed countries; Huawei has been able to enter markets in
     developing countries where price is of great importance. Although Huawei could
     not have succeeded with a cost advantage alone, it is hard to believe it would
     have succeeded internationally without it.

     2. Managerial Practices...Still not a Multinational Company

      With the military background of its founder, Huawei still resembles a military
     organization in some ways. Ren Zhengfei still runs Huawei in a very strict
     and inflexible hierarchical structure. With branches opening up abroad and an
     increasing number of foreign employees, this method of management is already
     beginning to cause friction. A growing multinational company facing distinctly
     different foreign markets and different customer needs to give more decision
     power to their regional branches and local managers. Huawei is still run from the
     top, and largely by one man.

      Huawei also faces serious questions about Ren Zhengfei’s successor. Ren
     is well into his sixties now. However, the company does not have a board of
     directors to select a new president. More over, while many of the vice presidents
     are certainly capable in their current jobs, none is believed to have the ability
     or backing to ensure a smooth succession. Thus the future of Huawei upon Ren’
     s departure or death is unclear. Some industry experts believe that when Ren is
     gone, the current companies may become more independent of one another and
     possibly even split up completely.

     3.3G Networks Abroad in Anticipation for 3G Licenses at Home

      As China’s telecom market awaits 3G license issuance, Huawei is currently           A Guide To Investment In China
     focused on winning 3G contracts abroad. The experience gained in these
     networks is expected to improve its chances in winning major 3G contracts at
     home; as is the fact that it has had success in foreign markets.

      Although foreign 3G markets are of great importance to Huawei MarketAvenue
     expects Huawei’s main 3G market to be in China. MarketAvenue believes that
     with its mature product lines, 3G deployment experience, and well-developed
     relations with domestic operators, Huawei is well positioned for success in China’
     s 3G market. Huawei is developing 3G products for all three major standards,




18    www.marketavenue.cn
                                                       COMPANY PROFILE


                                 including TD-SCDMA. 3G products for the WCDMA and CDMA2000 standards
                                 are already commercial and TD-SCDMA products developed by its TD Tech joint
A Guide To Investment In China




                                 venture with Siemens performed well in recent MII tests.

                                 4. Venturing Abroad

                                  Although much smaller than its competitors, Huawei won substantial market
                                 shares in developing regions such as Africa, Asia Pacific, Latin America, and the
                                 CIS. Huawei is now trying to enter the more lucrative and developed markets in
                                 Europe and North America. Being selected for British Telecom’s 21CN project is
                                 starting to make Huawei’s competitors nervous.

                                  Going abroad and entering the international market could not have been done
                                 without the help of the Chinese government. In addition to ample financial
                                 support from the government through low-interest loans the Chinese government
                                 has also supplied financial aid to several developing countries in order to help
                                 Huawei gain more contracts. This was especially the case in the African market.
                                 We must not forget, however, that in developing countries where cost is a larger
                                 issue than in Europe and North America, Huawei has found success through its
                                 cost advantage over European and American vendors.

                                 5. International Competition

                                    Until recently, most international vendors did not regard Huawei as a threat.
                                 Huawei’s target market of small developing countries helped it avoid too much
                                 direct competition with multinational vendors. With Huawei trying to enter
                                 the European markets, these international vendors are beginning to recognize
                                 Huawei as a serious competitor.

                                    Facing these international vendors in major markets will not be easy for
                                 Huawei. Huawei’s cost advantage can only take it so far. Huawei will have
                                 to compete with established brand names, companies with experienced
                                 management, and extensive marketing and sales networks. Furthermore, in
                                 some markets Huawei will be competing on these vendors’ home turf.




                                                                                             www.marketavenue.cn     19
                                                        ABOUT US

                                                            Beijing MarketAvenue Consulting Co., Ltd is proud to be the leading source
                                                        of Chinese business intelligence in the English language. Our multi-level and all-
                                                        round services include:

                                                           ■industry news,
                                                           ■company profiles,
                                                           ■monthly analyses of important industries,
                                                           ■comprehensive analytical reports on individual industries,
                                                           ■customized reports tailored to meet clients’ needs

                                                          and other services that we will develop to meet the evolving needs of overseas
                                                        companies wishing to enter the Chinese market.

     Product Introduction                                 Our Advantages that give us our competitive edge:
  Utilizing abundant experience gained in
our many years of high-quality service in the           ■Over six years’ experience in the consulting industry, a strong research and
consulting industry, MarketAvenue integrates the        development ability, and an excellent track record for our strict quality control
databases of State Administration for Industry          system;
and Commerce of China, Ministry of Commerce,            ■Good relationships with government departments such as National Bureau of
industry associations and consulting companies to       Statistics of China, Ministry of Commerce, Ministry of Information Industry and
create MACD (MarketAvenue Company Database)             National Library of China;
which provides overseas clients with profiles of        ■Comprehensive and extensive cooperation with over 40 industry associations
over 250,000 companies in China, including all          and market research institutions;
the listed companies and covering every industry.       ■Database of senior experts and industry analysts in the various industries;
To ensure that all the statistics in the database are   ■A complete database of market research institutions, a database of the
efficient and reliable, MACD is updated once every      corporations in individual industries, and a database of industry development;
year by adding information on about 40,000 new          ■Integration and analysis of industrial information by professional and
companies and deleting entries for about 20,000         experienced industry analysts in MarketAvenue;
inoperative companies.                                  ■Multinational cooperation which ensures the firmly Chinese background and
                                                        international perspective of our service.
 As the first step in understanding the competition
and finding partners for cooperation, MACD opens            Staffed by professional consultants offering a comprehensive service,
the door to the huge market in China for you.           MarketAvenue is committed to providing a solid foundation for your understanding
 For more infomation, please refer to: www.             of China’s market.
marketavenue.cn/profile.asp.




                                                                                  MarketAvenue Consulting
                                                                                 Rm 1208, 12/F, Creative Bldg.
                                                                                      23 Weigongcun Ave.
                                                                                        Haidian District
                                                                                    Beijing 100085, China
                                                                                Email: market@marketavenue.cn
                                                                                    www.marketavenue.cn

				
DOCUMENT INFO
Description: Company Profile Target Market document sample