Millet sale, Foxconn plant: Chinese enterprises face India crisis

Recently, impassively companies bad news continues. Especially in the India market, millet sale, Foxconn plant closings, encountering patent encirclement, OEM flanked. Known as the “going out” Chinese mobile phone, OEM manufacturers, a new round of overseas travel for less than a year, have suffered a major setback.

Not only does this make people think more than 10 years ago, Lenovo, Haier and Huawei, ZTE and other Chinese overseas journey as much trauma as technology companies at the beginning of time. Today, these seniors picked up the baton of Chinese enterprises, and why the setback? Technology, technology, technology, once again became the biggest stumbling block on the way stopped in March.

Core technology for maximum weight, in the hands of enterprise stack

As millet into the overseas market and the implementation of global strategy an important stepping stone, India’s XiaoMi smart phone significance is self-evident. Millet started in July in India market sales of its smart phones, although not as Starsky and Hutch as a domestic, but also slow and steady. Guessed that Ericsson is there to put a bar in filed patent lawsuits, the Court ruled that millet an infringement and issued a ban on requiring millet stopped in India the sale and import of mobile phones.

Don’t assume that millet taking soft, do not resort to such patent, or Ericsson to pay huge sums of money, will be spared. You know, Ericsson considered millet violations are the core standard of patent portfolios, smartphones can be difficult to fully go around. If thinking and Ericsson patent portfolios of reconciliation, scarcely could-and does not have a business coincidence the two, Ericsson does not need millet’s patents. Moreover, millet set up a short time, there is no decent patented Ericsson sees eye.

Foxconn’s more depressing, as early as 2006 came to India to set up factories, then key customer Nokia. But as Nokia’s sales overall fell, and acquired by Microsoft, Foxconn India sharp decline in factory orders, and finally to hold on now. Contract manufacturing is a pillar of Foxconn, seemingly without efforts to conduct product research and development, or you can avoid the risk of market competition, but OEM Foxconn against “man-made” ability is relatively poor. As soon as customers reduced orders, Foxconn may close down.

From a global point of view, contains a patented core technology, has become the most powerful booster to promote enterprise development, also survived in the competition and win the maximum weight. United States in global car markets Ding uber can, by virtue of the core technology cannot be copied. Millet and Foxconn’s strength in overseas markets, ultimately lies in the hands of millet and Foxconn does not have core technology. Accustomed to the country’s relatively liberal environment, once stepping into the global market and weakness were immediately magnified indefinitely, failed also reasonable.
Setback mode alone transplants that Chinese enterprises still need to learn more

Represented by millet and Foxconn, Chinese cell phone companies, all had an “out of the country, global domination,” the ultimate dream. Of course, if it succeeds, but also the pride of our nation. But the reality is, millet and Foxconn are eyeing global market it correctly, but would without taking into account domestic models simply transplants go out.

Is the so-called soil and water them, and already there are too many variables in global markets, cannot be a model just eat around the world. Even Apple is aimed at a different market and have different strategies. Mainland China’s market is a very special market, mostly routine things, probably does not pass in the global market, and may even offend many unknown cordon, millet and Foxconn is the best example.

Transplantation of domestic-only mode, novice is set off in overseas markets and enterprises often make problems. If you can’t adjust, losses will be bigger and bigger. Eventually set off a chain reaction, triggering the industry and users on the doubts and worries of the brand/model, threatening the domestic base. When fighting in the overseas market, Chinese enterprises still need to learn, must not think because domestic achievements of his model is the “panacea”.

Overseas money, when they learned to attract investment

In addition I must mention is that millet and Foxconn is spending his own money into the overseas market. Millet to even more than the Bank loan of 1 billion dollars for overseas expansion. If we can succeed in overseas markets that once didn’t go well, enterprises will no doubt increase the burden is too large, perhaps even the camels last strand of “straw”. Money in the overseas market, with “local” status as “married”, but also by overseas “mother-in-law”, why is this?

Different from the Chinese enterprises to explore overseas markets, foreign enterprises, especially enterprises came to China nearly put very little on the Internet. Because they were able to attract investment, attracting Chinese investors huge sums of money, spending other people’s money to make money. Because these foreign companies have advanced management experience and technology core, is coveted by Chinese investors and enterprise. But it is clear that foreign enterprises will be eliminated only core technology sold to Chinese investors and companies. If Chinese investors and companies to focus on this aspect, fix is throwing good money after bad, just spent their own money for foreign companies to do the wedding dress.
Millet and Foxconn will be able to rely on their own strength, core technology, attract investment in overseas markets? In order to do this, the vision must not be shortsighted. Not just to earn quick money, at the expense of long-term development. Only really lay a good foundation, set up its own core technology system can really well in the overseas market.

Chinese enterprises such as Lenovo, Huawei, ZTE, Haier overseas just when the market has encountered setbacks. However, after the familiar rules and game play, and eventually mixed blossom. Now millet, Foxconn also encountered the same problem, you might want to stop, take a look at itself, innovative models, before considering the next steps to expand overseas areas and ranges. One2more


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