The Story Of Huawei
Written by Alicia Rivera on May 27, 2019
Huawei is a Chinese multinational telecommunication company which is known for manufacturing the telecommunication, consumer, and electronic equipment. It was founded 32 years ago in 1987. Its services are served worldwide. Its major products are mobile, fix broadband networks, managed services, dongles, tablets, computers, and consultancy. Its headquarters are situated in Shenzhen, Guangdong, China.
The founder of this company, Ren Zhengfei was also a former officer of people’s liberation army. He was the first person who focused on manufacturing the phone switches but later on, he thought to expand his business to the vast world of a telecommunication network. Now Huawei is providing its operational and consultancy services inside or outside of China. Several communication devices are manufactured to sell in the consumer market. Huawei has a research and development centers which are working on latest technologies and artificial algorithms and these centers are working with the help of 76,000 employees who are working diligently to give their best to the technology world. Huawei had a total of 170,000 employees since September 2017. Now it has opened 21 research and development centers all over the world. For strengthening the research section Huawei invested $13.8 billion in 2017.
Its background history was that it started in the 1980s when the Chinese government thought to modernize their underprivileged areas full of technology and they tried to build a technological infrastructure there. It was started from the core component that is telephone switches by which they tried to connect people through a medium. Later on, after this, the Chinese government thought to enlarge their ideas in association with other countries as well and make their scope wider.
Instead of waiting for the response from foreign countries Ren engaged reverse engineers with local researchers and start working on this project. This was the time when all telecommunication appliances were exported from abroad and no one can believe that China has the capability that it will have its own broadband company one day. Ren didn’t lose hope and keep his struggles continue to build a telecommunication company in China at other companies’ level. His efforts seem to be true and he builds a successful company which can compete and can stand against the world’s best competitors in the market.
A recent study is made and it is shown that the company had only 21,000 capital at the time of its creation. In the beginning, the company also took a loan of round about $8.5 million from a state-owned bank. During its initial phase, the company made its profit by reselling the private branch exchange switches which were imported from Hong Kong. Meanwhile, the company was trying to manufacture switches in its evaluation centers. At the end of 1990 company was able enough to build 600 research centers and started commercialization of its own manufactured switches focusing on boarding houses and small organizations at that time.
Till 1990s company manufactured regular switches but major innovation came in 1993 when the firm made its C&C08 program controlled telephonic switch. It was the most powerful switch which was available in China by the Huawei Company only.
Telecommunication Network for Liberation Army
Huawei made its identity strong when they were asked to design or manufacture a telecommunication network for the People’s Liberation Army. It was although a small deal in their overall business with this deal they got more links and relationship benefits. In the very next year, 1994 Ren had a meeting with General Secretary, Jiang Zemin. He convinced him to give own switching equipment to the nation because the nation without switching equipment can lack more in military wars. Jiang pondered over it for some time and at the end, he agreed to form a switching network for their military through Huawei Company.
In 1996 Huawei earned fame and respect in everyone’s heart. People protested in Beijing that we should boycott foreign manufactured products and must use our own manufactured products. Huawei got more benefit of these allegations or restriction because in the past it has done government project that made a plus point in their profile and it was on the top of the list to get government support. So Huawei was promoted by the government of the china and their locals through a national campaign which resulted in the form of more products and revenues which in turn consumed on their development and research centers.
Huawei after getting a good repute in China tried to make a relationship with other countries by offering its services. Huawei owners thought that no products will be imported in China but China can export its products to other countries which will be a continuous source of income and ultimately strengthen their economy. In 1997 Huawei signed an agreement with Hong Kong to deliver them fixed-line network products. After passing some time Huawei succeeded in launching the GSM-based products.
Telecom Software in Bangalore
After Hong Kong, Huawei turned to Bangalore, India where they decided to open an R&D. they hired thousands of employees to work on the telecom software and result was according to expectations.
At this stage, Huawei had developed a lot of software and had made a name in a telecommunication network world. Now it was in need of some kind of management that’s why they thought to make an agreement with IBM to maintain its products infrastructure and modeling through a proper way. Till 2000 Huawei has broadened its business to every corner of the world and now its products have been sold in every country. It has made a profit of US$100 million at the end of 2000 through foreign sales.
After 2000, Huawei earned enough money to buy some company’s shares or did a partnership with multinational companies. Owner of the Huawei made investments in various firms and opened many research and development centers with coordination or foreign countries which promoted artificial intelligence devices.
Huawei and the officially known multinational company is an employee-owned company who retain 1.42% share of the company till now. He is the man who provided employment to almost 61,000 Chinese people and other 50,000 foreign people. Great things always take time but once they happen their results spread over mega level which can’t be demolished easily.