The Rise of Huawei and the Decline of Haier

Henan Financial Network August 5 news: Huawei and Haier, are two very good companies, but also a certain number of Chinese companies in the world. Huawei and Haier's sales revenue in 2004 were 40 billion and 101.6 billion respectively. By 2013, Huawei had reached 240 billion and Haier had only 180 billion. The profits were 28.6 billion and 10.8 billion respectively. Haier's development speed and profitability are far away. Behind Huawei. In just ten years, why is Huawei growing and Haier is declining?

First of all, it is the difference of the boss.

The key to success or failure of a company lies in its boss. Huawei’s boss is Ren Zhengfei, and Haier’s boss is Zhang Ruimin. Ren Zhengfei is 70 years old and Zhang Ruimin is 65 years old. Ren Zhengfei founded Huawei and Zhang Ruimin grew Haier. It can be said that there will be no Huawei without Ren Zhengfei. Without Zhang Ruimin, there will be no Haier today. This is an irreplaceable role for the two bosses.

The difference between the two bosses, the most obvious is the low-key of Ren Zhengfei, and the high-profile of Zhang Ruimin. In the 20 years of Huawei before this year, Ren Zhengfei never accepted any media interviews. He is not famous for Hope and is not willing to become the focus of the media. Zhang Ruimin is just the opposite. He will try his best to expose himself to the Harvard University lecture hall and has become an alternate member of the Central Committee.

Through Ren Zhengfei's speech or article by Zhang Ruimin, we feel that Ren Zhengfei is more like an entrepreneur, and Zhang Ruimin is more like a politician. Ren Zhengfei is like an old farmer, patiently, deliberately and wholeheartedly cultivating his own land; Zhang Ruimin is more like a philosopher, from time to time to smash the storm of Haier's transformation, launching a novelty concept that is arrogant, intricate and gorgeous.

Second, it is the difference in culture.

What kind of boss, what kind of corporate culture there will be. It can be said that every pore of the corporate culture permeates the breath of the top leader, which reflects the distinct personality of the first-hand, and Huawei and Haier are no exception.

Huawei's core values are "customer-centric, struggle-oriented", and Haier's core values are "innovation." The core values are the soul of the company. From the two companies, we can see that Huawei's core values point to clearer and more practical.

Huawei's "struggling-oriented" is not a slogan, but has been implemented into concrete actions. Although Huawei is a private enterprise, Ren Zhengfei only holds 1.4% of Huawei's shares. More shares have been given to each of Huawei's strugglers. The establishment of a benefit-sharing mechanism is fundamental to Huawei's efforts to create a large number of strugglers.

Haier’s emphasis on “innovation” is mainly reflected in Haier’s internal management, and some management concepts of refurbished, so that the outsiders can see the dazzling. Ren Zhengfei is resolutely opposed to blind innovation in management. This is the biggest difference in culture between the two bosses.

Zhang Ruimin’s feeling is like a high emperor who constantly sends out a decree that people can only admire and be inaccessible. Ren Zhengfei’s feeling is more like a commanding general, strategizing, winning thousands of miles, so that every employee feels that he is in his own team. Zhang Ruimin regards management as art and does it for others to see; while Ren Zhengfei integrates his management ideas into all corners of the enterprise and guides the enterprise forward.

The third is the difference in strategy.

“Business Focus” is the core content of Huawei's development strategy. Since its establishment in the past 26 years, Huawei has always adhered to this strategy and is not relaxed. It is not driven by the high profits of other industries and will never enter other industries other than telecommunications. This reflects Ren Zhengfei. The strength of the force. It is safe to say that without business focus, there can be no Huawei today.

Haier adopted a diversified strategy. From the beginning of refrigerators, it entered white goods and black household appliances, and then entered the computer industry, pharmaceutical industry, real estate industry, financial industry, cultural industry, etc. After several decades, Haier Products can make users most admire? Air conditioning is not as good as Gree, TV is not as good as Changhong, computer is not as good as Lenovo, is Haier proud of the after-sales service, and now there is no user praise.

The above three differences lead to two completely different results. Huawei is developing rapidly and Haier is heading for decline. This phenomenon, in the final analysis, is still the problem of the boss, the problem of employing people, and the problem of understanding and grasping human nature. Zhang Ruimin’s so-called “everyone is a talent, and horse racing is not the same”. Even if he screams thousands of times, he will eventually cultivate a few decent talents; and Ren Zhengfei’s “high salary is the first driving force”, how many attracted People of insight joined Huawei and finally achieved a win-win situation for individuals and businesses.