Huawei has grown to become a global leader in telecommunications equipment through focusing on customer needs, innovation, and building an employee-owned company culture. Founded in 1987 in Shenzhen, China, Huawei now employs over 180,000 people and invests heavily in research and development. The company's founder, Ren Zhengfei, established a vision of enriching life through communication and a mission of providing excellent ICT solutions.

1. 1
#COMPANYREBUILDING
Asia‘s Global Disruptors
#FutureTrends
Cologne, August 2018
By Monique Faßbender, Carina Illgner
and Delila Taranin

2. 2
Why are we here?
 Get to know most valuable Asian
companies
 Get an awareness of the power of
those global players
 Discuss the potential development of
the companies
 Acquire knowledge that is important
for our CompanyReBuiling approach

3. 3
A driving force behind this influence has
been the private entrepreneurs and
companies of China.
China’s economic rise has been one of the most
significant developments in the global economy of recent
times.
China‘s Economic Rise “China is a sleeping
giant. Let her sleep, for
when she wakes she will
move the world.”
Napoléon Bonaparte
(1762- 1840)
Quite a few have literally redefined the
economic and business landscape, both
inside and outside of China.
Chinese companies are leading the way in
both organization and technology

4. 4
Haier Group
Employees:
66, 000
Branch:
Home appliances, Consumer
electronics
Revenue:
32 billion USD (2014)
Headquarters:
Qingdao, VR China
Market Shares:
Global market leader with 10.3% in
the market of household appliances
Founded in:
1984

5. 5
Haier is market leader by selling a variation of products including
refrigerators, mobile phones and computers.
Home appliances: #1 worldwide

6. 6
Home appliance producers are Haier´s competitors.
Samsung
Sharp
Toshiba
LG Electronics
Bosch

7. 7
The History of Haier
 1984: Founded as
“Quingdao
Refrigerator Co”
 Zhang Ruim was
appointed as
managing director
and got the
company out of
their debt
 Partnering with
German brand
Liebherr
 1991: Diversified its
product line further
and became
“Quingdao Haier
Group”
 1993: Zhang
became CEO of the
“Haier Group”
 Buying of other
companies to grow
 2006 “China’s Most
Valuable Brands’
 2008: Surpassed
Whirlpool as the
world’s top
refrigerator producer
(sales wise)
80s
90s
2000s
Today

8. 8
Founder´s Personality
Zhang Ruimin
 Born 1949 in Laizhou, Shandong
 Board chairman and CEO of Haier Group
 Born in a working class family in Quingdao
 His parents were employed in a local factory
 He was affected by a cultural revolution in young age, so he was unable to
attend university due to the movement (Master’s degree in business
administration in 1994)
 Zhang started to work in a state-owned company in Qingdao in 1986
 In 1984 he got appointed as managing director of “Quingdao refrigerator
Plant” (later: Haier) - By then the company was more than 10 million in debt
 He made it successful (mayor part: cooperation with Liebherr)

9. 9
Vision & Mission
Mission
Improve the quality of life, focusing on
customers' needs
Vision
Be the leader in the industry and users’
first choice, as well as the first
competitive solution provider for good
life

10. 10
Success Factors
Successes
Research and
adapt
User centricity
Create a
marketplace of
ideas
Small, self
managed
teams
Change then
change again

11. 11
The Haier platform now connects more than 2,000 microenterprises in
various locations around the world.
Small, self
managed
teams
Managers give orders to employees
 Distance between decision and customers
 Dysfunctional behavior of employees
Managers support their teams and provide resources
 Each unit manages a customer group
 Decision-making power among employees
Source: http://www.haier.net/

12. 12
RenDanHeyi - EmployeesUserValueUnity
Small, self
managed
teams
Purchasers of our offerings are transformedfrom customers to lifetime
users of products and services designed to solve their problems and
increase their satisfaction.
A network of self-governing microenterprises with free-flowing
communication among them and mutually creative connections with
outside contributors.
Employees are transformedfrom executors of top-down directions to
self-motivated contributors, in many cases choosingor electing the
leaders and members of their teams.
Source: http://www.haier.net/

13. 13
Headline
Haier pursues various approaches that lead to the success of the company.
Focus on Employees and Users
Employees be-
come the principal
in independent
innovation
Employees
realize own value
in the process of
creating value for
users
Employees
receive autonomy
and decision-
making power
Employees
can deter-
mine their
income
Users can
decide the fate of
an enterprise

14. 14
Which Player comes next?
“OpenSesame”

15. 15
Key Facts
Name: Alibaba Group Holding
Ltd..
Founded in: 1999
Employees: 50,092
Branch: IT
Core Business: E-
Commerce, Retail and
Technology Conglomerate
Revenue: 23,82 billion USD
Headquarters: Hangzhou,
Zhejiang (VR China)
Market Shares: 43% of
B2B E-Commerce

16. 16
Founder´s Personality
Jack Ma
 Was teasedfor his size in school
 Failed the college entrance exam twice (due to maths)
before he finally got in and graduated from Hangzhou
Teacher‘s Institute in 1988
 Visited the United States for the first time in 1995 – his first
discovery of the Internet
 Eventually became an English teacher, making about $12
a month at a local university
 Before founding Alibaba, he was rejected for a number of
jobs – including a managerposition at KFC
 Ma’s 1st attemptin Internet Business failed
 Jack Ma donned a crazy wig and sang a song from the
Lion King to celebrate Alibaba's tenth anniversary
 Stepped down as the CEO of the company in 2013

17. 17
Since launching its first website, Alibaba Group has grown into a global
leader in online and mobile commerce.
1999 2000 2003 2017
Alibaba Group is
established by its 18
founders, led by
Jack Ma starting
with 60K
Online shopping
website Taobao
Marketplace is
founded
Launch of the
world’s first
“Smartcar”
(Roewe RX5)
Alibaba.com
completes its initial
public offering on
the New York Stock
Exchange.
Alibaba Group
raises US$20
million from an
investor groups
The company investedin various online areasfor several years
2014

18. 18
Vision & Mission
Mission
“We envision that our customers will meet,
work and live at Alibaba …”
Vision
…we will be a company that lasts at least
102 years. “

19. 19
CULTURE
“WhenI am myself, I am
happy and have a good
result”
(Jack Ma)
Culture
 Strong Hands-on Culture
 Ma implements elements of Ying & Yang and inner martial arts
(Thai chi)
 Teamwork and collaborationare understood as huge success
factors
 Every employee is asked to adopt a nickname.
 Employees post comments about the company’s products or
culture on Aliway the company’s internal bulletinboard
 Employees encouraged to shoulderpersonal responsibility,
carrying out or delegating tasks rather than waiting for orders
from the high.
Ma’s online
persona (Feng
Quingyang), a
sword’s man
from one of his
favorite martial
art novels

20. 20
Competitors
“You should learn from
your competitor, but
don’t steal”
(Jack Ma)
Wholesale & Distribution Mobile payment/E-Banking
Alibaba’s domestic E-
commerce operations
captures around 80%
of the country’s total e-
commerce business
Jing Dong Tencent
Alibabas Aliplay
commads a 53%
marketshare based
on payment value
“Chinachanged
because of us in the past
15 years. I hope that in
the next 15 years the
world will change
because of us”.
(Jack Ma)

21. 21
• In 2011, Alibaba Group reorganized
Taobao into three separate companies
• Tmall.com,
• Taobao Marketplace
• eTao
to better adapt to China’s fast-growing
B2C market for e-commerce
• In July 2012, Alibaba Group
reorganized into seven business
groups which Jack Ma called the
“seven swords”
• In 2013, Alibaba Group reorganized
again into 25 business units.
• Alibaba Small and Micro Financial
Services Group which includes
Alipay, insurance, loan and guarantee
services to small businesses
Organization
“If we are a good team
and know what we want
to do, one of us can
defeat 10 of them”
(Jack Ma)
Decentralizedstructure

22. 22
Heading
Innovation
Process
“I’m not a tech guy. I’m
looking at the
technology with the
eyes of my
customers. Normal
people’s eyes”
(Jack Ma)
“Alibaba isn’t just following the
traditional business strategy of having
a core competence”
(Zeng Ming, CSO)
Looking for the right combinationof
opportunity and competence – where
they can bring together the biggest
opportunity and the most important
leverage point.
Jump – Strategy: enter markets beyond
existing arena in search for new sources
of growth. Rapidly taking measure of a
changing business environment then
develop the capabilities needed

23. 23
Key facts
Name of the company: Baidu
Inc.
Number of employees: 45,887
(2016)
Branch: IT
Core Business: Search
Engine, the majority of revenues
is generated through online
marketing services.
Revenue:10.16 billion USD
(2016)
Headquarters: Beijing or
Peking (Haidian District)
CEO: Robin Li
Founded: 1st January 2000 (18
years ago)

24. 24
Founder´s Personality
Robert Li
 Li is a Chinese Internet Entrepreneur born 1968 in
Yangquan, China.
 He is more popular as co-founder of Baidu, a popular
Chinese search engine.
 Robin Li spent most of his childhood in Yangquan. His
parents worked in a factory and he has four siblings. He was
the only son to that couple. .
 In the year 2000, along with a biochemistry doctor Eric Xu,
he co-founded Baidu. He became the company head in
August 2004.
 By 2010, Baidu became the top search engine of China
and this was when the revenues of Robin Li doubled.
Almost Eighty percent of the searching in China is done
using Baidu.

25. 25
History
The share of Baidu went
from 27 dollars to 122
dollars
Baidu was co-founded in
2000 by Internet pioneer
Robin Li
Robin Li, number 4 on the list of
Chinese billionaires Governmental
protection and copy-right-free music
download greatly helps
Baidu has become the
1st website in China and
the 6th in the world
260 million monthly active
users in December 2015
2000
2005
2013
2015
2017
Li set out to provide the
best and most equitable
way for people to find
whatthey're looking
for and built a company
culture predicated on
two principles:
simplicityand
reliability.

26. 26
Vision & Mission
Mission
“Baidu's mission is to provide the best and
most equitable way for people to find
what they're looking for”
Vision
“Baidu’s vision for the future includes AI,
home smart gadgets, and driverless cars”

27. 27
Other Services
Social Networkingmarket
Baidu Tieba
Search Engine business
64% market share
Baidu’s Competitors
 PaiPai (Tencent)
 Alibaba
 Wikipedia
 TOM Online
 …
 QQ
 Qzone
 WeChat
 Sina Weibo
 Shenma
 Haosou (360 Search)
 Sogou
 Google
 Bing
 Youdao
Baidu’s Competitors
Baidu is the No. 1 search engine in China, controlling64 percent of China's market share as of 2017. It often uses very aggressive
markettactics and was accusedseveraltimes fro uncompetitive behavior. It is argued that much of Baidu’s success in the
Internet search market is due to the access that it offers on to pirated media.

28. 28
Baidu – Organization, Culture, and Innovation Process
Organization Culture Innovation
Flat Hierarchies
 No enclosed offices except for VP-level
and above (and VPs are very few:
about 10 in an organization of over
20,000 people).
 Director-level employees work in the
same open-plan half-walled cubicles as
everyone else.
Engineering-driven:
 The unwritten rule is "he who hath the
greatest tech prowess hath the greatest
say."
Culture - Deliberate Silicon Valleyimport
 Founders Robin Li and Eric Xu, both
worked in the Valley.
"Simple and Reliable“ interactions
between employees.
 "Simple" means direct and
uncomplicated. No circumlocution, no
fancy rhetoric, no beating around the
bush.
 "Reliable" means trustworthy,
delivering tasks to the next team or
person only when they've been
perfected.
As in many others Chines companies,
Innovation process at Baidu is basted on
copying the best practices from
innovative companies around the world,
especially the ones from Silicon Valley.

29. 29
Key Facts
Name: Huawei Technologies
Co.
Employees:180.000
Branch:Telecommunications
equipment and consumer
devices
Core Business:Telecom
equipment
Revenue:46,5 bn. USD
Headquarters:Shenzhen,
Guangdong – China
MarketShares:Smartphones
20% (2017)
Founded in: 1987

30. 30
Shenzhen –
Home of Huawei
& Tencent
• 50 years ago Shenzhen was a tinyfishing village– Today it is a
young and futuristic metropolis
• Shenzhen is a large manufacturing center andis home to
China’s most successful high-tech companies such as Huawei &
Tencent
• “Technological Mecca” and center for innovation - Shenzhen is
often referredto China’s Silicon Valley
• Shenzhen is China’s richest city- The city’s average income is
more than 50 percent higher than that of Beijing and Shanghai

31. 31
Huawei‘s success story – Huawei serves 45 of the 50 largest telecoms
operators
1987 2005 2011 2014
The road to success
started in 1987 in
Shenzhen.
Huawei reached
an all-time high
sales revenue of
$46.5 billion
Huawei's income
from overseas
markets surpasses
that from the
Chinese market
Huawei is today’s largesttelecommunications equipmentmanufacturer in the world
Huawei surpassed
Ericsson – at that time
the world leader in
telecommunications
and networks

32. 32
Founder´s Personality
Ren Zhengfei
 Born in 1944
 Ren retired from the army in 1983 when the government disbanded the
engineers
 Afterwards he worked in logistics within an oil corporation
 Since he was dissatisfiedwith the job, he established Huawei in 1987 with
only RMB 20.000 (2500 Euros)
 Up until now he is the CEO
 First media interview in 2013
 Worth: 2,1 Billion

33. 33
Vision & Mission
Mission
Focusing on the customer’s needs.
Providing excellent ICT solutions and
services in order to create maximum
value for their clients.
Vision
To enrich life through communication
Establish presence in every corner of
the world

34. 34
Interaction - Ecosystem, Platform & Shares
Huawei
Campus size: 500 acres
with 60,000 employees
10 canteens, restaurants,
employee accommodation,
a hotel, sports club,
swimming pool and the
Huawei university
Fairly green
environment with parks
and a small lake
“Employee-owned
company” -
It tries to distance itself
from allegations of
governmental control
About 55% of the
employees are
stockholders in the
company - Ren keeps
1,4% for himself
Due to massive tax
payments and
creation of millions of
jobs, Huawei has
contributed
tremendously to
China’s
information
sector

35. 35
Innovation
Huawei has its own
(Innovation) Research
Programs
About 76.000 (out of
180.000 employees ) are
in researchand
development (R&D),
they got 21 R&D
institutes worldwide
Sep 2017: Focus on ICT
trends: IoT, big data,
cloud computing and
other next generation
ICT

36. 36
Huawei‘s success story
Huawei’s success factors
Customer first
attitude
Employee
Dedication
Establishing
their own
innovation
processes
Long-Term
Thinking

37. 37
A company influencing the lifestyles and the
way of communication of hundreds of millions
internet users
A company that has over 1 billion active
mobile app users across its apps
A leadingprovider for internet value added
services that is worth more than Facebook
Another Asian Disruptor…

38. 38
Tencent
Employees:
30,650
Branch:
Internet
Core Business:
E-commerce, entertainment,
information and communication
Revenue:
30 billion Euro (2017)
Headquarters:
Shenzhen (VR China)
Founded in:
1998

39. 39
Headline
Tencent´s revenue has a resilient growth and diversified revenue streams.

40. 40
Tencent strives to be the most repected Internet enterprise.
Vision
Be the most respected Internet
enterprise and earn the respect of users
Mission
To enhance the quality of life through
Internet services

41. 41
Pony Ma as CEO of Tencent has an exciting profile.
 Richest person in China
 65th richest billionaire in the world
 Studied software engineering at the Shenzhen
University
 Won the Award 2015: Innovative CEO of the
year
 Ma Huateng, Nicknamed: “Pony Ma””

42. 42
Tencent offers a wide range of products and services.
The products and services are
available via PC as well as via
mobile phone

43. 43
Tencent´s Multi Channel Platform enables to connect costumers behaviors
across channels.
WeChat: Chat service for smartphones expanded by numerous functions
QQ: Communication service through text, video, pictures and stickers
TencentGames:Aleading world-class online game developer and operator, recognized as the largest online games
community in China
860 Mio.
active users
1 B
active users
More than 1/3 spend 4
hours/day there
All day activities are being done within the Tencent ecosystem of companies

44. 44
Tecent is investing in Strategic Partnerships.
Music
Video
Games
Transportation
Local Services
Real Estate
Shopping
Food Discouts & Delivery
Health Consultation
Tencent invests more than almost any other company worldwide

45. 45
Tencent as a dominant player in China is the most important opponent of
Alibaba.
Tencent
As a dominant player in almost
every subsector in China
Sohu
RenRen
Alibaba
most important
opponent
Baidu
Netease

46. 46
Tencent has a leading market position in many areas in China.
Music: #2 mobile app
Literature: #1 digital publisher
on pc Video: #1 mobile video views
Online Games: #1 in many
genres for PC and Smartphone
News: #1 mobile app, pc portal

47. 47
Tencent strives to be quick and innovativ in order to satisfy customer
needs.
Tencent´s Innovation Process
Being a
“fast follower”
Win-win
Collaborations
with partners
Quickly
introduce
products that
fit costumer
needs
Continuously
improving the
corporate
reputation
Develop
innovative
revenue
streams

48. 48
What was Jack Ma‘s profession prior to founding
Alibaba?
What makes Alibaba so special?
a) World‘s biggest IPO
b) It powers 80% of online commerce
c) Ma set it up with $60,000 borrowed from 18 people?
How many hours on average does an Asian spend in
WeChat?
Which players are both named Ma?
QUIZ
What did Ma do for his staff for entertainment?
a) He came to work disguised as a robot
b) He fought a Kung Fu fight with his competitor Huawei
c) He sang the Lion King
What was Ma‘s first search entry on the Internet?
a) China
b) Beer
c) How to become a billionaire?

49. 49
In which sector is Haier worldwide market leader?
In which areas does Tencent have a leading market
position?
How many active users does WeChat have?
QUIZ
How many microenterprises does Haier approx.
have?
In 2011 Huawei surpassed a company, at that time
the world leader in telecommunications and networks.
Who was this?
Which young and futuristic metropolis do Tencent and
Huawei call their home?

50. 50
The Asia Disruptors have specific success factors in common.
It is important to observe how those companies are developing –
it won’t take long before they got a real impact on Europe
 Theyacquire companies or form
partnershipsin order to have the
widest possible product portfolio
 Theyall focus on the user or
customer
 Theyput value on their employees’
autonomy

51. 51
Sources (1/2)
Books:
 Business Ecosystems in China: Alibaba and Competing Baidu, Tencent, Xiaomi and LeEco. Mark J. Greeven, Wei Wei. 2017.
 The Huawei Story. Tian Tao & Wu Chunbo. 2015.
 Alibaba: The House that Jack Ma built. Clark D. New York: Harper Chollins Publishers. 2016.
Internet:
 http://www.haier.net/
 https://www.strategy-business.com/article/Why-Haier-Is-Reorganizing-Itself-around-the-Internet-of-Things?gko=895fe
 https://consumer.huawei.com/en/about-us/
 http://uk.businessinsider.com/sc/history-of-the-largest-telecom-company-in-the-world-2016-11?IR=T
 https://www.forbes.com/sites/wadeshepard/2016/05/25/chinas-huawei-growing-up-to-become-the-worlds-number-one-smartphone-
brand/#3132b1a03adf
 https://www.emaze.com/@ATFTQLIC
 http://fortune.com/longform/alibaba-tencent-china-internet/
 http://www.alibaba.com/
 https://www.alibabagroup.com/en/about/overview
 https://www.ukessays.com/essays/marketing/international-strategy-of-the-haier-group-marketing-essay.php
 http://www.haier.net/en/research_development/Ecosystem/
 http://www.thexnode.com/blog/open-innovation-case-study-in-china-haier

52. 52
Sources (2/2)
Books:
 China´s Disruptors – How Alibaba, Xiaomi, Tencent and other companies are changing the rules of business. Edward Tse. (2016).
UK: Penguin Random House.
Internet:
 http://www.businessinsider.de/inspiring-life-story-of-alibaba-founder-jack-ma-2017-2?r=US&IR=T
 http://enviableworkplace.com/alibaba-company-culture-case-study/
 http://www.it-times.de/news/baidu-umsatz-der-grossten-internet-suchmaschine-in-china-steigt-um-32-prozent-129420/
 http://www.faz.net/aktuell/wirtschaft/diginomics/chinas-baidu-fordert-das-silicon-valley-heraus-15449200.html
 https://www.bloomberg.com/profiles/companies/BIDU:US-baidu-inc
 https://www.kassenzone.de/2017/10/14/was-macht-tencent-eigentlich-genau/
 https://www.tencent.com/mobile/en-us/index.html#4

53. 53
Headline
Delila Taranin
Delila.Taranin@Detecon.com
Phone: +49 151 70426107
Carina Illgner
Carina.Illgner@Detecon.com
Phone: +49 151 54723905
Monique Faßbender
Monique.Faßbender@
Detecon.com
Phone: +49 151 50042193
Contact
Learn more …
• Die Erschütterung der alten Macht: Company ReBuilding
• The Shattering of Old World Power: Company ReBuilding