ZTE Corporation, the overseas development "grounded" business strategy has been Waist Deep

    
October 2012 United States mobile dvr release investigation report to the China communications company ZTE, the enterprise whether it is reputation also entering United States communications equipment market has been severely affected. ZTE Corporation, the overseas development, should itself find the cause. For investors, the ultimate concern, remains the company's future development, to be truly out of the Woods, ZTE or still has a long way to go.

On October 8, 2012 United States House Intelligence Committee in Washington, high profile reports that "Huawei ZTE in United States criticalcar dvr infrastructure on the device provisions would undermine the United States core national security interests" and suggested that "United States communications equipment companies in China should be in the United States continued penetration of telecom industry status quo remain skeptical eye." It is understood that the investigation began in November 2011, to report officially released, zhongxinghua provided extensive information to facilitate the investigation by the Commission.

However, this ban on acts provoked a chain reaction, India indicated that it would take investigative actions, the EU also accused the two companies suspected of dumping, or investigated, the development of China's overseas Fortune uncertain. However, ZTE was increased to expand overseas, in the United States markets to inject US $ 30 million.

In fact, ZTE faces "present". 2012 ZTE's first three quarters, under the influence of adverse factors such as low-margin, a loss of 1.7 billion yuan. According to notice, products area, group operators network income up declined 5.21%, main is due to cable Exchange and the access products, and CDMA system equipment sales declined due to; Terminal products income up growth 15.36%, main is due to 3G phone vehicle dvr sales quickly growth and the GSM phone, and data card sales declined integrated effect due to; telecommunications software system, and service and the other class products income up growth 23.29%, main is due to depending on news and the network Terminal products sales growth due to.

ZTE reported a first half of 2012, financial cost 831 million Yuan, an increase of 88.9%. Accounts receivable amounted to 26.587 billion yuan, while throughout the past two years, ZTE's receivables, overseas accounts receivable is higher than the national percentage, the proportion is more than overseas operating income as a percentage of total revenues. At the same time, ZTE 2011 years of three overseas operators 100% provision for bad debts, 2011 overseas provision for badmobile dvr debts for the year prepared to about 590 million Yuan.

Performance report the changing face, fr, initiating challenges to ZTE overseas market layout, even accusing it of excessive aggressive overseas marketing strategy, worried about its capital chain rupture caused excessive expansion. Can be seen, hidden in the pursuit and interception under the status quo, are seeing the cost advantage of Chinese enterprises after the traditional threat of international industrial giants to have high growth market for Chinese enterprises to carry out a new round of speculative attacks. Last year, after huge losses in the third quarter before ZTE, its management to make decisions until turn around half of the pay cut, enhance internal communication and implementation of the directive. Effect of further data support is also required.

Facing the dilemma, ZTE Corporation, the issues highlighted in the internal strategy and implementation, result in loss of serious, tactics of how to effectively implement focus; in addition, externalcar dvr extension, obstacles, many issues remain to be resolved. At present, the corporate strategy is Waist Deep, or only after these problems are solved, ZTE can give investors a satisfactory answer.