Lessons Learned From Cisco About the Risk of Chinese Competition
Posted by crimsonlanguage on 2011/08/11
Buried in today’s announcement about a 3.3% rise in sales at Cisco (and 36% decline in net income) was a troubling note:
“The [economic] slowdown has had a severe impact on some kinds of Cisco gear—particularly the switching equipment that is the company’s biggest product line—at the same time that competitors are stepping up their attack on Cisco with low-priced products.”
I picked up on this because, on a recent trip to Hong Kong, I sat next to a supplier to HuaWei Technologies, a major telecom producer based in China. Starting out in 1988 as an importer of PBX phone systems, HuaWei (he informed me) had all but replaced Cisco in Asia. You can read about it here.
You might think that this doesn’t apply to the medical device industry…but you would be wrong. A case study on HuaWei provides a useful illustration of the growth of Chinese competition and its implications for US manufacturers across a broad range of industries – including medical device.
Device Manufacturers Risk Creating “Super-Competitors” in China « Medical Device Translation said
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