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Editor’s note: Ten years, China’s mobile phone companies from weak to global leadership, what is the profound logic behind its historic rise? Tencent’s “Deep Network” has exclusive cooperation with business strategy expert Zhou Shucai and Christoph Loch, Dean of the Jiaji Business School of the University of Cambridge, UK. Based on global research and historical research, I hope to make a deep resumption. The strategic theory report co-authored by the two authors, based on a global perspective to demonstrate the profound logic of the rise of China’s mobile phone industry, is another comprehensive study of the mobile phone industry following the Zhou Bao cabinet’s 2016 OPPO and vivo People’s War. article. The full text is 11000 words and the reading time is 15 minutes.

From a global perspective, China’s smartphone industry has become a field of heroes and vitality. In this industry, you have seen the extinction of dinosaurs. After seeing that the samurai has won the shiny armor and lost it again, what is still being regarded as truth today may become the fuse of failure tomorrow. In such a limit war where wisdom and creativity compete with each other, some people are defending the status of the strategic center, and some are creating new marginal opportunities, but all players have only one goal, which is to become the new generation of hegemon.

Common sense is: We all know that to be successful, we must be highly focused; the paradox is that reality can only be “focus on limited resources.” If you focus too much, it will directly lead you to not adjust yourself, so you can’t keep up with the changing world. In biological evolution, those who own a certain partyAnimals with super-long traits are extinct due to changes in the surrounding environment; if companies are over-focused, it is difficult to quickly change their focus to adapt to new changes, and they cannot move from the center to the future center of the edge. Eliminated.

I have to admit that this is actually a difficult situation. For this reason, the stories of rising stars and heroes are so fascinating.

Reviewing the history of the mobile phone industry: The development of mobile phones as a smart consumer electronics industry started in 2007. That year, Apple’s iPhone turned out to be a revolutionary revolution—turning the phone from an instrument that can only answer calls to a small computer that we can carry with us.

This is not a technological revolution, after all, these technologies have existed before. Apple is repackaging these existing technologies, which has changed everyone’s understanding of mobile phones (in fact, Apple is not a self-developed new technology combination, but directly taken away from the computer science department of Cambridge University) Snacks “original shape”.

For Apple, which has never been involved in the communications industry before, this is definitely a strategic innovation, from the edge to the center of change. As early as the 1990s, they tried to develop a PDA private electronic assistant called Newton, but it did not succeed.

The mobile phone has become a function integration tool such as “communication and entertainment”, and this change has caused tremendous changes within the industry. The most direct result: the market leader, Nokia, although able to make the best mobile phone, and also won a lot of design awards. However, it was unable to keep up with the pace of the times and eventually faced the fate of being eliminated. In 2015, it withdrew from the mobile phone industry (later come back).

China and South Korea in the Asian market have grown and become more popular in the past. These mobile phone manufacturers are always watching this flexible smartphone that can be used for calls, video conferencing, games, photography, and storage. They are always ready. And also have the ability to take advantage of every opportunity hidden behind this little phone.

And in the same period when Nokia walked out of the altar, we can confirm that after 2011, the Chinese smartphone industry has been gestating for a long time. In the 3G and 4G switching time window, the market reshuffles the opportunity. Born here. The former giants such as Nokia, TCL, Bird, HTC, Samsung and even Apple, who have long stood in the center of the industry, have been smashed by the “edge” people and things in this series.

This article, the core issue we are trying to explore together is: Huawei, glory, Xiaomi, OPPO and vivo. The profound logic of the historic rise of Chinese mobile phones lies in the industry’s leading strategic capabilities, participating in this world-class top company. In the battle for strong fighters, Chinese mobile phone brands not only learn from their opponents, but also constantly seek opportunities from their own edge.

History: Centralized arrogance makes the international giantHead fading

Start with a vivid story.

In the fall of 2013, OPPO Vietnam’s head, Jacky, took $2 million to the table. Tom (pseudonym), the mobile world boss who controls 40% of Vietnam’s mobile phone retail market, said: As long as you let OPPO enter the store, this $2 million is One year’s profit margin, you can’t make a profit.

This is a survey by a dealer in Vietnam. What he wants to express is how OPPO has started a battle with Samsung in the gap between the four major channels of monopoly giants in Vietnam.

At that time, OPPO had just stabilized its position in the country, but it has already turned its eyes to Southeast Asia’s Vietnam, Indonesia and other populous countries with similar Chinese market. The OPPO’s locally-enabled partners are so young that these 25- and 26-year-olds have annual incomes of hundreds of thousands or even millions in 2016, corresponding to an average monthly salary of around 1,500 yuan in Vietnam.

The average age of middle and high-level executives of Samsung, which dominated the Vietnamese market at that time, was around 45 years old, using traditional multinational operating matrix and steadily. As a challenger, OPPO takes a slant and forms a highly vertical, young-dominated competitive organization.

From the perspective of the mobile world, they think that the OPPO with zero market has not started to advertise. It is very risky, but it is rationally accepted by the challenger in the face of huge benefits. The rapid rise of OPPO in Vietnam. In 2019, OPPO’s market share in Vietnam exceeded 15%.

Corresponding to OPPO’s heroic is Huawei’s historic strategic determination to invest in the mobile phone industry. Earlier, the 2011 internal meeting of Huawei’s Sanya should be said to be a historic turning point for Huawei’s terminals and even the group. The previous Huawei B2B business was almost “dead and dead”, and a senior executive of the operator publicly told the media: ” With Huawei’s equipment, our stock price will fall.”

It is true that Huawei, as a private enterprise, does not naturally compete with ZTE.Have the potential energy of a national enterprise. After experiencing the desperate situation of 2002 and the global challenge of the 2008 economic crisis, Huawei barely survived and clearly recognized the importance of sustainable growth. The steady cash flow is the life of tens of thousands of people.

At the moment, mobile phones have become an option for the Group’s edge business to have the potential to “run the well-off”. An old Huawei employee who has worked for Huawei for more than 20 years complained privately: “The brothers of the operators also looked down on Huawei mobile phones and used Apple. They only think that the communication network is the commanding height of Huawei technology.”

This may also be a knot in inspiring the new terminal core creator Yu Chengdong and the strugglers. When he was transferred to the terminal in 2012, he objectively said that this is a “edge business.” The advantage is that he can focus on a broader battlefield and be free to invent and create.

Review the growth trajectory of mobile phone industry leaders. Although as early as around 2001, Chen Mingyong had a single MP3 action as a step by step minority, but until 2008, OPPO did not break away from the long-term opportunism of the company’s consumer electronics “one shot for another place.” It is reasonable to judge that Chen Mingyong is also stepping out of the old maternal edge to find the “edge leader” who eats.

Before the 2015 R7 flagship crushed its rivals with 13 million units, the company couldn’t talk about domineering or even arrogance. Chen Mingyong and Yu Chengdong’s starting point is the same in that each other realizes their ambition from a relative edge position, but obviously has the research and development of genes and inertia. Chen has the inertia of factory operation and pays close attention to the young user experience.

The two current industry leaders are similar to Lei Jun, who is already in the business center position but eager to become a big man. The Jinshan software that carries the great ideal of Lei Jun has been tepid in front of Microsoft Windows, but he is not willing to be mediocre.

The family of vivo and Shen Yongping are the same as those of Jiangxi, perhaps because of the long-term struggle in Shenzhen, it is obviously with the pragmatism of the Cantonese, and more inheritance of the low-key and simple business of the enterprise, but He was able to get the vivo out of the backgammon era to frequently adjust the inertia of the product, and continued to make heavy bets and show his differences.

The author’s shopkeeper mentioned in the 2016 People’s War of OPPO and vivo that the two companies of OV have not presented such a gorgeous expression of “internet thinking” in the media, but they are deeply involved. Understand the characteristics of all levels of Chinese society. OV refers to the simple Chinese domestic market strategy of consumers has been integrated into the bone marrow, they are humble enough in front of consumers, without any self-confidence of the so-called leader.

In the period of 2013-2014, China has seen a strong demand for smartphones in many high-speed development areas, which has led to a complicated competition between new and old brands.

So the lens was pulled back to the market in 2019, and we found that the adventurers with these swords slanted into the ranks of the industry center brand. Huawei and glory mobile phones are leading the new and old exchanges. According to the market sales situation of the second quarter of 2019 released by data research company GFK, Huawei and glory, which have long been based on R&D, have actually approached 46%. market share.

The elements of their success can be summarized as follows: Huawei has discovered the “edge” opportunity for high-end machines to work with independent chips, and the glory has applied the edge strategy of younger fashion. Similarly, OPPO and vivo build channels and brands on the edge of the city, and Xiaomi creates new business models from Iot’s edge opportunities. Obviously, Apple and Samsung, once in the center, have never practiced these styles.

Review, we have seen the accident and inevitability of the edge breakthrough. So, let me clarify here: What is the so-called “marginal strategy”? We need to admit that it is difficult to find a balance between a center that requires a high degree of focus and an edge that requires a high degree of flexibility.

First of all, there are many possibilities at the edge, and not all edges may become the center of future competition. If you just know through a simple analysis which edge opportunities may help us win the market in the future, then everyone can do it! For this reason, focusing on marginal opportunities is actually risky. Behind every success story we can easily find 100 very bold and fierce tryners, but they have not succeeded in the end.

We have mentioned in the previous article an example of Apple’s failure in the 1990s. In addition, Siemens, Ericsson, and Microsoft (which bought Nokia’s mobile phone business) also wanted to enter the mobile phone industry. However, they all ended in failure. These companies still had a lot of resources at the time.

Not to mention the giants in China who have been calling for the rain: HTC, Cool, LeTV, Meizu, Hammer, etc. They have all done a lot of unique and bold attempts. As a company, if you just see a marginal opportunity and throw money, it will not work. Enterprises must learn to choose. Adapting to all changes without choice will only make the process of adaptation extremely expensive, then the edge becomes your end point.

This is why it is very difficult for large companies: in the many choices ahead, which potential opportunity is to choose the right path and push the business forward, we should have 100 opportunities Are you making parallel investments? This actually represents another wrong attitude that opposes the above-mentioned excessive risk-taking attitude—over-conservative and path-dependent.

So, simply put: “Edge Strategy” is a centralization strategy for strong competitors at a specific point in time, and the opportunity to differentiate into the future.

The rise of the edge of the Chinese market is the decline of the center. Apple has completely stepped down from the altar. This strategic idea of ​​”extreme product” to create “extreme user experience” dominates the world and forms a giant in the hearts of young Chinese. Now it is trapped in a difficult situation of innovation, and Cook will do Apple. Became a company that is good at making money, not innovation. Samsung, the communications and semiconductor giant, has basically disappeared from people’s horizons in China, and only the Chinese manufacturers are pursuing their screens. Of course, this tragedy can also happen to any business. Today is still the golden victor, and tomorrow will become a dinosaur.

The winners who used to be in the Chinese market stood at the center of the market and then scornedLooking at the challengers, they believe that the so-called innovation of these challengers is just a small trick on the edge, it will not become a big climate, and it is unlikely to meet the needs of consumers. This is the “centralized arrogance” we define.

The well-known management scientist Tian Tao’s book “Will the next fall will be Huawei” has an analysis of the earlier communications giant Motorola, and there is a similar narrative: “Motorola’s strategic investment from the comet failed, With a loss of nearly $5 billion, this is the watershed for Motorola’s decline. Motorcycles are not only ‘unresponsive to customer demand’, but also toward the self-enclosed ‘ivory tower’.” Tian Tao’s summary of “ignoring customers, rejecting common sense, and technology first” is also the fundamental reason for the decline of the previous generation of communications giants. The latter also stems from “centralized arrogance”.

Generally speaking, it is difficult to change the inertia for the judgment of things. The success at the center will shape and limit your aesthetic judgment of what is “correct and appropriate.” We have already mentioned the example of Nokia above, their interface and product design are extremely outstanding, and even won a lot of design awards for them. But the leadership at the time looked at the prototype of the smartphone and decided – we wanted to connect people (the marketing slogan at the time), we wanted to do interpersonal communication, not some distracting games and furnishings. They misjudged the potential of the next generation of smartphones because they have been immersed in the love of their simple and simple communication system design.

Therefore, the success of the Chinese mobile phone industry not only draws lessons from the experience of big companies that have failed in the past, but also learns from the many failed experiences of marginal attempts. This is always reminding companies that are at the center today, to maintain a humble heart, to focus on strategy and gain more insight.

From a deep logical point of view, we found that “Hua Rong Mi OV” (Huawei, Glory, OPPO, vivo, Xiaomi) are facing a fierce market competition, and they are breaking the long-term development of a fixed central thinking mode. Try to think about the “edge” of the future of the industry. As shown below:

From a strategic perspective, companies such as Huawei, Glory, OPPO, vivo, and Xiaomi are struggling to break through the realities of the past and look for opportunities in the future center of the edge.These big logics are also reflected in the “edge strategy model”: 1. The central purpose of breaking the reality is to find new sources of competitiveness; 2. Give priority to the practice of the edge center becoming the future center; It does not rule out the exploration of the “no-man’s center” in the farther edge. It can be seen that in the top commercial war of this smartphone, the “edge strategy” perspective has been widely used in actual combat, and the self-reflection of centralization and arrogance has been removed. Every enterprise is actually rediscovering itself.

What needs to be reiterated is that this is indeed a very difficult balance. Because you can’t give up the current center, because you need to rely on the current center to earn resources, you can invest in the future. But how long can you hold on? If you give up immediately, then I am afraid there will be cash flow problems. If you have been relying on the current center, then you will miss the window of opportunity.

To explore the edge opportunities, you need more than just in-depth analysis. You also need to practice and test these opportunities in the market. If you spend too much money on many marginal opportunities at the same time, it is not impossible to have no grain. Whether you turn left or right, you may fail.

The big companies have therefore become very cautious, hoping to directly take over those successful small businesses. Small companies try much more and naturally fail more. The excitement of the winners always makes people forget the regrets of those who fail.

From the perspective of “marginal strategy”, the dangers and opportunities in competition have the characteristics of coexistence. Objectively speaking, if Huawei survives Trump’s attack, they will have to become more innovative and flexible. Because they must now start looking for new partners and rebuilding their business models outside of the Android ecosystem, such as the Hongmeng operating system. If you do this, they will become stronger, and Americans are likely to lose the war in many ways.

At the same time, Huawei needs to be wary of the “centralized arrogance” of centralized thinking. Success is of no value to Huawei. What is truly valuable is the opportunity and challenge of the edge.

Reality: “Looking for the edge” means “finding the future”

In fact, in 2012-2014, “Hua Rong Mi OV” almost all achieved rapid growth through the differentiated strategic logic from the edge of the industry; from 2015-2017, these giants are working hard to consolidate Its own edge strategy center; starting in 2018, as product differentiation gradually shrinks, the channel’s saturated competition is almost in the same place looking for the next edge. Objectively speaking, the Chinese brand in the mobile phone industry has never been more strategic than the international giants. The continuous growth engine behind it comes from “finding the edge”.

Compared to the overall advantages of traditional giants Apple and Samsung, the edge of Chinese brands begins with “Chinese characteristics”:

The first is the central thinking of differentiated cities, building a ladder-based channel network from rural to townships to small and medium-sized cities, to large cities and mega-cities, and working with brands that are close to local young people. Hard to sink;

Secondly, from the brand communication of TV and advertising media to the penetration of social media and TV variety cooperation, this is full of cultural barriers; once again, from the star effect of the spokesperson to the mobile phone products The leading technology leadership of the theme leads to the rapid support of China’s industrial chain; the final is the comprehensive competition from China’s main battlefield to the global market. Almost every step is highly differentiated from the centralization giant. Today, it seems that these companies that have found their edge have succeeded.

“Building capabilities, hitting the center, finding the edge” has become the strategic consensus of the Chinese mobile phone brand, and after “finding the edge”, the breakthrough requires a killer:Huawei’s strategy for the president of the terminal product line He Gang Thinking is also constantly looking for new marginal technology growth points. Dialectical view, Nova himself is also a kind of edge breakthrough after Mate and P series form the central potential. Zhu Ping, the president of Huawei Terminal Greater China, is different from OV’s advertising and positional warfare, and promotes the vertical marketing strategy of “circle layer”, which is a hierarchical level of differential penetration.

The difference between

and OV’s pointing young people’s brand is that Huawei pays more attention to the word-of-mouth effect of different levels of political merchants on its high-end machines, so the young people who learn OV in the marketing penetrate the different ways of playing the word-of-mouth. penetration.

Glory President Zhao Ming, while adhering to the “light assets and high efficiency”, has found the young geek “circle layer” that has been widely neglected to carry out a global rejuvenation campaign and seek differentiation through “Rui Technology.”

At the same time, OPPO leader Chen Mingyong borrowed Huawei’s investment of 10 billion to do technology research and re-use young leaders such as Shen Yiren. The indulgence of vivo will not hesitate to ask the company to build a research and development globalization organization and super concept store. And Xiaomi learns Apple’s flagship store model to establish a consumer electronics traffic center and make up for the shortcomings of its own control.. These cases of learning from each other are also a kind of edge breakthrough.

In particular, the rise of the Huawei department actually draws on Xiaomi’s Iot and OV channel strategies, but does not copy the opponents and find out how to play.

In the study of Huawei and glory, we summarized the “edge evolution” model of brand cognition, which to some extent made a breakthrough in OV’s “People’s War” style, which also reflected high standards. The edge logic behind strategic competition, as shown in the figure:

The most difficult part of “finding the edge” is actually the edge breakthrough of brand building. Objectively speaking, the Chinese market is the most complex in the global market. It is a country separated by industrialization and urbanization, showing a typical dual structure of townships and cities. China’s cities are separated by population and interpersonal relationships. The rural areas are clustered by populations. (There is also a dual market structure in the UK. The developed and rich South and the poor and backward North have completely different perspectives. This can also be seen from the results of the Brexit vote. The North, which is afraid of the negative impact of globalization, is a strong Brexit, while the South, which enjoys the global dividend, is the European Union. Both have the characteristics of both. Therefore, multivariate structure requires parallel analysis of subjective and objective dimensions, and attaches importance to brand logic in the direction of “edge breakthrough”.

Commonly speaking: Looking at China’s dual structure, the bottom layer is closer to the “constrained” and “quality” perspectives of consumer electronics demand, which requires consumer electronics manufacturers to form low-risk, trustworthy, and compliant targets. Reliable, durable and endurance-tested products; for the upper-level industrialization and urbanization, closer to the “identity” and “advanced” perspectives, requiring manufacturers to show off the depth of performance, personality, advancement, special effects and efficiency Concern; the main point of putting it into the global perspective of the metropolis is “Thought leadership and “lifestyle” lead.

The difference between this urban/rural population does not exist only in China. According to many cultural studies, the more dilute the society is, the more differentiated the society is, the more people follow this social order. In rich countries, egalitarianism is often advocated, and people are more Individualistic tendencies. Why is this so? Because the poor are more dependent on each other to help out of the dilemma they face. Because they depend on each other, they need a good mutual benefit relationship to maintain unity. Therefore, if a person starts to show off, it will lead to resentment from others and will not help him next time. The show-off behavior of the people in the city is actually related to their wealthy resources. Because they are rich, they are not so dependent on others, so they do not need other people to “see” and behave more naturally.

Here, given that the well-known scholar Hofstede’s cultural dimensions theory has studied twice in the past three decades (pictured above), we can see that some countries have become richer, As people no longer depend on their families to live, they become more oriented towards class, individualism, power orientation, uncertainty anxiety, long-term goals first and self-pleasant tendencies. Because they show off their spending power is actually generated in a rich situation, not because ofFor the family! The other extreme reflects the trend toward egalitarianism, collectivism, gender orientation, adaptation uncertainty, short-term goals first and self-discipline tendencies. The rural vs urban dual structure of Chinese society is very close to the trend of the above two poles,

So the enlightenment for the company is: look for the edge of the brand, to understand the cultural identity of your customer base. Even in the same country, there can be many differences between them, and the consumer psychology of different classes will have the opposite difference. Obviously, Chinese mobile phone companies have solved the problem of consumer culture identification in multi-level society, which often allows brands to break through in the edge of the competitive advantage market. This strategic initiative has a strong reference for global consumer companies. .

More specific ones correspond to the brand exploration of the mobile phone industry: In fact, the brand aesthetic orientation of rural and township people is closer to the two cultural characteristics of herdity and quality, while the big city population tends to think leadership and lifestyle. Cultural characteristics. The two are marginal, representing the two directions of Hofstede’s cultural dimension theory, while the vast second and third-tier cities in China tend to be identity and advanced.

From this, we can conclude that perceiving the emotional income of consumers is the basic way of thinking about the edge of the brand. In other dimensions besides the brand, we can also apply similar methods to find the edge.

Theory: Oriental Philosophy Integrates Western Science

Combat, is destined to be richer than academic thinking, but academic exploration is often more philosophical.

In 2019, with the evolution of Sino-US trade wars, Huawei became the most discussed technology brand in the world. Ren Zhengfei’s thought leadership has been widely praised. At the same time, OV and Xiaomi’s rapid rise in lifestyle brands are also eye-catching. China’s mobile phone industry has almost become the industry with the most complete scientific and technological aesthetics in East China. Of course, the bones also have a strong oriental philosophy.

Through the above strategic analysis and ideological dialogue, from the changes of the past 10 years, perhaps we can boldly infer the future 5Year’s development trend. At the micro level of the industry, the smartphone industry will mainly evolve in four dimensions (as shown in the following figure: Pyramid Multidimensional Strategy Model):

The first is the “product strategy dimension”, in this dimension, there are four main aspects, namely, super account, UI application matrix, AI chip & OS, hardware technology supply chain & Iot hardware extension. Here, “super account” is considered to be a software system for software-defined hardware. It is also a new edge center for mobile phone products from hard to soft in the future. It also offers the possibility for Internet companies such as bytebeat to cut into the mobile phone industry. In terms of AI chip & OS, in the face of the strong leadership of Google and Apple and the potential of Chinese companies, Huawei Hongmeng OS is emerging from the edge of innovation in the Internet of Things, and strives to form an ecosystem beyond IOS&Android.

The second is the “brand strategy dimension”, China’s mobile phone companies have long been based on product strength in the brand strategy direction, which is called “productism” and is in line with word-of-mouth brand and leadership. Personal brand. But from a trend perspective, the company’s values ​​and lifestyle brands will gradually precipitate as the main direction of brand investment. In this dimension, the company’s values ​​will have a long-term impact. If the company’s values ​​are limited to a small group of people, the company’s long-term brand will not lose its brand competition.

The third is the “Leadership Strategy Dimensions”, the strategic commanding height is technical leadership, and the bottom line is the underlying R&D talent. From the perspective of the whole industry, the application innovation of the surface layer is still the most important communication competition point in the industry. In this respect, the future may be combined with the super application of product strategy to vertically reflect application innovation.

The fourth is the “ecological strategic dimension,” which includes the cloud service ecosystem, the Iot hardware ecosystem, the user ecosystem, and the developer ecosystem. The main source of profit for the entire smartphone industry has been subtly shifted to cloud services, and the revenue of “Hua Rong Mi OV” on the InternetThey are already among the top ten Internet companies. In the future, the reverse action of cloud services on the application and developer ecology may become more and more prominent. This competitive logic will reverse the competition of high-end users from the high-end brand competition to the high-end users in the price range of RMB 3000-4000, and then through the long-term cloud. The service is profitable.

Like OPPO and vivo’s cooperation with game companies, Huawei’s cooperation with video companies such as Youku and Tencent actually shows the trend of convergence between smartphone companies and Internet companies. So, in the future, not far from the time, it is very likely that the independently operated videos and games will become the main profit contribution unit of the mobile phone company.

It can be seen that the evolution of the Chinese smartphone industry from the micro level is a multi-dimensional complex logic. From the macro level of marginalized strategic practice reasoning, the next five years: OV and Xiaomi’s breakthrough direction will be in the overseas market. People once thought that the “factory machine” and “low-end brand” will not only stay in history forever. It will be possible to gain more share of the US and European markets. This edge breakthrough may not be as self-confident as it is, but it is becoming clearer in the process of constantly exploring the edge.

In the process of looking for the edge, Huawei brand faces the political pressure of the United States. It does not rule out the new developer ecosystem built around the Android operating system or its own operating system. The ability to spread around the chip extends to a wide range of hardware areas. An open platform architecture for IoT capabilities. This looks like the same era of innovation that Apple used to package software applications. Therefore, if Hongmeng OS forms a comprehensive breakthrough in the perspective of the Internet of Things, Huawei terminals will counteract the operator-led communication network architecture and reconstruct the infrastructure of the industrial Internet through mobile. On top of this, the terminal cloud service will generate more user contacts, and the technology platform will be fully open to authorize talented intelligent developers. Glory may instead be more differentiated in the Huawei terminal to explore the edge of “Rui Technology”, such as breaking through the omni-channel brand of pan-Iot, home appliances, mobile phones.

In terms of 10 years or even longer, Huawei’s consumer electronics genes are more pure and the rise of the Internet of Things and terminal cloud services is the inevitable result of marginal extension.

Great Huawei itself is a breakthrough from the carrier network to the wireless business, to the terminal business to the Internet of Things and the cloud service business. There is reason to believe that this is also the true path of Ren Zhengfei’s “entropy reduction”. It is the dissipation and re-engineering of the center.

In addition, the criticality of the marginalization of the three mobile phone functions may soon appear: one is from the visual shooting competition to the excessive multimedia AI; the other is the consumption degradation after the consumer electronics market is saturated, It is possible that flexible services will replace rigid equipment growth as a new strategic edge; the third is that Huawei terminals become cross-platform, cross-hardware software companies..

For Huawei terminals, due to the long-term focus on hardware products, brands, user operations, Iot hardware and cloud services have always been relatively marginal. The final growth point of Huawei is also probable here, especially Cloud services, we should be able to see more radical leading edge innovation.

The logical deduction and transformation of this series of edge strategies can occur in China’s mobile phone industry. It may consciously or unconsciously reflect the dialectical thinking of Taiji Yinyang in Chinese traditional culture (pictured above), “center” and “edge”. The dialectical relationship is: The center and the edge are two dialectical concepts. Their existence is that they exist together as a map. A single “center” or “edge” does not exist.

In fact, in the Taiji diagram, this relationship can be perfectly displayed: First, the center of a system (fisheye) is on the two edges of the opposite transformation; second, the boundary between the center and the edge is relative; Third, the whole system is in constant motion; fourth, the system’s motion dynamics can start from the center and edge dimensions respectively.

From this perspective, Ren Zhengfei’s most important management ideas, “entropy reduction” and “dissipation” have related ideological structures. “Entropy reduction” emphasizes reducing uncertainty to find the edge of the future center, and “dissipation” is conversion. The energy of the real center is transformed into the future center layout. Compared with Huawei’s strategy, it may be said that Huawei and glory are both black and white in a Taiji system. OV should also be like this. Even Huawei and OV Xiaomi can be placed in Taiji to feel their dynamic penetration and change. .

The staged success of China’s mobile phone companies is full of profound strategies and even philosophical foundations worthy of summarizing. The “edge strategy” thinking is not only in line with the yin and yang dialectic of Eastern philosophy, but also based on the deconstruction of Western scientific spirit:

First, the “edge strategy” recognizes that an organization should be multidimensional, and thus its “strategic core” is vague – it may pursue high sales, or it may hopefully The product that satisfies customers, or the reputation of the organization, the edge strategy is to highlight the dynamic ambiguity of the “center” of organizational activities.

The so-called center is where you put the most manpower and material resources, and the most important part of current marketing. This “center” you think may be at the center of a certain dimension.And it is driving your organization, but it is not the center of other dimensions, and in other dimensions it is powerless to drive the organization. As our perspective changes, the center is changing. And this just reflects the ambiguity and multifaceted nature of Chinese mobile phone brands.

Second, the “edge strategy” also recognizes that change happens all the time. Today may be regarded as a strategic commanding height, and tomorrow will become a burden. In our current global dynamic business environment, it is not a question of “changing the sky”, but a question of “when”. Therefore, the “center” we are experiencing may be, or not, or no longer within your value proposition. For this reason, the marginal strategy internalizes the nature of strategic change. It encourages you not to focus only on the present, but to think in a longer-term perspective, where the organization comes from, and where to go.

In summary, the profound logic of the historic rise of China’s mobile phone industry lies in the industry’s leading strategic capabilities. In this strong world of top-ranking companies, Chinese mobile phone brands not only learn from their opponents, but also constantly from themselves. The edge of the perspective seeks opportunities. The five brands of “Hua Rongmi OV” not only reflect the dialectical thinking of Eastern philosophy, but also profoundly study the modularization of the Western management science modularization strategy and organization. Today, China’s mobile phone brand has almost become the most shining business card in China. From the more advanced strategic competition, through the constant search for new “edge strategy” kinetic energy, the change reflects vitality.

In its roots, in the top commercial war, the “marginal strategy” is not only a centralized preservative for Huarong Mi OV, but also a core idea for the future.

The edge perspective not only allows the major manufacturers to learn from friends and strive for self-improvement, but also to see the present, to break through and to focus firmly. This may be the profound logic of the historic rise of Chinese mobile phones.

At the same time, the “edge strategy” idea also reminds smartphone companies that are already “centralized”. How to prevent themselves from being subverted and surpassed, we must quickly find the future center to continue life and continue to write legends.