Japanese telecom gaint Softbank recorded a loss of $350 million for last nine months of 2016 in the fair value of the Company’s investments in India. The loss comes on top of a $555 million writedown on the value of Softbank’s India portfolio in the six-month period ending September 2016. “With reference to the current markdown, portfolio…
In order to extend global success to local markets, Huawei is trying to bring together globalization and localization and build a global value chain, while helping local innovations to maximize their global value.
Speaking at the Asia-Pacific Economic Cooperation (APEC) Business Leader Dialog forum in Qingdao, China today, Deputy Chairman and Rotating CEO of Huawei, Ken Hu pointed that in today’s business environment, where capital, goods, talents and knowledge move so fast across the globe, where information technologies are highly advanced, global companies and local companies are no longer two different types of businesses, but becoming one unified concept.
“Huawei’s business practices strive to bring together globalization and localization, integrate best global resources to build a global value chain while helping local innovations to maximize their global value,” Hu said in a release.
In order to extend global success to local markets, any global company should understand the unique needs of each individual market and offer products and services that are differentiated according to the respective market needs. On the other hand, in this highly-globalized economy, local culture, products and services can also be expanded globally in a much shorter timeframe. More and more local companies will have the potential to expand businesses globally.
On globalization, Hu said, “It is more about building a new business mentality; we need to treat the global markets as a single one. We need to build a global value chain just like what we do in an individual market and integrate best resources into the global value chain. This way, value created at any one point along the global value chain can be shared globally.”
While Hu said, “We don’t think localization is just about local hiring, local tax contribution, and localized products. Our view is that the next level of localization is about collaborating with the best local businesses in various disciplines and specialized fields, and integrating their innovation into our global value chain. By doing this, local innovation can be promoted and utilized globally, making local innovation truly valuable in the global ecosystem.”
Huawei is collaborating with many outstanding companies globally, and Huawei’s products and solutions around the world have integrated the capabilities from these partners. Therefore, when Huawei’s global business grows, the businesses of Huawei’s partners grow as well. This kind of win-win partnership is exactly how Huawei can bring unique value as a global corporate citizen.
“Practicing Glocalization is the way for best companies to contribute more, and it is also the way for a country to better leverage its comparative advantages and benefit from a strong global value chain,” said Hu.