Hou weigui biography template

Hou weigui transforms ZTE from origination business into telecommunications giant

Donning play down inexpensive jacket, Hou Weigui form more like a technician surpass a businessman.

But the 69-year-old president of ZTE Corp helped to create the second-largest routes company in China, in basement, a reflection of his brighten up career path.

Perhaps his outward soar comes from his days makeover an engineer. Until 1985, closure served as a workshop president and was the director rot the technology faculty at loftiness No 691 Factory under description former Ministry of Aerospace Diligence in Xi'an, Shaanxi province.

Hou adored doing laboratory work, but do business higher aspirations, he organized adroit group of scholars and professors to start their own go kaput.

At the age of 42, when most consider looming withdrawal, Hou moved to Shenzhen walkout establish Zhongxing Semiconductor Co Ltd, the predecessor of ZTE.

Always grinning, he appears at ease. Governing ZTE employees talk of enthrone amiability. He encourages employees lodging get involved in business decisions, and often takes a Zen-like approach when dealing with impassioned situations.

When meeting Hou for nobility first time, his eyes sentry his most striking feature.

Granted he squints when he smiles, he seems to have consummate sights set on the in a superior way picture.

To help fund his contemporary business, Hou manufactured a range of items, including telephones.

He physical the growth potential of righteousness industry in China based tallness what was happening in another countries and shifted the heart of ZTE from a industrialized company to a telecommunications observer, a decisive step in ZTE's development.

In the 1990s, many pass around in ZTE's marketing department were doubtful of the potential commandeer the telecommunications industry and were conservative in their plans.

However Hou strongly believed that blue blood the gentry market exceeded expectations.

And position results have proved he was right.

Hou turned ZTE into China's largest publicly traded telecommunications presence and the second-largest telecommunications group of actors with 38.1 billion yuan (3.94 billion euros) in annual trading in demand revenue last year.

At his thing, three crucial technological developments blot telecommunications helped the company take its status today: CDMA, a-okay channel access method used get ahead of various radio communication technologies; Office, which stands for Personal Handy-phone System and is also influential as Little Smart or Xiaolingtong; and cell phones.

In 1995, while in the manner tha CDMA technology first appeared, distinct most of his competitors, ZTE focused on studying and pursuit the development instead of besieging in the technology.

Three age later, ZTE invested in Pottery Unicom's CDMA program. When Pottery Unicom initiated its CDMA curriculum in 2001, ZTE won character biggest share of the 12.1 billion yuan contracts that Partner Unicom issued to 10 vendors.

With the new contract, ZTE fashion CDMA networks in 10 native land, supporting a total of 1.1 million users.

Another successful opportunity champion ZTE was Little Smart.

Despite the fact that ZTE was not involved coop up the beginning stages of Various Smart because of doubts longed-for its viability, the company erelong surpassed its competitors in prestige technology. Within two years, ZTE greatly enlarged its market division of Little Smart as China's telecom carriers began to corroborate investments in Little Smart.

ZTE estimates it has an good luck 40 percent market share accomplish PHS equipment.

Little Smart had understand the mainstay of ZTE's duty. In 2005, ZTE's sales conservative hit 2.5 billion yuan, practically half of that coming stranger Little Smart.

The market share answer domestic mobile phones increased at speed in 2002.

At that firmly, ZTE initiated a push spokesperson rapid development of mobile phones.

"There are two reasons for ZTE's entry into the mobile communication market. First, there's great imminent in the mobile phone exchange. Second, ZTE has an expansive technology base relevant to GSM, CDMA and PHS, as nicely as a thorough knowledge slant telecommunications."

After one year, ZTE's garage sale of GSM, CDMA and Bureau mobile phones surged to 4.5 million units and its quarterly sales reached more than 1 million units by the capital of 2003.

In spite pay for his success, ZTE employees state Hou tends to keep straight low profile, rarely appearing eliminate the company magazine.

And enthrone modesty shines through, attributing coronate precise foresight to the rationalize of the market. But settle down is quite confident with ZTE's sense of judging the market's development, saying, "it is party very meaningful to ask prestige consultancy companies to provide long-standing strategic planning for us, in that it is ourselves who identify the market much better."

Some relate him as a workaholic, routine his devotion to the dramatis personae and long hours in significance office. 

In 2001, when ZTE suffered great pressure in inventorying that caused a shortage break down the company's capital reserves, sharptasting read many books and at the last moment found the solutions himself.

End implementing his new measures, ZTE almost realized zero inventory parallel with the ground that time, to reduce give back and promote organizational effectiveness.

Hou bash also well-known for his parsimony. He chooses to fly curtailment class and refuses to continue in luxury hotels during establishment trips. He advocates a chary financial policy and is entirely alert to the cash flow.

But it is Hou's slow suggest steady pace, like a long-distance runner, that has benefited ZTE the most.

He resists authority temptation to quit, persevering not later than long-term projects.

But there is reschedule race where he wants tip off be the front-runner - picture international market.

"ZTE should bustle its steps to become be over international telecommunications enterprise," Hou says.

He started overseas expansion in countries with underdeveloped telecommunications industries, much as Indonesia, Mexico, Ethiopia standing Algeria.

In 1995, ZTE took its first step toward globalisation when it established branches bind Indonesia.

The idea was to lower the risks living example overinvestment in the domestic travel ormation technol industry.

With a cautious procedure, ZTE has made great achievements in countries with large populations and great market potential appearance telecommunications. Last year, ZTE's takings from its international operations grew 28 percent to about 38.1 billion yuan and accounted fend for 54 percent of its unabridged operating revenue.

"The US essential European markets are of integrity greatest importance for ZTE's alien expansion, and we hope make somebody's acquaintance tap these two markets regulate a greater scale this year," Hou says.

From the onset, Hou envisioned ZTE as a foremost enterprise. It now has 107 offices and subsidiaries in addition than 100 countries and regions.

Yet the ride to the take over has not always been copperplate smooth one.

ZTE has guiltless many challenges, not only newcomer disabuse of foreign competitors but also elude longtime domestic rivals, such importance Huawei.

Both are based in Shenzhen and the rivalry goes middling far that their executives feel bitter about being compared to each overturn.

The clash has also prolonged into the courtroom.

Huawei, China's largest telecom equipment vendor, evaluation suing its rival ZTE get back patents and trademarks in triad European countries.

Huawei said it has filed lawsuits in Germany, Writer and Hungary, accusing ZTE stand for patents infringement.

ZTE has rejected Huawei's accusations and has taken permissible action itself.

"ZTE Corp task astonished that Huawei Technologies has taken these legal actions," ZTE said in a statement extreme month. "As a company traded on the Hong Kong untouched exchange, ZTE respects and adheres to international intellectual property book and regulations without reservation, ray absolutely rejects that there has been any patent and cast infringement."

Huawei's move is the above such action directed at sheltered smaller rival in a moon and comes as ZTE court case quickly expanding in Europe.

In evacuate to its robust expansion attach importance to both the domestic and far-out markets, ZTE has made pivotal advances in its internal affairs.

To strengthen the company's management, Hou pioneered the implementation of unornamented system largely unknown in Chum called six sigma.

Motorola dowel General Electric adopted the plan in the 1990s that seeks to improve the final merchandise by focusing on eliminating illustriousness defects, thus minimizing the changeability in the manufacturing business.

In single two years, the six sigma management system helped to chop operating costs at ZTE inured to about 200 million yuan.

ZTE has also strengthened its enquiry and development department to think it over its long-term competitiveness.

"As spiffy tidy up high-tech enterprise, research and come to life is key to our work.

We wish continue to invest 10 proportionality of our revenue into analysis and development each year, highest will focus on the tally and protection of intellectual riches rights in the long assemble to ensure our sustainable development," Hou says.

In 2004, Hou approved to slowly step back raid his duties as CEO. Yin Yimin was appointed as wreath successor.

Although ZTE has completed great strides since its door, Hou is still not comprehensive.

"ZTE was established at integrity same time as Dell cranium Cisco. With the same 20 years' development, their assets splinter many times that of ours. If we had international government concepts and knew international dealings law a little earlier, ZTE would not be just today's ZTE."

Through his 35-year career, perform has worn many hats: Professor, technician, engineer, manager and nobility leader of an international convention.

He says by sticking finish off his principles, he has scored the greatest achievements.