10-01-2013, 12:51 PM
(10-01-2013, 12:03 PM)CityFarmer Wrote:(10-01-2013, 11:53 AM)sgd Wrote:(10-01-2013, 11:30 AM)CityFarmer Wrote:(10-01-2013, 11:18 AM)sgd Wrote: sure .. this is not overnight thing to become a global leader it takes time and a lot of investment. Samsung took more than 10 years buying up companies to become electronics global leader. If you had told westerners in the 80's or 90's that Samsung would one day become the global leader in electronics they would probably have laughed.
If you look at the elements that are in place, to build all these electronics and smart devices you need low cost manufacturing and you need rare earths and china has all these, they control 90% of global rare earths production and they have all the cheap and skilled workforce that can make anything end-to-end today. There's really nothing to halt them is just only a matter of time, what they don't have is a large domestic consumer market but that will eventually happen under this new chinese leadership. if you want an investment with a long term horizon buy huawei or any of the consumer related coy in china
Huawei has all the elements highlighted, plus huawei technologies and leader position in the back-end.
Huawei already win and a leader in the back-end market.
To become leader in hand-phone market, the lacking is a "steve jobs" leader, which is probably the hardest and most critical base on my limited understanding of Huawei culture.
to become a leader you just need to throw money into marketing
why apple products are so wildly successful is because of strategy they intro their products to people who grow up using them as students and later on work life that's why they have brand loyalty. The same way you see in macdonalds commercials always have kids as patrons
just see this little video to understand people who use mac products
http://www.youtube.com/watch?v=FL7yD-0pqZg
If monies into marketing is the only critical factor to become leader, WB should venture into it. WB has tons of monies and the return from a leader like apple is lucrative.
Cash (monies) is king, but may not be true in this case, at least IMO
"If you gave me $100 billion and said, 'Take away the soft-drink leadership of Coca-Cola in the world,' I'd give it back to you and say it can't be done."
-- Warren Buffett.