ON Vendor Profile: ZTE Corporation
Since our October 2008 profile update, ZTE has commercialized several new optical products, in all three segments: aggregation (ZXCTN, optimized for mobile backhaul), bandwidth management (ZXONE 5800), and the iWDM series (M720, M820, and M920). It has also made tangible progress, both on the R&D and sales/marketing fronts, in the convergence of its optical and datacom divisions into a single “Bearer Network” group. Now that it has a more complete product set, a broadening range of customer relationships, and much bigger scale globally, ZTE must leverage these to better penetrate the more picky tier-1 and tier-2 accounts in order to overcome its corporate image as a technology laggard.
EXECUTIVE SUMMARY
IN A NUTSHELL
OVUM VIEW
MARKET POSITION
KEY CHANGES AFFECTING ZTE SINCE THE LAST UPDATE
ANALYSIS OF COMPETITIVE POSITION
CORPORATE
OPTICAL
STRATEGY DEFINITION AND EXECUTION
PRODUCT LINE MANAGEMENT
2009 PRODUCT LINE ADDITIONS
GLOBALIZATION
SOLUTIONS SELLING
SWOT ANALYSIS
DESPITE GROWTH OF DOMESTIC MARKET AND PRODUCT ENHANCEMENTS, ZTE’S SWOT METRICS REMAIN THE SAME
STRENGTHS
CORPORATE STRENGTHS
R&D
OPTICAL PRODUCT STRENGTHS
SOLUTION STRENGTHS
WEAKNESSES
CORPORATE
OPTICAL PRODUCT
SOLUTION
OPPORTUNITIES
THREATS
ZTE’S ON RATINGS
NOT MUCH CHANGE; ZTE’S CHALLENGE IS EXECUTING R&D PLANS, BUILDING LOCAL OFFICES, AND WINNING CONTRACTS
BROADEST PORTFOLIO IS IN AGGREGATION PRODUCTS
PRODUCTS
MANY NEW PRODUCTS INTRODUCED IN LAST 12 MONTHS
KEY PRODUCT SERIES: ZXCTN
CHINA MOBILE’S NEEDS DRIVE ZTE’S ZXCTN PRODUCT LINE FOR MOBILE BACKHAUL
ZTE’S ZXCTN SERIES FOR MOBILE TRAFFIC BACKHAUL AND AGGREGATION
REGIONAL MARKET DATA BY PRODUCT SEGMENT
AGGREGATION AND BACKBONE WDM DRIVING GROWTH
HIGHEST RANK IS IN BACKBONE WDM SEGMENT IN AP
MARKETING STRATEGY
MESSAGING
CHANNEL STRATEGY AND PARTNERSHIPS
ACQUISITIONS
IN A NUTSHELL
OVUM VIEW
MARKET POSITION
KEY CHANGES AFFECTING ZTE SINCE THE LAST UPDATE
ANALYSIS OF COMPETITIVE POSITION
CORPORATE
OPTICAL
STRATEGY DEFINITION AND EXECUTION
PRODUCT LINE MANAGEMENT
2009 PRODUCT LINE ADDITIONS
GLOBALIZATION
SOLUTIONS SELLING
SWOT ANALYSIS
DESPITE GROWTH OF DOMESTIC MARKET AND PRODUCT ENHANCEMENTS, ZTE’S SWOT METRICS REMAIN THE SAME
STRENGTHS
CORPORATE STRENGTHS
R&D
OPTICAL PRODUCT STRENGTHS
SOLUTION STRENGTHS
WEAKNESSES
CORPORATE
OPTICAL PRODUCT
SOLUTION
OPPORTUNITIES
THREATS
ZTE’S ON RATINGS
NOT MUCH CHANGE; ZTE’S CHALLENGE IS EXECUTING R&D PLANS, BUILDING LOCAL OFFICES, AND WINNING CONTRACTS
BROADEST PORTFOLIO IS IN AGGREGATION PRODUCTS
PRODUCTS
MANY NEW PRODUCTS INTRODUCED IN LAST 12 MONTHS
KEY PRODUCT SERIES: ZXCTN
CHINA MOBILE’S NEEDS DRIVE ZTE’S ZXCTN PRODUCT LINE FOR MOBILE BACKHAUL
ZTE’S ZXCTN SERIES FOR MOBILE TRAFFIC BACKHAUL AND AGGREGATION
REGIONAL MARKET DATA BY PRODUCT SEGMENT
AGGREGATION AND BACKBONE WDM DRIVING GROWTH
HIGHEST RANK IS IN BACKBONE WDM SEGMENT IN AP
MARKETING STRATEGY
MESSAGING
CHANNEL STRATEGY AND PARTNERSHIPS
ACQUISITIONS
LIST OF TABLES
Table 1: Ovum’s overall rating of ZTE
Table 2: ZTE’s key strengths, weaknesses, opportunities, and threats
Table 3: Mapping of ZTE’s products to Ovum’s segmentation
Table 4: Technical specifications of ZTE’s 6100/6200/6300 products
Table 5: ZTE’s regional ON revenues by product segment, 3Q08-2Q09 (US$M)
Table 6: ZTE’s regional market share and rank by product segment (rolling 4Q, 3Q08–2Q09)
Table 1: Ovum’s overall rating of ZTE
Table 2: ZTE’s key strengths, weaknesses, opportunities, and threats
Table 3: Mapping of ZTE’s products to Ovum’s segmentation
Table 4: Technical specifications of ZTE’s 6100/6200/6300 products
Table 5: ZTE’s regional ON revenues by product segment, 3Q08-2Q09 (US$M)
Table 6: ZTE’s regional market share and rank by product segment (rolling 4Q, 3Q08–2Q09)
LIST OF FIGURES
Figure 1: ZTE’s ON ratings (as of October 2009)
Figure 2: ZTE’s product competitiveness by product segment
Figure 3: ZTE’s aggregation and bandwidth management products
Figure 4: ZTE’s WDM/OTN products
Figure 5: PTN trial at China Mobile
Figure 6: ZTE’s three ZXCTN products
Figure 1: ZTE’s ON ratings (as of October 2009)
Figure 2: ZTE’s product competitiveness by product segment
Figure 3: ZTE’s aggregation and bandwidth management products
Figure 4: ZTE’s WDM/OTN products
Figure 5: PTN trial at China Mobile
Figure 6: ZTE’s three ZXCTN products
