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"Step Out" to Find New Growth Pole in Optic Fiber and Cable industry

"Step Out" to Find New Growth Pole in Optic Fiber and Cable industry

Write: Pearce [2011-05-20]
Interview with Xue Jiping, CEO of Zhongtian Technologies Co., Ltd.(ZTT)
After getting "China Famous", ZTT got "China Famous Brand", now ZTT made the strategic decision to become "China-World Famous Brand".
At the medium and long-term developing and programming meeting of ZTT Group, Mr. Xue Jiping said: ZTT have been sticking to developing on the two wheels of Telecommunication and Electricity Power recent years and have made great progress in both domestic and oversea market. Proceeds of sales in domestic have a growth of 100% comparing to last year while proceeds of sales in oversea have 200%. In the future 3 years, ZTT will intensify its exploration in oversea market and make oversea sales rise to 30% of the total sales.
Seeking New Growth Pole in "Step Out"
Some years ago, ZTT "Step Out" is not quickly, we only have small market share and little influence on oversea market, which does not match the position in domestic optic cable industry. So Mr. Xue realized ZTT must carry out practical measure to speed up the strategy of "Step Out" to improve overall competitive strength and maintain a steady and healthful development. Now ZTT has had the good industry support strength for "Set Out". CEO Xue Jiping stated: ZTT always attaches great importance on the improvement of product quality, continual innovation in technology and ZTT brand foundation and maintenance. On these bases, ZTT has raised the market share in domestic steadily and become a bellwether in the high-end area of communication optic cable in domestic. While, ZTT exports products from conventional optic cables to optic fiber, special cable, radio frequency cables, Aluminum alloy conductors, Aluminum cladding steel conductors and hardware fittings. ZTT oversea sales rose from 100 thousand US dollars to over 15 million US dollars per year and its applied area has changed from auxiliary projects initially to international trunk line.
Like other products exported from China , ZTT s products have huge cost advantage in the developing countries like Asia, Africa etc, but that is not all competitive advantages of ZTT. The reality proved that knockout product of ZTT is also very competitive in developed countries. ZTT OPGW first entered the market of Poland. In order to enter high-end market of the world, ZTT sent its products to the world-famous authoritative inspection organization, after that, ZTT got network access license of Polish Telecom and Electric Power. ZTT s OPGW has entered Poland Country Electric Power Trunk Line. More than 1,500KM OPGW has been sold to Poland by now, a large market share has been got from world famous old brand OPGW manufacturers. ZTT s conventional optic cables and fittings also entered Poland and neighboring countries. Recently, ZTT has made breakthrough in high-end market of Spain Electricity Power and France Telecom. Experts in the industry thought, it is a new breakthrough of accumulate the experience of "Step Out" strategy and also an exchange between China optic fiber and cables manufacturers and International Telecom Operator, symbolizing the fact that the level of China optic fiber has become front ranks of the world.
Seeking the way of "Step Out" by Ourselves
Xue Jiping stated, there is no experience of "Step Out" for domestic optic fiber and cable enterprises. We can only get the market share by trying and correcting. The breakthrough of ZTT oversea market has also been got by longtime hard works.
ZTT scans its position in the global point of view, analysis its advantages and disadvantages, and makes general plan and strategy of "Step Out" on the basis of serious research, objective analysis and scientific reasoning and never "step out" in aimless way.
At the beginning of exploiting oversea market, ZTT accumulated the customer resources and information by joining in communication exhibition at home and abroad, and then set up offices in a lot of foreign countries. In addition, ZTT organized technology transfer and exchange meeting in the potential countries or countries we have entered, and ZTT also invited end users, engineering companies, trading agencies to visit ZTT and let them see the strength of ZTT. They can know ZTT, familiar with ZTT and believe ZTT. The exploration and development of Africa market is a typical example. In 2003, ZTT fist sold its only a kilometer OPGW to Africa. After knowing high quality products, excellent technique and good service of ZTT, ZTT got the project of 260KM National Electric Power trunk line in Malawi. Which also help ZTT extend to Angola, South Africa, and Mozambique.
A Long Way to Go
In Xue s opinion, ZTT has still a long way to go to become a world famous brand. He is confident about the development of the future. He said, in order to enlarge the scale of exporting earning foreign exchange and improving the influence on the oversea market, ZTT will focus Group strength to become China-world Famous Brands by joining in world famous exhibition, publishing thesis on authority publications and organizing technical exchanges etc in future three years.
The biggest bar in ZTT "Step Out" is lack of talents with professional international business. Xue said, ZTT would send talents who are not only professional in technique but also with international business to oversea department, and invited experts to give lectures on International sales to improve the whole group comprehensive capacities .
ZTT will corporate with equipment manufacturer and communication project construction units, which have a large market share of optic communication products in oversea market. Xue said, ZTT has formed capability (per year) of 5 millions core kilometer optic fibers, 120 thousand kilometer optic cables, 20 thousand kilometer RF cables, and 20 thousand OPGW. The ratio of oversea market will rise from 10-20% to 25-35% step by step. The growth rate of oversea market will be more than 100%.