Harbour Network Case Analysis

Harbor network Inc.(hereinafter called as Harbor) was found by Li Yinan who was technical and executive vice president of Huawei. During 2000-2006, it was a mainstream manufacturer in the domestic network communications industry. From 2000-2004,Harbor attracted more than 10 billion of venture capital which made it the most rich in venture capital then. From 2001-2003, its sales are 2 billion,4.5 billion and 12 billion with an amazing fast developing speed. But from 2004-2006, Harbor failed to going public because of internal management problems. Meanwhile, it was blocked by Huawei strongly. Finally, Harbor was acquired by Huawei in July of 2006.Harbor started an undertaking quickly with leading technology, favored by venture capital, cut into the market quickly, failed to going public, blocked by Huawei, lacked of internal management and entrepreneur spirit. Finally, acquired by Huawei. There is much inspiration during its above mentioned developing phases as follows:1. Process control is very important for the hi-tech venture company makes use of venture capital.2. During the three developing phases such as business start-up, medium-term development and scale development of the enterprise, the hi-tech venture company can’t be eager for quick success and instant benefit on strategy when they compete with the strong competitor.3. Management of enterprise with high input, cultural conflict, and internal management of the enterprise who is going public. There are some experiences about the above mentioned aspects from Harbor.4. New understanding of entrepreneurship for three developing phases of the enterprise such as business start-up, medium-term development and scale development.Through the case study of Harbor, the author thinks that the leading technology, adequate capital and marketing are very crucial in the fully competitive high-tech fields(such as network communications industry) when the enterprises want to grow rapidly and continuously. But when we return to the nature of enterprise operation, the strategy, team, cultural continuous planning and the entrepreneur spirit are very important as well.In the end, we question some behaviour of Huawei. It can’t put a number of manpower and material resources into the emerging technologies in the short period of time as an integrated whole network equipments supplier. This situation just provides the opportunities to the internal venture companies like Harbor. They can take advantage of the technical experience and market experience accumulated in big companies to develop a new technology system and market system. The author does not think this is a renegade act, but a kind of attitude for science and development. Only in this way, there will be more developing paths for science, and more opportunities for development will be created. In spite of how much historical relationship between Huawei and harbor, in fact they are equal competitors. But it is a pity that the corresponding system, the legal environment and business climate are deficient at home now.