Problems when a company goes global
...orean, French, German, Italian, and Spanish) country-specific content, and regional internet access for faster connection time. They’ve been doing business with China for several years in many different aspects. In the Asia Pacific region and in China, Cisco Systems is the clear market leader in the high-end router market. The company has an 80%+ market share in the region and in the Chinese market according to the latest quarterly data from market researcher IDC. Cisco has signed a framework cooperation agreement with China Telecom to power ChinaNet nationwide. Under the agreement Cisco will provide more than 500 high-speed Cisco 12000 and 12400 Internet routers over the next year to help China Telecom build a robust, convenient, and stable information highway stretching across China. So, what happened? Foreign business is not without its risks. Everyone knows that, or well at least they should. What’s has the highest value and is the easiest to steal during foreign business? Intellectual property. We’ve all heard the horror stories about companies getting their patents or trade secrets ripped off. I’m sure we’d all like to think that that doesn’t happen to America’s large businesses, but the truth is, they’re probably the most vulnerable, having the highest appeal to thieves. What happened to Cisco? Huawei is China’s version of Cisco and Cisco is suing them over intellectual property rights. Cisco alleges that the Chinese outfit has copied everything from software to training manuals, a charge that Huawei denies. After weeks of negotiations to avoid litigation, Cisco filed suit in Federal District Court in Texas, where a Huawei affiliate has an office. The most famous network equipment company in China has long been racking up sales of switches and routers, some of which perform exactly li...