Ⅰ Overview of ZTE
ZTE Corporation is a leading global provider of integrated communications solutions. With operations in over 160 countries, the company provides clients with innovative technology and product solutions that enable users to enjoy the world of voice, data, multimedia, wireless broadband, etc. Founded in 1985, ZTE is listed on the Hong Kong and Shenzhen and is China’s largest listed telecommunications equipment company. (ZTE Corporation, n.d.)
ZTE aims to be a global communications leader, which provides the clients worldwide with satisfying and customized products and services. The company has established 18 state-of-the-art R&D centers in the China, France, India and employs over 30,000 research professionals. With 107 subsidiaries devoted to innovation globally, ZTE was the world’s biggest originator of technology patents in each of the past two years, according to data from the World Intellectual Property Organization. It is the world’s fourth-largest mobile phone manufacture measured by 2012 unit sales and the world’s fifth-largest telecoms equipment marker measured by 2012 revenues (after Ericsson, Huawei, Samsung, and Nokia Siemens Networks). (2012 Annual Report from ZTE Corporation, n.d.)

Ⅱ Globalization of ZTE
Globalization is the process of reducing the costs of transactions, tariffs and non-tariff barriers, transportation and time. Before globalization, the firm and its rivals had the same outlook, cultural background, labor force, comparable skills and technology. The company and its competitors fought for the same customers. (Spulber, 2007) From 1995, ZTE started the long and difficult international journey and earned a place in telecommunication industry.
1. Globalization of production
Though internationalization, ZTE makes full use of low cost as core competitions to meet the needs of clients globally and takes different strategies to response the market. In communications equipment industry, ZTE main direction of production diversification has the following ways:
◆ Upstream industries: such as chips, power supplies, circuits, and other spare parts;
◆ Downstream industries: telecom service operators;
◆ Peripheral industries: telecom services and telecommunications terminal.
ZTE has provided service to more than 500 operator clients in over 140 countries and regions. Wireless, cable, business and end products are used into the 61 TOP100 global operators. In addition, ZTE had committed much efforts and time for the product development and research. About 18 global research and development institutions are set up in United States, France, Sweden, India, China and other places and more than 30,000 domestic and foreign researchers focus on the industry technology innovation. In 2010, with total 1863 international patent applications, ZTE ranked second in world-wide patent applications, which was the first in telecommunication industry. The company relying on the diversified production, increasing innovation ability, outstanding ability of flexible customization, increasingly perfect delivery wins worldwide customers’ trust and gets chances to cooperation.
2. Globalization of markets
1) Choose the country to get in
According to the theory of international strategy and the characteristics of the telecom equipment market in measure into the country, can consider the following factors:
● Relationship with china
● Geographical position (distance)
● Price sensitivity to operators
● Telecommunications market development degree
● Capacity of the market
● Competition forces
● Operator's international status
For ZTE, at different times as the change of competition, the weight of these factors is different. In order to facilitate analysis, the whole internationalization is divided into early and late two stages. The early refers to the beginning of the internationalization of ZTE, mainly before 2005. Late stage refers from 2005 to 2012. The weight of these factors in two stages is compared in the following table.
Factors/Weight/Times Early Stage Late Stage relationship with china Very high Low geographical position (distance) Medium Low price sensitivity to operators High Medium telecommunications market development degree Medium Medium capacity of the market Low High competition forces High Low operator's international status Low High
In the early stage, ZTE starts the business with the countries like Pakistan, Cuba, and North Korea and the firm is supported by Chinese government. However, in the late stage, ZTE enters the enormous potential markets such as Brazil, India, Indonesia, Russia, etc. ZTE focuses on market factors instead of competition forces.
2) Choose the way to do business globally
Enterprise is engaged in the internationalization process generally has the following several stages: licensing; exporting; local warehousing and selling; local assembly and packing; joint ventures; direct foreign investments. Companies may skip some steps when pursuing foreign markets.
The main steps for ZTE to do business across borders are exporting, setting up representative offices, and establishing subsidiaries.
3) Result of globalization
In 2010, operating income of 70.264 billion Yuan, ZTE achieves the business income of international market is 38.066 billion Yuan, up 27.45% from a year earlier, the proportion of total revenue of 54.18%. Europe and North America revenue grew 50%, of the total operating revenue increased to 21%. (ZTE Corporation, n.d.) It was the first time to become the largest proportion of overseas revenue area of ZTE. System and terminal products have comprehensive services in the high-end market in Europe and America's top operators. According to a report by the first quarter of 2013, ZTE IPTV market shares, leading ahead, are second among the world and continue to maintain larger growth potential.
3. Globalization of institutions
When it comes to globalization of institutions, operation management and human recourse management should be taken into account. These two management modes are the keys to institutions of the company to make achievement in global environment.
1) Operation management
On the way to select the global operation management mode, ZTE needs to consider the optimal allocation of global resources and meet the balance between the market localization characteristics. Taking into account of products and market factors, ZTE adopts the transnational strategy (product + market globalization localization).
Since communication equipment belongs to the technology-intensive industry, in terms of the products and the product performance are tendency to standardize as well, the competitive strategy should be more focused and be controlled by a major center, which will finally integrate every unit with the cooperation and interdependence of the resource of different countries and regions. Thus, ZTE has adopted the strategy of "globalization" in internationalization of product management and sets up R&D centers in multiple countries around the world to do the different technology researches on different directions. At the same time, ZTE sets up the production office in one of the research institute of China and the general manager of the production office is responsible for the integration of the world's resources, which leads to the production manufactory concentrated in Shenzhen.
In terms of market, consumer’s needs and demands in each country, industry conditions (such as the number and type of competitors), political and legal structures and social standards are different. The use of "international localization" strategy to better the characteristics of each market to make the most accurate reflection of the need to take based on the specific circumstances of different marketing strategies.
2) Human recourses management
■ Localization
For multinational companies, localization of employees can lead to two main advantages. One is market integration, especially important in the construction of customer relationship and project implementation. Due to factors such as language, culture, values, local staff has a natural advantage. The other advantage of localization is Market recognition. This means the company in the local image is more easily accepted by the local market.
Nowadays, ZTE has international market operation team，management team and marketing team, which are familiar with the rules of the international market and have rich experience of the international marker operation. In addition, ZTE selects various talents all over the world for the development of enterprise. Current total number of employees of ZTE is about 62,000，of whom engaged in the international marketing of about 10,000 employees, accounting for 50% of the company's marketing staff. In terms of overseas markets, employee localization rate reaches 60%. (ZTE Corporation, n.d.)
■ Motivation
Motivation is a process of arousing and sustaining goal-directed behavior induced by the expectation of satisfying individual needs. It is the major determinants of our behaviors. (Kreitner, Robert; Cassidy, Carlene., 2011) ZTE motivational strategies focus on proper induction of staff’s work motivation, so that they achieve their own growth and development, increasing their satisfaction and maintaining their enthusiasm and creativity.
According to Maslow's hierarchy of needs theory, from bottom to top, it includes physiological, safety, love, esteem, and self-actualization needs. (Kreitner, Robert; Cassidy, Carlene., 2011) Higher needs emerge as lower needs are fulfilled. It tells us companies must find out the real needs of the employees to make the incentive effect. The firm can't fulfill the staff’s survival needs, let alone satisfy the physiological needs and security needs. ZTE mainly encourages employees to work hard by material incentives. Salary of employees in ZTE is above average in this industry, which guarantees enthusiasm of the staff materially in the form of: positive incentives: such as payment of wages, allowances, benefits, etc.; negative incentives, such as deduct wages. Due to the diversified culture and employees in the company, there are some differences in motivation. Asian employees pay more attentions to material incentives, while European staff focuses more on mental stimulation and encouragement. Thus, ZTE has different motivation strategies to different employees to meet their basic needs, which can develop and manage the company availably and globally.
In addition, ZTE pays attention to employee career development, providing a broad space for career development for employees, which is a good way to motivate employees to achieve themselves. At present, the firm has about 100 positions, more than 700 kinds of jobs, and the design of "3+1" for employees career development channels, namely technology runway, business runway, management runway, and project manager runway. Employees can choose a channel to develop and will become an expert in the field, which reaches the win-win situation bringing benefits to both company and employees.

Ⅲ Conclusion
To sum up, ZTE makes achievements through globalization of production, market and institutions to increase its viability. It is much easier to see the effects of globalization. Carrying out international strategy from 1995, the company has established 107 branches, 9 big logistics operation centers, 14 training centers, 7 regional customer support centers, 45 local customer support centers, and has more than 10000 after-sales service employees throughout the world to provide service to customer globally. ZTE enhances its international status and market shares, strengthens its competitiveness, and implement effective management strategies to play the most advantages of internationalization.
In terms of production, the firm focuses on the industry technology innovation and improves ability of flexible customization as the main force in the international market to meet the needs of different kinds of clients over the world. The company chooses some countries with good relationships with china to get into market at first, and then it develops its globalization, and achieves a large market share in the international market in recent years. In the globalization of institutions, ZTE adopts the transnational strategy (product + market globalization localization) and localization of employees to enhance market integration and market recognition. At the same time, the company is good at developing different motivation strategies to employees in different religions, which can develop and manage the company efficiently and globally.
References
(n.d.). Retrieved from ZTE Corporation: http://wwwen.zte.com.cn/en/
(n.d.). Retrieved from 2012 Annual Report from ZTE Corporation: http://wwwen.zte.com.cn/en/about/investor_relations/circular/201304/P020130414674755060043
Kreitner, Robert; Cassidy, Carlene. (2011). Management, Twelfth Edition. United States of America: South-Western Cengage.
Spulber, D. F. (2007). Global Competitive Strategy. New York: Cambridge University Press.