Story 2000: There goes another U.S. company
Last modified on Wednesday, 18 July 2007 10:07
From the we-wish-it-weren’t-happening department, 3Com has decided to move some of its production to China, claiming that it must do so to cut costs and remain competitive with giants such as U.S.-labor based Cisco.
It appears that 3Com is utilizing the hugely successful strategy of Huawei Technologies Co. Ltd, a Chinese telecommunications equipment maker, which allowed Huawei to compete and become a key player in both Asian and European markets.
3Com had also set up a joint venture with Huawei known as H3C Technologies Co., Ltd., and has recently acquired all of the shares of this joint venture. As part of the H3C deal, 3Com acquired 2,400 H3C research and development engineers who are currently employed in China.
3Com is banking on the fact that this move will help put them back on the map as a competitive networking equipment manufacturer.