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ZTE reorgs to focus on operator, device, enterprise markets

ZTE reorganizes into three key business units--operators, mobile devices, and enterprises--and targets three emerging market segments as it maps outs its 2014 strategy.
Written by Eileen Yu, Senior Contributing Editor

ZTE has reorganized its corporate structure into three key business units and targeting three emerging market segments, as it maps outs its 2014 strategy. 

ZTE reorgs

The Chinese networking and telecommunications equipment maker said the restructuring would align the company on high growth business opportunities and enable it to respond more swiftly to market needs. 

ZTE will enter the new year with three business units focusing on operators, mobile devices, and enterprises. Operating as an independent unit, ZTE Mobile Devices is led by the company's executive vice president Zeng Xuezhong, who previously headed its China operations and has taken over former head of terminals, He Shiyou, who remains as executive director. 

Pang Shengqing, senior vice president, is chief of ZTE's enterprise business unit amid expectations of growing demand for cloud computing services, big data, and the Internet of Things

To better address the operator and telco space, the company plans to increase its focus on areas of higher profitability and gain better operational efficiency by deploying a flatter management structure. It is also aiming to be a market leader in 4G, including the development of equipment and devices in this sector. 

The company currently serves over 500 operators in 160 countries, including Aircel in India

ZTE Chairman Hou Weigui said in a statement: "In 2014, the company is excited about the opportunities in enterprise and mobile devices, and the organizational changes will strengthen our capabilities in these areas. Telecommunications and technology are intensely competitive industries, and it is vital that we constantly renew ourselves in order to excel.

ZTE President Shi Lirong added: "It is important for the company to become faster, more entrepreneurial, more youthful and more focused. We need to execute changes in our strategy, our organization and our culture in a responsive and timely way."

The public-listed company will also beef up efforts to target three market segments it has identified as emerging: metropolitan public IT systems, new energy technology, and mobile Internet

ZTE in November said it saw market potential in wearable technology, and unveiled plans to launch its own smartwatch in China in second-quarter 2014. 

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