Foxconn faces multiple difficulties in the Chinese market
In the past period, Foxconn's development prospects in the Chinese market have been bleak and it is facing multiple difficulties.
First of all, with the rise of China's local smartphone manufacturers such as Huawei and Xiaomi, it has directly seized Foxconn's mobile phone OEM orders. Foxconn used to be the world's largest Apple iPhone foundry, but shrinking orders have made it less competitive in the Chinese market. The persistence of labor costs in China** has also had an impact on Foxconn. Foxconn chose these areas along China's coast primarily to gain a cost advantage by taking advantage of cheap labor. But as wages rise, this advantage is disappearing.
The dispute between China and the United States has brought uncertainty to Foxconn's living environment. As a company that relies on exports to drive performance, Foxconn has also suffered the negative impact of Sino-US relations. It can be seen that whether it is the challenge from China's local competitors or the changes in the external economic environment, Foxconn is facing a huge dilemma. How to find new growth drivers and achieve industrial upgrading is a difficult problem for Foxconn to solve.
Gou's candidacy is a high-stakes political adventure
At a time when Foxconn is facing multiple difficulties, its head Terry Gou chose to announce his candidacy for the leadership of the Taiwan region**, which is undoubtedly a high-risk political adventure.
Gou's firm stance is bound to stir up political sentiment among the mainland people, and he may face a boycott of Foxconn products. Mr. Gou's political stance is at odds with mainland public opinion, which may make Foxconn's environment in the mainland market more difficult. Running for leadership requires a lot of time and energy, which will inevitably distract Mr. Gou from Foxconn's business. Foxconn is in a difficult period of transformation and is in urgent need of Gou's business skills. Gou's political distraction is bound to exacerbate Foxconn's leadership crisis.
Gou's political actions are bound to change the delicate balance of power between the two sides of the strait and bring more uncertainty to Foxconn. Regardless of Gou's ultimate success or failure, it will have a significant impact on ***, which is a huge variable. It can be said that Gou's political adventure is undoubtedly worse at a critical moment when Foxconn is facing industrial transformation. This kind of high-risk gambling decision is likely to be the last straw that crushes Foxconn.
Foxconn faces changeTerry Gou chooses his fate
In the face of multiple difficulties, Foxconn is in a crisis, but it also contains opportunities for transformation and development. How you choose will determine the fate of Foxconn.
Foxconn needs to rethink its positioning and transform into an innovation-driven high-tech company. Relying on technological innovation and its own brand, Foxconn can get rid of the disadvantage of over-reliance on the OEM model. Foxconn should adjust its product structure and expand new application areas. Artificial intelligence, the Internet of Things, 5G and other fields provide a broad space for imagination. Foxconn should give full play to its advantages in hardware manufacturing and launch more innovative products with core competitiveness. Foxconn needs to strengthen management innovation and improve operational efficiency. Through digital and intelligent operations, Foxconn can reduce production costs and cope with the pressure of labor costs**.
In this period of change, Gou's choice is crucial. He needs to assess the situation, recognize the situation, and focus more on the transformation and development of Foxconn. Political adventures should not be the last straw that crushes Foxconn. As long as it seizes the opportunity, Foxconn can create a new situation. Foxconn and Terry Gou are standing at a new historical starting point. After industrial transformation and self-innovation, Foxconn can rejuvenate itself. I believe that under the leadership of Terry Gou, Foxconn will be able to turn danger into disaster and create brilliance. List of high-quality authors