Re: 3Com sold ?
True 3Com has been shredded, trimmed and still for the last
several quarters they have been bleeding.
The company still has some cash in hand, a good (ok) presence
in the SMB market, security market etc. Their switching and
their core H3C is still have to come out and prove itself.
All said and done there is value for Bain Capital. The fact is
there are many companies in the east that lack the expertise and
The power to reach the customers here in the US and EMEA.
Take a look at some of the best know companies like Huawei,
UTStarcom, Lenova
you name it and they have issues. Quality problems, brand
name and recognition problem. 3Com brand is well known, this
gives a Huawei a good conduit to reach customers.
The issue at 3Com has always been Strategy ? They have plenty
of Strategy. None that last for more than 3 months. Each time
they come up with one just to change it 3 months down the
road.
Bain I am sure would be make some significant changes and
would see how to explore the brand name and 3Com?s reach
and promote products from Huawei to the west.
3Com also has a good quality process and procedures which
could help Huawei to produce better products. As a former
employee of 3Com I think this is a good move for 3Com
and if Bain makes good changes at the top and integrates
products from Huawei Cisco, Juniper and Extreme would have to
watch out.
In reply to: "3Com sold? You're joking, right?"
September 28, 2007
0 replies