1- SWOT:

a- Strengths: is a resource advantage relative to competitors and the needs of the

markets a firm serves or expects to serve.
b- Weaknesses: is a limitation or deficiency in one or more resources or competencies
relative to competitors that obstructs a firm’s effective performance.
c- Opportunities: is a major favorable situation in a firm’s environment: breakthrough
technology, improved supplier relationship, changes in regulatory circumstances,
technological changes or identification of a previously overlooked market segment.
d- Threats: is a major unfavorable situation in a firm’s environment: entrance of new
competitors, slow market growth, increases bargaining power of suppliers,
technological changes and new or revised regulation.

Strengths Weaknesses
1. Second most valuable brand in the 1. Investments in R&D are below the
world valued at $76 billion industry average
2. Diversified income (5 different 2. Very low or zero profit margins
brands earning more than $4 billion 3. Poor customer services
each) 4. High employee turnover
3. Strong patents portfolio (15,000 5. High cost structure
patents) 6. Weak brand portfolio
4. Investments in R&D reaching 4 7. Rigid (bureaucratic) organizational
billion a year. culture impeding fast introduction of
5. Competent in mergers & acquisitions new products
6. Have an access to cheap cash reserves 8. High debt level ($3 billion)
7. Effective corporate social 9. Brand dilution (the firm has too
responsibility (CSR) projects many brands)
8. Localized products 10. Poor presence in the world's largest
9. Highly skilled workforce markets
10. Economies of scale or economies of
scope

Opportunities Threats
1. Market growth for the main firm's 1. Corporate tax may increase from 20%
product to 22% in 2013
2. Growing demand for renewable 2. Rising pay levels
energy 3. Rising raw material prices
3. New technology, that would drive 4. Intense competition
production costs by 20% is in 5. Market is expected to grow by only
development 1% next year indicating market
4. Our country accession to EU saturation
5. Changing customer habits 6. Increasing fuel prices
6. Disposable income level will 7. Aging population
increase 8. Stricter laws regulating environment
7. Government's incentives for pollution
'specific' industry 9. Lawsuits against the company
8. Economy is expected to grow by 4% 10. Currency fluctuations
next year
9. Growing number of people buying
online
10. Interest rates falling to 1%
TOWS
Strengths Weaknesses
1- 1-
2- 2-

Opportunities SO strategies WO strategies

1- (S1 – O3)
2- Matched with intensive strategies

Threats ST strategies WT strategies

1- Matched with defensive strateg
2-

O T

S Attack Diversification

Turn around – Oriented strategy

W (Reorganization – Retrenchment – Defend
Repositioning)
TOWS analysis Strength Weakness

1- Geographic Presence 1- Domestic market focus

2- Strong Website and Social 2- Luxury brands & Lack of a low-cost

Network lifestyle brand
3- Strong Brand Equity & well- 3- Little Presence in new markets (Asia
known Brand Name - Middle East)
Opportunity 4- Environmentally friendly and 4- Marriott operates most of its
Focus facilities

1- New Markets (Asia - Middle S1-O1: we will use our Geographical

East) presence to support the new market
(market development)
2- Family travelers W1,W3-O1,O5,O6: we will focus more
on the international market and new
3- Internet & Social opportunities (Market, Product
S2-O1,O3,O4: we will upgrade the
Networking
website and add more languages to Development)
4- Increase the level of the
respond to new markets (product
travel related to
international studying. Development)
5- Franchising becomes more W4-O5: we will allow franchising in the
strong new markets (Forward Integration)
S3-O5,O6: we will allow franchising
6- Competitors weak Financial in the new markets (Forward
position Integration)

Threat

1- Timeshare is not popular

anymore S1-T2,T3,T5: we will upgrade our
services and add new low cost offers
2- Economic Recession (Product Development) W1,W2-T1,T5: we will change the
S1,S2-T1,T5: cancel some of the activity for some of our Timeshare
3- Political Instability Timeshare facilities and use the facilities to new low cost facilities
existing facilities to offer Low cost (Retrenchment, Related Diversification)
4- Terrorism services (Related Diversification) W4-T6: we will allow franchising in the
S3-T2,T5: Offer new low cost service new markets (Forward Integration)
5- More foxing on low cost
Hotels supported by the strong Brand name
(Related Diversification)
6- Increased Staff Costs
A. SWOT Analysis:
SWOT analysis is one of the situational analysis tools. It examines both the internal
(strengths & weaknesses) and external (opportunities & threats) environments of
the organization. Below is the SWOT Analysis for Huawei:

Internal Environment

Strengths Weakness

 Rich diversified portfolio of products • Weakness in designing operating

and services Including ICT solutions Systems (OS).
,fixed & mobile networks, routers
,smartphones And other mobile • Weakness in designing applications
devices. (App.)
 Rank No. 1 in global telecom • Limited ability to control its value
equipment's market. (supply) chain.
 Provide products and services to 1/3 • Still design smartphones for
world populations in 170 countries telecom carriers (20% of its
worldwide (Tremendous expansion). products) (lack user’s preferences).
 Opportunities hunter (GSM based
solution creation & innovation, access
servers).
 Continuous customer-centric
innovation through 17 R&D centers
and 36 joint innovation worldwide.
 Win-win
cooperation/partnership/collaboration
with leading telecom carriers
(Vodafone, FTE, PCCW and EMobile).
 Pioneered the distributed base station
in the market reducing Equipment's
volume and weight by 10 & 15 times
respectively and operating
&maintenance cost by 30%.
 Strategic or superior supplier for top
telecom carriers e.g. (Vodafone ,British
telecommunications and century
network(21CN))
 Focused business synergies model
(cloud-pipe-device).
 Premium wireless network
infrastructure & mobile telecom
technology enabled it to set up more
than 400 LTE network, 180 EPC, 280400
G network routers and 40000 hotspot
by 120 carriers over 75 countries (62%
of 4 G share worldwide).
 Founded SBU ‘’Huawei Device Co., Ltd’’
in 2004, charged for development,
manufacturing, marketing and sales of
mobile devices and accessories (focus
business model).
 Successful market repositioning as high
end/premium products.
 Rapid understanding of consumer fast
changing preferences.
 Differentiation from other Chinese
companies who still rely heavily on
telecom carriers.
 Development of different delivery
channels (offline and online platforms).
 Huawei is the state-of-art-design in
hardware and software thanks to its
strengths in telecom equipment and
cross-business synergies.
 Devotion of substantial (financial &
managerial) resources for SoCs
&smartphones design development.
 Founded SBU ‘’Hisilicon technologies
Co., Ltd’’ in 2004(Huawei driving
force), charged for Ics/SoCs
manufacturing and development.
 Huawei dedication to creation and
innovation through its R&D (79000
employees and rank No. 1 in R&D
expenditure, 15.1% of its total
revenues).
 Huawei smartphones ‘’collision
between high tech. and fashion’’
emphasizes both high tech. capabilities
and best user interface design through
collaboration with leading camera and
 audio companies (Leica and
Harman/Kardon) (P9 smartphone).
 Acquisition for global talents in
industrial & user interface design:
Hagen Fendler, BMW&SIEMENS.

Joon Suh Kim, LG-Philip-Nokia-

Samsung.

Abigail Sarah Brody, Apple.

 Driving synergies between businesses:
-Kirin 950 development, enhanced CPU
performance and Improved battery life
(competitive edge).
-Ensured smartphone security thanks
to Successful Kirin 950 and pseudo
base station integration so, auto
filtration to send signals or information
(competitive edge).
 Huawei's competitive weapon ‘’its
telecommunication patents leverage’’
against others (Huawei licensed 796
patents to apple including GSM, UMTS
and LTE while apple licensed 98 patents
to Huawei).
 Huawei's network assets and
relationships (62% of global market
share for 4G).
 Unique access to wireless data transfer
and speech communication (Mate 8
can connect networks of more than
1000 carriers, 5 2G, 10 3G, 18 4G
frequency bands.
 Chinese governmental recognition.
 Strong Huawei’s governmental
relationships thanks to Mr.Zhengfei
Ren (former engineer of the people's
liberation army).
 External Environment

Mega “PESTEL” Environment

Opportunities Threats
• Emerging markets potential growth • Rising manufacturing and
e.g. (emerging APAC &Middle East operating costs in china.
and Africa) and potential • Decreased smartphones annual
profitability. growth rate especially in
• China accession to WTO guaranteed developed countries
Huawei's entry & growth in the (high end market ,Huawei's new targeted
global market of equipment and segment)
telecommunications. • Saturation of smartphones
• Information communication developed markets e.g. (North
technology (ICT) dynamic changes, America and developed APAC).
(5G). • Limited protection of intellectual
• Globalization. property rights.
• Technology complications.
• Fast changing market.

Task Environment

Opportunities Threats
• Cloud computing (using remote • Competition with well-established
server network hosted on the leaders including but not limited
internet to manage, store and to (Apple & Samsung) globally and
process data rather than on local (Lenovo & Xaiomi) domestically.
server or personal devices, Mobile • Market is still developing and it is
Cloud Computing). always possible for any one
• Online sales platforms (great provide new design, feature or
global audience, broad scale, app to win over consumers.
lower operation and setup cost • Risked retaliation from telecom
and higher volume of sales). carriers.
• Competitors (leaders) unable to • Brand loyalty.
match Huawei's resources and • High switching cost.
capabilities. • Differentiated products.
• Brand recognition.
SWOT Analysis interpretations:

 Telecommunication and smartphones industry is promising and still growing.

 Huawei has good opportunities to continue its aggressive growth by
developing new markets, developing new products and penetrating the
existing markets.