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Huawei Report

This document provides a strategic analysis and recommendations for Huawei's growth in the ICT market. It analyzes Huawei's strengths, weaknesses, opportunities, and threats through a SWOT analysis. It also evaluates Huawei against its competitors like Samsung and Apple. Based on the analysis, the document recommends Huawei focus on expanding its leadership in 5G development by targeting new geographic markets in Africa, Asia, and the Middle East to capitalize on opportunities in the growing mobile phone and 5G equipment demand.

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0% found this document useful (0 votes)
333 views16 pages

Huawei Report

This document provides a strategic analysis and recommendations for Huawei's growth in the ICT market. It analyzes Huawei's strengths, weaknesses, opportunities, and threats through a SWOT analysis. It also evaluates Huawei against its competitors like Samsung and Apple. Based on the analysis, the document recommends Huawei focus on expanding its leadership in 5G development by targeting new geographic markets in Africa, Asia, and the Middle East to capitalize on opportunities in the growing mobile phone and 5G equipment demand.

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Table of Contents

Huawei consultancy report on strategic frameworks...................................................................................2

1. Executive Summary.............................................................................................................................2

2. Introduction.........................................................................................................................................2

3. Analysis...............................................................................................................................................2

SWOT matrix..........................................................................................................................................4

4. Recommendation...............................................................................................................................10

5. Conclusion.........................................................................................................................................10

6. References.........................................................................................................................................11
Huawei consultancy report on strategic frameworks.

1. Executive Summary
Huawei, multinational information and communication technology (ICT), has diversified its market niche
with the growth of the telecommunications industry. Specifically, Huawei is involved in the production,
development, and marketing of ICT equipment through provision cellular networks, broadband networks,
and among others. Following a report released on the contemporary external strategic environment for the
launch of Apple's iPhone 11pro, viewed from Samsung and Huawei. It was prudent for Huawei to carry
out a strategic planning and marketing report to ascertain what can be done by Huawei to grow
incrementally and substantively in the ICT market.

To get an intuitive idea of what the market, data is represented by the External Factor Evaluation Matrix,
an analytical method that refers to how the current company strategy responds to the opportunities and
threats. The internal factor matrix refers to how strong or weak aspects of the company. Consequently, a
recommendation to the firm is made to capitalize on its core competency while moderately managing its
weakness in a meticulous fashion.

2. Introduction
Its versatility and continuous evolutions characterize the telecommunications industry. Businesses in this
field are continually changing due to the constant change in the external business environment. These
changes may bring fortunes or in some extreme cases, potential risks. To avoid these pitfalls and knee
jack reactions to change in trends in consumer consumption firms need to carry out strategic studies and
implement on the report recommendations

The report intends to inform the strategic and marketing tactics Huawei can achieve. This is in light of
empirical analysis. The report uses data from SWOT analysis, vital planning technique used to gauge
strengths, weaknesses, opportunities and threats, PESTEL, analysis data is also used to identify macro
forces facing the firm.

3. Analysis
External Factor Evaluation
Opportunities Weight Rating Weighted
Growing demand for smartphone 0.35 3 1.05
Among the first three shareholder of the 0.42 4 1.68
mobile market
Affordable products as compared to 0.23 2 0.46
competitors
1 3.19
threats weight rating weighted
strong presences of the competitors 0.4 3 1.26
law suits against Huawei 0.3 4 1.2
hold on apple on the American market 0.3 4 1.2

1.0 2.96
Rate: 4=Super Response, 3= Above Average. 2=Average, 1=Poor Average

I. Competitive profile matrix

weight Huawei Rating WR Samsung rating WR Apple WR


Rating
0.6 9 5.4 6 3.6 4 3.6
0.2 6 1.2 4 0.8 2 0.4
0.2 5 1 3 0.6 1 0.2
∑ = 1 ∑ =7.6 ∑ =5.4 ∑ =4.2
(Ranking scale; 1= very weak, 10= very strong)
II. Internal factor evaluation matrix

weight Ratings WS
Key internal factors
 Strengths    

1 Research and development 0.186 3 0.558

2 Global presence 0.100 3 0.300

3 Environmental friendly 0.080 3 0.240


products
4 Wide product portfolio 0.200 4 0.800

           Weakness      

1 Dependency on goggle 0.200 3 0.600


android operating stem

2 Weak marketing strategies 0.150 2 0.300

3 Lagging behind in terms of 0.084 2 0.168


software.
Total 2.966
III. SWOT matrix

  Strengths Weaknesses
leading in 5G development. completion from top tier
highly skilled workforce through companies
successful training.
Strong dealer community. Trade wars with china
Strong brand portfolio. low rate profit ratio
Financial planning is not
efficient.

 
Opportunities SO Strategy WO Strategy
     direct market
  .growth in the demand  building the brand  automation in
of cell phones  leveraging clients in marketing
 product specific demography
affordability
 high pool of
trained
professionals

 
Threats ST Strategy WT Strategy
   Production of  
  law suits against microchips used in  Increase
Huawei electronics. corporate
The hold Apple has on the  Attraction and flexibility.
American market retention
IV. Space matrix

Internal analysis External analysis

(FP) (SP)

1. cash flow 2 1.   rate of inflation                   -7

2. liquidity 3 2. competitive aggressiveness -4

3. inventory turnover 2 3. government policies -5

Average 3.5 -5.3

CP

1 differentiated products -1 1. . tendency of consumers to continuously 5

2. Marketing capacity efforts -1 2. . diversification of product products services 6


and offers in the industry

3. Fast product development orders -4 3. increase use of online channel 5


compared to competitors that use  
similar channels
Average -3 8

V. Corporate strategy

At its simplest, the policy brings to focus growth organization as a result of strategy and marketing. To
answer the question, where? There isn't a subjective answer one gives on where the Huawei participates
in the market. However, calculated strategies can realize success since the company identifies distinctive
competences and use the same to take advantage of the market opportunity.

Referencing the analysis, it is evident that we have quite a potential in the 5G network and related
equipment. An area of strength and opportunity, as such, should be followed with an all-out attack
seizing the opportunity. The strategy should back up but traditional marketing mix, often seen as to
maximize profits. Since its better for the plan to implanted in new geographic locations like Africa, Asia,
and The middle east. It's impractical to use the 4P's, price, promotion, and place in the current
commodity and service markets. The idea was traditionally used to maximize profit, and the manager had
to use the 4P's together; they are inseparable. Application of the same is not available, low-cost goods call
for low-quality products, void of any special promotion. Such cannot be implemented in a by in business
model like Huawei. We can afford to sell a product at a lower cost than the production cost, for we may
bring in one source multi-source in a single product. For example, we can sell a product or service a lower
than the procurement cost, where there additional avenues of profit like software updates and network
subscriptions. (Yongo Choi, 2019) . the 4cs are intuitive strategies that comprise positioning strategy,
brand perception, and product value. They are a consumer-oriented marketing approach, and they involve
addressing existing needs and developing a marketing mix around them. In that case, we could establish
product categories that suit each consumer group's needs from low income to high income from tech
gurus to just ordinary users; this would be in line with our Huawei's vision of providing ubiquitous
connectivity to give everyone equal access to connections.

SWOT analysis module aid the company in identification of internal strategic apspecs like strength and
weaknesses while external factors like opportunities and threat.Huawei being one of the largest in
multinationals in the world has strengths that enable it attain a competitive advantage and sustainable
profits.

Internal external
Strength weaknesses opportunities threats
Automation of Not a very good brand when Government Trade wars with the USA
activities it comes to demand contracts. globally
Highly skilled Gaps in the product Stable cash flow, Low supply of innovative
workforce categories facilitates research products
and development
Strong brand Poor financial planning. Decreasing Rising production cost
selection production cost
Successful track Low profit margins and low Market development Company low suits.
record net market share

Organizational broad strategies address the question of how we to win? Openly called generic strategy,
the approach developed by Porter draws focus on the recognition of variance, value addition cost
management for helping create a sustainable competitive advantage. To have a chance of winning one has
to lead and compete in one the following and be good at the

 Lowest total cost; if we are leading in this, we are competing on the scale. Where we achieve a
lesser value than rivals, differentiation with competitors is at a price where we sell at a low cost
and with better quality. Categories of products are an attraction factor as these target consumers
demographically.
 Product service leadership: is also another sphere where we could compete. Leading ng on
consequently means we are fighting on our speed, thus being first to reach the market. To stand
out, we need to capitalize on the time and quality of the product selling the most innovative and
sleek.
 Customer intimacy strategy: execution of this strategy wins us scope, this a specific target
market with a particular type of needs. To be differentiated and give us an upper hand we need to
offer fantastic customer services and client relations
It is essential to realize that a generic strategy is a framework is a reflection of current positioning, and
competitive advantage is an aspect relative to other competitors. Competitive strategy deals with which
how an organization may choose to position itself and does not necessarily lead to competitive advantage.
It can online be achieved by the organization finding opportunities to stand out in ways the customers
appreciate. Activities gyrating around 4cs like earlier mention can be remarkable in creating a position of
crucial advantage. (Thompson and Martin, 2005)

To address the path on corporate strategy it will do us justice to mention the Ansoff matrix. The idea
revolves around marketing objectives that are set gauges of measuring the company’s milestones
achieved due to the incorporated marketing strategies. Where to play is also answered by Ansoff
framework, where the module proposes four conspicuous in market planning thus market penetration,
market development, product development and diversification. The framework essentially entails the
incorporation of growth strategies by developing newer products into existing markets or expanding the
current market base. For our intuitive analysis comes second to nature on the sectors we need to work and
capitalize the market with our strengths. The Ansoff matrix is majorly underpinned by the rate of risk.

Realization of the diversification and complexity in corporate framework modulation and marketing all
energy is directed to previously untapped markets and current market having using strengths and taking
advantage of the competitors’ weakness to get into a competitive position.

On this report we present a detailed version of the Ansoff matrix. Based on the predisposed position that
the most effective growth strategy is based on the resolution of selling old and innovative merchandises
on old or new marketplaces. The firm’s managers can use the scheme us a guide to assertive decision
making and projecting. Like said earlier the matrix is determined by possible risk. It is also supposed to
inform the managers the options present in the growing economy.

The module is repeatedly praised for its simplicity a limitation come in planning, having seen that it is
major oriented on growth and highly dependent on market and the product.

Summary of objectives related to Ansoff module

 Sell of current products to current market


 Expanding to current products to new market
 Development of new product to existing market
 New product development for new market.

Present product New product


Present market Market penetration Product development

New market Market extension Diversification

 Market penetration – increment in market share in existing marketplace to enhance


growth.
 Market extension – involves getting current products into newer markets.
 Product development – involves offering new or improved products into an existing
product.
 Diversification – entails the incorporation of new product to a new market.
. The 4cs are intuitive strategies that comprise positioning strategy, brand perception, and
product value. They are a consumer-oriented marketing approach, and they involve addressing
existing needs and developing a marketing mix around them. In that case, we could establish
product categories that suit each consumer group's needs from low income to high income from
tech gurus to just ordinary users; this would be in line with our Huawei's vision of providing
ubiquitous connectivity to give everyone equal access to connections

VI. Business strategy.

For the corporate strategy to run effective, a comprehensive understanding of business strategy
should be undertaken while isn’t incorporating marketing tactics. Using the strategic clock,
which uses differentiation and focuses on the same like the generic theory. However, they differ
since it provides a framework of the dual strategy, thus a hybrid platform which provides and
additional flexibility. We could compete using a hybrid approach, using the lowest total cost,
cost leadership us our forte maintain a sustainable profit margin.

The empirical data collected depict value created by Huawei's marketing tactics. The global
market share of 10.02% makes s the company profitable. Using a generic framework cost
leadership strategy, the company, due to the low market share, Huawei seeks market
segmentation to focus on a smaller but profitable niche. It could be being the supplier of
microchips and capitalizing on government and corporate contracts.

Bowman's strategic clock is a framework that explores the dynamic routes that could be
incorporated in strategic positioning; that are how the company ought to align itself to attain
maximum influence in a competitive position.

1. Low price and low-value addition.

The strategy does not predispose the company to any competitive position. A business that
incorporates it fails to be differentiated from the rest, as the customer perceives meager value
despite a low price. The only way to be sustainable is to be as cheap as possible. However, it
becomes unpredictable since another business may come up with a lower value.

2. Low price

Business seeking this category aims to be the low-cost leaders in the market.

For success, the model of cost minimization could be implemented. It is often characterized with
economies of scale. Profits on a single product are low, but the high volume production ensures
the pooled profits from single products are healthy and can sustain the company in a competitive
position..
Competition amongst businesses with low price position and high volume production usually
involves marketing. Huawei can use the economies of scale strategy, producing high quality
products at low prices creates higher consumer perception that reflects consumer trust on the
brand.

3. Hybrid

This component encompasses an aspect off low price comparative to the competition with
respect to some product differentiation. The objective is to market the worth of the added value,
for example sleek thin and scratch-resistant touch glass and high processing speeds. The idea
should be a good reasonable price and acceptable product differentiation.

It can be a very operative positioning strategy, fully dependent on the value addition.

4. Differentiation

The module’s distinction is offering customers the highest level of consumer perception
Branding is vital in this module, as does product quality.

A high-quality product with pragmatic brand awareness thus marketing is perhaps the most
effective tool to achieve the high prices and value addition that differentiation strategy requires.
Huawei's marketing ensures that consumers continuously buy Huawei smartphones. The
marketing grows the pool of consumers as more about the brand is discovered.

5. Focused differentiation

The framework dictates execution by placing the products at the highest priced levels where
customers associate the high value with high perception. Brands like Apple use this framework
to target premium consumers by a high subdivision of the market using targeted promotion and
distribution.

No doubt, the successful implementation of this strategy may lead to the realization of high-
profit margins; only select brands can attain sustainability in the long-term.

6. Risky high margins

It is a high-risk positioning module many might dispute is destined to catastrophe in the long run.
This strategy is subject to ethics since it calls for the business to set high values without
proposing anything in terms of apparent value. Though it may achieve profits, the consumer may
later turn to better products that provide high apparent price at the same worth.

7. Monopoly pricing
Huawei may look for a monopoly market and venture in, which could be perhaps in the
microchip realm wherein some aspects it's the only supplier. The monopolist does not care about
consumer perception. However, in some regions, monopolies face heavy regulation.

8. Loss of market share

A precursor to distress in a competitive market. Since the launch of the latest iPhone, Apple has
acquired a substantive market share. Settling on an average priced product with minimal
apparent value is undoubtedly be quite a detrimental strategy. Consumers opt for better options
from high worth for the same price from other market players.

Fig 1: Bowman’s strategic clock

According to Bowman's theory, a firm can distinguish between strategies to use with respect to
the company’s identity. The theory groups differentiation strategy into a hybrid, differentiation,
and focused differentiation. Depending on the firm’s consensus, if we use the low- rate, charge
of production and the profits resulting from it offer low product prices, the benefits are pooled
back and invested in the differentiation strategy. Consequently, in differentiation strategy,
consumers perceive value-added product differentiation achieved by product properties like
innovation, functionality, and axillary services around the product.
We have to incorporate our capabilities to have an upper-hand. We are a market leader in
research and development. It is essential that our research goals in innovative technologies that
give higher consumer perception. Augmented and virtual reality could be incorporated into our
smartphones than can connect to other devices. Secondly, we should design robust smartphone
designs that, through strategic marketing like testing adverts, could attain high consumer
perception.

Core Competence Price Differentiation


innovation high High consumer perception
speed low Time new product reaches the
market
We can evaluate and justify proposed strategies using the sustainability, acceptability feasibility
product model. Differentiation tries to offer the highest level of perceived added value. By
branding plating, a crucial and having in mind Huawei a recognized as a world brand. This
strategy is sustainable. Focused on differentiation is inherently acceptable; this creates branding.
Its feasibility, the prospect of succeeding, is quite high. Huawei is a leader in research; quick and
timely innovations are set to create a high consumer perception.

4. Recommendation
Improving the net market presence, Huawei to incorporate strategic and marketing frameworks.
The smartphone market is congested as more and more companies strive for the piece of the pie.
Thus maintaining sustainable profit margins calls for incorporating core competencies
underpinned by strategic and marketing frameworks. The 4C’s of marketing is a very effective
marketing mix strategy. Customer, consumer cost, convinces, and communication. Virtually our
operation is vested in the four, as they are used to address consumer needs. We recommend using
these tactics to create a continuously informative platform for our consumers.

 Addressing the wants and needs of the consumers and minimize the cost of the solution
 Merging the firm's goals, generating healthy sustainable profits vis a vis delivering high-
value products to the consumers, thus ensuring high consumer perception.
 We are proactive in the delivery of solutions to customers. We could incorporate a good
camera and integrated AI support to fit professionals like photography and construction
instruments.

5. Conclusion.
Empirical analysis shows how the company fairs with a fair global market share of 10% — the
least among the top three telecommunication giants Apple, Samsung, Huawei. Practical use of
the data should, in the direction of marketing and strategic planning, yield prospects in the sight
of market players. To lead in research and innovation, it requires the hiring and training of
professionals with interest in related ICT markets Huawei plays. Survey results show that our
company is first in the latest technological innovations, can be accredited to the vigours research
our firm is part of the ICT market.

 Huawei ranks best in environmentally friendly products, recycles most of its electronic
waste, thus mitigates on electronic waste and maximizes profit.
 Among the top tier companies, Huawei leads in research and development and the
extensive product portfolio.

Survey results show that Huawei's position in the market is vital, and more production sites need
to be set up to mitigate the absence of quality affordable smartphones in some geographical areas
and consumer demography.

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