Huawei Corporation and Its Environment

Huawei Corporation and Its Environment
Introduction
Business unit are the important part of
economy as it develops job opportunity for
peoples and help in overall economic
development. Different kinds of company
operates their business with different purpose
(Dunn and Jensen, 2018). In which there are
various factors that affects their business
functions and that may be internal or external
factors. In order to understand that, Huawei
Chinese multinational organization is selected.
This company was set up in year 1987, china.
It deals with mobile phones, networking
equipments, and telecom equipments. It
produced products like table computers, Smart
TV, Harmony OS, smartphones, mobile &
fixed broadband networks etc. the present
report carries out discussion about Internal &
external factors along with their impact on
company.
Swot analysis is a model that is used by company for analysing strength, weakness along with threat and opportunity. In which strength indicates that in which the brand is goods and what distinguish it from other competitors. Weakness halt
brand to do well and focus on that point for betterment of company (Buffa, Franch and Rizio, 2018). Opportunity aids firm to increase their market share and brand value. Along with this, threat possess potential to harm the brand. In order to
meet long term competitive advantage, it is vital for entities of corporation to address all factors and all these internal factors in context of Huawei Company are as follows:
Strength
Large product portfolio – Biggest strength of Huawei Company is that they have an extensive product portfolio. They has their fastest growth in manufacturing wide variety of smartphones. Huawei is one of the top three smartphones brands
as well as top two brand at global level. Due to this their sales increases day by day along with higher profits. Besides this, firm also produced many other products such as multimedia technology, dongles, smart TV and so on.
Innovation in technology- Huawei company mainly emphasis on innovation and creations. Every year this company invest a considerable amount of money on research and development for introducing innovative products. Due to strong
focus on R&D, they are the leading players in smartphones along with 5G technology.
Leading position in smartphone market- Huawei enterprise is the second leading player in smartphones after Apple Inc. Being leader in smartphone industry, they also produces and sell many smartphone in market and that become the
leading revenue source of company (Guceri-Ucar and Koch, 2016). This firm come up with innovative technology and good camera even though their prices are feasible and due to this their market shares has increased at high level.
International presence- Global reach of company is very excellent and that is the main strength of brand. Company is expanded globally and due to this they become the leader in good revenue, market shares and a strong consumer’s base.
They operates their business operations across 170 nations for this they perform with many large networks distributors, suppliers and business partners.
Competitive pricing- The primary reason by which brand accomplishes its popularity and faster growth is their competitive pricing. For this they mainly focus on lower pricing strategy.
Weakness –
Many controversies- Huawei has many controversies since its formations as well a tainted image at global market. This is due to the rivalries between us and china and the close connection between
Chinese government and Huawei. Additionally, they has lost their AT&T support in US along with many partners of US
Weak market in US- selected firm has not well positioned itself in US market due to some controversy and due to this the US government is keen on not allowing the brand to flourish their product in US
market.
Lack of capital- Huawei Company have low capital for their operations compare to other top brands. Due to this they need to be very careful while planning any business operations.
Weak brand- Due to low capital and lack of marketing, they have weak brand image. Even if this brand has sharp image in some countries but due to less popularity in most of top markets their brand is
weak
Opportunity –
Al & 5G technologies- With the help of research and development they have opportunity to seen a significant advantage in 5G technology. They need to be more focused towards AL and 5G technologies
as they already get success in 5g technologies.
Marketing- Huawei is leading company in smartphone industry but they have very weak marketing strategies as compared to other players.
Retail chain- Selected firm have opportunity to make use of online channels for increasing sales as well as to expand their presence at global level by putting more efforts in order to develop their brand
retail chain (Dunn and Jensen, 2018).
Threat –
Competitors- Biggest threat in smartphone industry is that, the existence of competitive edge and Huawei firm has threat with Apple, Xiaomi, and Samsung.
Trade pressures- Trading tension between china and US and this become trouble for Huawei brand.
Regulatory pressures- Rules and regulatory pressures are increasingly severe threat to global players in technology. The trade war between US and china along with political pressure become biggest
threat for Huawei Company to operate its business at global level.
Internal factors – SWOT analysis