Huawei's Performance in the Netherlands Telecom Market

This assignment requires an analysis of Huawei's performance within the Netherlands telecom market. Students must examine relevant industry trends, competitive landscape, and economic conditions impacting Huawei's operations. The analysis should draw upon provided sources like research reports, company information, and economic data.

Business Organisations and
Environments in a Global
Context

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Background information of Huawei............................................................................................1
Background information on country...........................................................................................3
Analysis of business scenario......................................................................................................3
Recommendations.......................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment considers an important role to make successful results.
Furthermore, it also helps to expand operations and functions in several areas. It considers in-
depth analysis of the environment on the basis of regional, national and international levels (Al-
Refaie, Hammad and Li, 2016). Present study based on Huawei which leads as a global provider
of information and communication technology with smart devices. For gaining insight, this
report includes information about company’s background information of the selected business
that expanded operations in Netherlands. Furthermore, it includes analysis of business scenarios
with detailed discussion. At last, summary and recommendations have been included to solve
issues and problems of the business environment. OpenRefine is an analytical tool which is used
to solve issues for this project.
MAIN BODY
Background information of Huawei
Huawei leading as global provider of information and communication technology
through smart devices. They consider integrated solutions across different domains such as IT,
cloud services, telecom services, networking, etc. They are committed to bring digital technology
with fully integrated connection and connect several people (Lee and Kim, 2017). The company
considers end to end portfolio of products, solutions and services with competitive and secure.
With open collaboration of Huawei and ecosystem partners, value also created for customers.
With inspire innovation in the enterprises, it is based on shapes and sizes. Innovation also
focuses on the needs so that the chosen company invest in it heavily for research work.
Technology also brings breakthroughs which drives for world forward (Abubaker and Bagley,
2016).
Along with this, Huawei staying with customer centric and inspiring dedication that help
to sustain long term growth for continuously improvement of organisation. Corporate
governance structure, organisation, processes and appraisal systems of the company assists to
develop more significant advantages in systematic manner which is the greatest advantage to
business (Pujol, Elayoubi and Salahaldin, 2016). They are also continuously trying to attract
maximum number of customers at workplace.
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Moreover, the chosen business considers continuous development from 2017 with
opening new doors for mobile applications. As a result, it assists to combine innovative hardware
with chipset EMUI. Inter brand of the company announced that in 2017 they deal as the best
brand no. 70 in all over the world (Jordan, Thomas and Weerdmeester, 2014).
Furthermore, they are continuously growing up to 14% over the past year. Recently, they
deal in smartwatches which deal to develop more significant results at workplace. Smartphone
showcase striking with different colours and finishes that also introduce with new cameras.
Along with this, this company deals in several kinds of products such as phones, laptop, tablets,
accessories, mobile broadband, etc. (Czarnecki and Dietze, 2017).
Huwaei basically operate on the basis of their prior functions in China market to increase
their telecommunication network in non industrial countries. The company's core component of
the network is based on telephone exchange switches so that Chinese research consider to
acquire and develop technology for foreign company (Abubaker and Bagley, 2016). As company
offered their best products to their customer and having a good financial status no company
wants to expand its business in China. Therefore, manufacturers and restricting access to foreign
competitors also exist in new place for Huawei. In addition to this, they established new research
and development offices to cater functions in foreign such as Netherlands. This method help a
company to perform well and expand their business at global level.
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Illustration 1: Huawei performances
(Source: About Huawei, 2018)

Background information on country
Netherlands is one of the famous markets to achieve broadband targets of the digital
agenda in Europe. In terms of electronic communication market, it can be stated that
telecommunication develop long term with strong infrastructure that based on latest competition.
Huawei company have advantages while operating in this market. Distinctive series of products
help to make changes as per competitive landscape (Huang, Yang and Chen, 2015). For fixed
telephony market, the company can easily expand their share which tends to broadband and deal
in SME market.
Research work strategically analysis that Netherlands telecommunication market is more
effective with recent trends. It helps to drive the challenges for growth, demand, pricing,
competition, consumer behaviour, etc. (Binsfeld, Whalley and Pugalis, 2016). In-depth analysis
includes mobile, fixed line and broadband services so that number of subscribers rates helps to
easily reach towards sub segments. As per competitive analysis, leading companies can easily
deal with market share. With the help of key business strategies, research work forecasts to
formulate pricing and branding strategies.
Analysis of business scenario
With respect to consider business analysis, there are different models that are
implemented to know about Netherlands environment. On the basis of analysis, it can be stated
that technological companies will be able to successfully communicate their outcomes in
different areas of the world (Artero and Sánchez-Tabernero, 2015).
PESTLE Analysis
PESTLE analysis for Huawei consists of the following elements that impact on its
functions and operations to operate in Netherlands: Political factors: In Netherlands, trump's protectionist policy has been considered to
talking about global economy. Therefore, it impacts largely in Huawei. In fact, it can be
stated that globalisation is root which develop to create significant advantages at
workplace. On the basis of effectiveness, desired results unable to get. Furthermore, in
Netherlands government has capacity to use assemble framework to create standard at
very low cost (Schmidthaler, Cohen and Schmidinger, 2015). Therefore, offers are made
to cut taxes and loose work with ecological benchmarks.
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 Economic factors: Economic factor of Netherlands impact positively on Huawei. This is
because, inflation rates, currency fluctuation, etc. consider important role in the industry
which develop demographic results as well. Groups are also slowest to adopt smartphone.
Users are also looks for effective features that assists to develop more significant results
at workplace (Ampatzoglou, Ampatzoglou and Systa, 2016). With the help of all telecom
sectors, such as network equipment, infrastructure companies, wireless, etc. devices
manufacturers implement more effective role to develop desired results. However, in this
market, high labour cost create negative impact on outcomes which reduce effectiveness
of the company. Wage increment meant that higher expenses incurred for the enterprises
with sequential results in Netherlands. The inflation rate of Netherlands directly affect the
company's financial system such as if there is any economic crisis then it directly affect
company's finance power and on the other side the interest rate of a country sudden
increases then it directly creates negative impact upon company's finance.
 Social factors: Customers demand and requirements continuously change with market
trends and innovations. Therefore, social factor create large impact to find effective
results. It is essential to the selected business to consider their operations and functions as
per customer demand and market trends. This is because, preferences change according
to price cut (Ionita, Wieringa and Pieters, 2015). As results, consumers go for brand value
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Illustration 2: GDP of Netherlands
(Source: GDP of Netherlands, 2018)

which is most invisible in the Netherlands market. Another advantage of social factor
implementation is that Huawei can easily implement low price products that are cheap
and low in quality. As results, it increases significant advantages to deal with innovative
results. In the market, there are several competitors of the chosen business such as One
Plus, Samsung, Oppo, Apple, Asus, etc. The cited firm consider their operations for
Huawei products, Huawei cloud, Fusion Solar Smart PV, Honor, etc. Technological factors: Technological factors mainly encourages 5G proliferation that
assists to attract maximum numbers of customers. In this context, Huawei implement
advance tools and techniques that assists to develop significant advantages. Along with
this, in Netherlands high amount spending on digital transformation to increases positive
results. As per advance tools and techniques, the chosen business able to communicate
their significant advantages in different areas easily (Kim, Jung and Choi, 2016). As a
result, it impacts positive on maximum number of customer attraction. In the market,
modernisation is also high so that business able to going digital easily. Several people
want to connected with internet that leads for better sales. Innovative minds also ensure
that quality products manufactured which is enough to fight stiff competition to different
brands such as Samsung and Lenovo. Environmental factors: In Netherlands, there are different rules and regulations
regarding environment protection has been implemented. Therefore, Huawei must follow
these rules and regulations that are adhered to conserving environment successfully.
Along with this, country also support to reused waste that help to maximise available
material for accomplishing their aim and objectives. The chosen company also wants to
lead as distributor of green energy products. Hence, they trying to come up with effective
ways that minimise emission of carbon substances. In this way, development of business
consider desired work performances that help to attain significant work performances in
creative manner (Huawei PESTEL Analysis, 2018). On the basis of creative work
performances, it can be stated that Huawei successfully support to whole environment of
Netherlands.
 Legal factors: As per legal factors, it can be stated that Huawei must be abide with legal
laws that are existed in Netherlands. This is because, with the help of such laws they can
easily cope up with desired results. For instance, implementation of patent acts, tax rates,
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labour laws and environmental laws (Binsfeld, Whalley and Pugalis, 2016). They are also
deals with maximum number of workers from different nations so that they must comply
wages of labour law for all jurisdiction of operations. These kinds of rules are also
ensured that positive business performances develop successfully. Violating rules of strict
nations lead as business closure, sanctions, etc.
Porter five forces model
Huawei is technology company that considered largest and profitable functions in all over
the world. In the whole market, there are two major competitors such as Apple and Samsung
who have combined with global market share is around 39.0%. On the other hand, it is one of the
largest business which has low cost of smartphone and having maximum share of smartphone
with major competitors such as Xiaomi and Oppo. The chosen company has effective design,
manufacture and marketing that help to compete with several products such as tablets,
processors, etc. (Artero and Sánchez-Tabernero, 2015). Following elements are generally
included in this model that create impact on business: Bargaining power of buyers (High): Customers of Huawei company relatively possess
high bargaining power because of availability of many similar products such as
smartphone, tablets, etc. This is because, in Netherlands there are many businesses exist
that deal in technology sector. It makes that switching cost is low so that customers can
easily move towards other company. Furthermore, consumers can also choose products
from variety of alternatives which help to attain more systematic work performances
(Ionita, Wieringa and Pieters, 2015). As the company has high bargaining power which
clearly states that the company can easily attract their customers. Because of low pricing
strategy, buyers did not shift their buying power into another company. Bargaining power of suppliers (High): Furthermore, technology industry suppliers
mostly intel with supply processors. This is because, high bargaining power possess by
them in Netherlands. This is because, in technology consideration, there are minimum
suppliers. Hence, they consider the highest possible price for their products and services
to improve profit margin (Schmidthaler, Cohen and Schmidinger, 2015). Minimising
supplier cost consist by Huawei started manufacturing with its own processors. Neutral
processing unit also allow aloud based Artificial Intelligence that run alongside each
other. As results, device run faster easily.
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 Competitive rivalry (High): Huawei compete with several numbers of competitors in
market. Therefore, in all the market they face high competition with low end smartphone
and PC. In Local and international areas major competitors such as Lenovo, Oppo, etc.
Due to different price range of competitors, Huawei get affected. Products innovations
and extensive advertisement must be consider in chosen business so that their selling
could be develop successfully. Smartphone selling requires more advertisement of new
products so that it is important to make effective functioning. For instance, Lenovo
increased their selling with effective functioning. Threat of substitute (Low): This element consider low threat towards Huawei because in
the market there are less number of substitute. For instance, tablet, PC, products includes
telephones, two way radios, etc. (Binsfeld, Whalley and Pugalis, 2016). These kinds of
element considered old fashioned for modern generation so that smartphone industry
continuously grow successfully in the market. This is because, in radios, old fashioned
phone not access social media activities. Along with this, satellite phones are associated
with high operational costs.
 Threat of new entry (Low): It is considered as low threat towards Huawei because it
requires large amount of capital to operate successful operations. Furthermore,
smartphone business operate their activities with more fund which requires establish
technological results. With the help of operate in local and international environment,
there are different kinds of suppliers make contact with firm. As in Netherlands,
successful results will be accomplish (Schmidthaler, Cohen and Schmidinger, 2015).
Apple and Samsung are the most powerful competitors of the chosen business that
develop significant results in enterprise. Differentiation strategy is mainly used to work
together with high marketing power. The company should uses variety of different
pricing strategy in order to sustain its brand image in market. Though it faces tough
competition with their rivals but in order to entered into new market, company needs to
invest big amount of money into it. Hence, it clearly shows that Huawei having low
threat of entrant .
Recommendations
In order to provide recommendations, it can be stated that Huawei must includes different
perspective that assists to develop significant advantages at workplace. However, the chosen
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company develop their successful operations and functions to deal in several areas. As results,
following consideration must be implement at workplace of the selected business: Provide training and development to all staff members: In order to deal in
telecommunication industry, Huawei must provide training and development program to
their staff members. In this consideration, whole enterprise able to communicate
successful results in the different areas to make desired work performances. As per new
business requirement, it is essential to look for the development of whole enterprise. It
will increase successful results in enterprise (Czarnecki and Dietze, 2017). Deal with new features: Furthermore, Huawei must considered new features in their
products and services to attract maximum number of customers. On the basis of
innovations and creativity, they should regulate rules and regulations to make new
program. As per the new features, customers numbers easily increases to make desired
results. New features will be based on competitive advantages which help to innovate
different things (Ionita, Wieringa and Pieters, 2015). Fulfil customers needs and requirement: In addition to this, it is essential to fulfil
customers needs and demand that make desired work performances at workplace. In this
way, Huawei must make sure that they are able to fulfil customers needs and demand.
This is because, it helps to attract them with delivering of appropriate work
performances.
 Apply systematic tools and techniques: Moreover, the chosen business must be consider
their new functions with social media activities. This is because, it assists to develop
desired work performances with undertake creative results. On the basis of tools and
techniques, it can be stated that promotion of business will be develop successfully
(Schmidthaler, Cohen and Schmidinger, 2015).
CONCLUSION
From the above report, it can be concluded that business environment in global context
help to create effective results at workplace. In this way, innovative tools and techniques must be
develop successfully that make creativity at workplace. With this regard, Huawei company has
been taken to analysis their functions and operations as per Netherlands aspects. Report
summarized about PESTLE and Porter Five forces that assists to establish operations in new
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areas. On the basis of this analysis, it can be stated that chosen business easily promote their
products and services in different areas.
Along with this, report includes background information of company and Netherlands
that helpful to consider innovative results at workplace. On the basis of this information, it can
be stated that chosen enterprise will easily accomplish their goals in new areas. At last,
recommendations also provide through Huawei can easily increase their significant functions.
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REFERENCES
Books and Journals
Abubaker, M. and Bagley, C., 2016. Work–Life Balance and the Needs of Female Employees in
the Telecommunications Industry in a Developing Country: A Critical Realist Approach
to Issues in Industrial and Organizational Social Psychology. Comprehensive
Psychology. 5. p.2165222816648075.
Al-Refaie, A., Hammad, M. and Li, M.H., 2016. DEA window analysis and Malmquist index to
assess energy efficiency and productivity in Jordanian industrial sector. Energy
Efficiency. 9(6). pp.12
Ampatzoglou, A., Ampatzoglou, A. and Systa, K., 2016, October. The Perception of Technical
Debt in the Embedded Systems Domain: An Industrial Case Study. In Managing
Technical Debt (MTD), 2016 IEEE 8th International Workshop on (pp. 9-16). IEEE.
Artero, J.P. and Sánchez-Tabernero, A., 2015. Media and telecommunications concentration in
Spain (1984–2012). European Journal of Communication. 30(3). pp.319-336.
Binsfeld, N., Whalley, J. and Pugalis, L., 2016. Competing against yourself: State duopoly in the
Luxembourg telecommunications industry. Telecommunications Policy. 40(8). pp.791-
803.
Czarnecki, C. and Dietze, C., 2017. Reference architecture for the telecommunications industry:
Transformation of strategy, organization, processes, data, and applications. Springer.
Huang, M.H., Yang, H.W. and Chen, D.Z., 2015. Industry–academia collaboration in fuel cells:
A perspective from paper and patent analysis. Scientometrics. 105(2). pp.1301-1318.
Ionita, D., Wieringa, R.J. and Pieters, W., 2015, November. Using value models for business risk
analysis in e-service networks. In IFIP Working Conference on The Practice of
Enterprise Modeling (pp. 239-253). Springer, Cham.
Jordan, P.W., Thomas, B. and Weerdmeester, B. eds., 2014. Usability evaluation in industry.
CRC Press.
Kim, K., Jung, J.K. and Choi, J.Y., 2016. Impact of the smart city industry on the Korean
national economy: Input-output analysis. Sustainability. 8(7). p.649.
Lee, S. and Kim, W., 2017. The knowledge network dynamics in a mobile ecosystem: a patent
citation analysis. Scientometrics. 111(2). pp.717-742.
Pujol, F., Elayoubi, S.E. and Salahaldin, L., 2016. Mobile telecommunications ecosystem
evolutions with 5G. Communications & Strategies. (102). p.109.
Schmidthaler, M., Cohen, J. and Schmidinger, S., 2015. The effects of network regulation on
electricity supply security: a European analysis. Journal of Regulatory Economics,
48(3), pp.285-316.
Online
About Huawei, 2018. [Online] Available through: <https://www.huawei.com/za/about-huawei>.
Huawei PESTEL Analysis, 2018. [Online] Available through:
<https://businessteacher.org.uk/pestel/huawei.php>.
Netherlands Telecoms Market Report 2018: Analysis & Forecasts (2005-2025) - In-Depth
Analysis of Segment Wise Telecommunications Including Mobile, Fixed Line and Fixed
Broadband Services – ResearchAndMarkets.com, 2018. [Online] Available through:
<https://www.businesswire.com/news/home/20180308005730/en/Netherlands-
Telecoms-Market-Report-2018-Analysis-Forecasts>.
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