Impact of 5G Technology on Huawei Business Industry

This report discusses the impact of 5G technology on the Huawei business industry, including micro and macroeconomic factors, company overview, and risks associated with 5G adoption.

Introduction
Technology has been the greatest influence on business from the very beginning of this modern
world. Business innovations have changed the way of business forever and in today’s time, it’s
also a key to survival in the competition. This report will discuss the impact of 5G technology on
the HUAWEI business industry. 5G is the 5th generation mobile network that would enable its
users to have the fastest speed of internet and connect various devices without any interruption.
In this report, the micro-economic factors of Huawei will be discussed. This report would also
include the macroeconomic factors mostly political, environmental, social and security factors
like physical security, digital security and sustainable security of the impact of 5G adoption.
There might also be some risks considering it’s a new technology and must have some
experimental application considering this fact the risk identification and mitigation would also be
discussed.

Company overview of Huawei
Huawei was founded in 1987. It is a China-based company. This company has grown with
technological advancement. It is a company that manufactures telecommunication equipment. It
is a leading brand providing telecommunication infrastructure. Their products are phones,
laptops, android based phones, and different parts and particles for the manufacturing of an IT
device. They have over 195,000 employees currently working under them in 170 countries and
different regions of the world. This company has faced many issues with their manufacturing
still they have survived that with the right decisions and supply chain management. Although
they have recently adopted 5G technology into their operating system and have developed many
sources of equipment ready to use the 5G technology. Its mission is to get everyone in touch with
technology through its business. They have already developed a 5G enabled modem in 2019
named 5G-ready Balong 5000 modem.
Micro environment analysis of Huawei
Micro environment factors analyze the company’s internal factors. Mostly the internal factors are
elements like customers, suppliers, market structure, intermediaries and competitors. These
components describe a company’s position in an industry.
An evaluation of Huawei's price, investment, performance, and trademark prospects would be
done so order to analyze its microenvironment. This company's cost leadership represents one of
its primary strengths. As few alternatives to choose from when looking to buy less expensive cell
phones, Apple and Samsung had been widely regarded as the industry giants in that regard. The
accomplishment of Huawei has been attributed to reducing this discrepancy with strong sales.
Considering Huawei lacks considerable currency reserves from its competitors, this is among its
key competitiveness drawbacks. The limitation significantly impacts the firm's efficiency within
the marketplace. Comparable to its competitors, the Chinese company utilizes a less powerful
corporate name. As a result, it possesses a powerful brand following, therefore reducing its
marketing strategy.

However, technological advancements and creativity in the mobile device market (including 5G
networks) are produced fresh economic prospects. Third, while Huawei hasn't significantly
impacted anything among these, wealthy foreign businesses like the US and Asia give huge
opportunities to expand. So, we can see that Huawei has been at advantage because of 5G
technology and its adoption. In the US Huawei is the 2nd largest market share owner after
Samsung. Though they have been backed down a little still they have managed to gain efficiency
with the help of innovation and creativity like 5G. it has given an advancement over its
competitors. They also have great control over the market. This has been possible due to their
supply chain management efficiency and they are trying to head towards a self-sustaining
business and a sustainable business in the market. Huawei as a market they have an effective cost
leadership advantage too as for both Asia and other continents.
Macro environment analysis of Huawei
Commonly macro environment analysis suggests the external factors of a company. A company
has external trends that can impact the way of doing business. External trends include many
factors that directly have an impact on the company’s decision on investment and also for sales.
Huawei is a well-established company still they are very much impacted by external factors.
Especially while adopting new technology and strategy. A business must evaluate the external
factors to evaluate the risks and also to find out the opportunities from that.
Political risk
Political factors impact a business greatly as for international businesses. They have the authority
to control a business in that area. 5G technology is an advanced technology and that’s why it
would need permission to exercise this technology. China has always clashed with the American
government still if the company need to adopt any kind of technology and use it to expand their
business they have to be careful about their core competitor as they have a great influence on the
market.
Global corporations and smartphone businesses are frequently impacted by political influences.
Especially, massive administration influence and regulation as nothing more than a result of
protective tariffs sometimes in nations, including the USA (US) and Great Britain (UK), were

indeed affecting how multinational investors conduct business. Since certain smartphone
businesses have contracted with network operators in plenty of other countries, the step restricts
the company’s capacity to expand. So, the overall success of the corporate business depends on
excellent political ties amongst nations. In this regard, the easiest thing to do as a company
would be to have sustainable supply chain management as any clash with these powerful
governments might turn into a great disadvantage.
Social
Previously, using an android smartphone in society was seen as odd. This is becoming a
widespread practice everywhere. as frequent use of portable apps now at the dining table has
been acceptable by societal norms. As little more than a result, smartphones are more in want
now than they are a need. The aspect affecting Huawei inside the marketplace, specifically in the
US, would be that society sees Chinese goods as being low-cost and less reliable. That's a widely
held belief. Since Huawei is a Chinese corporation, many US consumers associate it with similar
products. This corporation should thus use greater advertising methods to combat such
designation. A sizable share of Huawei's goods is sold abroad. An industry's internal and external
surroundings strategy is really not, nevertheless, restricted to the international setting. During
the very current period, it is additionally aiming there at the domestic Chinese market. Within the
domestic Chinese marketplace, Huawei's smartphone sales have increased. But when comes to
marketing their services, someone must comprehend the mindset, requirements, plus preferences
of both the marketplace. Things differ from one market, one location, or one nation to that other.
Environmental
Environmental policies are broken by Huawei because of hazardous effluents. The USA and the
EU should punish China and Huawei if indeed the corporation continued to violate pollution
regulations. They are fully aware of fines and prohibitions can be detrimental to the future of just
about every organization. This same fact company Huawei had also made significant initiatives
to reduce manufacturing or greenhouse pollution to that same climate seems to be a plus. Still,
they must maintain an image and try to cope with the SDG tool for sustainable development and
also save the planet. The environment has to be saved by these types of giant manufacturers as
they seem to have the largest share of every market. They produce a lot of toxic and metal waste

that impacts the business in a most tragic way, they also pollute the soil as the waste also
includes chemicals that are hazardous for human functions and organs. They are now concerned
about those issues and trying to make things right. They are also concerned about their corporate
social responsibilities as they are responsible for the earth. As they are a growing and large
industry it has to be taken seriously as they have a wide range of operations throughout the world
and in different regions.
Security
Security means that a business needs to make sure of some factors in order to succeed and also to
survive. These securities impact a business lot more than other factors as the security need to be
strong.
Physical security
A security assessment that reviews entry points and security liabilities can offer a view of how
much security is required. Physical security measures can include biometric or bar-coded door
locks, security personnel, alarm systems, video surveillance and restricted access areas.
Security measures should include external threats, but also potential internal threats. Only
employees with authorized access to sensitive areas, such as server rooms, financial storage
facilities and storage rooms, should be able to enter. Huawei has physical security and they
maintain confidentiality in every aspect.
Digital security
Digital security falls under the segment of cyber security. As everything in this modern day has
been digitalized so is business. Digitalization has mainly impacted the information system and
structure. As businesses have been recording their business information and control all
digitally it is important to secure that information and have security for it. Just the way a
physical asset can be protected, a digital or virtual thing can be protected too with various
technology and protocol maintenance. The name of some of these protocols is web filtering,
network access monitoring, OS security patches, firewalls etc. This is needed as 5G is indeed a
digital adoption.

Sustainable security
As the world is changing rapidly the world is going to get more complicated by the day. So it’s
important to maintain security for a business in order to save them. Different maintaining
systems like ZTNA and different applications like firewalls and others need to be more
structured in order to make the communication in the internal business more authentically so
that the business could be more foreseeable and predicting. To face the challenges of 5G the
firm needs more thinking about sustainable security in order to secure the position of the
revolutionary change.
Identifying the strongest risks of 5G infrastructure and solutions
The risks for 5G adoption mostly lie with trust issues, business issues, transparency issues etc. as
Huawei is a Chinese brand the power conflict with the US stands as a big issue here. Another
issue is that experts are suggesting 5G technology to have back doors in the technology to use
information against the nation if needed. This allegation has been a serious issue for not
accepting the 5G in many countries. A business needs to be more transparent in their way of
business and as China is not transparent as the EU and America it creates a disadvantage for the
company.
To solve these trust issues Huawei needs to first clear up the mistrust and make it cleaner than
before. They need to put technology to help other businesses to grow and facilitate more in order
to gain popularity first. The issue of allegations can be cleared up too if they can brand their
product and services more transparently. They also need to give more advantages and let the
industries know about their equipment in order to make a good relationship with them and build
trust.

Conclusion
This report has discussed the issues that are connected with the industry of 5G and Huawei.
Internal factors or micro factors have made the business look well established and one of the
influential brands in the power market. Yet they have been coping with external factors like
political ones as they are being overpowered by an influential country. The 5G structure has also
been introduced to many countries due to social barriers they have been getting fewer deals
though their technology is revolutionary. This report has also discussed the securities a business
must have. This business have several conflicts but as international marketer, they need to be
more transparent in their way of business to gain the trust of other countries and maintain a good
relationship with others.

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