Impact of 5G Technology on Huawei Business Industry

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