Huawei's Competitive Advantage Strategy

This assignment provides an in-depth analysis of Huawei's business strategy. It begins by discussing the company's niche strategy, which involves targeting specific customer segments with low-cost smart phones and meeting the technological demands of young generation customers through unique and smart technology. The positioning statement highlights Huawei as a low-cost provider of smart telecommunication equipment that gives customers an uninterrupted internet service experience. Additionally, the assignment explores Huawei's product pricing strategy, which involves competitive pricing to gain advantages over competitors who use premium pricing strategies. Overall, this analysis provides insights into Huawei's business strategy and its efforts to compete in the market.

Running head: MARKETING PLANNING
Marketing Planning
Name of the Student:
Name of the University:
Author’s Note:

1MARKETING PLANNING
Table of Contents
1.0 Marketing Strategy of Huawei Company..................................................................................2
2.0 Market segmentation.................................................................................................................3
2.1 Market Segmentation using STP Analysis............................................................................3
2.2 What is bought and why?......................................................................................................4
2.3 Primary and Secondary Segmentation...................................................................................5
3.0 Market targeting and Differentiation.........................................................................................5
3.1 Niche Strategy.......................................................................................................................5
4.0 Positioning.................................................................................................................................6
4.1 Positioning Statement and Company Message......................................................................6
5.0 Product Pricing Strategy............................................................................................................7
5.1 Competitor Pricing and Huawei’s Pricing.............................................................................7
5.2 Future Huawei Brand Extension............................................................................................7
Reference List..................................................................................................................................8

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1.0 Marketing Strategy of Huawei Company
Product  Telecom networks including technologies and solution like mobile and
fixed soft-switches, multimedia subsystem, internet protocol and others
 Telecommunication equipments required for building and operating
equipments
 Network integration service, consulting and engineering service
 Wireless modems, USB, mobile handsets, video products, Wi-Fi, wireless
gateway and many more
Price  Huawei set prices for products and services based on the product range,
prevalent market condition and economic condition of a country
 Mostly follows competitive pricing policy for beating the market condition
 Charges high prices for some innovative and new products and services
 Follows elastic pricing policy and provide discounts towards gathering
huge customers
Place  Huawei operates in more than 170 countries having R&D department in all
around the world
 It has built almost 1500 networks and serve almost 33% of total world’s
population
 Wide global distribution network leads to smooth product and service
delivery to the customers
 Customers can also avail Huawei ‘s products and services through its
website

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Promotion  Huawei uses Omni channels for promoting its products and services
 Uses mass media like TV commercials, radio, print for promoting products
and services to customer group
 Uses Digital media and Social media like Facebook, Twitter, Instagram for
promotion
Table 1: Marketing Strategy of Huawei
(Source: Yan, Wang and Xiong 2017)
2.0 Market segmentation
2.1 Market Segmentation using STP Analysis
SEGMENTATION
Geographic Urban Area
Demographic
 Age: 20-60 Years
 Income: Medium to High income group customers
 Occupation: Business persons, job holders,
students, college students, corporate officials
 Marital Status: Both Married and Unmarried
 Education: Mostly educated persons
Psychographic
 Attitude: Positive attitude towards life
 Personality: Strong personality
 Hobbies: Internet surfing
 Life style: Modern life styles
 Brand Loyalty: High brand loyalty
 Distribution Channel used: Both offline and

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Behavioral Online
 Benefit Sought: Seek extra benefit in purchasing
TARGET
 Huawei targets people from medium to high income group
 The main target of the company is having high level of internet
surfing hobbies and technology preference
 The customers are having modern lifestyle and use both online and
offline medium to access products and services
POSITIONING
 High quality and uninterrupted networking
 Low cost of products and services
 Smart and innovative technology
 Wide ranges of telecommunication equipments
Table 2: Market Segmentation of Huawei
(Source: Joo, Oh and Lee 2016)
2.2 What is bought and why?
The customers purchase telecom networks including the technologies like Multimedia
subsystem, mobile and soft switchesm, router, broadband and home location registers from
Huawei (Huawei 2018). Moreover, the customers use routers and broadband for letting the
computers sharing common internet connection. The customers also purchase USB modems,
wireless routers, wireless modems from this company. The customers used USB modems and
wireless routers for getting access to the internet easily through their USM ports of laptops or
computers. On the other hand, the customers purchase smartwatch, smartphones, tablet PCs of
the company (Wei, Samiee and Lee 2014). Such products are bought by the customers for

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connecting with their friends, closed one, family members, co-workers on daily basis over voice
calls, e-mails and social media.
2.3 Primary and Secondary Segmentation
The primary target market of the Huawei is the people having high level of technological
preferences. Moreover, such customers are highly inclined to purchase the broadband, router and
USB modems for getting access to internet services. On other hand, the organization also targets
the customers, who are highly inclined to purchase branded smartphones (Lu et al. 2014).
However, the organization also targets some secondary customers, who can be the potential
primary customers. The secondary segments of the company are parents of the school and
college students and small retailers. The organization targets the parents to purchase the
telecommunication equipments for their children, who are studying some online courses. On the
other hand, the organization also targets some small retailers, who can indirectly sell the
telecommunication equipments of the company to the local customers.
3.0 Market targeting and Differentiation
3.1 Niche Strategy
The niche strategy of Huawei is aimed at providing better service within small target
market. Moreover, the organization perfectly meets the needs of low income households by
offering low cost smart phones. On the other hand, the organization has specifically targeted
young generation customers having high level of technological preferences (Battistella 2014).
Moreover, Huawei can perfectly meet the technological demands of the young generation
customers through offering unique and smart technology.

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4.0 Positioning
4.1 Positioning Statement and Company Message
Positioning Statement
To People having high level of technological preference and internet phobia
Huawei is the Low cost provider of smart telecommunication equipments
That Gives the customers an overwhelming experience of uninterrupted internet service
through smart telecommunication equipments
That’s Because  Huawei market leaders in providng smart telecommunication equipments
 Huawei provides best quality telecommunication equipments at
affordable cost
Table: Positioning Statement of Huawei
(Source: Cecere, Corrocher and Battaglia 2015)
Company
Message
At thirty, Huawei stands: building a completely connected intelligent world.

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5.0 Product Pricing Strategy
5.1 Competitor Pricing and Huawei’s Pricing
Huawei enjoys the low cost pricing strategy for gaining competitive advantages over the
competitors. The competitor companies of Huawei like Apple, Cisco Systems and Samsung
mostly uses premium pricing for gaining high level of profit in the market. Moreover, such
competitor companies mostly target premium customers for offering the telecommunication
equipments (Payne and Frow 2014). However, Huawei uses affordable and competitive prices
for gaining high level of competitive advantage over the competitors.
5.2 Future Huawei Brand Extension
In brand extension strategy, Huawei uses same brand name for different categories of
products and services. The organization has already started to sell tablet PCs, smart phone and
smart watch under its own brand name. In future, the organization can offer internet service
under its own brand name. Apart from that, Huawei can also offer PCs and other electronic
products under its own brand name for future brand extension.