Marketing Strategy for Huawei

This study analyzes the marketing strategy of Huawei, including the external and internal analysis, competitive advantage, and current marketing strategy. It also recommends strategies for entering the global market based on Huawei's marketing mix.

Running head: MARKETING STRATEGY
MARKETING STRATEGY
Name of the Student
Name of the University
Author note

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Abstract
Huawei is the one of the global leading company in the telecom sectors along with the great
range of products that includes mobile phones, tablets, wearable, broad band devices and the
home devices. This is the manufacturer of the telecom equipment and the Chinese
multifunctional telecom company that is headquartered in Shenzhen, China. This first part will
be depending upon the external analysis and the internal analysis of the market. This will also
involve the external factors and the internal factors that creates risks for the business. In the first
part of the study, this will include the business competitive advantages and the present marketing
strategy of the business. In the second part of the paper the business will involve segmentation,
market and the business position in the market. This study also recommends the business
strategies of entering the global business market and these strategies are mostly based upon
Huawei’s marketing mix.

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Table of Contents
Part 1................................................................................................................................................3
Introduction......................................................................................................................................3
Situation analysis.............................................................................................................................3
Political condition........................................................................................................................4
Economic condition.....................................................................................................................5
Socio-Cultural condition..............................................................................................................6
Technological condition..............................................................................................................7
Environmental condition.............................................................................................................9
Legal condition..........................................................................................................................10
Strength......................................................................................................................................11
Weakness...................................................................................................................................11
Opportunity................................................................................................................................11
Threats.......................................................................................................................................12
Competitive advantage (USP).......................................................................................................12
Perceptual map...............................................................................................................................13
Comparative analysis.....................................................................................................................13
Two competitor: apple and Lenovo...........................................................................................13
Evaluation of current marketing strategy......................................................................................15

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Part 2..............................................................................................................................................16
Segmentation targeting and positioning (STP)..............................................................................17
Time Space Chart of Target customers.........................................................................................18
Recommended objectives and goals (SMART)............................................................................19
Recommended marketing strategies based on the application of the marketing mx to your chosen
branded supermarket chain............................................................................................................20
Marketing Mix...........................................................................................................................20
Conclusion.....................................................................................................................................22
Bibliography..................................................................................................................................23

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Part 1
Introduction
Huawei targets the lower income segments as the production cost of the products are low
the company is able to provide the quality products in less price thereby attracting the people of
low income segments. Huawei has not been able to compete in the international business market
as there is tough contest with the leading brands although it is one of the largest global telecom
company (Islam 2018). The first part of the paper will analyze the situation analysis of the
company by describing the political, economic, technical, legal and environmental condition.
This also involves the strength, weakness, opportunities and threats of the business. This study
will involve the external and the internal market analysis for understanding the external and
internal benefits and the risks, the organization is facing. The study will also describe the
competitive advantage for the business and the current marketing strategy followed by the
business. The second part of the paper will involve the segmentation, target and the position of
the organization in the business. This study recommends the strategies for the business for
competing in the business market. The recommendation of strategies will be based upon the
marketing mix of the organization.
Situation analysis
The PESTEL analysis is considered as the structure that are applied by the marketers for
determining and monitoring the micro environmental factors which creates great impact on the
organization. This helps to determine the threats and weakness of the organization.

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Political condition
The Chinese political environment plays a great role on the Huawei’s largest business
market. The governing party has a great influence on the economic environment of the country.
Thereby any political incidence which affects the politics of China has heavy impact on the
profit margin of Huawei. During the political promotions and the meetings of the National
Congress, stock prices of a majority of the Chinese business firms tend to put (Sanga 2017).
Global profitability of the business is subjected to the political climate of the respective country.
On the other hand this is found out that the global and the local politics could affect the business
process of Huawei in the positive manner. The Chinese governments also supports the
telecommunication sectors by providing the sufficient training for students in engineering that
appreciates the effectiveness of inbound workforce, which makes it significantly competitive.
The loans, grants and other incentives for the purpose of promoting the manufacturers in the
locality gives that business a competitive advantage over their foreign counterparts (Tarannum
and Hassan 2016).

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Rank of China among 203 counties
Source (Market Research Blog, 2019)
Economic condition
The economic risks that the organization faces are that Apple becoming the major
competitors of Huawei has the huge resource reservoirs that Huawei struggles to boost the
capital, this affects the economic conditions of Huawei. Moreover the VAT in the
telecommunication sectors hikes business operation costs and this also decreases the profitability
margins of the business. But as the domestic economy has been growing rapidly, this boosts the
disposable income and demand for luxury goods (Simões 2016).

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China economy
Source: Heritage.org. (2019)
Socio-Cultural condition
The Chinese economy is rising daily as the nation has a population of over than 1.3
billion people. This population also provides for a huge market for Huawei goods and also beside
these things the large population develops the steep demands for the products as the numeral of
buyers keeps on rising, this creates positive effects on the business (Moutinho and Phillips 2018).

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Hofstede chart of China
Source: (Hofstede Insights, 2019)
Technological condition
The modernizing rate in the country is becoming appreciable and everybody has been
becoming digital oriented. As the nation wants to remain connected with the digital world, it
provides higher sales opportunities. The government ensures that the ICT related innovation will
provide high-quality education and training programs. Huawei are prone towards bringing new

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quality products for the rigid competition in the business process of international brands like
Samsung, Lenovo and other.
Technology advancement rank
Source: Veugelers, R. (2019)

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Environmental condition
The Green pipe of Huawei has the environmental policies which are required to be
adhered by the company for conserving the environmental values. The business wastes are
further recycled to cut on the possible wastages and for maximizing the obtainable materials.
Huawei also wanted to become the foremost supplier of the green energy goods that have been
trying to originate with the successful ways of minimizing the production of the carbon materials
(Valipour and Hosseini 2017).

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EPI rank of China
Source: (Market Research Blog, 2019)
Legal condition
The operations of Huawei should abide the legal laws like the obvious acts, the tax rates,
labor laws and the ecological laws. The company deals with various workers of various countries
and thereby the organization should fulfill the labor laws and the wages for the authorities of
operation. Enduring the system the business will ensure the optimistic performance of the
organization and the violation of the rules of the strict countries; this could lead to either business
closing or luxurious fines (Bian 2018).
Rank of China economy
Source: (FocusEconomics | Economic Forecasts from the World's Leading Economists, 2019)

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The strength and weakness of the organization rely upon the internal factors of the
organization and the external factors of the organization determine the opportunities and threats
of the organization.
Strength
The strength of Huawei is that the government of China supports the telecommunication
sectors by providing enough amount of training for the engineering students, leading to
development of the innovative products in the business market. As the domestic economy is
growing fast, this also lead to increase of the disposable income and the demands of the luxury
products (Xia and Gan 2017). The high population of China provides the wide business market
and developing the demands for the products. The Chinese government ensures that the
innovations in ICT will be providing the high quality education program for the technology
advancement.
Weakness
The business faces the lack of the sufficient resources budgets which limits the ability of the
company to contend internationally. The business also offered the cheap price products for which
the people of China believes that the product of Huawei is of inferior quality. The brand is
recognized in China but its presence in the international market is hindered by the various well
established firms. The organization is also exaggerated by the employee turnover that puts the
business stability at risks.
Opportunity
China is considered as the labor- intensive because of its huge population. This offers a great
chance for Huawei is to cut down on the creation and the prepared cost, which in turn generates

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the advanced income margin of the business. This results in low cost production for dealing with
the firms that increases the product quality without compromising its business margins. Huawei
has the chance to benefit from the administration incentives for producing the products which are
aggressive in the international business market.
Threats
Huawei faces challenges in competing in the local business market with the international brands
as the global products dominates the marketplace as they have reputation in the business market.
While entering in the international business market the business is stuck by the various laws that
exist in various countries. As the Chinese product is often found similar with low quality but this
is not applicable for every products. This image affects the penetration of Huawei in the
international market (Sun, Ding and Zhou 2016).
Competitive advantage (USP)
The unique selling proposition is considered as the feature for perceiving the benefit of
the goods that makes it unique from the competing brands in the market. One of the major
competitive advantages of Huawei is that the company produces the low cost products than the
other brands. The quality products are offered by the business in low cost that is that the
company’s worldwide contract sales in 2006 has increased to 11 billion USD and 65% of thatis
obtained from the foreign markets (Sun, Ding and Zhou 2016).
Perceptual map
Perceptual map is considered as the representation of the perceptions as well as preferences of
some of the brands. The objective of this is to express the potential customer’s demands of the

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brand along with the direct image. The perceptual map also analyzes the value, competition and
threats.
Perceptual map of Huawei
Comparative analysis
Two competitor: apple and Lenovo
Apple is the American Multinational technology company that develops innovative products.
Apple is founded in 1 April 1976 in Cupertino, California and United States. Apple is
headquartered in California and Cupertino. The company established designs and sells the
electronics, computer software and online services. This company is also referred as the one of
the biggest technology along with Amazon, Google and Facebook.

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Lenovo develops, manufactures and markets the technology product and services. Lenovo was
founded in 1984 and it is the public organization. Lenovo is headquartered in Quarry Bay, Hong
Kong. Lenovo also designs, develops, manufactures and sells the devices like the personal
computers, smart phones, servers, and other storage devices. Lenovo is a business that has its
bases of operations in 60 countries, besides selling their products in over 160 countries.
Apple Lenovo Huawei
Success factor Weight Rating 1-
4
Score Rating 1-
4
Score Rating 1-
4
Score
Advertisement 1 4 4 2 2 1 1
Financial support 1 4 4 3 3 2 4
Customer’s
loyalty
1 4 4 3 3 3 4
Management 2 2 3 4 3 4 6
Market share 2 2 4 2 4 3 6
Product quality 1 2 2 3 3 3 2
Total 8 21 18 23
Created by author
Table 1: Apple, Lenovo and Huawei comparison decision matrix
The ratings of Huawei will be based upon the analysis done by this study as recorded in
the report and the ratings of Lenovo and Apple are based on the detail analysis by this study and
the findings of the competitors those are not included in the report.

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Evaluation of current marketing strategy
The marketing strategy depends upon the marketing mix of the organization. Huawei’s
marketing mix analyses the brand that cover the product, place, promotion and price. The
marketing analysis depends upon Huawei’s marketing strategy.
Huawei produces mobile handset, telecom equipment and this organization has both types of
business division and each business division has their own product line which caters to different
target audiences. The enterprise product is the switches, WLAN routers, server, storage devices,
network energy services and others. The other products like Smart PV controller, smart array
controller and the smart PV management systems (Steenkamp 2017).
In case of price, the organization faces the toughest competition from the companies like
Ericson, Cisco System, ZTE Corporation, Apple and other. The organization follows the
competitive marketing strategy in the advertising mix of the products as there are number of
competitors in the telecom industry. The reasons for choosing the pricing strategy is that the
buyers have more bargaining powers and could change brands easily. Also sometimes Huawei
follows the elastic pricing policy for giving discounts on the products for mostly selling the
products through ecommerce.
In case of place, the organization has its presence in more than 170 countries and alongside the
telecom partners which the company has built over 1500 networks that serves over 33% of the
world population. The company has also not been directly dealing with the customers and the
new ventures of Huawei and the local authorities for building new channels for the product
distribution.

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In case of promotion, Huawei uses up the Omni channel for promoting the brand and its product.
The company is also inclusive in the promotional activities for dealing with the marketing mix.
The company gets engaged in the various sponsoring events and the sports team. Huawei also
encourages various discount cards and coupons as the element of the sales proposal.
Part 2
New brand: Uni-Mobile
Brand name: Uni-Mobile bring new hope that the brand can provide the various features for
providing people more technology advanced product.
Brand color: Blue and white is the combination of the colors that makes easier for the people
for feeling more close and friendlier.
The Slogan: “Unique mobile for unique people” the idea comes from: I found out that there are
many unique mobile giving unique services but the customers will really feel comfortable with
the unique mobile services.
Brand Ambassadors:Sharon Watt and ShelliZimmerman
Segmentation targeting and positioning (STP)
Segmentation is helpful in grouping the population on the basis of their characteristics.
Uni-Mobile will use the mix of the demographic, geographic, psychographic and the strategy for
segmentation for the various sets of the organization. Here, based on the market segmentation,
the carrier network business, enterprise business and the consumer business are the three core
business segments which are separated by the Uni-Mobile enterprise. The primary
segmentation is the carrier network business which mostly emphasizes the telecommunication

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operations and the worldwide services. For achieving this Uni-Mobile developed various
wireless network products and they offer reliable experiences and the effective solution for the
customers. The enterprise business serves the government, the public utilities and enterprises
customers alike. This focuses on the fulfilling the consumer’s needs and wants. The consumer
business develops and manufactures the consumer products like the mobile broad band devices,
smart phones and related applications. Based on the demographic segmentation Uni-Mobile
will segment the business customer’s low down income segment and the high income segment.
The low income segment has the normal and economy lifestyle that emphasizes more on the
value of money. The high income segment stands on the upper class and focus on the uniqueness
or the product’s appearance (Steenkamp 2017).
The targeting strategy that the company uses for serving different set of customer
accordingly. This is the next step of the segmentation market that where the segmentation that
completes the business targeting only observe the person segment. Then targeting makes plans to
get the customers fall into that segment. Based on the demographic segmentation, Uni-Mobile
will target the segment of low income as becoming the new comers in the mobile device market.
As the production price will be lesser than the other smart phone brands, thus the organization
can set its smart phone product at low price. This helps the organization to attract the low income
customers to buy the Uni-Mobile smart phones. The company designs the low profile
development for meeting the growing demands of the cheaper smartphones. The lower
production cost yet higher income is one of the major reason for targeting the lower income
customers (Andaleeb 2016).
The positioning strategies relying on products those are given to the customers. Uni-
Mobile will maintain the strong market. Uni-Mobile obtained the highest annual increase

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amongst some of the leading vendors and raised the brand portfolio with the high amount of the
self-branded unite comparing to the other enterprises (Andaleeb 2016).
Time Space Chart of Target customers
Time Space Media exposed to
7.00 am to 8.00 am Morning walk Listening to ads, radio
8.00 am to 9.00 am Getting ready for office Social media serving
9.00 am to 10.00 am Travelling to office Listening to music, phone ads,
radio
10.00 am to 12.00 pm Office hour Internet serving through Laptop
12.00 pm to 1.00 pm Lunch break Social media and ads in
shopping malls
2.00 pm to 6.00 pm Office hour Internet serving through Laptop
6.00 pm to 7.00 pm Travelling back to home Listening to music, phone ads,
radio
7.00 pm to 8.00 pm Leisure time Watching series
8.00 pm to 9.00pm Watching television with family Watching ads on sports channel
9.00pm to 10.00 pm Dinner time Social media serving and
watching television
10.00 pm to 11.00 pm Relaxing before sleep Chatting and social media
serving
11.00 pm to 7.00 am Sleep NA
Table 2: Time space chart
Source: Created by author

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Recommended objectives and goals (SMART)
The specific goals of Uni-Mobile is to bring the innovative devices and implementing the
proper marketing strategy for competing in the international business market. The business
specifically looks for developing the innovative device for entering in the internal market
competition (Li and Wei 2016).
The goals of Uni-Mobile is measurable by identifying the new features of the devices
that the company has launched. The business can determine how the product features is different
from the other products for competing in the international business market (Urde 2016).
The achievable goals of Uni-Mobile is to set those target for the company that will be
achievable by the company as the business. Therefore the business should bring such innovative
features that could be gained in the low cost production as their targeted customers is the low
income background customers (Saif and Aimin 2015).
The realistic goals that is by developing the low price product the company will be able
to develop the strong position in the international business market (Rossiter, Percy and Bergkvist
2018).
The time bound for Uni-Mobile for the targeted goal is that in every year the company
can bring up 2 to 3 innovative devices in the business for competing with other business in the
international business market.
The recommended objectives for the business is to make a top-down commitment to the
customer centricity. The business should start tracking for the customer related metrics for
spreading the business (Teng et al. 2015). The company are required to provide the services
better that is if the customers faces any problem regarding the services then the company should

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resolve the service issues faster. This type of customer services will increase the reputation of the
business in the international business market.
Marketing strategies that are recommended based on the marketing mix of
Uni-Mobile
Marketing Mix
Place
The marketing strategies that the business could implement for choosing the place for the
business is that the waterfall strategies and the shower strategy. In the waterfall approach
Huawei could have started from the less developed countries then should move on to developing
countries as the targeted customers are the low income customers. In the shower strategy
approach the business enables the firm to develop the quality products with the shorter product
life as this will become the barriers against the future competitors. This strategy allows the
business to enter the countries in the similar time (O'Cass and Heirati 2015).
Promotions
The marketing strategies recommended for Huawei to promote the business by following the
AIDA models that is based on drawing attention for the product, taking interest on the product.
According to this model the business should promote about the product based on the desire they
have for the devices (Chaffey and Smith 2017).
Product

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The recommended strategies for the business is to bring innovative telecom equipment
and the product should be based upon the low cost production as their targeted customers are the
low income background customers.
Price
The recommended strategies for the price of the product is that the business should not
introduce any products in the business market that are highly priced and it is not affordable for
the lower income background people. There are various high priced brand those compete in the
business market (Venter, Wright and Dibb 2015).
The recommended marketing strategy is the brand crisis management that deals with the
business that involving the human failure. The main indicators in which the business can resolve
the issues of brand crisis is by making a clear organized team in the business. When the brand
will be facing any crisis in competing with other business in the business market, then the
business requires prepared and trained spokesperson for speaking of the set roles of the
employees.
Conclusion
Therefore from the above discussion it can be concluded that the political condition for
the business is favorable for the business. The local business creates affect the business in the
positive manner. The Chinese government support the telecommunication sectors by providing
training for the innovative products. The domestic economic growth is fast that increases the
disposable income which demands for the luxury products like mobile phones and other. The
business growth in the China market helps the business to compete in the business market. The
high population leads to wide business market for Huawei products and this also develops the

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steep demands for the products. The technology advancement helps the business to bring
innovative products in the business market with new features. The company wastes are used up
for cutting the possible wages by maximizing the available materials. The business operations is
based on the legal laws, such as the patent acts, tax rates, labor laws and the environmental laws.
This study also analyses the competitive advantages and the present marketing strategy of the
organization. The second part analyses the segmentations made by Huawei, the targets for the
organization and the market position of the organization. This study recommends the strategies
based on the marketing mix of Huawei.

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