Marketing Strategy for Huawei Technologies

Running head: MARKETING STRATEGY
MARKETING STRATEGY
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Executive Summary
Huawei Technologies Ltd’s marketing strategies has been undoubtedly successful and the core
element of its success for marketing strategies has relied on adapting to the varying market
environments. Marketing activities which primarily comprises of political factors, socio-cultural
factors, technical factors in addition to humanistic factors, economic factors and natural factors,
for business enterprises have primarily comprised of significant business opportunities and
potential threats and tend to be highly multifaceted and ever-changing. The company continues
to restructure the domain of telecommunications retailing industry. It has been noted that Huawei
has maintained strong development in the midst of highly demanding global economic
environment in 2014 along with an elevating 29% in order to attain record income of US$ 31.9
billion. The report has offered comprehensive insights in order to observe Huawei’s competitive
strategy and position will examine company’s areas of strengths, weaknesses, opportunities and
threats in addition to competitive edge to comprehend its development, sales developments along
with profitability.

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Table of Contents
Part 1................................................................................................................................................4
Introduction..................................................................................................................................4
Situational Analysis.....................................................................................................................5
SWOT Analysis.......................................................................................................................5
PESTLE Analysis....................................................................................................................9
Competitive Advantages Analysis.........................................................................................15
Unwavering PIPE strategy.....................................................................................................15
Supreme product quality with local service team..................................................................15
Competitive profile Matrix....................................................................................................16
Part 2..............................................................................................................................................17
Delta Telcom’s Marketing Strategies........................................................................................17
Brand Name...........................................................................................................................17
Integrated Marketing Communications Objectives...............................................................17
Product Description...............................................................................................................18
Product Logo.........................................................................................................................19
Delta Phones’ Segmentation Targeting & Positioning Analysis...........................................19
Marketing Mix 4Ps................................................................................................................22
Recommended Objectives and SMART Goals.....................................................................23
Recommendations..................................................................................................................25

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Conclusion.....................................................................................................................................26
References......................................................................................................................................27

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Figure 1 Huawei SWOT Analysis 5
Figure 2 Political ranking of China 09
Figure 3 GDP (Nominal) Ranking 2018 11
Figure 4 Cultural Dimensions of China 12
Figure 5 China’s ranking in Technology 13
Figure 6 Environmental ranking of China 14
Figure 7 Legal Ranking Of China 14
Figure 8 Perceptual Map 16
Figure 9 Competitive Matrix 17
Figure 10 Delta A5 19
Figure 11 Market Segmentation 20
Figure 12 Market Positioning 22

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Part 1
Introduction
Huawei Technologies Co. Ltd, founded in the year 1987 ahs transformed itself from a
one-room workshop in Shenzhen, China to the world’s leading information and communication
technology (ICT) solutions as well as services providers (Huawei 2019). Over the past years, the
company has developed its competencies across carrier network, enterprise and consumer
domains. According to Kang (2015), Huawei with a vision to enrich life through communication
has obtained a reputation as one of the most dynamic, rapidly growing, innovative multinational
technology corporations. Reports of Kotabe and Kothari (2016) have revealed that, initially
Huawei has obtained basic technical expertise by reverse-engineering overseas products and
utilizing it as the basis to develop highly complex technologies. However, at the later stages,
Huawei has put significant emphasis on internal R&D (research and development). The company
with a well-established R&D and aggressive undercutting of prices has developed at a rapid pace
for over one-third of world’s populace. Reports of authors have revealed that in 2014, Huawei
recorded profits of $ 6.5 billion. The company’s networking equipment chiefly serves around 45
of the world’s leading communication operators with telecommunication companies like
Vodafone, T-Mobile, BT Group amongst the renowned customers. He et al. (2017) have noted
that Huawei is the only Chinese company which has generated substantial revenue from markets
outside of China in comparison to local market. In recent times, three important categories of
products and services which Huawei offers are operator carrier networks, innovative consumer
products and services, enterprise solutions. The rise of Huawei has primarily required a single-
minded focus on expansion and dedication to technology as well as consumer service. In the
view of Kotabe and Kothari (2016), external market conditions have further aligned in order to

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facilitate Huawei’s role. The report to examine Huawei’s competitive strategy and position will
examine company’s areas of strengths, weaknesses, opportunities and threats and competitive
edge to understand its growth, sales trends and profitability.
Situational Analysis
SWOT Analysis
Figure 1: Huawei SWOT Analysis
Source: (He et al. 2017)
Strengths
Huawei has significantly depended on the key strengths of a robust as well as sizeable
anchor market along with its ability to successfully deliver equipment at economical cost. Ajao
et al. (2015) have noted that starting with its home country of China, the organization has

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cumulative a leading footprint which is currently a sizeable and thriving telecommunication
market. Such a base has enabled Huawei to scale and consequently facilitated a second area of
critical area of strength that is delivering mechanisms at highly economical costs. Furthermore,
substantial economies of scale naturally enhance the economic structure of an organization
which has contributed to the current economical cost manufacturing base which Huawei
constitutes in China (M. Rugman, Nguyen and Wei 2014).
Additionally to the rise, Huawei has been able to combine among the international
networking equipment vendors which are recognized as the largest R&D employee base.
According to Wei, Samiee and Lee (2014), this resource base has been highly extensive and of
economical cost. Reports of authors have revealed that the majority if Huawei’s more than
45,000 R&D staff has been based on China. The yearly remuneration of a well-qualified
engineer in China can be lower in comparison to Western European or North American
counterpart. Such a R&D base facilitates the third major area of strength that is technology. Ajao
et al. (2015) have mentioned about Huawei’s rapid competence to evolve as well as adapt
products to align with customer demands and requirements. Such an area of strength has been
categorized specifically by its base station portfolio rapidly adopting to provide IP attributes as
well as green sensibilities which have been successfully supported by its customers.
Weaknesses
He et al. (2017) have mentioned that inadequate capital budgets limit the ability of
Huawei Corporation Ltd to compete at global level. Fighting market competition is costly and
requires substantial amount of capital investment. Furthermore, Huawei products are cheaper
which led customers to recognize expensive products to be of superior quality and