Marketing Strategy for Huawei: Market Analysis and Segmentation

This study analyzes the market conditions and competitive advantages of Huawei, and provides recommendations for segmentation, targeting, and positioning strategies for entering the global market.

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

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Abstract
Among various telecom companies, Huawei is considered as the global leading company that
deals with the telecom sectors like the various range of products which involves the mobile
phones, broad band device and the home devices. The telecom equipment manufacturer, Huawei
is headquartered in Shenzhen, China. The business operations targets the lower income segments
because it will be difficult for them to target the higher income segments. The first part of the
paper will involve the market analysis of Huawei and the second part of the paper will deal with
the new brand’s segmentation, targeting and positioning and the marketing strategies for the
business to enter the global business market.

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Table of Contents
Part 1................................................................................................................................................2
Introduction......................................................................................................................................2
Situation analysis.............................................................................................................................2
Political condition........................................................................................................................2
Economic condition.....................................................................................................................3
Social and Cultural condition......................................................................................................4
Technological condition..............................................................................................................5
Environmental condition.............................................................................................................6
Legal condition............................................................................................................................6
Strength........................................................................................................................................7
Weakness.....................................................................................................................................7
Opportunity..................................................................................................................................8
Threats.........................................................................................................................................8
Competitive advantage (USP).........................................................................................................8
Perceptual map.................................................................................................................................8
Comparative analysis.....................................................................................................................10
Two major competitor of Huawei: Apple and Lenovo..............................................................10
Evaluation of marketing strategy...................................................................................................11
Part 2..............................................................................................................................................12

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New brand......................................................................................................................................12
Segmentation, targeting and positioning (STP).............................................................................12
Time Space Chart:.........................................................................................................................13
Recommended objectives and goals (SMART)............................................................................14
Recommended marketing strategies based on the application of the marketing mx to your chosen
branded supermarket chain............................................................................................................15
Marketing mix...........................................................................................................................15
Conclusion.....................................................................................................................................16
Bibliography..................................................................................................................................17

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Part 1
Introduction
Huawei has no brand value for mobile devices in the international business market.
Therefore the business is required to deal with the lower income segments. This becomes
beneficial for the company as the company will be able to provide the attracting features at low
price that will attract the lower income background people to the product. The cost of production
is also lower for the organization therefore the organization will be able to produce the product
with varying features in low price. Thus this is beneficial for the organization to select the lower
income segment. In this study the first paragraph provides the situation analysis regarding the
political, economic, technical, legal and the environmental conditions. The situation analysis
involves the strength, weakness, opportunities and business threats. This first part will be depend
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.
Situation analysis
The PESTEL analysis is considered as the framework that are used by the marketers for
analyzing and monitoring the micro environmental factors which creates great impact on the
organization. This helps to determine the threats and weakness of the organization.
Political condition
The political conditions of China creates great influence on the business market. The
ruling party has created a great impact on the business economy in the country. The stock prices
of most of the business in China business firm falls during the meetings of the National Congress
and the political promotions. The global profitability of the business also depends upon the

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political climate of the respective country. The Chinese governments also provided training to
the employees for bringing innovative features in the products (Moutinho and Phillips 2018).
Rank of china
Source: (Gurtov, 2019)
Economic condition
The economic condition of the country creates great effects on the organization. The value added
tax in the telecommunication sectors increases the business operation costs and decreases the
business profitability margins. Also the fast growth of the economy of the country helps the
business to increase the disposable income and the demands of the luxury products like mobile.

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Economic Rank of china
Source: (Investopedia, 2019)
Social and Cultural condition
This study found out that the Chinese market is growing daily as it is mostly populated with 1.3
billion people. Therefore the high population provides the wide business market for Huawei
products and the large population is also beneficial for the business to develop the steep demands
of the products (Adam et al. 2018).

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Hofstede chart of China
Source: (Hofstede Insights, 2019)
Technological condition
The Chinese government ensured that the innovations in ICT specially produces the high quality
trainings for bringing innovations in the technological department. Huawei is also prone towards
developing the new quality products for making the stiff competition in the business of the
international market brands like Apple, Lenovo and other (Ahmed 2016).
Technological advancement rank in China
Source: (EurekAlert 2019)

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Environmental condition
The Chinese government encourage the business towards the sustainable development. The
wastes of the company should be further reused for cutting the possible wastages and by
maximizing the available materials. Huawei wanted to become the leading distributor of the
green products and looks after the effective ways of minimizing the emission of the carbon
substances (Midha, Kaur and Tripathi 2017).
Environmental rank of China
Source: (Counterview.net, 2019)
Legal condition
The business operations of Huawei should be based on the legal laws like the patent acts, tax
rates, environmental laws and the labor laws. Huawei also deals with the employees of various
countries and the organization are required to comply with the labor laws and the wages of the
Jurisdictions of operations (Lee et al. 2016). By maintain the rules the business will ensure the
positive business performance of the company.

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Legal process rank of China
Source: (World Economic Forum, 2019)
Strength
The major strength of the business is that the Chinese government provides various trainings to
the employees of the telecom sectors and thereby leading to the development of the innovative
products in the business market (Moevus et al. 2015). The high population of China provides the
wide range of profits to the business and also increases the demands of the products.
Weakness
This is found out that the business lacks the sufficient capital budgets that limits the company’s
ability for competing in the global business market. There is belief among the people of China
that since the company provides the product at low price, the product is of inferior quality. The
employee turnover affects the organization that puts the business continuity at risk.

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Opportunity
The business enjoys the labor intensive because of the large population of the country. This also
offers the great opportunity for Huawei to cut down the production and the operation cost that
generates high business profit margin. The outcome is that the business enjoys the low cost
production for dealing with the firms that increases the product quality by compromising the
business margins (Kotler et al. 2015).
Threats
The threats that the business faces while competing in the local business market. While entering
the international product dominates the market in the business market. Since the Chinese
products is found similar with other low quality that is not applicable for every products. This
image affects the penetration of Huawei in the global market.
Competitive advantage (USP)
Unique Selling proposition is considered as the one features that makes it unique from the rest of
the competing brands in the business market. The major competitive advantages that Huawei
enjoys are that the company produces the quality product at low cost of operation, thereby
producing the products at low cost of operations helps the business to attract the low income
segments by offering the products at low price. The competing brands provides the quality
product at high price thereby attracting only high income segments (Blakeman, 2018).
Perceptual map
The perceptual map shows the representation of the perceptions along with the preferences of
some of the brands. The objective of the business is to express the potentials of the customer
demands by providing the direct image. The values, competitions and threats are determined
through this perceptual map (Schlegelmilch 2016).

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Perceptual map
Source: (César Zamudio, Ph.D., Marketing, 2019)

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Comparative analysis
Two major competitor of Huawei: Apple and Lenovo
Apple is one of the major American Multinational technology company which develops the
innovative products. The organization was founded in 1 April, 1946 in Cupertino, California and
United States. The organization designs and provides the products like the customer electrics,
computer software and the online services. This organization is also referred as one of the
biggest technologies as compared to Amazon, Google and Facebook.
Lenovo designs, manufactures and develops the market of the technology product and the
services. This organization was founded in 1984 and it is considered as the Public organization.
The headquarter of this organization is in Quarry Bay, Hong Kong. Lenovo also designs and
develops the devices like the personal computers, smart phones, workstations and the electronic
storage devices. Lenovo also operates in more than the 60 countries and also sells products in
around 160 countries.
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

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Apple Lenovo Huawei
Table 1: Apple, Lenovo and Huawei comparison decision matrix
Source: Created by author
Evaluation of marketing strategy
The marketing strategy of the business depends upon the marketing mix of the organization that
is based upon the product, place, promotion and price.
The products that Huawei offers are the leading mobile handset, telecom equipment. The
business depends upon the product lines that caters to various target audiences. The products of
the Huawei enterprises are switches, routers, WLAN, servers, storage, the network energy
services and other. The products like the Smart PV controller, smart array controller and the
smart PV management systems (Andaleeb 2016).
On the contrary of price, the organization faces challenges from the companies like Eriscon
Cisco System, ZTE Corporation, Apple and others. The organization depends upon the
competition as there is huge number of competitors in the telecom industry. This is found out
that the business sometimes follows the elastic pricing policy for providing discounts on the
products (Xia and Gan 2017).
The organization has their presence in more than 170 countries thereby dealing with the telecom
partners. There are more than 1500 networks that Huawei has built and serves more than 33% of
the world population. Huawei looks after building of new channels for the product distribution.
On the contrary of promotion, the business depends on the Omni Channel for promoting the
brands and the products. The company is greatly involved with the sponsoring events and the
sports team. Huawei also encouraged the discount offers and the coupons as being the part of the
sales scheme (Steenkamp 2017).

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Part 2
New brand
Brand name: Mobiworld, this business will come up with the new hope that is by providing
unique features for people at low price.
Brand color: purple and white will be the combination of color that denotes peace for people
and makes the people closer to the digital world.
Slogan: “Service wherever you are” this idea generates from: I found out there a large number of
telecom company that provides services like the customers will feel that mobile services are
comfortable for them.
Brand Ambassador: Peter Zhang and Charles Chao
Segmentation, targeting and positioning (STP)
Segmentation
The segmentation helps in grouping up the different characteristics of the population. The
Mobiworld will be based upon the mix of the demographic, geographic, and psychographic and
the segmentation of the different set of business. Depending upon the market segmentation, the
carrier network business, the enterprise business and the consumer business could be based upon
the core segments which are divided by the Mobiworld enterprise (Chaffey and Smith 2017).
Targeting
The targeting strategy that the business could depend for serving the customers according to the
desires of the targeted customers. This is considered as the next step of the segmentation market
that completes the market targeting thereby observing the individual segments. The targeting
plans is required for the business for deriving the customers in that segments. The Mobiworld
targets the low income segments customers as they are new comers in the telecom operation.
Thus for achieving the targeted customs the Mobiworld is required to make the cost of
production low for attracting the targeted customers (Tykhonenko 2018).
Positioning

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The positioning strategy is required to be implemented by the new brand, Mobiworld as it
depends upon the strategies that would maintain the stromg market position. The Mobiworld
would attained the highest yearly increase among the leading vendors and could raise the brand
portfolio along with the high proportion of the self-branded unite that is by comparing with the
other enterprises.
Time Space Chart:
Time Space Media exposed to
7.00am to 8.00am Getting ready for office Listening to ads, radio
8.00am to 9.00am Having breakfast Social media serving and
listening to ads, radio
9.00am to 10.00am Travelling to work Listening to music, phone
ads, radio
10.00am to 12.00pm Office hour Internet serving through
Laptop
12.00pm to 1.00pm Lunch break Social media, television ads
and ads in shopping malls
2.00pm to 6.00pm Office hour Internet serving through
Laptop
6.00pm to 7.00pm Travelling back to home Listening to music, phone
ads, radio
7.00pm to 8.00pm Watching sports channel with
friends
Watching ads on sports
channel
8.00pm to 9.00pm Dinner time Watching ads on sports
channel
9.00pm to 10.00pm Going for walk Listening to music, phone

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ads, radio
10.00pm to 11.00pm Relaxing before sleep Chatting and social media
serving
11.00pm to 7.00am Sleep NA
Table 2: Time Space Chart
Source: Created by author
Recommended objectives and goals (SMART)
The goals that are specific for Mobiworld is that the business should bring the innovative devices
and thereby implementing the proper marketing strategy for competing in the global marketing
strategy. The business looks after the development of the innovative devices for entering the
business market competition (Manual 2019).
The goals can be measurable by determining the innovative features of the devices that the
company has launched. The business could determine the differences that is how the product of
Mobiworld will be different from the other products thereby competing in the global business
market.
The achievable goals of the Mobiworld can be determined by setting up the targets for the
organization that will be achievable by the business organization. The business are required to
focus on the cost of the productions as their targeted customers will be of low income
backgrounds.
The realistic goals that could be developed by the low cost business product, which the company
could be able to develop the strong position of the business in the local market. This will help the
business to attract the customers from the low income background.
The time bound for the Mobiworld is to develop the target goals that the company in every year
could be able to bring up 2 to 3 innovative devices in the business that is by competing with
other business in the international business market.

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Therefore the recommended objectives for the business is to create the top-down
commitment for gaining the customer centricity. This is also recommended for the business to
start tracking the customer related metrics for spreading the new business. The business is also
required to provide the better services that the customer faces for any problem regarding the
service issues in the fast process. The customer services like this will help to increase the
business reputation in the global business market.
Recommended marketing strategies based on the application of the marketing
mx to your chosen branded supermarket chain
Marketing mix
Place
The marketing strategies that the business are required to implement is the choosing strategy of
place. This depends upon the waterfall strategy and the shower strategy. In the waterfall
approach the business of Mobiworld should have started the business from the less developed
countries then they are required to move to the developing countries as their targeted customers
are the low income customers. In the shower strategy approach the business is required to enable
the firm to develop the quality products with the short product life. By the implementation of
such strategies the business could enter the countries in the similar time.
Promotions
This is recommended for Huawei to promote the business that is based upon the AIDA models,
which is based on drawing attention for the products and also taking interest on the products. As
per the model the business is required to promote the business depending on the desires that the
customers have for the devices (Shi and Jiang 2016).
Product
The recommended strategies for the business to come up with the innovative telecom equipment
that the product like IOT should be based upon the cost of production for the targeted customers.
This is so because the targeted customers are the low income background customers.
Price

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The price of the IOT product is that the business should not introduce any products those are
highly priced or the cost of production is high. This is so because the highly priced product will
not be affordable for the people those who belong from low income background.
The recommended marketing strategy for the brand crisis management is that by dealing
with the business which involves human failure. The indicators where the business could resolve
the issues of the brand crisis that is by making up the clear organized team for the business.
When the brand will be facing any type of crisis in competing with other business, then the
organization needs to be based upon the prepared as well as the trained spokesperson for
developing the employees’ role and responsibility (Ottho 2017).
Conclusion
Therefore from the above discussion it can be concluded Huawei is not able to compete
in the global business market. Though it is one of the biggest telecom operator and it mainly
comes with the innovative products for the people belonging from low income backgrounds. The
first part of the paper describes about the detail marketing analysis of Huawei. This study
describes the political, social economic, social, environmental and the technological condition of
the country and how it is beneficial for Huawei and risks for the business. This study then
analyses the strengths, weakness, opportunity and threats for the business from the external and
the internal factors. The first part of the study also includes the competitive advantages of the
business, the perceptual map and the comparative analysis of the business with other competing
business in the global business market. This also involves the evaluation of the marketing
strategy. The second part of the study describes about the development of the new brand. The
details regarding the new brand and the segmenting, targeting and the positioning strategies of
the business for entering the global market. The objectives and goals of the new brand is also
determined and described. The marketing strategies has also been recommended for the business
based upon the marketing mix and for competing with other business in the global business
market.

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