PESTEL Analysis of Huawei Technology

This report provides a PESTEL analysis of Huawei Technology, the second largest smartphone brand and leading manufacturer in the consumer market of China. The report highlights the external market environment analysis of Huawei using the marketing tool of PESTLE. The report covers the political, economic, social, technological, environmental and legal factors affecting the company's growth. The report concludes that with practical analysis of the external business environment, it is possible for Huawei to expand their market in the global scale.

Running head: PESTEL ANALYSIS
PESTEL analysis
Name of the Student
Name of the University
Author Notes

1PESTEL ANALYSIS
Table of Contents
PESTLE Analysis............................................................................................................................2
Political........................................................................................................................................2
Social...........................................................................................................................................3
Environmental..............................................................................................................................4
Legal............................................................................................................................................4
Conclusion.......................................................................................................................................4
Reference.........................................................................................................................................5

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Introduction
Huawei Technology is considered as one of the Global leading brands for producing
Information and Communication technological device. The company is currently considered to
be the second largest Smartphone brand and leading manufacturer in the consumer market of
China.
The company was established in the year 1987. The current report will discuss the
external market environment analysis of Huawei. This will be done using the marketing tool of
PESTLE and will help to highlight upon the causes for huge market growth of the company in
selling smartphones all across the globe.
PESTLE Analysis
Political
The external political environment plays a crucial part in deciding upon the business
policies. This is done by implementing proper taxation policies, labour laws and trade
restrictions. The Chinese political environment has helped in the expansion of the Huawei
Technology in their initial period. This was because the founder Ren Zhengfei has developed
official relationship with the Chinese military. In the recent times, the trade policies of European
Union has helped the company to provide smartphones at a fixed rate in the European market.
With the business trade in the European market it is possible for Huawei Technology to enter the
globalised market. It is also important to mention about the support the company got from the
Chinese government while manufacturing Electronic devices. These include lowering of tax for
electronic consumer goods (Xia and Gan 2017).
Economic

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In the current age of globalisation, every business organisation looks forward to
expanding their market in healthy economic zone. This can provide them with maximum growth
and good prospect (Maiyusril 2018). Being the largest telecom equipment manufacturer in China
with the overall revenue of $46,500 million in the year 2014, it was possible for Huawei
Technology to expand into a foreign market (Yu et al. 2017).
The potential in the smartphone industry along with the fact that China joins the World
Trade Organisation, it was possible for Huawei Technology to operate in a fast-growing
economic environment. Nevertheless, the increasing labour cost in the European regions is
considered to be one of the significant challenges of the company as the aim to set up
manufacturing unit in the respective area.
Social
The modern-day global society is highly dependent upon the use of Communication
Technology devices that mainly include smartphone. The rapid financial improvement for the
Global socio-economic class has provided strong business opportunity for all smartphone brands
(Flecker, Fibich and Kraemer 2017). In spite of tough level of competitive environment in the
smartphone industry, the healthy brand awareness level of Huawei Technology has helped them
to establish as one of the leading Smartphone manufacturers in the global society.
Technology
Highly advanced supply chain management tools along with the developed technological
infrastructure in China and Europe has helped in external business communication of Huawei.
The proliferation of 4G and 5G Communication Technology has improved in the research and
development work of the company.

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Environmental
Huawei has been able to respond perfectly with the increasing pressure of using eco-
friendly materials in manufacturing smartphones. The company has been able to design
smartphones with low Specific absorption rate.
Legal
Huawei Technology has set up special legal department within the organisation. This
will ensure that they can implement their business policies according to the anti-Monopoly law
in the People's Republic of China (Wong-Ervin et al. 2017). The EU law for standard essential
patents also helps the company to protect their manufacturing rights in newly introduced
smartphone models.
Conclusion
In the concluding note it can be said that with practical analysis of the external business
environment, it is possible for Huawei to expand their market in the global scale. The barn has
therefore been able to establish themselves as one of the leading smartphone manufactures.

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Reference
Flecker, J., Fibich, T. and Kraemer, K., 2017. Socio-economic changes and the reorganization of
work. In Job Demands in a Changing World of Work (pp. 7-24). Springer, Cham.
Maiyusril, M., 2018. Formulating Business Strategy and Innovative Business Model of Mobile
Broadband Services through TOWS Matrix and Cross-Industry Innovation. Sustainable
Collaboration in Business, Technology, Information and Innovation (SCBTII).
Wong-Ervin, K.W., Ginsburg, D.H., Wright, J.D. and Kobayashi, B.H., 2017. Comment of the
Global Antitrust Institute, Antonin Scalia Law School, George Mason University, on the
Proposed Revisions to the People’s Republic of China Anti-Unfair Competition Law.
Xia, W. and Gan, D.Z., 2017. The Marketing strategy of HUAWEI Smartphone in China.
Yu, S.H., Wu, J.J. and Lin, W.R., 2017. TRUST TRANSFER AND REPAIR: A
MULTICHANNEL STUDY ON THE SMARTPHONE INDUSTRY. International Journal of
Organizational Innovation (Online), 9(4), pp.133-156.

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