Strategic Management of Huawei Essay
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Added on 2020-06-03
Strategic Management of Huawei Essay
Added on 2020-06-03
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Strategic Management
Table of ContentsINTRODUCTION...........................................................................................................................11. Strategic analysis.....................................................................................................................12. Strategic Choices.....................................................................................................................33. Plan of Action.........................................................................................................................6CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................11
INTRODUCTIONStrategic management consists of goals and objectives which are taken by organisationtop management. It gives overall direction to the organisation and involves its objectives,developing policies and plans which are established to achieve business goals. Huaweitechnology is Chinese multinational organisation which is headquartered in Shenzhen(Agrawal,2016). It is one of the largest telecommunication manufacturer in the world. This company wasestabilished by Ren Zhengfei in the year 1987. This company is one of the biggest telecominfrastructure manufacturer in whole world. The honor series of mobile computing deviceswhich are build, manufactured and marketed by Huawei includes tablet computers, wearabletechnologies and smartphones.In this report, four main tasks are focused which involves strategic analysis whichinvolves careful assessment of the current situations of Huawei technologies. It further involveschallenges and strategic choices. Strategic choices highlights key points, risks and other expectedoutcomes. Moreover, it includes five year strategic plans of action which involves targetobjectives, focus areas, priorities and key performance indicators.1. Strategic analysisThe case sets China's Huawei Technologies in the context of the evolving globalsmartphone industry, notably its positioning and the links between its competitive strategy andits corporate (global) strategy. It describes the origin, growth and structure of the smartphoneindustry, evolving industry trends, dynamics, and profiles the major players including Apple andSamsung , Google and Microsoft , and new entrants such as HTC and Xiaomi. Huawei feature helped it to achieve its goals by achieving the supply or technologies bydifferent large organisation. It assist Huawei to achieve better status and education qualification.It is also able to meet the customer's expectation and high quality software and hardware. TheHuawei management gives pressure to its employees which has proven effective as the pressuregives workers to work effectively (Barney and Hesterly, 2015). In order to sustain firm'sreputation, it maintains self motivation and self discipline. It has given big enhacement anddevelopment in raising the organisation image. Loading employees with much burden of thework shown their better performance and complete the task before deadline.Huawei is affected by humour as it directly impacted the company's reputation. Thehumours may be in the form of scams, false information which is stopped by foreign technology1
and helps in preventing it from different security threats. These threats are overcomes bymaintaining various policies and strategies. Huawei has actively participated in go greencampaign as global warming affects the products manufacturing industries which are releasingtoo much carbon emission (Bettis and et.al., 2014). Different geothermal cooling system andother strategies are used to to minimize the effect of carbon emission and helps them to usenetwork.Huawei has supported the tremendous growth and labour cost with the help of newtechnology and resources.This has helped the organisation to increase its customer and benefits.and . The company has gained the opportunities by overcoming the weaknesses. Differentopportunities helps the company to improve its reputation and getting more profits.The smartphone market of Huawei has been exponentially grown over the past decade.Its smartphone market share leads by 26.7% in 2016 while Samsung and Apple saw their salesdecline by 4.3%. Global shipments rose from 17.35 million units in 2014 to 1.433 billion in 2015with an average annual growth rate of 43.82%. Huawei become the third largest smartphonemanufacturer by market share with 10% of global market share (Bettis and et.al., 2015). TheChinese market contributed the large part with 467 million mobile phones shipped for the year.Huawei ranked 10% market share with steady growth. In 2016, it has shipped overall 139.3million units.All these opportunities, strengths and market share helps Huawei to gain idea of itslacking and development areas in order to achieve its long term objectives and profits. Themarket strategies and strategic analysis assists company to regain top position in the market. Ithelps Huawei to achieve customer's satisfaction and better revenue benefits. Analysis of marketshare of different years assists Huawei to think about the development in products quality inorder to fulfil customer's needs. Challenges faced by Huawei:Huawei technology is facing many challenges regarding the smartphones. The customerwants best smartphone with all features along with lower price (Bharadwaj and et.al., 2013). Itfocuses on the factors behind Huawei stunning success-from a traditional telecom equipmentprovider to the third largest smartphone maker in the world after Samsung and Apple, whilepointing to the challenges that lie ahead. The unique characteristics of smartphones multi-2
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