Huawei Technologies Co. Ltd. Business Case Study Report

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HUAWEI COMPANY BUSINESS CASE STUDY REPORT
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Table of Contents
Introduction......................................................................................................................................3
How it is impacted on the external environment influences........................................................4
SWOT Analysis...........................................................................................................................6
Porter’s Five Forces.....................................................................................................................7
Key Issues faced by the company owner.....................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10
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Introduction
Huawei Technologies Co. Ltd. is a Chinese multinational technology company which provides
telecommunication equipment like smartphones. The Company was founded in 1987 and its
headquartered in Shenzhen, Guangdong, China. Company is fully connected to the digital world
and provides its telecommunication services to the global world. It spread in around 170
countries, and its total number of employees is 188,000. Board of directors and the stakeholder
conducts the regular business meeting for the effective decision. It is the world’s largest
company that provides a less expensive smartphone. Company build its reputation in the
technology world by serving a good quality smartphone with affordable prices. The company
faced lots of challenges, but they accepted and became an experience to grow in the same
direction.
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How it is impacted on the external environment influences
Consumer: It serves its service to more than 3 billion people around the world. Company
provides its wireless telecom equipment service. It provides all artificial intelligence service to
the customer. Huawei customer is loyal and appreciates the effort of the organization. It helps to
grow all over the world because they can use the same feature, which is provided by the
expensive Smartphone (HUAWEI, 2018).
Figure 1Revenue of Huaweiwaei
Source: BBC. (2019)
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Suppliers: Huawei suppliers are those who provide them hardware like processor, camera,
display, the body of the smartphone etc. Another supplier is those who give service of the
application, permission to install play store and others in build software.
Competitor: Huawei set its competitor are ASUS, Xiaomi, OnePlus, Lenovo etc. They all are
existing from so many years and still Huawei establish its position in the same market where it
can share the same stage with the world’s largest Smartphone manufacturer. It expands its
business in various countries and become the top one from the mobile manufacturer.
Performance: Huawei becomes the most leading mobile manufacturer company in China. It was
grown from a small company. Despite thinking of profitability, the company enhances security
in the mobile and blocks its business deals with some countries. From 2017 to 2019, it shows
that Huawei manufactures the number of phones as compare to Apple.
Figure 2Market Share
Source: BBC,(2019)
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Company growth was continuously rising in 2009.It is the second most Smartphone device that
shipping worldwide. Performance can be measured by its manufacturing rate, revenue, selling
rate etc. Huawei expands its business internationally and achieves its goal in minimal time. It
service is affordable, which attracts the customer most; it is not the copied off some other brand.
It establishes its originality in the world and exists with its unique opportunities.
Strength: The strength of the Huawei is the lower price, better quality of smart phones and its
won manufacturing of hardware. The company owns the chip production, which reduces the
supplier bargaining or the aspect which increases the product prices.
Weakness: The weakness of the company is public perception those think that less expensive
product does not provide good quality. It has a limited budget so. They are not capable of
investing a large amount on their promotion or brand advertisement. It affects the selling rate of
the Smartphone, and it affects company growth.
Challenges: The Company uses an older version of the operating system. That version was not
able to access the security updates, and it was affected by a cyber attack.US banned the Huawei
product in the US due to its inefficient security in its product. Huawei is not a brand in the
existing market
SWOT Analysis
STRENGTH WEAKNESS
 Dynamic standard in electronic sector
 Affordable price of smart phones
 Large number of customer
 Tremendous growth in the existing
market
 Insufficient capital budget
 People perceives that its Smartphone
available in low cost due to poor
quality
 Less brand image
OPPORTUNITY THREAT
 Increases profitability
 Provide employment
 China Government will move forward
for support
 Globalization (Gurel and Tat, 2017)
 Foreign country only promote local
industries
 Xiaomi is the strongest competitor
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Porter’s Five Forces
Porter’s Five Forces are analysis designed by Michael Porter. It is useful to explore the aspects
or environment of the company in these Huawei five forces developed by its competitive
advantage. The porter five forces include the threat of entry, power of supplier, the risk of
substitutes and competitive rivalry.
The threat of entry: The business of Smartphone is the most lucrative business which faces
various ups and downs in its business lifecycle. Huawei established its unique position in the
Smartphone market after Apple and Samsung. Still, there is a threat of new entry that service
more cheaply than them.
Power of Supplier: Smartphone requires the various numbers of hardware and supplier. Huawei
needs an operating system, applications, camera, processor, battery. So, the supplier has
outsourced provinces over these requirements. So, Huawei owns some hardware by which they
cannot deal with the expensive product from the outside the supplier.
The threat of substitute: Substitute of the Smartphone is a tablet, desktop, laptop and smart TV.
Smartphone substitute from the keypad and QWERTY phones. It reduces the manufacturing rate
of TV, desktop etc. In this era, the Smartphone is the strongest substitute of every multimedia
electronic gadget.
Competitive rivalry: Huawei is based on the Smartphone industry. Its competitors are Xiaomi,
Lenovo, HTC etc. But from all the listed competitors is the only one that provides its
Smartphone on very cheap prices with the quality model like P9 (Jurevicius, 2013).
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Key Issues faced by the company owner
Market Position: Huawei manages its marketing position from 2017 but in the competitor
market. Samsung and apple establish its unique position due to its quality and brand image in the
global world. It was a critical issue for Huawei to maintain its sustainable position in the existing
market. It only discourages the growth of the business, but Huawei creates those model having a
good quality of processor, camera etc (Su, 2018).
Research and Development: The manger of the company faces lack inefficient lack od research
and development. It requires more depth knowledge which can improve the quality of product,
hardware and its application. Research is the initial stage of management to introduce something
new in the company.
Less Productivity: Company was not able to hire qualified and skilled full employees. Due to
this, it's iteratively using the same processor, camera size, display screen etc. It reduces the
impact on the existing market because people always want something new feature on the
Smartphone.
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Conclusion
This research concluded the significant factors of Huawei. It is the third most Smartphone
manufacturing company in the world. Its growth continues from 2009 to till now.P9 and P10
model of Huawei are the best quality Smartphone model which enhance the marketing brand of
the company. It owns their hardware by which they can reduce the supplier bargaining power.
The strength of the company is the lowest price of the Smartphone with the excellent quality of
the mobile phone. The US government bans the challenges faced by the company. Its equipment
undertakes into the cyber attacks. This research suggests that company perform to build its
marketing image, but it cannot accomplish a sustainable market image due to less investment in
promotional activities. A SWOT analysis evaluates its strength, lowest cost; weakness, limited
capital budget; opportunities, globalization; and threats, new competitors.
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References
 Gurel,E. and Tat, M.,(2017). SWOT ANALYSIS: A THEORETICAL REVIEW. The
Journal of International Social Research.
http://www.sosyalarastirmalar.com/cilt10/sayi51_pdf/6iksisat_kamu_isletme/
gurel_emet.pdf
 Hooker,L & Palumbo,D.,(2019). Huawei: The rapid growth of a Chinese champion in
five charts[Online].BBC.Available at: https://www.bbc.com/news/business-46480208
[Accessed on : 16th July 2019]
 HUAWEI(2018) About Huawei[Online]. HUAWEI .Available at
https://www.huawei.com/uk/
 Jurevicius,O., (2013). Porter's Five Forces [Online]. Strategic Management
Insight .Available at:https://www.strategicmanagementinsight.com/tools/porters-five-
forces.html[Accessed on : 16th July 2019]
 Su,J,B., (2018). Huawei Fortifies #2 Spot In Global Smartphone Market, Beating Apple
Again[Online].Forbes.Available at:
https://www.forbes.com/sites/jeanbaptiste/2018/11/02/huawei-fortifies-2-spot-in-global-
smartphone-market-beating-apple-again/#736543371305
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