Management Issues of Huawei: Analysis and Strategic Solutions

This report examines the management challenges faced by Huawei, a global telecommunications company. The report discusses the company's business problems, including controversies related to its association with the Chinese government, which led to restrictions in the US and Australia. It explores solutions such as building a strong brand in non-Chinese markets through innovation and strategic marketing. The report further analyzes relevant theories, including strategic innovation, comprehensive innovative models, and global leadership, to propose recommendations for Huawei's future development. It highlights the importance of adapting to market needs, fostering customer-centric approaches, and establishing a global presence. The report concludes that Huawei has significant potential to become a leading smartphone company by adopting effective business structures.

Running head: MANAGEMENT ISSUES OF HUAWEI
Management issues of Huawei
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Executive summary
In this report we are going to discuss about the enhancement of the global company Huawei.
There are certain business issues are being faced by the company which are posing as a major
setback for the company. In this report the different theories leading to the betterment of the
company has been discussed.

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Table of Contents
Introduction..........................................................................................................................3
Business problems...............................................................................................................3
Solutions to the problem......................................................................................................3
Theories...............................................................................................................................4
Conclusion...........................................................................................................................6
Reference List......................................................................................................................7

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Introduction
Huawei has hoarded more than 340 globally managed contract services globally which
serves a total of 120 mobile operators in more than 75 countries worldwide (Pawlicki 2017).
Huawei is considered to be the leading services provider and strategic partners for the mobile
operators globally. Huawei aids in spreading the technologically advancements of China being
the flagship of the Chinese telecommunications. Huawei has a crucial role in the strategic
technological plan of china’s future since it is directly connected in the development and
execution of the 5g network which is estimated to be available soon (Haveman and Vochteloo
2016).
Business problems
Due to its association with the Chinese government Huawei faced a major controversy
which led to its abolishment from the US and Australia in setting up their network infrastructure.
The countries were concerned about their national security. Though Huawei still have the market
for selling their smartphones but they are devoid of their source network infrastructure for the
risk of reconnaissance. In addition to this Huawei was also prevented from selling the supply
telecommunications goods to Australia in 2012 due to cyber security concerns. In order to gain
the trust of countries the company is releasing their yearly reports since 2005 (Drahokoupil
2017). But these reports were not perfect and were heavily criticized since they did not have any
fixed release dates as well as there are year to year changes in the reporting details. The Chinese
and the English reports had differences and the financial statements were incomplete.
Solutions to the problem
The company needs to build their own brand by depicting the company as the strong and
distinctive brand in the non-Chinese markets, especially in the smartphone market. Building up
of more brand awareness will be a slow process to revamp the company. The company needs to

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follow the innovation which will be generating viral recommendations rather than expanding
their costly marketing campaigns and advertisements. In recent times Huawei has started to take
the mainstream approach in increasing their brand recognition by launching the global
advertisement panel of running TV, print, online, outdoor and different point of sale
infomercials. According to Shao Yang, the vice president of the marketing and consumer
business of Huawei, the company is planning to utilize different kinds of platform which
includes various online and offline retailer channels, some campaign regarding the brand, digital
marketing, and acquiring different sponsorship (Zhu et al.,2103).
Theories
Strategic innovation
In the early development of the company it has followed the innovation in the area of
technology due to which the company had to face setbacks in capturing the market by using
perfect technology. The company needs to realize that they must shift from the technology
driven company to a market driven company and all the innovations must be done in accordance
to the market and the user needs. The company needs to introduce new technologies for meeting
the user needs as well as they need to focus on creating value products to the consumers and not
only just technologically advanced products. Huawei takes the advancements in technology tom
be core component of its progress into the future and increase its market value. Keeping this in
mind the company must establish a global layout plan for the capacity centers and different
research institutes for increase their resource gathering area and to capture the frontline markets
and the areas which are rich in research like the Silicon Valley. Huawei has already established
26 capacity centers all over the world (Rubini 2013). Germany and japan is the company’s most
important two sites for R&D bases in the overseas (Ojo 2017).

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Comprehensive innovative model
There is a lot places for Huawei to learn and think in reference to the new world where
the competition is steep in the global with so many brands emerging every now and then.
Huawei must adapt the comprehensive collaborative innovation to achieve extraordinary results.
The company must make timely adjustments as well as optimize different development strategies
which must be based on the changes in accordance to the environmental conditions. Every
development in enterprises there contains different stages which are pointed at development of
the organization. Huawei needs to timely adjust and get itself adapt to the changing conditions
and establishment of the structure of the model and get suited to the reforms and the
developments in the market requirements. The company must follow the strategic thinking for
enhancing the awareness of the crisis that might be developed in the company (Alva and Bhat
2018). The company needs to accurately predict the development of an intelligent society for
alerting the enterprise of the problem in advance and create remedies for the problem. The
company must keep on follow the reasons of these problems and learn from the outcomes and
build their organization to keep up with the changing situations and construct a lifelong
foundation.
Global leadership
The vision of the company must be enriching itself through tough competition. With the
consumers getting connected with the speed and performance enhanced devises the company
must become more secure and personalize the products according to the consumer. The
Company must work closely in accordance to the customer needs and must become customer-
centric. The company needs to work closely with the leading carriers of the world and create
customized technologies for the unique need of each carrier which will help in establishing the

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need for the competitive global market (Barbosa and Romero 2013). The company has to show
its strong branded innovation in its worldwide projects.
Conclusion
Huawei was established as a sales agent in but it grew to become one of the major tech
company in the world and it continues on growing. The company must solve some of the
problems they are facing at present. Being the third largest smartphone brand after giants like
apple and Samsung the company all the potential to become the leading smartphone company in
the world. By following different effective business structure the company will be slowly
developing to be a new brand of the most enhanced smartphones.

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Reference List
Alva, H. and Bhat, S., 2018. Accenture–Understanding Sustainable Business Strategies.
International Journal of Case Studies in Business, IT and Education (IJCSBE), 2(1), pp.54-63
Barbosa, F. and Romero, F., 2013, September. Business strategies in contexts of high
uncertainty: a case study on the innovation and internationalization processes of a technological
Portuguese SME. In Proceedings of the European Conference on Entrepreneurship and
Innovation (Vol. 1, pp. 88-95). Academic Conferences and Publishing International (ACPI).
Drahokoupil, J. ed., 2017. Chinese investment in Europe: corporate strategies and labour
relations. ETUI aisbl.
Haveman, M. and Vochteloo, J., 2016. Huawei: A Case Study on a Telecom Giant on the Rise.
In Multinational Management (pp. 75-94). Springer, Cham.
Ojo, T., 2017. Political economy of Huawei’s market strategies in the Nigerian
telecommunication market. International Communication Gazette, 79(3), pp.317-332.
Pawlicki, P., 2017. Challenger multinationals in telecommunications: Huawei and ZTE. ETUI
Research Paper-Background analysis.
Rubini, L., 2013. Business excellence in China: firms, territories, regions. Measuring Business
Excellence, 17(2).
Zhu, Z., Hoffmire, J., Hoffmire, J. and Wang, F., 2013. Employee stock ownership plans and
their effect on productivity: The case of Huawei. International Journal of Business and
Management Invention, 2(8), pp.17-22.