Business Development Report: Huawei's Product and Service Strategy

This report provides a comprehensive analysis of Huawei's product and service development strategies. It begins with an introduction to Huawei as a leading technology company and outlines its product portfolio. The report then delves into the New Product Development (NPD) processes applied by Huawei, including idea generation, screening, concept development, marketing strategy development, business analysis, product development, test marketing, and commercialization. A detailed explanation of each stage is provided, with specific examples related to the Huawei P40 Pro. Furthermore, the report examines the product life cycle of the Huawei P40 Pro, detailing each stage from product development to introduction, growth, maturity, and decline. The analysis includes an overview of the market opportunity for the proposed product and a proposed marketing strategy, incorporating models like the 7Ps. The report also includes a synopsis of the competition and industry using Porter's 5 forces analysis and concludes with a brief financial overview. The report concludes with key findings and recommendations for future product development initiatives.

Product and Services
Development

Contents
INTRODUCTION.................................................................................................................................4
Portfolio- HUAWEI..............................................................................................................................4
Task 1....................................................................................................................................................6
Explanation of each of the NPD processes applied for new or improved product/service
development......................................................................................................................................6
Task 2....................................................................................................................................................8
Product Life-Cycle................................................................................................................................8
Task 3...................................................................................................................................................11
Market opportunity for the proposed product or a service...............................................................11
Using models such as 7Ps, Proposed marketing strategy.................................................................11
Synopsis of the competition and industry by using framework such as Porter’s 5 forces analysis.. 13
Financial overview..........................................................................................................................14
Task 4..................................................................................................................................................16
Conclusion...........................................................................................................................................18
REFERENCES....................................................................................................................................19

INTRODUCTION
Product and service development business as they help in higher growth. Huawei
Multinational Corporation headquartered in China. It the leading technology company, which
provides equipment’s consumer electronics smartphones etc. This report includes portfolio,
lifestyle cycle stages of the product, and recommendations. Development is essential in
business as it help in producing innovative as well as new product within the market.
Moreover it has been also seen that competition is rising with the blink of an eye and it has
become important to focus on services as well as product development with additional
changes (Tukker and Tischner, 2017). Huawei are being considered as top technology
company and is moving their products towards artificial intelligence. As they developing
robot services, more new smart devices with high end software.
With changing period of time, new products as well as services have been introduced
which has led to overall development and new opportunities. The increase of suppliers as
well as buyers have increased in importance of development within the industrial sector
which shows that it has become essential to be unique and innovative to achieve the goals and
objectives this competitive era. Market and technology is changing with rapid scale and
which also results in adoption of new changes as well as methods within the business sector.
The present report gives a brief knowledge about the chosen corporation and their product as
well as service development.
Portfolio- HUAWEI
PRODUCT EXAMPLES
Smartphones
Huawei p40 pro, Huawei p20, Huawei p30 etc.
Tablets
Huawei Mate Pad T8, Mate Pad LTE, Media Pad T5, Media
Pad M6 etc.

Wearable’s
Huawei Band 4, watch 2 sports, etc.
Smart band-4
Mobile accessories
Touch cover, protection cover, leather cover etc.
TV’S
Huawei vision X65, V55i, 4k UHD TV etc.

Task 1
Explanation of each of the NPD processes applied for new or improved product/service
development
1. Idea generation- It has been analysed that most of the business organisations that
are dealing with a technology industry are continuously launching different range of products
like smartphones in order to fulfil the needs and it wants of customers with the help of
upgraded technological innovations. In the same way management team of Huawei, which is
a Chinese brand is looking forward to expand its business with an idea of launching a new
product (smartphone) which will be carrying high-end upgraded feature to become the leader
of technology industry (Charter and Tischner, 2017). Main idea for developing Huawei P40
pro was to provide balance between design & technology.
2. Idea screening- This is considered to be the second phase of new product
development process, where team members of the company specifically delivers their
suggestions in relation to launching a new product or modifying the existing one. In present
context, if it is talked about Huawei then and there were a number of members with in
management team that were not considering the idea of launching the new product and
mentioned that company is not in the position of launching a high and product because of
different issues like financial position and so on. But majority of the team members has given
their answers to words launching a new product which is p40 Pro considering ample number
of unique and innovative features that will directly grab the attention of customers as the
phone will be giving them the opportunity to experience the upgraded technology and so on.
3. Concept development and testing – Huawei's R&D team has come up with ample
number of ideas of launching a new product where the best suitable one was considered and
team specifically agreed on launching the first phone to come with a 10x optical zoom lens,
which lets users to get much closer to the subject with little loss in quality (Chang and Taylor,
2016). This special feature can be considered as a crucial step taken by organisation to give

rivalry to its competitors like Apple, Samsung and so on. Huawei top designer tested the p40
pro at least about 50 times in water and through other activities. It was mainly done by
research & development department.
4. Marketing strategy development – After selecting the product, which Huawei is
going to launch. There were a number of tasks given to two different team members
belonging to the company to effectively conduct investigation in order to develop a strategy
to reach to the desired goal which is to become leader of technology industry at international
level. in present context, it can be said that management has decided to to deliver a range of
tasks to a few members like finding out the value proposition based on the choices of
customers, finding out the best possible markets of launching the new product with ample
number of opportunities. Also, the other individuals are given with some information to
conduct marketing mix considering 7 Ps. On the other hand, few other individuals who were
left has been given with the task of collecting data as much as they can from different
primary and secondary sources like taking feedback from the customers based on their
choices of utilising a mobile phone with different range of features.
5. Business analysis – Other team members were given with a range of tasks like
conducting porter's five forces model in order to analyse the competitiveness within
international market of mobile industry. Including this two of the individuals belonging to the
team has been frozen to conduct analysis in relation to what should be the sales per unit every
year. On the other hand two of the individuals were being given with the task to conduct
forecast from 2015 to 2030 in order to launch the p40 pro in an effective way (Fuller, 2016).
6. Product development- All the gathered information will be effectively analysed in
which phase of new product development where it will be required by the team members to
find a suitable way of creating for developing the product based on the requirements of
customers and current trends followed by the industry. This will effectively lead Huawei to
take into consideration of the perfect for the suitable product for launching it at international
market.
7. Test marketing – Beta Version of the product will be launched for customers,
where Huawei will be charging nothing for utilising the product and this will effectively lead
them to get the feedback from users so that appropriate modifications can easily be made in
specified time frame. So, P40 also uses different approaches you tube bloggers and e-
commerce websites such as Verge, Hype-beast, etc.

8. Commercialisation – This is considered to be last the stage where company that is
Huawei will effectively take the decision in relation to the product whether it is required to be
launched within the market or not (Witell, 2016).
Task 2
Product Life-Cycle
Product life cycle is the model which depicts the different stages of the new product
during the process of growth as well as overall development. It is a wider as well as broader
concept which is needed to be understood with proper considerations. To Implement this life
cycle in proper manner it is important to be aware about the all the ins and outs of product so
that it is being carried out appropriate way. Also show it deep analysis of market as well as
dynamic situations so that all the stages are being examined ineffective manner. In context to
chosen, enterprise they also go through with this life cycle and model as it help them to run
their product in most efficient manner without facing any problem or issue in near future. The
product which has been chosen is Huawei P40 pro. Moreover, it includes five stages which
are mentioned below-
Product development- Product development is the first phase of product life cycle in
which it includes building the product going with the research and testing it for further
process. Market research and competitor analysis considered as the part of research at
development stage. This is essential to get a prior knowledge about the potential and growth
of the product in proper way. Through the use of feedback as well as testing the samples of
the product plays vital role developing process (Weaver, 2017). The chosen enterprise is

developing p40 Pro 5G and or test their product by distributing the sample to the employees.
Gathering feedback from test users and testing the product are also vital to the development of
the product. This aspect of life cycle also shows that all decisions and other resources are
being used after initiating this step with suitable measures and ensuring the reliability. Also,
in terms of wearable’s Huawei watch GT2E includes 100 works out modes and still in the
line of production. New Mate Pad T8 was launched & developed by company on 6th may
2020. They are also developing their production line of product on their other accessories
such as headphones etc. Then further, they have been developing new smart which is to be
known as Huawei vision X65. Market research and analysis is being done to get an idea of the
potential growth for the product, and to build a business case to validate the product. Once the
development of the product is complete it is ready for the introduction stage.
 Introduction stage- Then comes the introduction stage in which product is finally
being initiated as well as promoted within the market. This also helps in making brand
awareness so that people are aware about the product and purchase it. Various types
of strategies are used by the Huawei such as skimming strategy or penetration
strategy. It is being done after a deep analysis of selecting the potential market as well
as customers for the product so that techniques and strategies are used in most
appropriate manner. This is most crucial stage of product life cycle because marketing
is being done at larger scale and which use of capital and other sources for promotion.
The selected enterprise use digital platforms such as Facebook, YouTube, and
Instagram and other e-commerce website for their marketing of the product. With use
of these online platforms, it is easier for entity to attract large number of customer and
increase their market share. Also hire manpower is involved during this which shows
that it requires critical thinking and appropriate decision making to achieve the result.
Huawei TV X65 has been introduced but has not been launched in proper way as due
to the changing market situation. Then, accessories are being sold through online and
offline shops; also, their wearable G2TE has been also launched & is rising at
efficient way. Growth stage- It is the stage in which product as well as its market shares starts to
develop and grow. Organisation at this phase focuses on advertising and sales
promotion to increase the profit and sales ratio within the market. Furthermore
different advertising channels as well as distribution channels are used by the entity
depending upon their suitable criteria (Clauss, 2017). It requires cost and time to

conduct with proper measures and also decision making is being done after examine
the reaction of the customers. This also leads to distribution of profit and sales
revenue among the shareholders. To this growth stage entity offers additional and new
discount or any other benefits to the customer so that they purchase the product
frequently. Also, with use of different distribution channels and advertising channels
it is easier to establish of positive relationship between suppliers or at market place. If
entity is successful with advertising strategy then will be an increase in sales. After a
period of an on-going increase in sales, eventually share of the market will stabilize.
Once corporation get to this point it will reach the Maturity stage of the product. The
growth rate of Vision X65 is slow as due to undecided launched, the wearable growth
is at rapid scale, & accessories such as tempered glass, mobile charger etc. are being in
slow growth rate. The G2Te watch is being at proper growth stage. Maturity stage- This is the stage in which growth as well as profit ratios grow at
rapid scale and also which results in stabilizing of the product & market. This comes
after the introduction as well as growth stages and in which performance as well as
progress level of product is being analysed. In context to Huawei p40 Pro, it is a
premium smart phone and it will take time to reach at this stage. So, to enter into this
phase, strategies as well as tactics are being implemented so that products of the
chosen company tend to grow at higher level. Also, strong and weak areas of products
are analysed through research and development which also result reducing the future
risk and problems. The key to surviving to this stage is differentiating the product from
the similar products offered by competitors or rivals. When sales start to stabilize,
entity will need to go back to the development stage, analyse product and sales
performance, to be able to innovate new features and services to help company to stay
competitive in the market (Taglioni and Winkler, 2016). In this, profit/sales of
Huawei TV is low, wearable product have more demand, accessories demand is
moderate and tablet as well as mobile phones are topper in the list. Decline stage- It is the final stage of product life cycle in which sales and marketing
of the product time to fall and decline over a period of time. This is because of entry
of new businesses or innovative products which has been introduced in the market as
an alternative and is being used by customers at higher rate. This also results in
affecting the brand goodwill and using of more resources to deal with the situations
and problem during the phase. In this step, decision making is to be with suitable
measures so that the occurred problem and crisis are solved properly. Moreover when

the enterprise product is in this stage it affects the profit and sales of the firm. It also
results in wasting of capital and resources which were used during the process. To
stay competitive, and enterprise need to keep market share, also they will need to
reassess existing product and iterate on its features. Ideally between the maturity and
decline stage they would restart the product development cycle, to continue the success
of business. Some companies decide to withdraw their products completely from the
market due to the downturn. The launch of TV is being delayed as competition is
increasing, mobile devices & tablets have been slows down because of removal of
Google applications or search engine and same as with accessories.
After a brief analysis of above product life cycle, it has been seen that it is a systematic
process and to be carry out accordingly so that all the activities as well as process materials
are used effectively. It is important to be aware about the product development services so
that new opportunities as well as challenges related with the products are being analysed
appropriately. Also, PLC gives a brief knowledge about the stages of product which is being
faced by every organisation. By examining the above stated model, knowledge has been
gained about the various stages affecting the sales and profit accordance with the time
(Haber, Fargnoli and Sakao, 2020).
It is important to be active and aware about the stages so that all the activities related
with the new product is being carried out without disturbing the environment of specified
business. Also it is responsibility of the manager to make ensure that PLC is being adopted at
the time of new change or any updated modification over the product or service. This will
help them to make their decision making process more effectively.
Task 3
Market opportunity for the proposed product or a service.
P40 Pro, a high-end upgraded version of smart phones launched by Huawei with extra
ordinary features would directly gain ample number of opportunities within the international
market. There are a number of countries like United States, and other European and Asian
countries like Germany, India, Japan and so on, this specific product will easily gain
competitive advantages and give high rivalry to companies like Samsung, Honor and so on.
Basically America is one of the crucial market where, target potential customers effectively
start purchasing this product because of the unique features with graded camera and

extraordinary processor. But, due to many reasons like conflicts among two countries (China
and America) may impact negatively on overall productivity and profitability of Huawei.
With the help of partnering with other organisations that are dealing within same industry,
Huawei can easily grab a good potential market (Lauritzen and et. al., 2016).
Using models such as 7Ps, Proposed marketing strategy.
Marketing mix:
Product: Huawei deals in wide range of product line and started making phones
switches and after that build its telecommunication network. Currently company deals in
wide range of phones by offering better features and quality as its focus on its P40 pro which
is a 5G dual sim smartphone with high range of demand in market.
Price: Pricing policy of Huawei is quite unique and it depends on various factors like
its product range and economic conditions of the country in which they offer their product.
As Huawei does not follow standard pricing for their product, its price range varies according
to the country and demand.
Place: Huawei covers many countries in terms of offering its products that is around
140 countries across the world. It becomes easier for Huawei to offer its brand new product
which is P40 pro with the help of online platform as it helps in acquiring customers from
various regions (Price and Shanks, 2016).
Promotion: Huawei undertake many promotional activities and strategies which is
useful in attracting lot of customers and also helps in maintaining healthy consumer base. In
terms of this, company use social media as it is very trendy and maximum people actively use
this platform which is easy to promote its P40 pro among them.
People: It depicts the behaviour of staff of Huawei towards their customers and for
this, Huawei put emphasis on the customer satisfaction, services and developing healthy
relations with customers as it helps in retaining them for longer period of time. In this, the
manager of Huawei recruits candidates by analysing their skills and abilities to deal with
customers.
Process: It depicts the various ways by which Huawei offer their services like their
delivery system which is done under the presence of customer in order to gain satisfaction,

trust and faith and when the product is delivered then it becomes the part of what customer is
pay for.
Physical appearance: It is considered as the significant factors as it helps in attracting
maximum number of customers with the help of its packaging and external appearance of the
product and services like decorating their store and gift packing on the online platform.
Therefore, by considering the strategy of company at the past times Huawei use word
of mouth which is not so much effective but according to various changes respective
company consider social media in order to promote their product and does not set standard
prices for their product as the price factor various according to their region and demand.
Besides from this, in order to reach and provide products to their potential customers
company use both online and offline method (McGinnv and et. al., 2020).
Synopsis of the competition and industry by using framework such as Porter’s 5 forces
analysis.
Huawei is currently competing with various smartphone companies like Samsung,
Apple, Honor and many more and for this, the new product of Huawei which is P40 pro give
tough competition to these companies in terms of price, feature and durability. Along with
this few forces that impact whole industry are evaluated below:
Threats of new entrants: The smartphone industry become more competitive and
tough for the new entrants and it becomes complex by increasing the number of smartphone
users and other local companies and technologies who prefer mobile phones instead of using