Huawei: Innovation in Telecommunications - A Business Report

This report provides a comprehensive analysis of Huawei's innovation strategy and its impact on the telecommunications industry. The report begins with an executive summary and table of contents, followed by an introduction that defines innovation and sets the context for the study. The task section explores Huawei's innovation history, including its early days and key milestones, as well as its current innovation performance and capabilities, such as the launch of innovative smartphones. The report also examines the industry landscape in 2016, utilizing Porter's Five Forces and PESTEL analysis to assess the competitive environment and external factors affecting Huawei. The analysis includes the application of the VRIO framework to assess Huawei's resources and capabilities. The report concludes with a summary of key findings and insights into Huawei's innovation-driven success.

MANAGING INNOVATION
IN BUSINESS

Executive summary-
Innovation is one of those key elements that contributed from longer period of time to
grow and gain competitive edge for varied companies in the world of business. The current
assignment has been based on Huawei, which has gained many benefits in term of increased
sales, productivity and performance level as well profits margin, because firm has launched
several smart phones that has successful gained attention of international as well as nations
customers. It has been determined that by using advance technologies company has launched
smart phones in bulk which has been manufactures according to demand and key market trends.
It has taken varied decision in term of production and marketing that also help to overcome
negative impact of several external factors. Huawei has attempted a lot of practices and activities
just to satisfy its target customers, in term of innovating smart phones with beneficial and useful
as well as valuable features.

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK ..............................................................................................................................................4
Company and its innovation history...........................................................................................4
Huawei existing innovation performance and capabilities.........................................................5
Industry in 2016..........................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Innovation is defined as a creative idea that has been converted into practical manner, by
innovators. They attempt to manage an innovation within a small or large ventures in effective
manner, which is quite important to do as it affect future success of organizations. The current
assignment will be based on Huawei, which falls under category of top telecommunication
organizations in the world. The study will explain detail information about company & its
innovation history. Furthermore, it will define current innovation performance of firm and its
capabilities. Lastly, the report will clarify information about sector where organization has been
operating.
TASK
Company and its innovation history
In the world of business, many organizations are managing their ventures and daily
operations in a systematic manner. Just like these, Huawei is also known as a leading
international brand, as it provides smart and information as well as communication technology
infrastructure devices to consumers (Schaefer, 2020). It has managed its growth and gets
unpredictable success with more than 194,000 workers, who are able to contribute to gain
competitive benefits and strengthen firm to be competitive for longer period within
telecommunication sector, UK. With strong workforce and effective management, brand has
operated in more than 170 nations & regions. In order to enhance its future success, company has
re-invested into research and development activities, which one of its those functional areas that
supports to grow even better than earlier. Its management conduct varied practices and take
appropriate decision after analysing current market needs, which is quite important of firm to
analyse before taking any action in context of production & marketing as well.
Aim-
The goal of Huawei is to made its venture more competitive and build loyal customer
base.
Objectives-
 To minimize environment impact of ICT goods through green designs and technological
creation by 40%, within 6 months.
 To foster a fertile venture environment that spans whole world.

 To make business more competitive than other brands in telecommunication sector.
Vision and Mission statement-
Huawei has setted its vision and mission status and according to that, it wants to bring
digital to individual person, home, and a company for a full connected, intelligent world. In
additional to above statement, it promotes fair access to networks and drive ubiquitous
connectivity.
Innovation history-
Huawei technologies was established in 1987 in China as a rural sales agent for Hong
Kong based cable and phone network ventures (Mascitelli and Chung, 2019). Organization first
expanded its business into metropolitan areas of nation during period of 1996 to 1998 as urban
populations exploded. Its innovation journey is begin, when firm launched its world's first Single
RAN base station, which is encompasses 2 and 3G into single piece of equipment. These
creativenesses have not only contributed to reduce consumers TCO by 30 percent, but also
unpredictably lowered challenges to network roll-out. By innovating varied products and
transforming creative ideas into practical reality, firm has grown even better. Under its
innovation history, company has also debuted first Android smartphone and announced
cooperation with T-Mobile at smart phone world congress in Spain (Sarraf, 2019). U8220 is one
its first android smartphone that was launched in 2009. Along with these innovative products,
company has launched many more, which made it a leading brand within telecommunication
industry. Firm is going from innovation to invention that foster its business towards growth, even
better than its rivals. The degree of innovation within brand is at top because it totally focused on
creation in technology, goods, engineering and solutions to address consumers demands and
barriers. Technological and engineering innovations in wireless, smart devices and optical
networks are also included in category of Huawei innovation history.
Huawei existing innovation performance and capabilities
Innovation performance is defined as ability of a company or individual business in
context of transforming creative ideas, concepts and thoughts into outputs in term of innovative
products or services (Xie, Zou and Qi, 2018). Innovation performance of any brand may provide
beneficial outcomes in term of increasing profitability and enhancing success, which is quite
important.

The current performance of company relate to innovation goes up to the expectation. It
launches varied products according to the needs and expectations of individual buyer. From
distributed base stations to all in one solution, firm pursues innovation in all goods' domain to
cater innovative items and creative solutions.
For example, in recent time company has launched its new and latest innovative product
in form of smartphone, for those consumers who want variant with approx 256 GB storage, to
store pictures, important data, etc. Huawei Mate 40E is one of its existing innovation that firm
launched in market with key 5G features (Yan and Huang, 2020). This smartphone is accessible
in three-colour options, which may gain the attention of bulk of people in the whole world. It has
been launched in China, with some attractive feature for example, it comes as a slightly tweaked
version, 6.50 inch touchscreen display, which is one those value added elements that may satisfy
each consumer. The smart phone has 1080 pixels by 2376 pixels.
By showing the capability in term of innovation performance via launching above
product, firm has also present itself as innovator in telecommunication market by unveiled
Huawei P40 in 2020, which is released in several of nations around the world (Sidnev and et.al.,
2021). The best thing about this phone is that it has great hardware system that meets the
expectations of consumers. It gives fantastic battery life, which everyone expects to have in their
phones that made them able to play games, watch movies and allow conducting other fun
activities. Huawei have ability and power to convert its innovative ideas into finished products,
which permit its business to grow more and gain in the future growth opportunities. In order to
boost existing innovation performance within sector, company invest over 100 billion in research
& development over last 30 years, which is one of its venture success secrets that provide
valuable results. Here, the above innovative products, may consider as innovation activities of
firm, which made it strong in term of becoming competitive brand against rivals that are running
and managing their businesses innovation for longer period of time.
Innovation capabilities of Huawei-
In the business world, there are varied types of models and strategic frameworks
accessible that may use to define the capabilities of any firm. Here, VRIO framework is used to
help individual or management to uncover firm capabilities and key resource that give them a
long term benefits in term of gaining competitive edges much better than many existing
competitors (Heischmidt and Gordon, 2020).

This strategic analysis concept is defined in table format below-
Capabilities and
resources
Valuable Rare Imitable Organization/
organized
Positive market
reputation
Alignment of
activities with
smart phone
corporate
strategy
Access to cheap
capital
Brand
awareness
Illustration 1: VRIO Framework
(Source: VRIO Framework, 2019)

Sales force and
channel
management
Financial
resources
From above table, it can be analysed that Huawei have varied capabilities, which
provides a lot of benefits to its venture in term of increasing sales and obtaining competitive
benefits. For example, firm has ability to build a positive brand image in market, which is quite
valuable, rare and imitable. It is not possible for every brand to manage it in effective manner, as
it requires a lot of efforts and hard work to get (Kim and Chao, 2018). Company is capable to
align its business activities with corporate tactics because it has used valuable leadership and
management styles, which drive the attention of workers towards achieving set aim and
objectives of its brand in systematic manner. But this resource or capability is not rare because
many firms do the same to achieve their business goals. It is imitated to and firm may manage
overall activity when it had a good plan and leadership style.
Furthermore, Huawei access to cheap capital which is valuable for business, but not rare
and imitate, as this resource may be imitated by its rivals. Along with all these capabilities, firm
have more than these. For instance, organization is enabled to generate a great brand awareness
at international level, because it has used varied approaches and techniques in term of creating
social media pages, where quiz and other offers may announce that help to gain attention of
customers. This capability is rare, because of varied reason, for instance is requires a lot of
investment which is not possible for each company to do. This resource or ability is not imitable,
as it needs huge investment and efforts as well. In case of Huawei, management is able to
organize and manage overall activities related to brand awareness.
4Ps of Innovation-
Product-
Huwaie may use this p of innovation in term of manufacturing the best quality items and
making changes according to needs of consumers.
Process-

The organization may focus on process of obtaining raw materials and producing
products, it may add more value for consumers by using advanced technologies.
Position-
Company may set effective and strong brand image in mind of consumers by using key
sources of marketing such as social media platforms.
Paradigm-
According to this ps of innovation concept, company may take initiative to improve the
quality of existing items.
Industry in 2016
Huawei is operated within telecommunication industry, which get affected by varied
external or macro factors, in 2016. There are following models;
Porter's five forces model-
Bargaining power of buyers-
The degree of this force is high that impact overall sector in negative manner. For
example, many substitute products available in market which drive the attention of consumers
towards purchase as it also give power to buyers in term of decreasing costs of smart phones that
may affect Huawei sales.
Bargaining power of suppliers-
The extent of this factor is low because telecommunications sector have option to chose
raw material suppliers that are ready to work with brands with current terms and conditions,
without any extra requirements. It put positive impact on success and future growth of
organization like Huawei that operate in this industry.
Threat of new entrance-
The threat of new firm entrance within telecommunication sector in 2016 is low, because
most of the companies are unable to invest a lot of money in context of brand expansion process,
innovation and other things that require getting success.
Threat of substitute products or services-
Degree of this force is high because varied substitute of mega pixel cameras in phones
accessible, for example, varied firms has launched high pixel cameras for photo lovers. It
impacts negatively upon sales of overall sector.
Competition between existing brands-

The rivalry between current companies is high that affect entire telecommunication
industry in positive manner as it drive the attention of individual business towards conducting
strategic marketing planning activities, to gain competitive benefits which in return bring a lot of
innovative ideas.
PESTEL analysis-
Political factor-
It is one of those factors that put negative impact on telecommunication sector in 2016,
because at duration regulation problems come up frequently, it brings the biggest political fight
between service provides, government and consumers.
Economic factor-
Unemployment rate is one of the economic factors that may put positive impact on
telecommunication sector, as it allow organizations which operate under this industry to hire new
applicants that are eligible and productive. Firms may use them as key resource to deliver quality
products to target consumers, which in return increase sales.
Social factor-
Market trends is the best example of social factor that affect telecommunication sector in
negative manner, because according to trend people demand high pixel and wide storage phones.
It increases the pressure upon in industry and drive attention towards doing something
innovative.
Technology factor-
Technology advancement is one of those beneficial factors that impact positively in term
of strengthening sector capability to manufacture the top quality smart phones according to
market trend and customers expectations.
Environment factor-
Climate changes may affect how telecommunication sector products satisfy their
customers in term of providing better connectivity and communication services to buyers.
Legal factor-
It also affects negatively in term of making changes in marketing laws, which impact
existing marketing plan and activities of sector.
Recommendation-

 Huawei can overcome the negative impact of above factors in effective manner by
considering current market trends and analysing customers demand that allow firm to be
a competition forever.
 It can innovate new smart phone in the future as innovation requirements, which may
have unique features such as high mega pixel front camera.
CONCLUSION
By summing up above discussion, it has been concluded that organization has gained
competitive edge and built up strong customer base by offering the most innovative and creative
products in form of smart phones that help to increase the satisfactory level of consumers. From
above study it has been summarized that firm reached at international level by manufacturing
and delivering the top quality items, which has contributed to increase its profitability and
productivity. Furthermore, it has been determined that by taking right decision and utilizing
approaches, organization has overcome negative impact of those wider macro factors that are
available in sector.

REFERENCES
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Online
VRIO Framework. 2019. [ONLINE]. Available Through:
<https://expertprogrammanagement.com/2019/11/vrio-framework/>