Assessment 1b: Analysis of Article 1: Huawei and US Government Dispute

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MRKT20052: Marketing Management and Digital Communications
Term 1, 2019
Assessment 1b: Analysis of article 1
‘US government is ‘ignorant of technology’, say Huawei bosses
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Key issues illustrated in the article
Huawei, a Chinese company, is a world-renowned brand that mostly everyone in the world has
heard about. The brand is most famous for its telecommunications and products that it produces.
But in recent times the company has been facing some issue regarding the United States
government. The United States government has said the company is being used to spy on
individuals who are using its products and services. All of these issues are occurring in the midst
that the company is planning to introduce its 5G plan. America, on the other hand, has
implemented a ban on all of the products or services that are offered by the company. Not only
this the United States has also asked other countries to do the same since it thinks that Huawei
could be using such technology to collect personal and valuable information. There are some
people in America that thinks that this ban is not a good indication as it will result in bad
relations between the two countries. The chief security officer of Huawei has said that America
is acting foolish and if they would like they should come and test of the products for themselves
if they really believe that spying is done by the services offered by the company (The Guardian
2019).
Stakeholders
There are several numbers of stakeholders that are involved in this case. One of the most
important external stakeholders is the United States government who is blaming Huawei. The
other stakeholders are the customers of Huawei that are being affected by this issue. The internal
stakeholders of the company are the chief executive of Huawei and the company itself.
Implications of these issues from the marketing perspective and how will these impact
(positively or negatively) the stakeholders
The marketing department is the one which has to face most of the problems when such
allegations are attached to the company’s product. This is not considered to be a positive factor
for Huawei’s marketing department. The company wanted to introduce 5G into its services but
the allegations from the United States stopped this from happening. The customers, who are
stakeholders, will start to doubt the products that are given by the company and may even stop
using them. The marketing department would need to come up with a strategy that would make
sure to tell the customers that nothing of such is being done by the company. Another way that
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this allegation could affect the marketing department of the company is that 5G is a new
technology service and it would not be purchased by many people if such issues continue.
Operating offices of Huawei present across the world would have to come up with new
promotion strategies that would tell the customers that nothing of this sort is being done. The
chief security of Huawei would have to convince other country governments that nothing of such
sort is happening in the company (Mirabi et. al. 2015). The chief security executive would need
help from the marketing department to show the benefits of the products and services and to
promote them in front of these countries. The marketing of 5G products and services would now
have to be done at a higher level than before because no one would want to buy such products
anymore. The 5G prospect would have brought a lot of capital into the company but know the
company would have to make changes in its strategic management and operational services to
prove that the allegations put on it are not true. There is a positive impact that will be seen if
Huawei can manage to prove that this allegation is wrong. The advantage would be that now
everyone would have heard about the company and its 5G plan so they would buy these products
and services.
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References
 Istart. (2018). China chip spying allegations denied by Apple and Amazon. [Online]
Istart. Available at: https://istart.com.au/news-items/china-chip-spying-allegations-
denied-apple-amazon/ [Accessed on: 27 April 2019]
 Mirabi, V., Akbariyeh, H., & Tahmasebifard, H. (2015). A study of factors affecting on
customers purchase intention. Journal of Multidisciplinary Engineering Science and
Technology (JMEST), 2(1).
 The Guardian. (2019). US government is ‘ignorant of technology’, say Huawei bosses.
[Online] The Guardian. Available at:
https://www.theguardian.com/technology/2019/apr/16/spying-claims-show-us-is-
ignorant-of-technology-say-huawei-bosses [Accessed on: 27 April 2019]
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Appendix
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