MKT306 - Marketing Strategy: Huawei's Global Market Entry Strategy

This report provides a comprehensive analysis of Huawei's marketing strategy, focusing on its current market position and potential for global expansion. The first part includes a PESTEL analysis, SWOT analysis, competitive advantage assessment, and perceptual mapping to understand Huawei's market environment. It identifies the company's strengths, weaknesses, opportunities, and threats, along with a comparative analysis against competitors like Apple and Lenovo. The second part proposes a new brand, Mobiworld, with a segmentation, targeting, and positioning (STP) strategy, recommended SMART objectives, and marketing strategies based on the marketing mix to facilitate Huawei's entry into the global market. The analysis considers factors like political and economic conditions in China, technological advancements, environmental concerns, and legal frameworks to provide a well-rounded perspective on Huawei's strategic options.

Running head: MARKETING STRATEGY
MARKETING STRATEGY
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Abstract
Among various telecom companies, Huawei is considered as the global leading company that
deals with the telecom sectors like the various range of products which involves the mobile
phones, broad band device and the home devices. The telecom equipment manufacturer, Huawei
is headquartered in Shenzhen, China. The business operations targets the lower income segments
because it will be difficult for them to target the higher income segments. The first part of the
paper will involve the market analysis of Huawei and the second part of the paper will deal with
the new brand’s segmentation, targeting and positioning and the marketing strategies for the
business to enter the global business market.

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Table of Contents
Part 1................................................................................................................................................2
Introduction......................................................................................................................................2
Situation analysis.............................................................................................................................2
Political condition........................................................................................................................2
Economic condition.....................................................................................................................3
Social and Cultural condition......................................................................................................4
Technological condition..............................................................................................................5
Environmental condition.............................................................................................................6
Legal condition............................................................................................................................6
Strength........................................................................................................................................7
Weakness.....................................................................................................................................7
Opportunity..................................................................................................................................8
Threats.........................................................................................................................................8
Competitive advantage (USP).........................................................................................................8
Perceptual map.................................................................................................................................8
Comparative analysis.....................................................................................................................10
Two major competitor of Huawei: Apple and Lenovo..............................................................10
Evaluation of marketing strategy...................................................................................................11
Part 2..............................................................................................................................................12

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New brand......................................................................................................................................12
Segmentation, targeting and positioning (STP).............................................................................12
Time Space Chart:.........................................................................................................................13
Recommended objectives and goals (SMART)............................................................................14
Recommended marketing strategies based on the application of the marketing mx to your chosen
branded supermarket chain............................................................................................................15
Marketing mix...........................................................................................................................15
Conclusion.....................................................................................................................................16
Bibliography..................................................................................................................................17

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Part 1
Introduction
Huawei has no brand value for mobile devices in the international business market.
Therefore the business is required to deal with the lower income segments. This becomes
beneficial for the company as the company will be able to provide the attracting features at low
price that will attract the lower income background people to the product. The cost of production
is also lower for the organization therefore the organization will be able to produce the product
with varying features in low price. Thus this is beneficial for the organization to select the lower
income segment. In this study the first paragraph provides the situation analysis regarding the
political, economic, technical, legal and the environmental conditions. The situation analysis
involves the strength, weakness, opportunities and business threats. This first part will be depend
upon the external analysis and the internal analysis of the market. This will also involve the
external factors and the internal factors that creates risks for the business. In the first part of the
study, this will include the business competitive advantages and the present marketing strategy of
the business. In the second part of the paper the business will involve segmentation, market and
the business position in the market. This study also recommends the business strategies of
entering the global business market and these strategies are mostly based upon Huawei’s
marketing mix.
Situation analysis
The PESTEL analysis is considered as the framework that are used by the marketers for
analyzing and monitoring the micro environmental factors which creates great impact on the
organization. This helps to determine the threats and weakness of the organization.
Political condition
The political conditions of China creates great influence on the business market. The
ruling party has created a great impact on the business economy in the country. The stock prices
of most of the business in China business firm falls during the meetings of the National Congress
and the political promotions. The global profitability of the business also depends upon the

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political climate of the respective country. The Chinese governments also provided training to
the employees for bringing innovative features in the products (Moutinho and Phillips 2018).
Rank of china
Source: (Gurtov, 2019)
Economic condition
The economic condition of the country creates great effects on the organization. The value added
tax in the telecommunication sectors increases the business operation costs and decreases the
business profitability margins. Also the fast growth of the economy of the country helps the
business to increase the disposable income and the demands of the luxury products like mobile.

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Economic Rank of china
Source: (Investopedia, 2019)
Social and Cultural condition
This study found out that the Chinese market is growing daily as it is mostly populated with 1.3
billion people. Therefore the high population provides the wide business market for Huawei
products and the large population is also beneficial for the business to develop the steep demands
of the products (Adam et al. 2018).

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Hofstede chart of China
Source: (Hofstede Insights, 2019)
Technological condition
The Chinese government ensured that the innovations in ICT specially produces the high quality
trainings for bringing innovations in the technological department. Huawei is also prone towards
developing the new quality products for making the stiff competition in the business of the
international market brands like Apple, Lenovo and other (Ahmed 2016).
Technological advancement rank in China
Source: (EurekAlert 2019)

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Environmental condition
The Chinese government encourage the business towards the sustainable development. The
wastes of the company should be further reused for cutting the possible wastages and by
maximizing the available materials. Huawei wanted to become the leading distributor of the
green products and looks after the effective ways of minimizing the emission of the carbon
substances (Midha, Kaur and Tripathi 2017).
Environmental rank of China
Source: (Counterview.net, 2019)
Legal condition
The business operations of Huawei should be based on the legal laws like the patent acts, tax
rates, environmental laws and the labor laws. Huawei also deals with the employees of various
countries and the organization are required to comply with the labor laws and the wages of the
Jurisdictions of operations (Lee et al. 2016). By maintain the rules the business will ensure the
positive business performance of the company.

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Legal process rank of China
Source: (World Economic Forum, 2019)
Strength
The major strength of the business is that the Chinese government provides various trainings to
the employees of the telecom sectors and thereby leading to the development of the innovative
products in the business market (Moevus et al. 2015). The high population of China provides the
wide range of profits to the business and also increases the demands of the products.
Weakness
This is found out that the business lacks the sufficient capital budgets that limits the company’s
ability for competing in the global business market. There is belief among the people of China
that since the company provides the product at low price, the product is of inferior quality. The
employee turnover affects the organization that puts the business continuity at risk.

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Opportunity
The business enjoys the labor intensive because of the large population of the country. This also
offers the great opportunity for Huawei to cut down the production and the operation cost that
generates high business profit margin. The outcome is that the business enjoys the low cost
production for dealing with the firms that increases the product quality by compromising the
business margins (Kotler et al. 2015).
Threats
The threats that the business faces while competing in the local business market. While entering
the international product dominates the market in the business market. Since the Chinese
products is found similar with other low quality that is not applicable for every products. This
image affects the penetration of Huawei in the global market.
Competitive advantage (USP)
Unique Selling proposition is considered as the one features that makes it unique from the rest of
the competing brands in the business market. The major competitive advantages that Huawei
enjoys are that the company produces the quality product at low cost of operation, thereby
producing the products at low cost of operations helps the business to attract the low income
segments by offering the products at low price. The competing brands provides the quality
product at high price thereby attracting only high income segments (Blakeman, 2018).
Perceptual map
The perceptual map shows the representation of the perceptions along with the preferences of
some of the brands. The objective of the business is to express the potentials of the customer
demands by providing the direct image. The values, competitions and threats are determined
through this perceptual map (Schlegelmilch 2016).

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Perceptual map
Source: (César Zamudio, Ph.D., Marketing, 2019)