Huawei Retail Sector Trends Analysis and Recommendations Report

This report provides an in-depth analysis of the retail sector trends within the telecommunications industry, specifically focusing on Huawei Technologies. The analysis begins with an executive summary, followed by an introduction to the retail sector and a detailed examination of current trends, including cross-industry alliances, the adoption of 5G technology, the need for optimization, and the integration of augmented and virtual reality, and the increasing use of artificial intelligence and machine learning. The main body of the report includes a SWOT analysis and PEST analysis to evaluate Huawei's strengths, weaknesses, opportunities, and threats, as well as the political, economic, social, and technological factors impacting the company. Primary research, in the form of a survey, was conducted to gather customer and employee feedback. Based on the combined analysis, the report offers recommendations for Huawei, such as improving website information, revising return policies, and providing employee training. The report concludes with a summary of key findings and recommendations.

Inquiry Project

EXECUTIVE SUMMARY
This project is based on the trends in the retail sector of telecommunication industry.
These trends will be analysed for Huawei company and recommendations will be made in the
last in accordance wit the analysis. With the emergence of Speech recognition, customer service
chatbots and voice services which came under telecommunications services, it became very easy
for business organisations to interact with their customers. Analysis of company will be carried
out by using SWOT framework, PEST analysis and survey questions. In accordance to that
analysis, appropriate recommendations can be given to company so that high revenues can be
earned.

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Trends in retail sector...................................................................................................................1
Analysis of the organisation with the help of business models...................................................2
Recommendations........................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Retail sector consists of various businesses that sales goods through stores, on internet to
public at large. The retail industry is responsible for the distribution of finished goods to the
public. This sector comprises of general retailers, departmental stores, speciality stores and
discount stores (Aithal, 2017). This project is based on Huawei Technologies Co. Ltd. Which is
a Chinese multinational technology company established in the year 1987 by Ren Zhengfie to
provide telecommunication equipments. Company is headquartered in Shenzhen, China. This
report will cover about trends in retail sector and analysis of selected business so that appropriate
recommendations can be given at last.
MAIN BODY
Trends in retail sector
Retail industry is a vast sector which employs more than 4 million people and earns
revenue in trillions. This sector varies from other sectors in one manner i.e. no product is created
in this sector, instead services are given by retailers to the customers. This sector earns money by
selling the end products to consumers in return of cash. Telecommunication is also a part of
retail industry. This part of retail sector involves internet service providers and telephone
companies which offers calla, messaging, video streaming, e-mails and other services to their
users (Curwen and Whalley, 2016). Due to advancement in technology and continuously
changing needs of people, trends in telecommunication sector changes at a fast pace. Trends
which were popular some months ago are now unable to satisfy the needs of customers. In
context with today's scenario, some emerging and existing trends of telecommunication sector
are mentioned below:
 Cross industry alliance: Other than offering only data and voice services,
telecommunication sector is also engaging in entertainment industry. Adopting this trend
is costly as buying entertainment producing organisation requires billions of dollars. In
recent time, many of the telecommunication organisations are investing high in
broadcasting content to diversify their portfolio and earn high revenues.
 5G picks up the steam: in some of the countries such as Australia, South Korea,
Switzerland and some other European nations, 5G technology is available. 5G brings new
standard for technology which helps telecom companies to earn high profits and earnings
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without any second thought. This new trend in telecommunication promises universal
mobility, scalability and security due to which connectivity with IOT will became more
reliable. This trend in telecom sector will allow the customers to access high quality
content in fractions of second (Kang, Choi and Choi, 2019).
 Optimisation without any compromise: Experts in IT sector finds telecommunication
jobs as less challenging. This resists them to work in telecom companies. Due to this,
telecommunication sector is Automating some of their processes which requires high cost
investment. To stay efficient, many of the European telecoms have decided to further cut
around their staff. It is an on going problem or trend in this sector which is impacting the
career of working population in a negative manner.
 Augmented reality and virtual reality: From some time, AR is getting wide popularity
as it empowers the digital visualisation of real pictures. Some example of Augmented
reality trend are filters on Facebook, Snapchat, Instagram etc. In upcoming years, this
trend will go further and VR powered platforms will takeover gaming industry. .
Different games and other websites are using virtual and augmented reality to enrich the
experience of their customers (Lin and et. al., 2018).
 Enhanced use of Artificial intelligence and machine learning: From some time, both
machine learning and Artificial intelligence has became hottest trend in
telecommunication retail sector. Also, AI and machine learning helps people in
automating their household work and other activities. This trend of telecom sector helps
organisations in saving their costs via automation, efficient supply chain, digitalised
transactions, optimising costs of network etc. so that high revenues can be earned.
Analysis of the organisation with the help of business models
Huawei is a China based technology organisation which offers consumer electronics,
telecommunication equipments, smartphones and other products to their customers. This
company operates in a global manner and founded in 1987 by Ren Zhengfei. This organisation
operates under telecommunication sector and earns a revenue of around 10.700 billion US
dollars.
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Analysis on the basis of secondary research:
To perform analysis on this company, macro and micro environment of company will be
analysed in a proper manner. In this context, business models such as PEST and SWOT will be
used which are mentioned below:
SWOT analysis: It is a framework which helps a company in acknowledging their
weaknesses and strengths while managing business. Along with this, SWOT helps in identifying
the potential opportunities and threats which can impacts the revenues and profits of Huawei in
a considerable manner.
Strengths Weaknesses
 Main strength of organisation is its
competitive pricing. Past some years,
people prefers to buy budget friendly
devices with innovative features which
are offered by company.
 One of the major strength of this
company is its large product portfolio
which includes smartphones, watches,
fitness bands etc.
 Huawei faces lack of capital due to
which they have to carefully plan their
business activities and operations. This
impacts their marketing activities in a
negative manner.
 Company is accused of using their
resources for espionage and other
activities which has reduced the
reputation of company in marketplace.
Opportunities Threats
 Company can offer unique technologies
like AI, automation, Augmented reality
in average prices than luxurious brands
due to which people will be highly
satisfied with organisation.
 Expanding business in other Asian and
African market ensures high profits to
company due to presence of high
population in these regions.
 Main threat to the organisation is entire
smartphone market. Not only luxurious
brands like Apple and Samsung can
harm the revenues of company but
other companies like Oppo and Vivo
are also treats.
 Increased tension in US and China can
results as a trouble for Huawei.
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PEST analysis: This analysis helps in acknowledging macro-environment of the regions
in which a company is operating or plans to operate. In context with Huawei, PEST framework is
mentioned below:
 Political factors: UK is a politically stable nation in which government do not prefer to
regulate and deregulate policies in regular manner. Political factors involve trade
restrictions, tax policies, regulations and laws, tariffs etc. Government in UK favours
retail organisations and do not adhere strict norms to them. But due to Brexit, Huawei can
face difficulties while trading in UK.
 Economic factors: These factors are related with the interest rate, GDP, inflation, growth
rate, purchasing power and economic standard of people. People in UK have high
purchasing power due to good earnings. They can easily afford the products of company
but due to great recession of 2018, inflation and interest rates have raised that can impact
Huawei negatively.
 Social factors: People in UK are educated and expects value for money. Huawei offers
innovative features in average price which will attract the attention of people in positive
manner. But due to the misconception that Chinese products are not reliable, branding of
company is very weak and people in UK can feels reluctant to buy it.
 Technological factors: These factors are linked with innovation and technology. Huawei
comes among top three brand of smartphones and offers quality products which helps the
firm in earning high profits. By using AI and voice assistant, augmented reality etc.
company is able to retain their customer base for longer time. If company will stop their
updating in technology, customers will stop buying their product and shifts their
preference towards other products of company.
Analysis on the basis of primary research:
With the help of primary research, fresh data can be collected which will helps a
company in modifying their activities and operations in accordance with the changing demands
of customers. In this context, a questionnaire is prepared which will be filled by 50 individuals
on random basis. Out of 50 people, 30 are customers of company and rest are employees.
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SURVEY QUESTIONS
1) Have you ever used the products of Huawei technologies?
 Yes
 No
2) Are you satisfied by the product offered by company?
 Yes
 No
3) Do you feel company charges high price for their products and services?
 Yes
 No
4) Do you think our official website and portal contains all required information?
 Yes
 No
5) Are you satisfied with the services of Huawei's associates in service centres?
 Yes
 No
6) Do you think company follows a systematic policy for returning and exchanging
products?
 Yes
 No
7) Are you going to recommend services and products of Huawei to your family and
friends?
 Yes
 No
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SURVEY QUESTIONS
1) Have you ever used the products of Huawei technologies? Frequency
 Yes 45
 No 5
2) Are you satisfied by the product offered by company? Frequency
 Yes 40
 No 10
3) Do you feel company charges high price for their products and
services?
Frequency
 Yes 42
 No 8
4) Do you think our official website and portal contains all required
information?
Frequency
 Yes 20
 No 30
5) Are you satisfied with the services of Huawei's associates in
service centres?
Frequency
 Yes 35
 No 15
6) Do you think company follows a systematic policy for returning
and exchanging products?
Frequency
 Yes 20
 No 30
7) Are you going to recommend services and products of Huawei to
your family and friends?
Frequency
 Yes 43
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 No 7
Recommendations
In accordance with the primary and secondary analysis of Huawei company, there are
some recommendations which can be given to the manager of company. These recommendations
will help the company in improving their those activities and processes which are not giving high
returns to them. In this context, some of these recommendations are stated below:
 Manager in Huawei is recommended to update portals and official website of company
on regular basis so that all the important information about existing products or new
product can be reached to customers in a proper manner. This will help the company in
gaining the attention of customers in a proper manner.
 Company is recommended to revise their return and exchange policies for products. It is
seem from the above carried out analysis that customers are not happy with these
procedures of company. By changing existing policies, satisfaction level of customers
can be increased. This will help the company in retaining them for a long time period.
 Also, company is recommended to provide training and orientations to their employees
on regular basis. This will help the employees in updating their skills and understand the
demands of customers in a proper manner. By this, workers of Huawei will be able to
provide effective services to their customers at service centres.
 Manager of company is recommended to apply loans from financial institutions and
persuade investors to invest more in the business of company. By this, company will not
face shortage of capital and can compete with luxurious brands in a competitive manner.
CONCLUSION
From above given project, it has been concluded that tends in telecommunication sector
changes at a fast speed. Recent trends in telecom sector are 5G technology, cross industry
alliance, use of AI, augmented reality and VR-platforms. With the help of PEST, SWOT and
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survey questions, analysis of company can be performed so that appropriate recommendations
can be given to firm.
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