MKT306: Huawei's Marketing Strategy Analysis, Sunderland University

This report provides a comprehensive analysis of Huawei's marketing strategy. It begins with an external analysis using the PESTEL framework, examining the political, economic, socio-cultural, technological, environmental, and legal factors affecting Huawei. An internal analysis follows, outlining the company's strengths, weaknesses, opportunities, and threats (SWOT). The report identifies Huawei's competitive advantages and evaluates its current marketing strategy. The second part focuses on segmentation, targeting, and positioning (STP), recommending objectives and goals based on the SMART framework. Finally, it suggests marketing strategies based on the application of the marketing mix, including product, price, place, and promotion. The analysis considers Huawei's position in the global telecom market and its competition with companies like Apple and Lenovo.

Running head: MARKETING STRATEGY
MARKETING STRATEGY
Name of the Student
Name of the University
Author note

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Abstract
Huawei is the one of the global leading company in the telecom sectors along with the great
range of products that includes mobile phones, tablets, wearable, broad band devices and the
home devices. This is the manufacturer of the telecom equipment and the Chinese
multifunctional telecom company that is headquartered in Shenzhen, China. This first part will
be depending 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.

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Table of Contents
Part 1................................................................................................................................................3
Introduction......................................................................................................................................3
Situation analysis.............................................................................................................................3
Political condition........................................................................................................................4
Economic condition.....................................................................................................................5
Socio-Cultural condition..............................................................................................................6
Technological condition..............................................................................................................7
Environmental condition.............................................................................................................9
Legal condition..........................................................................................................................10
Strength......................................................................................................................................11
Weakness...................................................................................................................................11
Opportunity................................................................................................................................11
Threats.......................................................................................................................................12
Competitive advantage (USP).......................................................................................................12
Perceptual map...............................................................................................................................13
Comparative analysis.....................................................................................................................13
Two competitor: apple and Lenovo...........................................................................................13
Evaluation of current marketing strategy......................................................................................15

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Part 2..............................................................................................................................................16
Segmentation targeting and positioning (STP)..............................................................................17
Time Space Chart of Target customers.........................................................................................18
Recommended objectives and goals (SMART)............................................................................19
Recommended marketing strategies based on the application of the marketing mx to your chosen
branded supermarket chain............................................................................................................20
Marketing Mix...........................................................................................................................20
Conclusion.....................................................................................................................................22
Bibliography..................................................................................................................................23

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Part 1
Introduction
Huawei targets the lower income segments as the production cost of the products are low
the company is able to provide the quality products in less price thereby attracting the people of
low income segments. Huawei has not been able to compete in the international business market
as there is tough contest with the leading brands although it is one of the largest global telecom
company (Islam 2018). The first part of the paper will analyze the situation analysis of the
company by describing the political, economic, technical, legal and environmental condition.
This also involves the strength, weakness, opportunities and threats of the business. This study
will involve the external and the internal market analysis for understanding the external and
internal benefits and the risks, the organization is facing. The study will also describe the
competitive advantage for the business and the current marketing strategy followed by the
business. The second part of the paper will involve the segmentation, target and the position of
the organization in the business. This study recommends the strategies for the business for
competing in the business market. The recommendation of strategies will be based upon the
marketing mix of the organization.
Situation analysis
The PESTEL analysis is considered as the structure that are applied by the marketers for
determining and monitoring the micro environmental factors which creates great impact on the
organization. This helps to determine the threats and weakness of the organization.

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Political condition
The Chinese political environment plays a great role on the Huawei’s largest business
market. The governing party has a great influence on the economic environment of the country.
Thereby any political incidence which affects the politics of China has heavy impact on the
profit margin of Huawei. During the political promotions and the meetings of the National
Congress, stock prices of a majority of the Chinese business firms tend to put (Sanga 2017).
Global profitability of the business is subjected to the political climate of the respective country.
On the other hand this is found out that the global and the local politics could affect the business
process of Huawei in the positive manner. The Chinese governments also supports the
telecommunication sectors by providing the sufficient training for students in engineering that
appreciates the effectiveness of inbound workforce, which makes it significantly competitive.
The loans, grants and other incentives for the purpose of promoting the manufacturers in the
locality gives that business a competitive advantage over their foreign counterparts (Tarannum
and Hassan 2016).

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Rank of China among 203 counties
Source (Market Research Blog, 2019)
Economic condition
The economic risks that the organization faces are that Apple becoming the major
competitors of Huawei has the huge resource reservoirs that Huawei struggles to boost the
capital, this affects the economic conditions of Huawei. Moreover the VAT in the
telecommunication sectors hikes business operation costs and this also decreases the profitability
margins of the business. But as the domestic economy has been growing rapidly, this boosts the
disposable income and demand for luxury goods (Simões 2016).

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China economy
Source: Heritage.org. (2019)
Socio-Cultural condition
The Chinese economy is rising daily as the nation has a population of over than 1.3
billion people. This population also provides for a huge market for Huawei goods and also beside
these things the large population develops the steep demands for the products as the numeral of
buyers keeps on rising, this creates positive effects on the business (Moutinho and Phillips 2018).

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Hofstede chart of China
Source: (Hofstede Insights, 2019)
Technological condition
The modernizing rate in the country is becoming appreciable and everybody has been
becoming digital oriented. As the nation wants to remain connected with the digital world, it
provides higher sales opportunities. The government ensures that the ICT related innovation will
provide high-quality education and training programs. Huawei are prone towards bringing new

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quality products for the rigid competition in the business process of international brands like
Samsung, Lenovo and other.
Technology advancement rank
Source: Veugelers, R. (2019)

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Environmental condition
The Green pipe of Huawei has the environmental policies which are required to be
adhered by the company for conserving the environmental values. The business wastes are
further recycled to cut on the possible wastages and for maximizing the obtainable materials.
Huawei also wanted to become the foremost supplier of the green energy goods that have been
trying to originate with the successful ways of minimizing the production of the carbon materials
(Valipour and Hosseini 2017).

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EPI rank of China
Source: (Market Research Blog, 2019)
Legal condition
The operations of Huawei should abide the legal laws like the obvious acts, the tax rates,
labor laws and the ecological laws. The company deals with various workers of various countries
and thereby the organization should fulfill the labor laws and the wages for the authorities of
operation. Enduring the system the business will ensure the optimistic performance of the
organization and the violation of the rules of the strict countries; this could lead to either business
closing or luxurious fines (Bian 2018).
Rank of China economy
Source: (FocusEconomics | Economic Forecasts from the World's Leading Economists, 2019)