Comprehensive SWOT Analysis of Huawei: Business Development Report

This report provides a comprehensive SWOT analysis of Huawei, a major player in the telecommunications industry. The analysis examines Huawei's internal strengths, such as its large human resource management and financial success in the domestic market, and weaknesses, including employee decision-making issues and the impact of the US market. It also explores external opportunities, such as expansion in the international market and increasing sales revenue, alongside threats like the indictment discovered of staff members and the US government's concerns regarding industrial espionage. The report identifies key issues such as controversies and tainted image, and offers recommendations for Huawei to address these challenges, including reducing controversy, improving financial data accuracy, and maintaining good relations with the US. The report concludes with a list of relevant references.

SWOT Analysis Of
Huawei

Table of Contents
TASK...............................................................................................................................................1
1. What is SWOT analysis and how can it be useful for organisations?....................................1
2. Conduct a SWOT analysis of Huawei....................................................................................1
3. Most important issue that need to address by Huawei............................................................3
4. How do you think Huawei should respond to the most important issues arising from the
SWOT analysis? Explain your recommendations.......................................................................4
REFERENCES................................................................................................................................5

TASK
1. What is SWOT analysis and how can it be useful for organisations?
SWOT Analysis is a framework which is utilised by the company to know competitive
position and create strategic planning (Barrow, 2016). Through the analysis assesses internal as
well as external factors, current and future potential. It is mainly designed to facilitate a
optimistic, data driven, fact based look at strength and weaknesses of a company, its initiatives or
an industry.
It is used by the business entities to identify strength, weakness, opportunity and threat in
order to analysis internal position of company. An organisation wants to examine actual situation
of company by ignoring pre conceived beliefs or Gray areas. Organisations should use it as guide
not as a prescription. The company use of SWOT analysis for develop strategic planning,
brainstorming and decision making. Along with building on strengths, minimising weakness,
seizing opportunities, counteracting threats and addressing individual issues such as staffing
issues, advertising, business culture and image, new product development etc.
2. Conduct a SWOT analysis of Huawei
Strength Weakness Opportunity Threat
Human
Resource
Management
The strength of
the Huawei is
large where
people cooperate
with each other
and help to
expand business
activities.
The company
face problem that
employees take
decision own
basis that create
problem for the
company.
The indictment
also provide
details evidence
of a bonus
scheme from
2013, providing
opportunity to
Huawei staff
members to
financial rewards
for stealing
confidential
information from
competitors.
The threat
discovered of
Huawei that staff
members
smuggled Tappy's
robotic arm into
his satchel and
transfer details to
staff members of
china. After
disclosed it the
company claimed
that that arm has
mistakenly fallen
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into his bag.
Accounting and
finance
In the 1995
company earned
about US $220
million to selling
products in rural
market. As a
result Huawei get
position of
national
champion in the
market. Once
china economy
increase by
average 10% per
year that is big
advantage. This
time Huwaei
started to
expanded
business
activities, that is
really saw its
sales soar.
The weakness of
the business to
does not
effectively
maintain data in
the financial
statements (Carrà,
and et.al,2016).
In 2002, Huawei
made about US
$552 million after
sold products in
international
market. In 2005,
company get
revenue more
than domestic
market in the
international
market. The
company
privately held
business activities
and staff
members owned.
It provided the
power of owner
to invest more
money back into
research and
development. The
company get
biggest budget to
expand business
such as US $20
billion.
Due to public
listed company
required to pay
more attention on
their balance
sheets. Huawei
much more invest
in the stock
market. As a
result profit will
drop and share
prices.
Marketing Huawei is the The market US fear from The UK,
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world's biggest
seller of network
telecommunicatio
ns equipment in
the market. It is
selling smart
phones more than
to Apple. In
practice the
government of
china closed the
market to foreign
competition.
position of
Huawei in the Us
market is weak.
Us is known as
leading market
for smart phone
so from the
government
perspective
individual abstain
from buying
Huawei handsets.
Day by day the
position of the
company fall
down in United
States. On the
other side
Chinese
government face
to loss goodwill
in the United
states America.
Huawei regarding
to industrial
espionage. As per
the decade, the
US government
has seen the
organisation as
little more than an
arm of the
Chinese
communist party.
It is one of the
biggest telecom
company which
placed to
developed new
5G networks. As
a result customer
attract for mobile
and increase sales
revenue (Rao,
and et.al, 2016).
Germany and
Canada are giving
feedback that
Huawei products
pose a security
threat.
3. Most important issue that need to address by Huawei
SWOT analysis helps to identify issues of Huawei in order to address effectively such as:
 Large number of controversies and tainted image: Huawei faced many problems due to
controversies that shows negative effect on the company in international market. Due to
rivalry between the US and china can be blamed to Huawei for extent for this, the image
of company considerably weakened.
3

 Due to company US and china were in the middle war that impact on the growth of
nations . This was adding to the fear of a slowing global economy (Alvarez and et.al,
2016).
 The profitability ratio and net contribution percent of Huawei are below that industry
average.
 Huawei cannot effectively tackle the challenges that come after the new entrance.
4. How do you think Huawei should respond to the most important issues arising from the
SWOT analysis? Explain your recommendations
After conducting SWOT analysis of the Huawei identify most important issues that will
create problem for company. So there is providing recommendations to sort out of these issues. It
is recommended that company is trying to reduce controversy and work effectively. They can
maintain all financial data to present accurate balance sheet in front of government and try to
train employees effectively. As a result maintain good relation with US.
4

REFERENCES
Books and Journal
Barrow, P., 2016. Revision of the ICH guideline on detection of toxicity to reproduction for
medicinal products: SWOT analysis. Reproductive Toxicology. 64. pp.57-63.
Carrà, G. and et.al,2016. Participatory strategy analysis: The case of wine tourism
business. Agriculture and agricultural science procedia. 8. pp.706-712.
Alvarez, S. and et.al, 2016. Strengths-Weaknesses-Opportunities-Threats analysis of carbon
footprint indicator and derived recommendations. Journal of cleaner Production. 121.
pp.238-247.
Rao, Y. and et.al, 2016. Current status and future prospects of the development of clinical
Pharmacy in China: A SWOT analysis. Pakistan journal of pharmaceutical sciences.
29(2).
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