Huawei Phone And Telecommunications Analysis University Assignment

1186 words - 5 pages

Question 1 Ming Tai, Martin Edwards, Igor Kleyner
Strengths
Weaknesses
Lower cost and good value
Insufficient access to capital. Private, employee owned company
Product differentiation and innovation
Reliant on competitors for components, especially Samsung
Research powerhouse that is currently outspending many global players
The profitability ratio and Net Contribution % are below the industry average
Huawei has invested in building a strong brand portfolio in China
Days inventory higher compared to competitors
Dominant market share in both telecommunications and smartphones
Huawei is highly affected by high employee turnover which puts business continuity at risk
Highly skilled workforce through successful training and learning programs
Lack of brand recognition in the United States
Successful track record of integrating complimentary firms through mergers & acquisition
Phones are not sold in carrier stores in the US market
Recent marketing campaigns such as enrolling Lionel Messi to bolster its global image
Lacking partnerships with electronics retailers within the US market
Huawei's strategic collaboration with global partners such as Google and IBM
Does not focus on marketing higher end devices in the United States
It has built a culture among distributor & dealers overseas where the dealers not only promote company’s products but also invest in training the sales team
The ability to produce products at a lower cost and good value are among the chief strengths of Huawei globally which can slowly permeate into the US market. A meaningful marker of their success is becoming the second largest smartphone brand in the world. Huawei recently edged past Apple with 200 million handsets sold worldwide. This is an impressive feat considering that back in 2010, Huawei sold only 3 million devices. It is able to beat worldwide competition in low to medium end market by providing great devices at a lower cost. Concurrently, Huawei has produced a premium product that can legitimately compete with Apple or Samsung high end offerings. Superior products with great value have helped Huawei to grow substantially in markets worldwide and can help Huawei to gain a position in the US market.
Huawei is also the leader in telecommunications equipment around the globe. Lower cost and value propelled Huawei to expand its products and services to over 170 countries. A number of source conclude that the company is currently the leader in implementation of 5G technology, consistently outbidding the likes of Ericsson and Nokia. If Huawei can overcome the challenge of being perceived as a security risk and alleviate the concerns of the United States government, the future growth potential in the North American market would be formidable.
Product differentiation and innovation are powerful factors that can help Huawei gain a better foothold in the US market. Huawei offers a wide range of smartphones starting from low end to premium. The mid-range devices have...

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