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 impressive internals including its powerful Kirin 970 processor, 960 frame per second camera, above average battery life, compelling detail in system optimization, and the night vision mode. All these features are a step above the competition in the mid-range market. Leveraging their potent combination of product differentiation and innovation will gradually help Huawei to build its customer base in the US market.
Major research and development investment is another factor that can help Huawei in the US market. Currently, there are over 20 R&D institutes around the world, including the United States. Huawei invested $13.23 billion in 2017 in R&D, accounting for 14.9% of its total revenue. This places Huawei solidly in the top 5 companies worldwide. This has been a sore point for many Chinese companies due to lack of this type of investment and questionable track record on intellectual property. Investing more into the US market and potentially partnering up with a government “approved” company can show Huawei’s willingness to avoid a head on collision with the US government, while improving its position in the marketplace.
Huawei has many inherent weaknesses in the US market. One of the most critical is its failure to strike a deal with a major US carrier. The consumer behavior in the US is different than in most countries around the world. In the US, 90% of smartphone users purchase their phones from network carrier stores as opposed to directly from the company or tech stores. Huawei's inability to partner up with carrier stores, effectively means that most Americans do not know about the second biggest smartphone maker in the world. Admittedly, the company was on the brink of a partnership with AT&T in January 2018, but the US government effectively shut that deal down citing security concerns.
In addition to being unable to partner up with a network carrier, Best Buy stopped selling Huawei's phones, laptops, and smartwatches. This move virtually leaves Huawei with just its own website and Amazon. Huawei also does not offer the latest devices like the Mate 20 Pro in the US market. According to a number of reviews, Mate P20 Pro camera can best iPhone X and Goggle's Pixel devices, which is a remarkable technological achievement. Limited access to Huawei’s best products hurts their chances in a tight and saturated market in the US.
Huawei has not invested properly in advertising their brand in the United States. Since consumers virtually do not have access to Huawei's products via stores and network carriers, the brand remains virtually unknown. To make matters worse, Huawei spends very little in advertising as compared to behemoths like Apple and Samsung, which shell out hundreds of millions just in the US market alone.
Failure to partner up with network carriers and brick and mortar stores have severely limited Huawei’s ability to compete in US market. Huawei has not fully committed to advertising or displaying their best products, which further hinders its ability to penetrate an exceedingly competitive and saturated market. Complicating the situation even further is the current political situation. Many of Huawei’s weaknesses are effectively exaggerated by the actions of the US government and the strengths are diluted and undermined. Huawei needs to transform their strategy if it plans to remain and succeed in the US market.
Question 2
Strengths
Weaknesses
Product differentiation in design and functionality
Over-dependency on sales of iPhone.  About 60% in 2016 and 69% in the first two quarters of 2105
Vertical integration of operating system, software, hardware, services and applications to create a closed ecosystem
High sales price for all products, targeting mainly middle to upper class consumers
Brand equity and strong brand image.  Apple was ranked #1 in brand equity by Forbes in 2018
Incompatible with non-iOS software and accessories.  Android OS has about 85% global market share
Super customer services – high quality and knowledgeable sales for all Apple products and post sales supports
Narrow product selection in the product portfolio.  Need another sentence to elaborate
Customer loyalty.  Apples had the highest customer loyalty in laptop computers, tablets, smartphones and online music per 2017 Customer Loyalty Engagement Index
Limited distribution network.  Apple relies on its retail and online stores, third-party cellular network carriers
Phenomenal advertisement campaigns and marketing strategies
High profit margin.  23.68% for the 4th quarter, 2018
Sources
https://www-file.huawei.com/-/media/corporate/pdf/annual-report/annual_report2017_en.pdf
https://www.forbes.com/sites/bensin/2017/03/31/huawei-sold-more-phones-made-more-money-but-less-profits-why/#779e14baf83a
https://www.businessinsider.com/huawei-smartphones-are-popular-all-over-world-not-united-states-2018-12
https://www.businessinsider.com/why-huawei-not-sold-in-united-states-2018-12#so-while-you-can-buy-huawei-products-in-the-us-theyre-not-easy-to-find-12
https://www.cnet.com/news/huawei-dealt-blow-loses-best-buy-as-smartphone-laptop-smartwatch-retailer/
https://www.huawei.com/us/about-huawei/publications/winwin-magazine/23/mobile-video-advertising-a-major-revenue-opportunity-for-operators
https://www.cio.com/article/3326517/leadership-management/australia-s-cp-mining-and-huawei-build-smart-mining-areas.html
https://www.androidauthority.com/bbk-third-biggest-phone-manufacturer-808839/
https://www.campaignlive.com/article/apple-ad-spend-rises-50-record-18-billion/1370742
https://www.reuters.com/article/us-huawei-r-d/chinas-huawei-to-raise-annual-rd-budget-to-at-least-15-billion-idUSKBN1KG169
https://www.caixinglobal.com/2019-01-11/chart-of-the-day-huawei-is-no-5-global-rd-investor-european-commission-says-101369150.html

RELATED

Final assignment - argument standardisation and critique - PHL137 Macquarie university - assignment

1947 words - 8 pages proposed UN Framework Convention on Climate Change (UNFCCC) Analysis of Argument and Rhetoric Devices Premise 1 Premise 1 argues from a monetary viewpoint; that the UNFCCC’s proposals to have wealthier countries fund poorer nations in order to reduce climate change is not only flawed but unnecessary and would be a financial drain to Australia. However there are a few problems with this argument. The writer implies that the UNFCCC is corrupt since

Business analysis and marketing strategy - Canine behaviour - Essay Assignment

4203 words - 17 pages , allowing a greater understanding of the implications (ebooks,2013).PESTLE analysis is a framework which enables businesses to ask questions concerning environmental considerations, technological innovations and economic factors (ebooks,2013). Table 1: Swot analysis of the business Strengths (internal) Weaknesses (internal) Hold an FdSc in Canine Behaviour and Training Obtaining a university degree can be a huge advantage as individuals with higher

Allan and Damien case law analysis - UCD - Assignment

2343 words - 10 pages Running head: COMMERCIAL LAW COMMERCIAL LAW 1 Commercial Law Name of the student Name of the University Author Note An agreement is an intentional and legal arrangement between several parties and a contract is an agreement which is enforceable in the court of law. The parties to a contract must have legal intention to legally bind the contract (Mckendrick, 2014). An agreement to become enforceable, the parties must come to an understanding. The

Advantages and Disadvantages of Networking - South University - Assignment

2848 words - 12 pages Albert Simmons WEEK 1 DISCUSSION Advantages and Disadvantages of Networks In this assignment, you will distinguish between the advantages and disadvantages of using computing networks. You will also get familiarized with the terms associated with networks. Provide a detailed description of situations in which the use of networks benefited you as well as situations where the use of networks was a disadvantage. Share at least one situation for

corporate finance Burberry and mulberry analysis - de montfort university - assignment

737 words - 3 pages Free potential problems, due to too many ratio to evaluate one company, it would make people confused to classification results. Financial ratio also be restrict on different industries and size such as Moody’s company (Beaver, 1966). Based on Beaver, Altman(1968) proposed Z score which has rigorous indicate to analysis whether a company have bankruptcy. Burberry, Mulberry has relatively safe score that is all above three, that is lower risk of

Analysis of Privacy and Identity - St. Johns University - Upper level Communication Class

889 words - 4 pages Jamey Koetter Charlie Morin Comm 342 2/13/18 Privacy & Identity Analysis 1. YouTube is enabling because it allows it's user to post videos that you've created and through a creative process your shaping the identity that you want other individuals to see you as. Based on the looking glass reading it allows other people to subscribe to our pages and watch our videos and leave comments on them. This process allows us to go back and edit the

Discuss the problems which may arise in linkage analysis which uses spatial and temporal data. - Assignment - Assignment

2578 words - 11 pages Encompass, Easter Kentucky University, United States of America Sammons, A (2005) Learning theories of offending Criminological psychology - http://psychlotron.org.uk/newResources/criminological/A2_AQB_crim_learningTheory.pdf [Accessed, 4 May. 2018] Sammons, A (2002) Psychology and Crime Routledge, Psychology Press, USA and Canada Werner, J et al (2006) Criminological Theory: An Analysis of Its Underlying Assumptions Rowman & Littlefield Publishers, Inc. United States of America

Job Analysis: assistant of Human resource manager, includes skills, duties, knowledge and ablities - MSU - Assignment

607 words - 3 pages Job Analysis Interview Position: Human Resources Assistant Department: Human Resources Department What do you do? As a Human Resources Assistant, I will aid staff members in all aspects of Human Resources including attendance tracking, answering phones and responding to emails, performing data entry to maintain and update files, hiring and on-boarding, training new employees, assisting with employee relations, and so on. As one of the HR

the role of icons in religious structures or in personal homes - Tiffin University and Culture220 - Assignment

574 words - 3 pages Free 1 Zaireea Norman 10/8/17 Assignment # 5 Culture 220 In this essay I will be examining the role of icons in religious structures or in personal homes. Usually when you walk into a Christians home most of them would have something hanging up on various walls and platforms in their house. This something would be the Jesus hanging on a cross plaque. Christians do this to either bless or protect their home. Sometimes they just hang these plaques up

Justice and its implication on South Africa's education system - University - assignment paper

2629 words - 11 pages to education and how they can help our society. Thirdly we must be able to identify the flaws and inequalities in our education system and how we able to use our theorist ideas to combat these inequalities. Fourthly we will need to conclude on how all these ideas and concepts can help us to better our society and our education system. Justice can be described as “the moral principle determining just conduct” in the context of the assignment

Slippery Slopes: Media, Disability, and Adaptive Sports” - Vincennes University writing assignment - Rhetorical Analysis Essay

814 words - 4 pages Cullen 1 Abby Cullen Mr. Houston Period 2 9/5/2018 Rhetorical Analysis People with disabilities are shown in the media in a negative way. William J. Peace, the author of “Slippery Slopes: Media, Disability, and Adaptive Sports”, hopes to change the general public’s view in order to make disabilities not a bad thing. Peace’s use of diction, syntax, and testimonies conveys his feelings towards the public’s view of the disability community. Peace

critical analysis organizational culture - university - business assignment

1356 words - 6 pages . & Gulati, M. (2013). Acting White?: Rethinking Race in Post-Racial America. Oxford: Oxford University Press. CIRT, (2018). Benefits and limitations of experimental research. https://cirt.gcu.edu/research/developmentresources/research_ready/experimental/benefits_limits Accessed 09/11/2018 Colella, A. & King, E. B. (2018). The Oxford Handbook of Workplace Discrimination. Oxford: Oxford University Press. Jackson, A. & Thomas, M. P. (2017). Work and

Adidas: Operational Analysis and Inventory Management - Coventry university. M.Sc. - Report

2595 words - 11 pages ADIDAS OPERATIONAL ANALYSIS: INVENTORY MANAGEMENT Contents EXECUTIVE SUMMARY 2 OVERVIEW 3 IMPACT OF OPERATIONAL AREA ON ORGANIZATION PERFORMANCE 3 ADIDAS ANALYTICAL CAPABILITIES 3 KEY VARIABLES 4 ABC ANALYSIS 4 ECONOMIC ORDER QUANTITY 5 LIMITATION OF THE ANALYSIS 6 UNDERSUPPLY AND OVER-SUPPLY 6 RISK OF LOSS 6 CONFLICTS WITH OTHER COST SYSTEMS 6 CONCLUSION 6 APPENDIX 7 REFERENCE LIST 8 EXECUTIVE SUMMARY This report will focus on Adidas analytical

Astrophel and Stella Sonnet 27 analysis - University of Birmingham - Essay

1707 words - 7 pages and Stella.; The idea of nature in Milton’s poetry’, (New Haven, Yale University Press, 1958) p.20] In the opening lines the speakers secluded state is introduced: ‘Because I oft, in dark abstracted guise Seem most alone in greatest company’ (l.1-2) Plosive and consonants ‘b’, ‘d’ and ‘g’ produce sudden bursts of air, which help to pace the poem and offer an immediately abrupt, uneasy tone. Sidney’s iambic meter allows stress to fall onto the

Competitor analysis of Coca Cola - Southern States University / BU-531 - Assignment

1871 words - 8 pages Adnan Suzen Competitor analysis of Coca Cola 1. Number of competitors in each market (domestic and international) Pepsi The most important and nearest competition of coca-cola; its own arch competitor Pepsico was shaped right after the merger of Pepsi and Frito put in 1965. The newest has also seen increase inorganic profits in 20 17. It's 20 billion dollar makes in its own product portfolio. US it-its biggest market at which it's participated