Introduction Nowadays, violent competition is among the telecom equipment industry. Achieving success in this market is not an easy task to do so. However, a Chinese company – Huawei, which was becoming a global corporate, was considered as a “China Achievement”. Although it still left behind the greater challenger – Cisco, it grew quickly and might threat to Cisco. Before discussing how it can strengthen it’s capabilities and challenge Cisco, the basic analysis is to identify it’s resources and core competencies.
For replying Question 1 To identify Huawei’s resources and assess its capability and core competencies, a resource audit and Porter’s value chain should be applied. By using both of these analysis in this case, Huawei has As a result, the leapfrogged and advanced development in technology could be achieved. And this linkage makes a core competence, which was performed better than its competitors. Although their competitors can follow this easily, it is time-consuming to gain this advantage.
The second core competence is its core R&D team, which is combined with its marketing employees and low-cost R&D labor in China. The R&D staff could get the detailed customers’ needs directly from the marketers, the equipments and services then could be specifically designed for their customers. Their products and services then not only could be supplied faster, but also could respond to their customers’ requirements. Therefore, their operation could be much more efficient and effective. Quick response to the market needs, a better services and products could be provided. This can help for increasing their market share. And there is no mention about their competitors’ performance in such area. But surely that it brings value in their customers’ eyes. Finally, it is a core competence to make their services and products be both lower cost and differential.
The last one is forming joint venture with 3Com. At the beginning, its culture is that not looking for cooperate with foreign companies. But it was changed and forms joint venture with 3Com
In 1996, Huawei began considering international expansion and started looking beyond the Chinese market. At this time, Huawei was dominating the Chinese telecom equipment market. Since this was the first time Huawei were going out of their territory, they targeted developing countries to expand internationally to avoid head-to-head competition with international giants like Cisco and 3Com. Soon they started doing business by selling their products to developing countries like Brazil, Thailand where…
Huawei “wolf-sheep” “Wolf culture” contributes to Huawei’s success. However, absolute “Wolf” may cause trouble at the same time. Like the saying “every coin has two sides”, the glorious culture and tradition of Huawei still have some sad effects. “Sheep culture” on the other side, represent gentle and sedulous. It may not as strong and fast as “Wolf”, but its sense of soft is more warm and humanistic. As a Chinese traditional value of “Zhongyong”, the Doctrine of the Mean delivers,one should try…
in 1985, the year Dubai’s ruling family started a small airline called Emirates to shuttle Pakistani workers between Karachi and Dubai aboard two leased planes. “Nobody believed Emirates could be a successful airline,” recalls Fekih, who now heads Air-bus’ Mideast subsidiary. “It was the joke of the day.” Emirates is a joke no longer. It has grown into the world’s tenth-largest airline, earning $1.45 billion in profits in 2007 on sales of nearly $11.2 billion. One important factor underlying Emirates’…
BUSINESS LEVEL STRATEGY Market Development Strategy: Huawei is following market development strategy from the very begging to prevent the rivalries. Because of this strategy they have been able to come to this position. For the next few years also, we think this strategies should be followed. Finding new segments in the market and expanding sales on those segments is a good way to prevent rivalries. Price Cutting Strategy: Huawei follows price cutting strategy. They pay low engineers salaries and…
6th, 2015 Introduction Founded in 1987 in Shenzhen, China, Huawei is a leader of global information and communication technologies (ICT) providers. The revenue of Huawei reached 38 875 millions U.S dollars in 2014 and ranked 285 in the top global 500 companies (Fortune, 2014). Deployed in over 170 countries and regions in the world, Huawei has 150 000 employees who provide services to more than one third of the world's population (Huawei, 2015). Driven by a customer-centric innovation perspective…
a large tech company called Huawei. Huawei is a Chinese technology and telecommunications company, it was founded 1987 in Guang Zhou, China. Huawei started out as a reseller of PBX switches (private branch exchange) for a Hong Kong company. Eventually they began developing their own telecom equipment in house to sell. With that decision, Huawei started its own business empire. Our research so far has been based on materials online and the information from the Huawei website. We expect all further…
Introduction nowadays, more and more firms are interested in servicing foreign market, but they always have to face many problems before entering foreign markets, cultural factors is one kind of those problems which is worth considering. For instance, Atkins-Kruger(2010) noted that as a cultural factor, climate and weather have a direct influence on a company's product category in search market. People in a county with unpredictable weather conditions, such as UK or Singapore, will have more demands…
Chinese local firms compared with foreign firms in China? Why are some local Chinese firms more successful than others? Why are some foreign firms more successful than others? Examples of Successful Chinese Firms Lenovo Haier Huawei BYD Geely ZTE Tsingtao beer Huawei Initially…… When foreign MNCs first entered China, they entered high end markets via product imports or the local assembly of imported parts and compete on the basis of technology and brand Local firms occupy the low end of…
Chinese government are both barriers when Diamond develops in Chinese market. 2) The banks are interested in financial performance for return and finance and influence through level and maintains of finance. The partners such like Siemens, Nokia, Huawei, they all work in partnership with Diamond and will seek to gain sales and technological benefits, and their agreements will define their interests and influence. And this will reduce the risk to pursue the growth strategy. 3) In Diamond, it has…
Global Post America’s World News Site From: http://www.globalpost.com/dispatch/news/regions/asia-pacific/china/130815/global-economy-brands-apple-ikea-samsung Made in China: Can China build an Apple or Ikea? Yes, and it's on the verge by James Miller August 19, 2013 06:02 BOSTON — The Middle Kingdom tends to do things on a grand and decisive scale. The Three Gorges Dam, the world's largest power station, tamed Asia's longest river. The once-reclusive…