Huawei Competitive Strategy

1191 Words5 Pages
Industry Analysis Huawei is a globally operated and leading Information and Communication Technology (ICT) solutions provider, functioning in the Telecom networking equipment industry. Although most of its revenues come from manufacturing networking equipment sold to enterprises across the world, including Vodafone, China Unicom, Deutsche Telecom, etc. However, we concentrated and conducted our research on the Telecommunication industry it operates in, producing Smartphone’s and other electronic devices associated with telecommunication, earning only one-third of its total revenue. However the Smartphone business proved to be the fastest growing as far as the company is concerned. Competitive Forces Analysis For competitive forces analysis,…show more content…
Since there are large number of hardware manufacturers, Huawei is in a very strong position to bargain and negotiate with its suppliers and are price sensitive and due to numerous equipment suppliers readily available in the market and most importantly the designated suppliers would not want to lose such a massively operating company. On the other hand, there is large number of open software developers in Huawei’s platform; as a result the bargaining power of the software developers is low. • Intensity of Rivalry: Rivalry among the existing companies is high. There are hundreds of patents under each company’s name creating customer demands by differentiating their products in terms of powerful innovations and extremely price sensitive manner. Low switching cost would also add-on to the reasons behind this intensity. Huawei, with its decades of experience in manufacturing and selling telecom networking equipment assisted the company to outperform its rivals by building better phones and establish goodwill in the telecommunication market, worldwide. Industry Life Cycle…show more content…
Moreover, the company earned financial supports from state-owned banks for its expansion overseas. Such opportunities helped the company to outperform competitors. However, such close relationship with the Chinese government has earned negative feedbacks, being barred by the US government to enter the American market stating Huawei’s equipment and devices as vulnerable to spying from Chinese government, convicting the company to have undisclosed relationship with the Chinese

More about Huawei Competitive Strategy

Open Document