3. Background
It is a Chinese multinational networking and
telecommunications equipment and services
company headquartered in Shenzhen, China.
Huawei was founded in 1988 by ex-military officer
Ren Zhengfei and formed as a private company
owned by its employees.
Its core missions are building telecommunications
networks.
Huawei has over 140,000 employees worldwide.
4. Vision, Mission, Values and
Objectives
Vision
To enrich life through communication.
Mission
To focus on our customers' market challenges and
needs by providing excellent ICT solutions and
services in order to consistently create maximum
value for our customers.
Objectives
Huawei goal is to become the top ICT vendor for
telecommunication overseas
5. Vision, Mission, Values and
Objectives
Core
Values
Custom
ers First
Dedicatio
n
Continuous
improveme
nt
Openness
and
initiative
Integrity
Teamwor
k
7. Business Strategy
Main business goal is to reach USD 100 Billion
revenue by 2020.
Attacking the local and global market in
following industries
A. Carrier Network
B. Enterprise Business
C. Consumer Business
8. Business Strategy
2011: $32 B
2010: $29 B
2009: $23 B
Overseas market has grown up majorly, 100% US, 60%
Europe. Major growth in Australia, North Africa, Japan
and Middle East
11. IT Strategy
R&D – Approx. 50% of employees
User Experience
Speed of Execution
High Quality output
Employee Freedom
Experience Sharing
12. IT Strategy
Data Center:
Unified Data Center – China
1600 servers
Online Backup system, data storage
Power Supply System with 99.99% reliability
Training Center:
Provide training to customers, suppliers, partners and
employees
Equipped with the latest and most advanced
technologies. E.g. Simulators
(http://www.youtube.com/watch?v=5nsqNeUVZ78
)
13. SWOT Analysis
Strengths:
Low cost (operation and engineering) which lead to low
cost pricing strategy.
Stability and support from China government.
International expansion giving powerful access to many
markets.
Strong manufacturing capabilities with low costs.
Leading and initiate 3G & 4 G mobile communication
technology.
Cheap and high quality R & D, 10 % of its revenue is
spent on R & D within 20 centers worldwide.
Partnership with global partners.
14. SWOT Analysis
Weaknesses:
Limited investment opportunities because of
be tied to Chinese government.
Lack of strong presence in some regions.
Difficulties in dealing with Chinese employees.
15. SWOT Analysis
Opportunities:
Expand within new growth geographies.
Extensive opportunities in a highly growth
telecom market.
Make strong strategic partnerships with
expertise or local companies.
16. SWOT Analysis
Threats:
Strong competition of the other global brands in
telecom market.
Blacklisting Huawei in relation to cyber-security
concerns and lack of trust.
Lower profits might be happened.
17. Porter’s Analysis
Risk of Entry
Bargaining Power of
Suppliers
Intensity of Rivalry
Bargaining Power of
Buyers
Threats of Substitutes
18. Porter’s Analysis
Risk of Entry
Entrance of new big companies
Bargaining Power of Suppliers
Large number of equipment makers around
Enough vendors to weaken bargaining power
19. Porter’s Analysis
Intensity of Rivalry
High degree of competition
Competitors attract customers with lower prices
and more exciting services
Bargaining Power of Buyers
Increased choice of telecom products and
services
Low product differentiation
20. Porter’s Analysis
Threats of Substitutes
Products and services from non-traditional
telecom industries
Cable TV and satellite operators now compete for
buyers
Internet becoming a viable vehicle for cut-rate
voice calls
21. Recommendation
Solve the big threat cyber security
Separate between Huawei company and
Chinese government
Provide better localization for overseas
customers
providing operational and consulting services and equipment to enterprises inside and outside of China; and manufacturing communications devices for the consumer market.
