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CASE ANALYSIS OF
HUAWEI GOALS
&STRATEGIES
Presented by:
Ahmed Ehab
Amna Khalaqi
Mohamed Hamdan
Agenda
 Background
 Vision, Mission, Values and Objectives
 Huawei Strategies
 SWOT Analysis
 Porter’s Analysis
 Recommendation
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.
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
Vision, Mission, Values and
Objectives
Core
Values
Custom
ers First
Dedicatio
n
Continuous
improveme
nt
Openness
and
initiative
Integrity
Teamwor
k
Huawei Strategies
Business
Strategy
IT Strategy
Organization
strategy
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
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
Business Strategy
Recent Highlights
 Launching GigaSite
 Cloud Computing solutions
 Delivering high smartphone UX – 20 Million
sales
Organization Strategy
IT Strategy
 R&D – Approx. 50% of employees
 User Experience
 Speed of Execution
 High Quality output
 Employee Freedom
 Experience Sharing
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
)
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.
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.
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.
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.
Porter’s Analysis
Risk of Entry
Bargaining Power of
Suppliers
Intensity of Rivalry
Bargaining Power of
Buyers
Threats of Substitutes
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
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
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
Recommendation
 Solve the big threat cyber security
 Separate between Huawei company and
Chinese government
 Provide better localization for overseas
customers
Thank You

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Huwaei 130716153405-phpapp01

  • 1. CASE ANALYSIS OF HUAWEI GOALS &STRATEGIES Presented by: Ahmed Ehab Amna Khalaqi Mohamed Hamdan
  • 2. Agenda  Background  Vision, Mission, Values and Objectives  Huawei Strategies  SWOT Analysis  Porter’s Analysis  Recommendation
  • 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
  • 9. Business Strategy Recent Highlights  Launching GigaSite  Cloud Computing solutions  Delivering high smartphone UX – 20 Million sales
  • 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

Editor's Notes

  1. providing operational and consulting services and equipment to enterprises inside and outside of China; and manufacturing communications devices for the consumer market.