Huwaei Case Study - Goals and Strategies

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Case analysis of Huwaei Goals and Strategies

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  • providing operational and consulting services and equipment to enterprises inside and outside of China; and manufacturing communications devices for the consumer market.
  • Huwaei Case Study - Goals and Strategies

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

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