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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
VisionTo enrich life through communication.
MissionTo 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.
ObjectivesHuawei goal is to become the top ICT vendor for telecommunication overseas
Vision, Mission, Values and Objectives
Core Value
s
Customers First
Dedication
Continuous
improvement
Openness and initiativ
e
Integrity
Teamwork
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 industriesA. Carrier NetworkB. Enterprise BusinessC. 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