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