International Company Analysis: Huawei

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International Company Analysis

Case study: Huawei

Milvia Grasso st.nr. 41972 | Introduction to Marketing | Prof. Olga Dziubaniuk | 17.09.2018

Table of Contents

What is Huawei1

Huawei’s offer2

B2B3

B2C4

SWOT analysis5

References

What is Huawei

“Huawei is a leading global provider of information and communications technology (ICT) infrastructure and smart devices. With integrated solutions across four key domains – telecom networks, IT, smart devices, and cloud services – [ we are] committed to bringing digital to every person, home and organization for a fully connected, intelligent world.” – Huawei.com

The company is best known for its smartphones and other consumer smart devices (tablets, laptops, wearable etc.) and is currently the world’s second-largest smartphone seller behind Samsung according to The Guardian.^[1] It managed in the past few years to become a real competitor for Apple and Samsung that are, since many years, the leaders of the sales charts. According to its annual report published on its website, in 2017 The company's total annual revenue was CNY 603.6 billion (US$ 92.5 billion based on year-end exchange rates) (https://www.huawei.com/en/press-events/news/2018/3/Huawei-2017-Annual-Report)

Huawei started small. Was founded in Shenzhen, China by Ren Zhengfei in 1987 and it produced phone switches. Thanks to China’s will at the time to make reforms and open their market, the need for better telecommunications arose and the government allowed joint ventures with foreign companies and internal research and development.^[2] Mr. Zhengfei went for the latter option as most other companies opted for the first because the vision was to create a domestic competitor to the international telecommunications equipment companies. (Ahrens, 2013) The research and development department is still the core of the company, even after it became a global enterprise. In the beginning the company focused on the needs of the poorest and rural parts of China trying to understand how to connect the people. This aim is still a focus point especially in growing economy countries where they established branches of the company, for example in India and parts of Africa.

In 2018 Huawei counts 180 000 employees worldwide and their innovative ICT solutions, products and services are used in more than 170 countries and regions, serving over one-third of the world's population. (Huawei.com) In Europe they run 18 R&D organizations located in eight countries (Belgium, Finland, France, Germany, Ireland, Italy, Sweden and the UK) and operate numerous joint innovation centers in partnership with telecom and ICT partners. (Huawei.eu) Although it is a global enterprise, its products and services are not available everywhere. Its focus is mainly China of course and the European and Russian market, and they managed to reach other parts of the world but not the USA for example. Today’s politics are blocking the company from selling smartphones and devices on their market because of fears of Chinese government spying them and because it might pose a threat to national security.^[3]

Huawei’s Offer

Huawei is well accustomed to the western world marketing strategies because its strategy is well centered on the 4P + 4C concepts of the marketing mix.

The 4P are:

• Product: implies its quality, variety, design, features, packaging
• Price: implies discounts, allowances, credit, payment period
• Place: implies coverage, locations, inventory, transportation etc.
• Promotion: implies advertising, PR, sales

The 4C are:

• Convenience: as in how easy is to gain access to the product and find it
• Communication: as in direct approach of the consumer with the company
• Cost: as in the total for the customer
• Consumer: indicates the wants and needs of the customer

Huawei is very attentive in following this strategy giving a solution to all the ´Ps` and paying close attention to the ´Cs`, so to the customer’s needs.

The company provides a mix of products and services pursuing both B2C and B2B marketing strategies. It has an easily accessible website that lets you choose in which language you want the information and with three different interfaces:

• The first is aimed for consumers with information, latest news, online shop and customer support for smartphones, laptops, tablets, wearables and all the other products they offer.
• The second interface instead is meant for enterprises, giving businesses easy access to all the services, products, insights and support they offer. Huawei also provides them servers, networks systems and security related services.
• The last portal is for carriers, presenting network solutions for fast internet connections. They are in fact now developing a 5G connection to be commercialized by 2020 and lately received the European TÜV SÜD certification for their future 5G products, moreover they are proposing a carrier and network cloudification that would maximize the network value.^[4]

These three websites represent its target groups. The only distinction among them is the services and products that Huawei offers them, otherwise they are not very defined or segmented. Huawei wants to connect everyone at budget cost and so it is aiming to everyone.

B2B

The peak of its B2B strategy is accessible from their enterprise website but there is much more behind it.

Since the foundation Huawei has been cooperating with other companies not only to sell products and solutions, but even to develop them in partnerships. Many of these partnerships have been with Telecoms and ICT related companies such as: Vodafone, Orange, T-Mobile, British Telecom, Portugal Telecom, Deutsche Telekom, Bell Canada, Motorola etc. Huawei is further expanding its market from China and Europe to North and South America, Australia, parts of Africa and India. One of the most prominent partnerships has been made with Leica, which specializes in producing cameras, lenses and photography related technologies. This partnership is long term and born from the need of giving their smartphones one of the best and most renown cameras on the market.