After facing multiple bans in some of its most critical markets in the West such as the United States, and UK, Huawei has also been contending with total bans in markets from other core Asian markets including Taiwan, Japan, Australia, New Zealand etc. Many of the western countries mentioned have security concerns about China and the possibility that it could use it’s 5G network equipment to spy on other countries. Such bans have posed grave obstacles to Huawei’s production capacity so much that even with the technology giant developing its own operating system, finding good quality and original components will still be challenging. In addition, Huawei has lost market share of the 5G network in crucial European markets including the core UK market, leaving alternative suppliers like Nokia and Ericsson to quickly jump in to claim it. This is an example of political factors from the external business environment that can severely impact the operations of a business.
Using key strategic frameworks including PESTLE, and SWOT, the report will identify the major drivers of change behind Huawei’s external global environment looking at the general trends and shifts driving the global mobile and telecommunications industry in general. This will help us understand not just how Huawei is being impacted by its external environment, but also how can it can utilise its brand competencies to help it take advantage of ever changing environmental opportunities while at the same time neutralising fatal threats that are continually threatening its very survival.