Huawei is an investment and holding company majorly dealing in the design, manufacture and marketing of smartphones, tablets, PCs, extra. Huawei also offers a wide range of services to other companies and consumers such as Internet of Things (IoT), cloud computing, among others. Huawei’s smartphone market is an oligopoly with both high end (Apple and Samsung) and low-end players. Huawei on the other hand is a low-end smartphone vender having an 11.4% market share with major competitors Samsung, Apple and Xiaomi having 22.6%, 15.1% and 8.2% market shares respectively according to smartphone shipments for the first quarter of 2018 (Statista 2018). The following BCG analysis demonstrates how market growth has affected the profitability of Huawei’s strategic business units depending on their respective market shares.
Huawei Strategy Case Study
Key Learning Outcomes
- Understand what the BCG (Growth-share) matrix is.
- Analyse the various strategic business units in Huawei's portfolio and assess which ones are the stars and cash cows generating the most value, or the question marks, and dogs that may need further investment or divesting to achieve a balance of the portfolio.
- Apply strategy business models and frameworks such as the BCG matrix to real company cases.
1.0 INTRODUCTION
Huawei has four major strategic business units (SBU’s) namely; the Carriers SBU, Consumer SBU, Enterprise and the Cloud services. In 2017, Huawei’s revenue grew at a CAPR of 26% from $75,103million in 2016 to $92,549million in 2017 with a $7,276million net profit (Huawei Annual Report 2017).
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