Huawei is a globally recognized telecommunications, equipment and service company majorly dealing in the design, manufacture and marketing of processors, smartphones and tablets. This report mainly examines the smartphone market, one of the most prominent global oligopolies over the last 5-6 years with both high end (Apple and Samsung) and low-end market players (Huawei and Xiaomi). In the smartphone market, Huawei is a low-cost producer, the most fiercely competitive hence it faces extreme competition from especially fellow low cost Chinese rivals including Xiaomi, OPPO, Lenovo, ZTE among others who produce similar products. This report analyzes how industry competition has affected Huawei and examines the various opportunities through which Huawei can grow and develop its brand name amidst challenges. Nevertheless, Huawei still faces major threats such as major competitors who have greatly hindered its growth and development. This analysis concludes by showing major points (factors) where competition is intense and some strategies Huawei can use to overcome them.
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Huawei Porters Fives Forces Strategy Case Study
Key Learning Outcomes
- Use Porters five forces model to analyse an industry on the basis of the five competitive forces.
- Analyse the global smartphone industry and how the five forces have affected Huawei and rival firms and the impact on industry structure, attractiveness, and profitability.
- Understand how Huawei has managed to defend against intense competition and the strategies it uses to create 'blue oceans' that are defensible, helping it capture market share and maintain competitive advantage.
Analyse Huawei through the lens of Porters five forces to assess how the five forces affect Huawei and the smartphone and mobile industry internationally.
1.0 INTRODUCTION
The technology industry has one of the largest and most profitable markets in the world with two major players Samsung and Apple having a combined global market share of 42.5% as of Q4 2020. While Samsumg and Apple have either increased or maintained their global market share, Huawei has lost market share over the last year. Huawei’s global share of the smartphone market declined drastically by half, falling from 15.5% in Q4 of 2019 to 8.4% by Q4 2020, its worst performance in six years.
This report analyzes how industry competition has affected Huawei and have greatly hindered its growth and development, including an analysis of major points (factors) where competition is intense and some strategies Huawei can use to overcome them.
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