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PESTLE and SWOT analysis of Huawei 2017


By: Prudence K Magezi & Patricia Nanjekhe


As Trump escalates trade war tensions between the USA and China, Huawei has found itself, like many Chinese mobile and telecommunications companies including ZTE and China Mobile, a victim of the hostile climate the rivalry between the two countries has induced. With investigations underway by the Justice Department on whether Huawei violated U.S. export sanctions related to Iran, Huawei is facing a potential ban on its operations in the US, a fate already suffered by ZTE. Its Mate 10 smartphone has already been blocked from sale in the USA after AT&T and Verizon dropped it due to government pressure, putting Huawei at a competitive disadvantage against major rivals like Apple and Samsung who have established leading market positions in the USA. Using key strategic frameworks including PESTLE, SWOT, BCG Matrix and Porters Five Forces, 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 how Huawei can utilise its brand competencies so as to take advantage of ever changing environmental opportunities while at the same time neutralising emerging threats that threaten to chip away at its success.


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