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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hUAWEI sTRATEGY bUSINESS Case Study
Key Learning Outcomes
- Understand the broad macro-environment of Huawei and the global smartphone industry in terms of political, economic, social, technological, environmental and legal factors (PESTEL/PEST/STEEPLE).
- Use our swot analysis example to gain an overall understanding of Huawei's strengths and weaknesses and strategic options arising from the opportunities and threats that have been identified from the Pestle analysis example on it's business environment.
- Apply strategy business models and frameworks such as Pestle/Pest/Steeple, Swot etc to real company cases.
1.0 INTRODUCTION
Huawei China is a globally recognized telecommunications equipment and service company founded in 1987 with its headquarters in Shenzhen Guangdong china. The company started out as a producer of phone switches but later expanding into building telecommunication network, communication devices and providing operational and consulting services in china and abroad (Shepard 2016). The company serves approximately 170 countries, equivalent to one third of the world’s population (Huawei 2018).
Huawei was ranked third globally in the global smartphone market with a global market share of approximately 11% after Apple with 12% and market leader Samsung with 23% as of 2017(Arabian Gazette 2017).
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