The New Telecommunications Star, Huawei

by Baoyi Chen (Jennifer)

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(Picture taken from: https://www.mojandroid.sk/vlajkova-lod-od-huawei-ma-mat-qhd-displej-8-jadrovy-procesor-aj-3-gb-ram/)

Huawei was founded in the year 1987 in China, and now operating as a multinational networking, telecommunications equipment and service company. Huawei had an overseas strategy,  and worked pretty successful. Its global market sales revenue has achieved more than 2 billion dollars, accounting for 40% of the total sales revenue by 2013. This company aroused my interested because they sprout in the competitive telecommunications market, and allege that one day they would be beyond other popular companies like, Apple and Samsung.

In fact, Huawei does have high tech smartphone that can compete with Apple’s iphones. Huawei has invested a huge amount of money into inventing the 4G LTE technology, with certain developments and experiments, it published world fastest 4G LTE phone in 2013, this has brought lots of attention on Huawei, and made their brand more well-known. The company has established their product positioning as great capability and modern appearance but with cheaper price. In this way, they could have more sales revenue to build up a certain customer base and brand image. Huawei is little known as an international brand. Although its products have been selling globally, it is still rejected by some of the country like US due to US protectionism. However, Huawei has great invention with advanced technology and the sales are increasingly booming with the introduction of the Ascend series. I have done a SWOT analysis (shown below) on Huawei because I was interested at the transformation of this company, and I think the company would have to be unique and innovative so that it could compete with other telecommunication companies. Also, to promote its brand image, Huawei should be establishing its reputation as well as developing its products.

SWOT Analysis of Huawei’s product (the Ascend series)

Strength

  • Fastest 4G LTE technology
  • Sales development becoming increasingly optimize
  • High stand of capacity
  • Diversification
  • Elegant appearance
 Weakness

  • Narrow range of distribution channels
  • “Chinese” brand image
  • Not much stimulation and attraction on advertisements.
  • Bad after sale service warranty
Opportunities

  • Market of younger generation
  • Market of Singapore
  • World fastest 4G LTE phone
 Threats

  • Competition with well-known brands (eg. Apple; Samsung)

 

References:

“Huawei Unveils New Phone to Compete With Apple and Samsung.” Bits Huawei Unveils New Phone to Compete With Apple and Samsung Comments. N.p., n.d. Web. 28 Sept. 2014.

“Should We Fear the Growth of Huawei?” BBC News. Peter Day, n.d. Web. 28 Sept. 2014.