CASE ANALYSIS OF HUAWEI GOALS &STRATEGIES

Presented by:

Ahmed Ehab

Amna Khalaqi

Mohamed Hamdan

Agenda

Background Vision, Mission, Values and Objectives Huawei Strategies SWOT Analysis Porter’s Analysis Recommendation

Background

It is a Chinese multinational networking and telecommunications equipment and services company headquartered in Shenzhen, China.

Huawei was founded in 1988 by ex-military officer Ren Zhengfei and formed as a private company owned by its employees.

Its core missions are building telecommunications networks.

Huawei has over 140,000 employees worldwide.

Vision, Mission, Values and Objectives

VisionTo enrich life through communication.

MissionTo focus on our customers' market challenges and needs by providing excellent ICT solutions and services in order to consistently create maximum value for our customers.

ObjectivesHuawei goal is to become the top ICT vendor for telecommunication overseas

Vision, Mission, Values and Objectives

Core Value

s

Customers First

Dedication

Continuous

improvement

Openness and initiativ

e

Integrity

Teamwork

Huawei Strategies

Business Strategy

IT Strategy

Organization

strategy

Business Strategy

Main business goal is to reach USD 100 Billion revenue by 2020.

Attacking the local and global market in following industriesA. Carrier NetworkB. Enterprise BusinessC. Consumer Business

Business Strategy

2011: $32 B 2010: $29 B 2009: $23 B

Overseas market has grown up majorly, 100% US, 60% Europe. Major growth in Australia, North Africa, Japan and Middle East

Business Strategy

Recent Highlights Launching GigaSite Cloud Computing solutions Delivering high smartphone UX – 20

Million sales

Organization Strategy

IT Strategy

R&D – Approx. 50% of employees User Experience Speed of Execution High Quality output Employee Freedom Experience Sharing

IT Strategy

Data Center: Unified Data Center – China 1600 servers Online Backup system, data storage Power Supply System with 99.99% reliability

Training Center: Provide training to customers, suppliers, partners and

employees Equipped with the latest and most advanced

technologies. E.g. Simulators

(http://www.youtube.com/watch?v=5nsqNeUVZ78)

SWOT Analysis

Strengths: Low cost (operation and engineering) which lead to

low cost pricing strategy. Stability and support from China government. International expansion giving powerful access to

many markets. Strong manufacturing capabilities with low costs. Leading and initiate 3G & 4 G mobile communication

technology. Cheap and high quality R & D, 10 % of its revenue is

spent on R & D within 20 centers worldwide. Partnership with global partners.

SWOT Analysis

Weaknesses: Limited investment opportunities

because of be tied to Chinese government.

Lack of strong presence in some regions. Difficulties in dealing with Chinese

employees.

SWOT Analysis

Opportunities: Expand within new growth

geographies. Extensive opportunities in a highly

growth telecom market. Make strong strategic partnerships

with expertise or local companies.

SWOT Analysis

Threats: Strong competition of the other global

brands in telecom market. Blacklisting Huawei in relation to cyber-

security concerns and lack of trust. Lower profits might be happened.

Porter’s Analysis

Risk of Entry

Bargaining Power of Suppliers

Intensity of Rivalry

Bargaining Power of Buyers

Threats of Substitutes

Porter’s Analysis

Risk of Entry Entrance of new big companies

Bargaining Power of Suppliers Large number of equipment makers around Enough vendors to weaken bargaining power

Porter’s Analysis

Intensity of Rivalry High degree of competition Competitors attract customers with lower

prices and more exciting services Bargaining Power of Buyers

Increased choice of telecom products and services

Low product differentiation

Porter’s Analysis

Threats of Substitutes Products and services from non-traditional

telecom industries Cable TV and satellite operators now

compete for buyers Internet becoming a viable vehicle for cut-

rate voice calls

Recommendation

Solve the big threat cyber security Separate between Huawei company and

Chinese government Provide better localization for overseas

customers

Thank You