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Introduction of Huawei:

Established in 1987, by Ren-Zhengfei former engineer in the people liberation army.


Headquarter in Shenzhen,Guangclong China.Huwaei technologies is a high Tec
enterprise which specializes in research and development, production and marketing of
communication equipment, providing customized network solutions for telecom carriers
in optical fixed and mobile and data communications network.
Vision of Huawei Now:
To enrich life through communication
Change vision:
To improve life through communication and stylish look
Mission of Huawei:
To focus on our customer market challenges and needs by providing excellent ICT
solutions and services to order consistently create maximum value for our customers.
Missed Components Of Mission:

Markets.
Philosophy.
Employee.

Changed Mission:
To focus on our customers all over the world, market challenges and needs by providing
excellent ICT solutions and services, in order to leading technology and consistently
create maximum value for our customers.
We aim to work as a tear wipe employees and achieve a win solution with our suppliers
and partners.
External Factor Evaluation for Huawei (EFE Matrix):

Opportunities
Domestic Political
Stability.
Acquisition With
Other Companies.
International
Expansion.
New
Product
Extension.
Labor
Cost

Weights
0.15

Rating
2

WR
0.30

0.05

0.15

0.05

0.10

0.05

0.10

0.20

0.80

Advantage.
= 0.50
Threats
Intense
Competitors.
Substitute
Products.
Re-shuffling
of
Telecom Industry
In China.
Security Issues.
Low
Awareness
and
Confused
Pronunciation.

= 1.45

Weights
0.20

Rating
2

WR
0.40

0.05

0.10

0.05

0.05

0.10
0.10

3
4

0.30
0.40

= 0.50

= 1.25

4 = Super Response.
3= Above Average.
2= Average.
1= Poor average.

Competitive profile matrix:

Critical
Success

HUAWEI

Lenovo

Rating

WR

Rating

WR

Rating

WR

Factors
Advertising 0.30
Technology 0.20
Customer
0.15

3
3
2

0.90
0.60
0.30

4
4
4

1.2
0.80
0.60

3
3
2

0.90
0.60
0.30

Loyalty
Price
Market

0.10
0.20

3
2

0.30
0.40

3
3

0.30
0.60

3
3

0.30
0.60

Share
Global

0.05

0.15

0.20

0.10

Expansion

Weight

Samsung

= 01

=2.6

3.7

2.8

Interpretation:
Huawei has some of the key competitors which are used for CPM analysis. Lenovo and
Samsung are the major competitors. The weighted score for Huawei is 2.65 whereas,
Samsung has a weighted score of 3.7and Lenovo has a score of 2.8. The major
weakness that is identified by the CPM analysis can result in its success more than that
of Samsung in its market share.
Strengths of Huawei:

Huawei had been emphasizing on building a strong R&D Team.


High salaries by Chinese standard.
They are short term financing and long financing options available from the state
owned Chinese bank.
Low operation cost that support low cost pricing strategy.
Huawei Company has shown improvements in developing its company status.
The strength of Huawei is, they are able to get high quality and up to date
software.
Less labor disputes.
Heavy advertisement on internet for ease of access to information
Highly quality and skilled work force.

Weakness of Huawei

Have to fail to organize the structure of the company.


Relatively small managed services base.
Poor customer services.
Weak brand portfolio.
Weak supply chain.
Bad software allows at lockers to gain access.
Mainly rely on Weston engineers.
Very low profit margin.
Lack of publicity.
High cost in some departments.

Internal Factor Evaluation Matrix for Huawei Company:

1
2
3
4
5
6
7
8
1
2
3
4
5
6

Key internal factors


strengths
Focus on R&D
High salaries by Chinese standard
Investment in new technologies
Short and long term financing
Low operation cost
Focus on company status
Able to get high quality
Skilled work force
Weakness
Fail to organize the company structure
Small manage the service base
Weak supply chain
Mainly Rely on Weston engineer
Low profit margin
Poor customer service

weight

Ratings

WS

0.2
0.1
0.05
0.05
0.05
0.05
0.05
0.05

4
3
4
4
3
3
3
3

0.8
0.3
0.20
0.20
0.25
0.25
0.25
0.25

0.1
o.o5
0.1
0.05
0.05
0.05
1

1
2
1
2
2
2

0.1
0.1
0.1
0.1
0.1
0.1
207

Opportunities of HUAWEI:

The domestic politics is stable in the national economy is growing fast.


The high and new technology has broad prospectus.
The degree to which the nation values the proprietary intellectual property rights is
growing.
The information safety is more and more important to the users.
It can present itself better in the world by collaborating with the same mobile
company.
New product extension.
International expansion.
Threats of HUAWEI:

No acquisition.
Perception is weak.
Substitute products.
Security issues.
Low awareness.

SWOT Matrix of HUAWEI:

Strengths
They are long and
short term financing.
High quality and
updated software.
Low price strategy
and
low
labor
wages.
Heavy
advertisement
on
internet.
SO Strategy

Weaknesses
Bad software and
access to hackers.
Lack of publicity.
Intense competition.
Low profit margin.
Rely on western
engineers.

The
domestic 1 Build
strong
relationship
with
politics is stable and
government.
(S1,
favorable.
O1)
Low cost advantage
over
the 2 Intense product line
and supply chain.
competitors.
(S3, O2)
New and highly
innovative
technology.
New
product
extension.
International
expansion.
Threats
ST Strategy

1
Provide features
that are attractive to
customers to remain in
competition. (W3, O3)

Low awareness and 1


weak perception.
Security issues.
Weak
brand
portfolio.
Tight
monetary
policies.

1
Secure software
and provide customer
service (W1, T2)
2
Provide
awareness on media.
(W2, T1)

Opportunities

Increase awareness
on different media.
E.g TVC , Print Ads
(S4, T1)

WO Strategy

WT Strategy

Space Matrix:

Internal Analysis
(FP)

External Analysis
(SP)

1
Cash flow.
+2
2
Revenue.
+2
3
ROI.
+3
Average
2.3
(CP)

1
2
3

1
2
3

1
2
+1
3

Customer loyalty.
-4
Quality of product. -3
Service quality.
-5
Average

Technology changes.
Competitive pressure.
Pricing challenges.
Average
-3.6
(IP)

-5
-4
-2

Profit potential.
+2
Ease of entry in new market.
Market penetration.

-4
Average

+3

+1

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