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RUNNING HEAD: STRATEGIC ANALYSIS: HUAWEI1HUAWEI STRATEGIC ANALYSISInstructor’s NameStudent’s NameCourse Name and NumberSubmission DateStrategic Analysis: Huawei
STRATEGIC ANALYSIS: HUAWEI2Executive SummaryHuawei is a privately owned company based in China. It faces stiff competition in the technology industry, and its profit margin and sales are threatened by the high suppliers’ and consumers’ bargaining power regardless of being the largest and successful manufacturer of budget-friendly smartphones in the world. It has the opportunity to expand in the U.S. and Indianmarket. It can control some of the sociocultural, economic, and political factors in its domestic market but lacks the power to control decisions in the international markets. Its strategic alliances with Vodafone and Microsoft has enhanced its success over the past few years. It has a bright future owing to its leadership towards entrance into the world of 5G technology although this strategy is opposed by many governments for legal and political concerns. It is recommended that there should be an improvement in customer responsiveness, and innovation, marketing campaign. There should also be the development of testbed centers and joint innovation centers to enhance the quality of products and facilitate future growth and success.
STRATEGIC ANALYSIS: HUAWEI3IntroductionHuawei is a privately owned company based in China (Huawei, 2018). It also carries out its operations in Africa, Middle East, America, Europe, and the United States of America (U.S.A.). According to Huawei’s annual report for the year ended 31st December 2018, the company has approximately 188,000 employees operating in more than 170 countries across the world (Huawei Investment & Holding Co., Ltd, 2019). It is a consumer-centered and technology-innovative company that provides information and communication technology products with its top priority being privacy protection and cybersecurity. The purpose of this paper is to conduct SWOT, PESTLE, and Five force analysis and also analyze the strategic alliances, competitive advantage, distinctive competencies, differential analysis and potential problems faced by Huawei. Huawei SWOT AnalysisStrengthsHuawei has several strategies that enable it to maintain and improve its position in the highly competitive smartphone market. These strengths include; extreme competitive pricing, high-quality products, technical advantage, cost leadership, focus on innovation, emerging leadership, strong focus on R&D, and strong support from the Chinese Government. It offers budget-friendly products thus offering stiff competition against its closest rivals, Apple and Samsung (Bush, 2019). Its products have a relatively high-quality compared to other brands apart from Apple and Samsung ("Huawei Technologies SWOT & PESTLE Analysis," 2019; Yang 2019). In terms of innovation, Kang (2015) noted that Huawei has been investing heavily in R&D making it the undisputed leader of innovation in network communications.