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1 INNOVATION AND MARKETING STRATEGIES OF HUAWEI Innovation and Marketing Strategies of Huawei Shiva Keyvanfar 12/09/2019 Final Assignment University of The Cumberlands
2 INNOVATION AND MARKETING STRATEGIES OF HUAWEI Introduction Huawei founded in 1987, a company that provides information and communication technologies and smartphones. Huawei operates in more than 170 countries and serving millions of people around the world, and 96,768 of employees are shareholders of the company (Ofek et al., 2018). Richard Yu, CEO of the consumer business group, stated that a few years ago, Huawei was not recognized as an international brand in the smartphone business, since 2012, Huawei captured %10 of the global market after Apple and Samsung. In 2016, Richard Yu indicated that Huawei would suppress Apple in three years, and Samsung in five years (Corporate Information, 2019). He posited that brand management plays a pivotal role in this process; in 2016 consumer business group reached 25.9 billion dollars in revenue. See the below picture, which indicates the market share of different brands during 2018 and the first quarter of 2019. This picture indicates the considerable increase in market share of Huawei from year to year. Source: IDC Quarterly Mobile Tracker, April 30, 2019
3 INNOVATION AND MARKETING STRATEGIES OF HUAWEI History of Huawei The former deputy director is Engineering Corps, set up Huawei with $5,642, and started as a distributor and gradually created the PBX system that belongs to the company (Rouse et al., 2011). Huawei became successful and expanded its target in China and became the largest supplier by 1998. Initially, Huawei products had lower prices and higher quality and services compare to its competitors and this was a great success for Huawei. Then Huawei launched its company in countries such as Hong Kong, Russia, Latin America, and countries that competitors have less market. Huawei gained experienced from some of the great developers and international companies in few countries during 1998-2008 and established a joint venture with Siemens and some other companies to boost the marketing strategies, supply chain models, product developments, and human resources (Ofek et al., 2018). After gaining experience and promoting in some developing countries, Huawei entered Europe and started the first company with a Dutch operator. Huawei achieved $23.3 billion in sales and recognized as one of the top telecom operators in the world (Ofek et al., 2018). Gradually, Huawei changed its industry from technology-driven to customer-driven, and finally, in 2012, Huawei recognized as one of the highest profit and revenue in the telecom industry. In 2016, Huawei allocated %15 of its revenue to the R & D department, and about %45 of the best employees were assigned to the department of R & D (Ofek et al., 2018). Huawei focused on R Z& D and marketing strategies from 2012 to 2016, to reach as one of the top leaders of smartphone sales.
4 INNOVATION AND MARKETING STRATEGIES OF HUAWEI Us competitors Huawei expanded globally all around the world except in the US. Before 2012, Huawei

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