Future currently huawei is the second largest

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Future: Currently Huawei is the second-largest smartphone company by sales in the world. People love the smartphones because of their outstanding features and the high quality cameras. Diversification may be an opportunity for Huawei for the future but they should be careful not to lose their newly established corporate image.
27 Innovation and digitalisation strategies: The Innovation Matrix If you look at the Innovation Matrix, Huawei and their product Innovation in the area of mobile devices is very sustaining. This strategy is very affected by the fast moving market of mobile devices. When you take a closer view, you have to distinguish between the business strategy in the past, when they tried to enter European Market and the current Strategy. In the past, Huawei was not known for technical innovation leadership in this context. The strategy was to follow the trends of major competitors such as Apple, Samsung and LG by adapting new technologies and building cheaper products to reach a wider audience. At present, Huawei is trying to develop new technologies and differentiate its products from its competitors. A current example is the AI technology in the latest high-quality smartphone Huawei Mate 10 Pro (Jiao, 2018). Nevertheless, the innovation strategy is relatively sustainable compared to other industries. All companies in this sector improve their products slightly once a year in order to achieve a continuous profit. Although Huawei is already investing large sums in research and development, we believe that more money will have to be spent to keep up with the competition in the market. Although this strategy is risky, this change could potentially improve the company´s image from imitator to first mover.
28 Innovation sources Looking at Huawei's innovation dilemmas, one can say that product innovations in the past followed market and customer needs. Huawei's mobile product line did not show any major quantum leaps. Instead, the company's strategy was to address a broad target group. .For Huawei it has been acceptable to let their competitors reach the early adopter customers and imitate the successfully sold technology in their cheaper products. As before said, Huawei has not mainly focussed on self-initiated product innovation when they were entering the worldwide market. Instead the company concentrated on process innovation in production of their products and cheap ways to export their products to other markets. When Huawei established itself in the major markets of Europe and the USA, the company began to invest in research and development. The new strategy saw technological innovation as the core of their work. Nowadays more than 45% of the 170 thousand employees are R&D personnel. For many years, Huawei put at least 10% of sales revenue into research and development (Fu-you JIANG, 2017). This means, that in the future there possibly will be a bigger focus on product innovation.

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