Five Dimensions
Expansion is a market entry strategy; it is a planned method to deliver the goods and services to the new target market. The company’s sale, brand awareness and stability are enhanced by entering into the new market. Expansion into the new market means the company has to face new challenges. Huawei is a telecommunication equipment company, established in China but it wants to expand the business in Chile, Australia, and Norway. Thus, the company requires analysing the market behaviour and cultural profile of the country to identify the challenges and benefits. It has 170000 employees who work for the company in which 76000 are research and development employees. The company expanded its business by building telecommunication networks, consulting services and providing operational services (Huawei, 2018). In the starting of the report, the culture analysis of five countries will be done on the basis of Hofstede’s Model. In the end of the report, recommendation will be provided for expanding the business.
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Five Dimensions |
PDI |
IDV |
UAI |
MAS |
LTO |
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Description |
Power Distance refers equality and inequality power of distribution. A high degree of dimension states that the hierarchy is properly established and executed in society and vice-versa (Beugelsdijk, Kostova, and Roth, 2017). |
Individualism refers the society which only takes care about themselves and their family. Collectivist society is a society which works in a group and it also takes care of the other people. |
Uncertainty Avoidance refers the society tolerance for ambiguity. A high degree of dimension indicates the more rules and regulation and lower degree indicates the less regulation. |
Masculinity does not believe in the equality of men and Women. Feminine society believes in equality between men and women. |
Long term refers the current and future actions of people. Long term indicates the continuous development in an economy and short term indicates no economic development. |
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Cultural Profile of China |
Chinese people accept inequality and they do not argue for the power and people have less scope for the promotion. |
China has a Collectivist culture which states that people work in a group. In China, relationship of manager with the colleagues is very strong which helps the company to achieve the success (Cleaver, Jo, and Muller, 2015). |
In China, rules and regulation are flexible for the real and emergency situations. |
China is a masculinity society in which men work for their family. |
People of China have a strong propensity to save or invest for the bright future. |
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Cultural Profile of Chile |
In Chile, there is low delegation in the organisation and there is less privilege given to the common man. |
Chile is an individualist society; people are hired and changed according to the relationship with employee and managers of the organisation. |
The society has strong rules and regulation which can be seen by the low level of corruption in the society. In the organisation, employees are highly dependent on the managers (Minkov, 2018). |
Chile’s men and women show their modest behaviour and attitude. They work together and support each other. Conflicts are easily resolved by the people. |
People of Chile are of normative thinking which consumes less and saves more for the future and believes in the traditions and customs. |
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Cultural Profile of Australia |
Australian employees and managers rely on each other and share their information with each other. It means there is equal distribution of power. |
Australians live in an individualism society; they look the families after themselves. In the organisation, employees are self-reliant and their promotion or selection is based on their performance. |
In Australia, there is high restriction of the rules and regulation (Hamm, 2016). |
In Australia, Masculinity is followed, people believe in success and achieving award. People live in men’s society where the men sacrifice for their families. |
Australians are normative in thinking; they believe in savings and follow the traditions. |
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Cultural Profile of Norway |
In Norway, people respect the equality. In the organisation, power is decentralised and attitude of employee towards the managers are informal (Helgeson, Kurpis, Supphellen, and Ekici, 2017). |
Norway is an individualist society; there is a difference line between the job and personal lives. |
People have a threat of ambiguous or unknown situation just because of restrictive rules and regulation. |
Norway is the second most feminine society. It means there is no difference between men and women and the society supports each other (Cleveland, 2016). |
Norway is a normative society which has a strong concern with the traditions and relations. |
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Similarities |
Differences |
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Chile Vs China |
· It is observed that Chile and China have inequality in the distribution of power. · China and Chile both are the individualist society. · Both countries have normative thinking (Santoro, and Kennedy, 2016). |
· It is observed that China is a masculine society and the Chile is feminine society. · China has flexible rule and regulation but Chile has restrictive rules and regulation. · China is a restraint society and Chile is Indulgent society. |
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Australia Vs China |
· China and Australia is a masculine society. · China and Australia has normative thinking. · Both the countries are indulgent country. |
· There is inequality in the distribution of power of China. But in Australia power is delegated equally. · China lives together and works in a group but in Australia people live for themselves. · There are flexible rules and regulation in China and high restriction in rules and regulation in Australia. |
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Norway Vs China |
· China has less threat of ambiguous situation but Norway has high threat just because of fixed rules and regulation. · Norway is Feminine society and China is masculine society. · China and Norway both are the normative society. |
· Norway respects the equality but in China, there is inequality in distribution of power. · Norway is an individual society and China is a collectivism society. · Although people of Norway has normative thinking but it consumes more as compare to the people of China. |
Huawei can easily expand its business in Chile because there are many similarities and differences which helps the company to establish the company in same culture. These are given below:
It is observed that there are inequality of power in China and Chile. So, the company can take the advantage by controlling the employee and allocating them the work according to the requirement. It reduces the conflicts between the managers and employees related to the work. It has a less risk of labour turnover due to less conflict with the employees.
The company can take the advantage by manufacturing the necessary items because people of Chile spends more on their desires as compare to China (Wasserstrom, 2018). The company manufacture the phones, broadband to connect the people and for their entertainment. It increases the profit of the company and it helps the company to successfully establish in new market.
From the above analysis, it can be said that the company can enter the new market by introducing the new product for the Women. China is a masculine society and Chile is feminine society thus the company can take the advantage by manufacturing the products for women. The company can manufacture the television with the new feature which is attractive and entertainment of Women like paper television which can easily kept in the bags. Television is a good source of entertainment for Women. There is equal gap between the men and women. Women also earn and spend on their television because television is founded the favourite source of entertainment for women which is beneficial for the company as well as Women.
Cultural Profile of China
It is observed that the China and Chile both has normative thinking, they consume less and save more from this company can take the advantage. The company has to manufacture the products at cheaper cost so it can provide the products to the customer at the reasonable prices. Consumers attract towards the cheaper cost products which generated the sale of the company.
Chile is an individualist society, so the company can manufacture the products for the benefits of families such as small smartphones which can easily kept in the pockets. The company can offer the free calls to always attach the people with their families. It attracts the families towards the product which increases the sale of the product and the brand loyalty of the company. It is beneficial for the company due to increasing the profit of the company.
Conclusion
From the above analysis, it has been seen that Huwaei is established in China and hence the company will face many challenges by expanding the business in Chile, Norway and Australia. There are many differences between China and the other country’s culture which will affect the company’s strategy. It is observed that the China and Chile has many similarities which will help the company to expand the business management in Chile market. It has been concluded that the company can enter into the Chile market by introducing the new products as per the culture and tradition of Chile. The company has higher scope in the Chile market.
References
Beugelsdijk, S., Kostova, T. and Roth, K. (2017) An overview of Hofstede-inspired country-level culture research in international business since 2006. Journal of International Business Studies, 48(1), pp. 30-47.
Cleaver, M., Jo, M. S. and Muller, T. E. (2015) Individualist vs. Collectivist Cultures: Shopping for Prestige in Australia. In Proceedings of the 1998 Multicultural Marketing Conference. New York: Springer, pp. 530-53.
Cleveland, M., Rojas-Méndez, J. I., Laroche, M. and Papadopoulos, N. (2016) Identity, culture, dispositions and behavior: A cross-national examination of globalization and culture change. Journal of Business Research, 69(3), pp.1090-1102.
Hamm, G., Mitchell, P., Arnold, L.J., Prideaux, G.J., Questiaux, D., Spooner, N.A., Levchenko, V. A., Foley, E. C., Worthy, T. H., Stephenson, B. and Coulthard, V. (2016) Cultural innovation and megafauna interaction in the early settlement of arid Australia. Nature, 539(7628), p. 280.
Helgeson, J.G., Kurpis, L.H.V., Supphellen, M. and Ekici, A. (2017) Consumers’ Use of Country-of-Manufacture Information? Norway and the United States: Ethnocentric, Economic, and Cultural Differences. Journal of International Consumer Marketing, 29(3), pp.179-193.
Huawei. (2018) About Huwaei. [online] Available from: https://www.huawei.com/en/about-huawei [ Accessed 4/09/18].
Minkov, M. (2018) A revision of Hofstede’s model of national culture: old evidence and new data from 56 countries. Cross Cultural & Strategic Management, 25(2), pp. 231-256.
Santoro, N. and Kennedy, A. (2016) How is cultural diversity positioned in teacher professional standards? An international analysis. Asia-Pacific Journal of Teacher Education, 44(3), pp. 208-223.
Wasserstrom, J. N. (2018) Popular protest and political culture in modern China. Oxon: Routledge.
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