An Analysis Of Huawei’s Business Operations And Marketing Strategies

Situational Analysis

Huawei has no brand value for mobile devices in the international business market. Therefore the business is required to deal with the lower income segments. This becomes beneficial for the company as the company will be able to provide the attracting features at low price that will attract the lower income background people to the product. The cost of production is also lower for the organization therefore the organization will be able to produce the product with varying features in low price. Thus this is beneficial for the organization to select the lower income segment. In this study the first paragraph provides the situation analysis regarding the political, economic, technical, legal and the environmental conditions. The situation analysis involves the strength, weakness, opportunities and business threats. This first part will be depend upon the external analysis and the internal analysis of the market. This will also involve the external factors and the internal factors that creates risks for the business. In the first part of the study, this will include the business competitive advantages and the present marketing strategy of the business. In the second part of the paper the business will involve segmentation, market and the business position in the market. This study also recommends the business strategies of entering the global business market and these strategies are mostly based upon Huawei’s marketing mix.

The PESTEL analysis is considered as the framework that are used by the marketers for analyzing and monitoring the micro environmental factors which creates great impact on the organization. This helps to determine the threats and weakness of the organization.

The political conditions of China creates great influence on the business market. The ruling party has created a great impact on the business economy in the country. The stock prices of most of the business in China business firm falls during the meetings of the National Congress and the political promotions. The global profitability of the business also depends upon the political climate of the respective country. The Chinese governments also provided training to the employees for bringing innovative features in the products (Moutinho and Phillips 2018).

The economic condition of the country creates great effects on the organization. The value added tax in the telecommunication sectors increases the business operation costs and decreases the business profitability margins. Also the fast growth of the economy of the country helps the business to increase the disposable income and the demands of the luxury products like mobile. 

PESTEL Analysis

This study found out that the Chinese market is growing daily as it is mostly populated with 1.3 billion people. Therefore the high population provides the wide business market for Huawei products and the large population is also beneficial for the business to develop the steep demands of the products (Adam et al. 2018). 

The Chinese government ensured that the innovations in ICT specially produces the high quality trainings for bringing innovations in the technological department. Huawei is also prone towards developing the new quality products for making the stiff competition in the business of the international market brands like Apple, Lenovo and other (Ahmed 2016).

The Chinese government encourage the business towards the sustainable development. The wastes of the company should be further reused for cutting the possible wastages and by maximizing the available materials. Huawei wanted to become the leading distributor of the green products and looks after the effective ways of minimizing the emission of the carbon substances (Midha, Kaur and Tripathi 2017). 

The business operations of Huawei should be based on the legal laws like the patent acts, tax rates, environmental laws and the labor laws. Huawei also deals with the employees of various countries and the organization are required to comply with the labor laws and the wages of the Jurisdictions of operations (Lee et al. 2016). By maintain the rules the business will ensure the positive business performance of the company. 

The major strength of the business is that the Chinese government provides various trainings to the employees of the telecom sectors and thereby leading to the development of the innovative products in the business market (Moevus et al. 2015). The high population of China provides the wide range of profits to the business and also increases the demands of the products.

This is found out that the business lacks the sufficient capital budgets that limits the company’s ability for competing in the global business market. There is belief among the people of China that since the company provides the product at low price, the product is of inferior quality. The employee turnover affects the organization that puts the business continuity at risk.

The business enjoys the labor intensive because of the large population of the country. This also offers the great opportunity for Huawei to cut down the production and the operation cost that generates high business profit margin. The outcome is that the business enjoys the low cost production for dealing with the firms that increases the product quality by compromising the business margins (Kotler et al. 2015).

Political Conditions

The threats that the business faces while competing in the local business market. While entering the international product dominates the market in the business market. Since the Chinese products is found similar with other low quality that is not applicable for every products. This image affects the penetration of Huawei in the global market.

Unique Selling proposition is considered as the one features that makes it unique from the rest of the competing brands in the business market. The major competitive advantages that Huawei enjoys are that the company produces the quality product at low cost of operation, thereby producing the products at low cost of operations helps the business to attract the low income segments by offering the products at low price. The competing brands provides the quality product at high price thereby attracting only high income segments (Blakeman, 2018).

The perceptual map shows the representation of the perceptions along with the preferences of some of the brands. The objective of the business is to express the potentials of the customer demands by providing the direct image. The values, competitions and threats are determined through this perceptual map (Schlegelmilch 2016).

Apple is one of the major American Multinational technology company which develops the innovative products. The organization was founded in 1 April, 1946 in Cupertino, California and United States. The organization designs and provides the products like the customer electrics, computer software and the online services. This organization is also referred as one of the biggest technologies as compared to Amazon, Google and Facebook.

Lenovo designs, manufactures and develops the market of the technology product and the services. This organization was founded in 1984 and it is considered as the Public organization. The headquarter of this organization is in Quarry Bay, Hong Kong. Lenovo also designs and develops the devices like the personal computers, smart phones, workstations and the electronic storage devices. Lenovo also operates in more than the 60 countries and also sells products in around 160 countries.

Table 1: Apple, Lenovo and Huawei comparison decision matrix

Source: Created by author

The marketing strategy of the business depends upon the marketing mix of the organization that is based upon the product, place, promotion and price.

The products that Huawei offers are the leading mobile handset, telecom equipment. The business depends upon the product lines that caters to various target audiences. The products of the Huawei enterprises are switches, routers, WLAN, servers, storage, the network energy services and other. The products like the Smart PV controller, smart array controller and the smart PV management systems (Andaleeb 2016).

Economic Conditions

On the contrary of price, the organization faces challenges from the companies like Eriscon Cisco System, ZTE Corporation, Apple and others. The organization depends upon the competition as there is huge number of competitors in the telecom industry. This is found out that the business sometimes follows the elastic pricing policy for providing discounts on the products (Xia and Gan 2017).

The organization has their presence in more than 170 countries thereby dealing with the telecom partners. There are more than 1500 networks that Huawei has built and serves more than 33% of the world population. Huawei looks after building of new channels for the product distribution.

On the contrary of promotion, the business depends on the Omni Channel for promoting the brands and the products. The company is greatly involved with the sponsoring events and the sports team. Huawei also encouraged the discount offers and the coupons as being the part of the sales scheme (Steenkamp 2017).

Brand name: Mobiworld, this business will come up with the new hope that is by providing unique features for people at low price.

Brand color: purple and white will be the combination of color that denotes peace for people and makes the people closer to the digital world.

Slogan: “Service wherever you are” this idea generates from: I found out there a large number of telecom company that provides services like the customers will feel that mobile services are comfortable for them.

The segmentation helps in grouping up the different characteristics of the population. The Mobiworld will be based upon the mix of the demographic, geographic, and psychographic and the segmentation of the different set of business. Depending upon the market segmentation, the carrier network business, the enterprise business and the consumer business could be based upon the core segments which are divided by the Mobiworld enterprise (Chaffey and Smith 2017).

The targeting strategy that the business could depend for serving the customers according to the desires of the targeted customers. This is considered as the next step of the segmentation market that completes the market targeting thereby observing the individual segments. The targeting plans is required for the business for deriving the customers in that segments. The Mobiworld targets the low income segments customers as they are new comers in the telecom operation. Thus for achieving the targeted customs the Mobiworld is required to make the cost of production low for attracting the targeted customers (Tykhonenko 2018).

Market Analysis

The positioning strategy is required to be implemented by the new brand, Mobiworld as it depends upon the strategies that would maintain the stromg market position. The Mobiworld would attained the highest yearly increase among the leading vendors and could raise the brand portfolio along with the high proportion of the self-branded unite that is by comparing with the other enterprises.

Table 2: Time Space Chart

Source: Created by author

The goals that are specific for Mobiworld is that the business should bring the innovative devices and thereby implementing the proper marketing strategy for competing in the global marketing strategy. The business looks after the development of the innovative devices for entering the business market competition (Manual 2019).

The goals can be measurable by determining the innovative features of the devices that the company has launched. The business could determine the differences that is how the product of Mobiworld will be different from the other products thereby competing in the global business market.

The achievable goals of the Mobiworld can be determined by setting up the targets for the organization that will be achievable by the business organization. The business are required to focus on the cost of the productions as their targeted customers will be of low income backgrounds.

The realistic goals that could be developed by the low cost business product, which the company could be able to develop the strong position of the business in the local market. This will help the business to attract the customers from the low income background.

The time bound for the Mobiworld is to develop the target goals that the company in every year could be able to bring up 2 to 3 innovative devices in the business that is by competing with other business in the international business market.

Therefore the recommended objectives for the business is to create the top-down commitment for gaining the customer centricity. This is also recommended for the business to start tracking the customer related metrics for spreading the new business. The business is also required to provide the better services that the customer faces for any problem regarding the service issues in the fast process. The customer services like this will help to increase the business reputation in the global business market.

The marketing strategies that the business are required to implement is the choosing strategy of place. This depends upon the waterfall strategy and the shower strategy. In the waterfall approach the business of Mobiworld should have started the business from the less developed countries then they are required to move to the developing countries as their targeted customers are the low income customers. In the shower strategy approach the business is required to enable the firm to develop the quality products with the short product life. By the implementation of such strategies the business could enter the countries in the similar time.

Innovations in ICT

This is recommended for Huawei to promote the business that is based upon the AIDA models, which is based on drawing attention for the products and also taking interest on the products. As per the model the business is required to promote the business depending on the desires that the customers have for the devices (Shi and Jiang 2016).

The recommended strategies for the business to come up with the innovative telecom equipment that the product like IOT should be based upon the cost of production for the targeted customers. This is so because the targeted customers are the low income background customers.

The price of the IOT product is that the business should not introduce any products those are highly priced or the cost of production is high. This is so because the highly priced product will not be affordable for the people those who belong from low income background.

The recommended marketing strategy for the brand crisis management is that by dealing with the business which involves human failure. The indicators where the business could resolve the issues of the brand crisis that is by making up the clear organized team for the business. When the brand will be facing any type of crisis in competing with other business, then the organization needs to be based upon the prepared as well as the trained spokesperson for developing the employees’ role and responsibility (Ottho 2017).

Conclusion 

Therefore from the above discussion it can be concluded Huawei is not able to compete in the global business market. Though it is one of the biggest telecom operator and it mainly comes with the innovative products for the people belonging from low income backgrounds. The first part of the paper describes about the detail marketing analysis of Huawei. This study describes the political, social economic, social, environmental and the technological condition of the country and how it is beneficial for Huawei and risks for the business. This study then analyses the strengths, weakness, opportunity and threats for the business from the external and the internal factors. The first part of the study also includes the competitive advantages of the business, the perceptual map and the comparative analysis of the business with other competing business in the global business market. This also involves the evaluation of the marketing strategy. The second part of the study describes about the development of the new brand. The details regarding the new brand and the segmenting, targeting and the positioning strategies of the business for entering the global market. The objectives and goals of the new brand is also determined and described. The marketing strategies has also been recommended for the business based upon the marketing mix and for competing with other business in the global business market.

Environmental Conditions

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