Analysis of the Success of Huawei: Coincidence or Consequence?

2823 Words Dec 11th, 2012 12 Pages
Analysis of the Success of Huawei: Coincidence or Consequence?


This paper analyzes the success of Huawei Technologies Co., Ltd., one of the largest telecommunications equipment manufacturers in China. This paper applies two prevalent organizational theories: the ecological and evolutionary approach and the resource-based view, to interpret the causes of the success of Huawei. Based on the strength and weakness analysis of each theory in the explanation of the same phenomenon, the resource-based view is recommended as a more effective theory to examine the organization structure and business strategies.

Established in 1998, Huawei Technologies Co., Ltd. has become one of the largest telecommunications
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During the beginning of Huawei, when there were not enough funds and outside resources, any significant wrong decision might cause the failure of the whole company. While it seemed market favored Huawei. It was proved latterly that Huawei constantly made the right decisions at the right times. The R&D of PSTN switch, optical transmission system,
NGN network, 3G wireless communication equipment, almost every major products achieved great success and dominated significant market share. Also the decision to develop the international market since 1999 has been proved to be wise and successful. On the contrary, many other telecommunication companies did fail to respond to the changing environment in a right way and they retreated from the telecommunication market in the following years.
Thirdly, the routines of Huawei seemed to be adequate to deal with the unpredictable environment in the previous years. During years of expansion, Huawei has formed standard management and control procedures, which included human

resource management, supply chain management, R&D procedures and quality control procedures. These routines effectively ensured Huawei to continuously succeed in the struggles to obtain key resources such as research experts in certain
R&D areas and win over customers with the first level productions and services.
It seems plausible to interpret Huawei’s success according to the ecological and evolutionary

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