Analysis on Business Strategies of Smart Phone Department of Huawei Technologies

3458 Words Nov 18th, 2013 14 Pages
Analysis on Business Strategies of Smart Phone Department of Huawei Technologies
Introduction
In 2012, Huawei Technologies built a new brand Ascend to enter high-end smart phone market. In this business analysis, we consider smart phone department a strategic business unit (SBU), do external environment investigation through PESTAL and Porter’s five forces models and analyze the internal strategic capabilities through VRIN model. After integrating all the resources, we determine the most favorable business strategies for Huawei’s smart phone department on the basis of a SWOT analysis.
Company Background
The head quarter of Huawei Technologies was located in Shenzhen, Guangdong province in 1987. And Huawei is a private
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The GDP figure of China grows rapidly and the employment rate remains sustained. The dispensable income of people increases and the minimum wages also increases. Meanwhile, the product prices fall continually and the life cycle of a product is shortened. The inflation rate rises and the competition of rivalry increases for the globalization of China and international economic depression. The gap of income and consuming habits between eastern and western part of China becomes greater. And flow of capital and labor moves frequently. In a word, the economic situation is not favored to the development of Huawei.
As to the social and cultural factor, the population of China is around 1.3 billion which rank top one around the world. People have higher request on the after-sale services and consumer demands become personalized. As the improvement of domestic education, people become literate and rational preferring cost-efficient and well-designed products. And with the popularization of the internet and wireless network, the mobile phone and related business grows rapidly. Customers are more and more focused on the brand and the quality. The value of communication products is well acknowledged by people and people are willing to spend money on consuming new and tech-advanced communication products like phones. But people in America think that Huawei may be a spy hired by government and it will do

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