Essay on Technology

1267 Words Feb 19th, 2015 6 Pages
HUAWEI CASE STUDY

Executive Summary
Huawei Technologies Co. Ltd is a Chinese multinational information and communications technology (ICT) company (Huawei, 2013). This technology solution provider was founded in Shenzhen, China in 1987 by Ren Zhengfei. The company has global sales of more than $35 billion. It employs over 150,000 people in more than 140 countries around the world. In its debut Huawei was a single sales agent of a Hong Kong telephone server company. Actually, it has become the world’s largest telecommunications equipment and solution providers (The Economist, 2012). Huawei business strategy is focus in three business areas telecom networks building, global service, and electronic communicating devices. The
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Problem Identification
a. One of the challenges that Huawei has to overcome is how this company could develop the capacity to move up the ultimately high tech devices value chain, imitating its success in low-end telecom networking in high-tech products to compete and establish and acceptable market share?
b. It is extremely important that Huawei develop, build, and market a reliable and premium global brand.
c. Huawei needs to clarify what is the relation that allegedly they have with the Chinese governed in order to enter successfully in the U.S. market, Huawei will probably stagnate while the competition will be occupying the market share that the company wouldn’t cover.
Causes of the problem
a. The main problem that Huawei should address is the market perception to Chinese product as low quality. Product quality is a crucial determinant of customer satisfaction.
b. Huawei had achieved a tremendous technology advance, but, the reality is that its technology capability is still less than the global market leaders like IBM and Samsung.
c. Huawei unclear relationship with Chinese government. This is a critical issue that this technology giant has to solve if they want to achieve the expansion that they are looking for.
d. One of the barriers that the company has to overcome as they expand in multiple, new global locations is dealing

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