SWOT Analysis on Huawei PDF

Preview

Summary

business law lecture notes...

Description

SWOT Analysis on HUAWEI Strengths - Huge market proportion – consumed in more than 170 countries - Emerging leader with a 23% jump in revenue in the 2nd quarter of 2019 - In quarter 3 of 2019 they sold 67 million phones despite the US ban which built on the 118 million phones sold in the first half of 2019 - Always had a focus on innovationworld’s first 5G implementation . - Large investments for research and development - Smartphones have gained popularity rapidly because of its camera technology - Competitive pricing - products are cheaper, compared to Samsung and Apple (Note. As brand image increases consumers may be willing to pay a higher price for the products) - Technical advantage- they make wireless communication, so have chipsets inside smartphones, so when they sell their phones, they give discounts to those who buy Huawei’s network communication products. - Strategic collaboration with global partners such as Google for the android operating system - Highly skilled workforce through successful training and learning programmes Opportunities - Smart phone data analysis could prove useful in the company getting to know customer trends - Potential to increase into a luxury brand inside and outside the Chinese market - Chances to decease costs in shipping and transportation to increase profitability - Research and development have

brought significant opportunities for Huawei- 5G is a profitable area full of opportunities and investing in these

Weaknesses - Low capital budget limits the company to compete internationally – as fighting competition is expensive and needs heavy investment - Since Huawei is cheaper than its competitors such as Apple, customers believe more expensive products are better quality and so have higher confidence in them. Study showed that Chinese consumers believe that Huawei products are inferior - Brand is predominantly known in China, while global presence is being hindered despite recent growth - Huawei is highly affected by high employee turnover - Gaps in the product range- a lack of choice gives the competitors more chances - Huawei spend a lot of money on training and development of their employees - Huawei has a tainted image because it has been accused of using its resources for espionage. Losing support from US - Its CFO in Canada was arrested – bad image - Weak position in the US - Fiscal reports could be tainted through Chinese government interference

Threats - Competing with international brands is difficult, as they are more well known - Rising pay levels in china and increasing production costs can lead to pressure on profitability - No regular supply of innovative productsusually products made in response to competitors - Trade tensions between US and China - Bans on Huawei by some counties- such as USA, Australia, New Zealand. - Global smartphone market fell by 2% in 2018

might bring Huawei into leadership position in the global technology industry -

Not fully fulfilled marketing strategy world wide Brand uses online channels for salecould focus upon building its brand in retail spaces and could help drive sales and improve customer loyalty higher

-

due to an over saturation in the market Open to law suits from other tech firms from claims of corporate espionage Brand reputation is damaged from recent CFO scandal People value privacy more and more as their phones become more important to them, may not trust Chinese brand

How to mitigate the risks successfully:  AD campaign to increase brand recognition to Western Markets (particularly in Europe) perhaps using more celebrity figures/influencers  Expand product range to include other technologies much like Samsung to avoid potential loss of investment for example like Microsoft with Nokia  Implementation of a high street presence like that of established technology brands like Apple and Google to allow consumers to have a direct avenue to Huawei products o This also gives the company a real face  After a press conference In the G20 summit in japan, it was confirmed that Huawei discussions would be saved until the end of any trade talks with Trump saying “we’ll have to wait until the very end, we’ll have to see” o As a result, Huawei bans in the US could be lifted soon  Despite the 2% fall in the global smartphone market, figures are showing that there has been in fact a rise in African and East Asian markets as those parts of the world become increasingly richer, demand for luxury smart phones is increasing. o Huawei could tap into this market to gain a head start over competitors...