Huawei: how can we lead the way Harvard Case Solution & Analysis

Huawei: how can we lead the way Case Solution

Economic Factors

After the Economic crisis, the US market has the mission of stabilizing itself. In the recent period, the markets have recovered from the economic shocks and the disposable income of the consumers has increased, enabling them to spend more in the goods and services. In addition, the employment rate in the region has also increased, enabling the companies to offer more consumer goods on order to offer convenience to customers. Lastly, since the economy has regained its growth, the companies are looking for the channel or media in order to connect to the global world through smartphones. Thus increasing the market adaption of the smartphones.

Social Factors

The consumers in the US market have become tech savvy, making them adopt the newer technology at a faster rate. In addition, due to such trend in the market and increased information on phones and functions, the factor of loyalty from brand’s name has shifted to the functionality of the phone, opening the opportunity for the new companies to penetrate in the market. In addition, the cultural difference in the American market and the American consumers is an issue for the company, since Chinese have different culture and understanding regarding the customer services as compared to the Americans, such factor may posit certain conflicts and resistance in making the brand adaptive in the US market.

Technological Factors

The changing technology has a strong impact on the organizations in the US Market. Since the technology is changing at a faster pace with the initiation of 4g and 5g, the strong adaption of such technological models may allow the company to sustain its competitive edge in the market. Perhaps, the easy breach of technology and adaption by other companies can posit the vulnerable competitive edge of the company, making it continuously elevate its offerings in terms of technology.

Legal Factors

Since technology is easily adapted and the designs patterned are copyright property of the phone manufacturers, any violation of such policy may cause Huawei to face legal litigation in the market. In addition, though majority of the features are copyrighted and covered under the law, however, the imitation threat by other new entrants is still existent, which may not be covered by the US law due to its critical nature. (Chong, 2013).

Q2- Generic competitive Strategy

By analyzing the overall case. It has been determined that Huawei pursues the differentiation strategy in order to create the value proposition and competitive edge in the market. It is due to the fact that it does not adopt the models and features incorporated by the other giant players such as Apple and Samsung, but rather focuses on the product’s performance.

By doing so, it has joined hands with the external supplier that can offer it the latest technology under the new phone launch, allowing it to create the competitive edge in the market. It can also be said that the company pursues the Mid-tier market strategy or focused strategy, in which it targets the specific group of customers looking for high tech phones in comparatively low prices than Apple or are the change adapters, that have low loyalty towards other brands and focuses on the performance and features of the phones by comparing the price, rather than the brand’s name.

Hence, it is determined, that the company pursues focused differentiation strategy while mobbing in the market, since it created the differentiated point or party in the market by offering high performance phones rather than focusing on what other brands are offerings. Such gives the company a competitive edge in the market, leading to higher profit and sustainability.

Perhaps, such strategy is suitable for the company in the long run as well. It is due to the fact that since many competitors are entering in the market with similar features, maintaining the performance and speed of a smartphone is the key, which Huawei maintains with the help of its smart technology. Lastly, Huawei offers a combination of technology and performance to the customers with a competitive pricing in the market, making it strong and significant player in the market, in terms of market performance and customer trust, therefore, such differentiated strategy is beneficial for the company in the long term (Cao, 2018) (Chong, 2013).

Q3- Resource Capabilities

Resources

Under the resource analysis, Huawei has the strong research and development department that allows it to research the market effectively. Such resources also allows the company to innovate on a faster pace, by incorporating the latest technological model, thus creating the value for the customers.

In addition, the company also has vast production and manufacturing resources that allows it to incorporate the market changes efficiently. Moreover, it offers the company a strong control over the supply chain, along with the safety of the intellectual property rights that can be imitated due to the external supplier case. Furthermore, such resources also allows the company to maintain its operation cost, hence making it profitable in intense competition as well.

It can be said that the effective and strong research and development strategy allows the company to maintain a strong competitive edge in the market. It is due to the fact that such factors allows Huawei to remain ahead of the competition, by offering the unique products and maintaining the performance. As till now, the company has been able to achieve the third position in the market and stands against Apple and Samsung because to its string research and strong development strategy which has enabled it to create a unique value proposition in the mind of the customers; incorporating design, engineering, pricing and technology all together, offering a bundle of features and performances to the end customers (Ulrich, 2004) (Cao, 2018)............

 

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