Huawei In Canada: Can It Become A Trusted Player Harvard Case Solution & Analysis

INTRODUCTION

Huawei is a gigantic multinational telecommunication equipment makers and service provider, which has earned the satisfaction and confidence of its valuable customer over the period of time, by facilitating its customers with excellent quality services and exceptional customer care services. This has allowed the company to enhance its overall customer base by earning the loyalty of its customers which has further allowed the company to trail-blaze the entire market by securing a leading position in the telecommunication industry.

The company has a trend of identifying potential markets all across the world and making effective strategies to penetrate in such markets in order to ensure the overall business growth. The top management of the company has made various effective strategies which has allowed the company to expand its operations globally, efficiently and effectively.

The Research and Development department of the company has identified Canadian telecommunication market as a high potential market for the robust growth of business of the company. The top management of the company identified that in order to tap into the Canadian market efficiently and effectively, the company should use “Globalization” strategy.

The company penetrated in the entire Canadian market by using globalization strategy and represented itself as a Canadian company in order to attract the people of Canada more readily towards the products of the company. The top management of the company made its back breaking efforts in order to optimize the overall performance of the company.

The company performed exceptionally in the Canadian market and has readily earned the satisfaction and confidence of the customers of the company by providing its customers with excellent quality products and services and extra ordinary customer care services. The company has company somehow managed to capitalize a considerable share in the entire Canadian market in a very short period of time, as well as, the company gave a tough competition to its major competitors including Nokia and Siemens.

In early 2011, the company expanded its operations in the Canadian market by establishing its headquarters in Ontario along with two offices in Canada. The company has also increased its workforce from 70 employees to 450 professionally skilled employees which acted as a competitive edge for the company, in addition to this, the top management of the company vastly invests in Research and Development in order to attain robust business growth which further intensifies the competitive edge of the company. Hence, the company was performing outstandingly in the Canadian market.

PROBLEM ANALYSIS:

In late 2012, the top management of the company faced a serious downturn in the business growth of the company. This downturn in business resulted from a claim by US Congress for the potential security risks attached with the products of the company. The congress claimed that the company has supplied such devices and equipment to US Government and companies by which the company can spy and can get access to the confidential information of US Government.

This potential claim had a significant negative effect on the business operations of the company. Many companies have blocked the equipment supplied by Huawei as well as the Government has banned the company to make local acquisitions. This had decreased the overall revenue of the company as well as it had also declined the overall growth of the company.

Furthermore, this had created an impression of doubt on the reliability of the products and services of the company which has further created a negative impact on the reputation of the company. Thus, this has decreased the overall customer base of the company as well as overall competitiveness of the company.

Huawei In Canada Can It Become A Trusted Player Case Solution

In addition to this, the top management of the company is seriously considered about the effect of such claim to its business in Canadian market and is unable to make effective strategies to overcome this issue and rebuild the trust of the company, efficiently and effectively.

PORTER’S FIVE FORCES ANALYSIS:

In order to evaluate the competition in the market as well as the competitiveness of the company, porter’s five forces analysis has been done.

Threat of New Entrants: LOW

The company has made a strong brand name over the period of time as well as the company has earned the loyalty and satisfaction of its valuable customers over the period of time which has increased the overall customer base of the company. Therefore, there is a low threat to company from new players entering in the Canadian telecommunication industry..........................

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Huawei In Canada: Can It Become A Trusted Player

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