Huawei in Canada Can It Become A Trusted Player? Harvard Case Solution & Analysis

Huawei in Canada Can It Become A Trusted Player? Case Solution 

Company Introduction

Huawei has developed its offices in 140 countries. Huawei is the second largest company in the telecommunications equipment industry based on its revenue. It established in 1988 being a switch phone distributor. Its first R&D center was in Beijing, China. By 1996, Huawei founded its existence among China telecommunication equipment market. It generated 2.6 billion profits from it. After its development in the switches of phones, Huawei entailed optical network transmission system and after that it developed in mobile communications. Innovation by Huawei has maintained core innovation through its R&D development, providing 10% of the total revenue each year. For the global expansion of Huawei, its founder started reducing profits and as a result, the profit was increased.

Huawei entered several markets at a time. By 2001, it entered into the European market as a result the demand for its products increased. In 2005, the international order of Huawei was exceeded of the domestic sales, which led to a 70% increase inits revenue.

Problem

After being awarded in 2008 by the Canadian marker, Huawei entered the Ontario Canada, in 2011, where it founded headquarters in. Moreover, it made two more offices in Canada. Furthermore, it increased its employees from 70 to 450, where half of the workforce was used for Research & Development. Huawei although brought less to its R&D as compared to its competitors,Ericsson and Nokia Siemens, nonetheless, it provided lower price strategy to its products. In 2013, Huawei was accused of cyber–security and got banned from its products in Canada.

 Core Competencies

Huawei entered other countries. Huawei focused on its core business in mobile and broadband networks as well which helped the company to take advantage over its rivals.

SWOT Analysis

SWOT (Strengths, Weaknesses, Opportunities and Threats) is a strategic planning method used to evaluate the internal and external factors that are favorable and unfavorable to achieve the objects in business or a project.

Strengths

  • Chinese government’s stability and support
  • Huawei entails low pricing strategy development due to low cost edge through operation and engineering.
  • Huawei involves powerful access to the internet marketing.
  • Huawei possesses capabilities of strong manufacturing even through low cost.
  • It has leading edge of 3G and 4G in mobile communication.
  • It has advantage of partnership globally.
  • R&D is one of the best standing points of Huawei, as it put 10% of its sales to it.
  • Huawei has the advantage of hiring local labors from the overseas countries.
  • Powerful segmentation throughout the world.
  • Huawei has expanded to America 15%, China 33%, Asia pacific 17% and Middle East and Africa 35%, earning from its entire revenue.
  • Wireless network equipment has greater share in Canada market by 2012.

Weaknesses

  • Huawei bears power deficiency in some regions of the globe.
  • Huawei faces difficulty in dealing with Chinese employees.
  • As Huawei is tied with the Government of China, it does cost Huawei to have limitation of investment opportunities.

Opportunities

  • Huawei has the opportunity to develop strategic relationships with professionals locally and internationally.
  • Huawei has the view of the growth to the telecom market.
  • Huawei incur paths of expanding its growth to the geographies.
  • Government as well has in lined for introducing fourth national courier to enhance competition

Threats

  • Lack of trust for Huawei is the biggest risk that led Huawei to be black listed due to cyber-security issue.
  • In telecommunication market, Huawei has numerous competitors to compete against.
  • A lower profit risk is linked to Huawei’s growth.

PESTEL

PESTEL (Political, Economical, Social, Economic and Legal) involves macro analysis in which the company is located...................

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