Case analysis of Huwaei Goals and Strategies

1. CASE ANALYSIS OF
HUAWEI GOALS
&STRATEGIES
Presented by:
Ahmed Ehab
Amna Khalaqi
Mohamed Hamdan

2. Agenda
 Background
 Vision, Mission, Values and Objectives
 Huawei Strategies
 SWOT Analysis
 Porter’s Analysis
 Recommendation

3. Background
 It is a Chinese multinational networking and
telecommunications equipment and services
company headquartered in Shenzhen, China.
 Huawei was founded in 1988 by ex-military officer
Ren Zhengfei and formed as a private company
owned by its employees.
 Its core missions are building telecommunications
networks.
 Huawei has over 140,000 employees worldwide.

4. Vision, Mission, Values and
Objectives
 Vision
To enrich life through communication.
 Mission
To focus on our customers' market challenges and
needs by providing excellent ICT solutions and
services in order to consistently create maximum
value for our customers.
 Objectives
Huawei goal is to become the top ICT vendor for
telecommunication overseas

5. Vision, Mission, Values and
Objectives
Core
Values
Custom
ers First
Dedicatio
n
Continuous
improveme
nt
Openness
and
initiative
Integrity
Teamwor
k

6. Huawei Strategies
Business
Strategy
IT Strategy
Organization
strategy

7. Business Strategy
 Main business goal is to reach USD 100 Billion
revenue by 2020.
 Attacking the local and global market in
following industries
A. Carrier Network
B. Enterprise Business
C. Consumer Business

8. Business Strategy
 2011: $32 B
 2010: $29 B
 2009: $23 B
 Overseas market has grown up majorly, 100% US, 60%
Europe. Major growth in Australia, North Africa, Japan
and Middle East

9. Business Strategy
Recent Highlights
 Launching GigaSite
 Cloud Computing solutions
 Delivering high smartphone UX – 20 Million
sales

10. Organization Strategy

11. IT Strategy
 R&D – Approx. 50% of employees
 User Experience
 Speed of Execution
 High Quality output
 Employee Freedom
 Experience Sharing

12. IT Strategy
 Data Center:
 Unified Data Center – China
 1600 servers
 Online Backup system, data storage
 Power Supply System with 99.99% reliability
 Training Center:
 Provide training to customers, suppliers, partners and
employees
 Equipped with the latest and most advanced
technologies. E.g. Simulators
 (http://www.youtube.com/watch?v=5nsqNeUVZ78
)

13. SWOT Analysis
Strengths:
 Low cost (operation and engineering) which lead to low
cost pricing strategy.
 Stability and support from China government.
 International expansion giving powerful access to many
markets.
 Strong manufacturing capabilities with low costs.
 Leading and initiate 3G & 4 G mobile communication
technology.
 Cheap and high quality R & D, 10 % of its revenue is
spent on R & D within 20 centers worldwide.
 Partnership with global partners.

14. SWOT Analysis
Weaknesses:
 Limited investment opportunities because of
be tied to Chinese government.
 Lack of strong presence in some regions.
 Difficulties in dealing with Chinese employees.

15. SWOT Analysis
Opportunities:
Expand within new growth geographies.
 Extensive opportunities in a highly growth
telecom market.
Make strong strategic partnerships with
expertise or local companies.

16. SWOT Analysis
Threats:
 Strong competition of the other global brands in
telecom market.
 Blacklisting Huawei in relation to cyber-security
concerns and lack of trust.
 Lower profits might be happened.

17. Porter’s Analysis
Risk of Entry
Bargaining Power of
Suppliers
Intensity of Rivalry
Bargaining Power of
Buyers
Threats of Substitutes

18. Porter’s Analysis
 Risk of Entry
 Entrance of new big companies
 Bargaining Power of Suppliers
 Large number of equipment makers around
 Enough vendors to weaken bargaining power

19. Porter’s Analysis
 Intensity of Rivalry
 High degree of competition
 Competitors attract customers with lower prices
and more exciting services
 Bargaining Power of Buyers
 Increased choice of telecom products and
services
 Low product differentiation

20. Porter’s Analysis
 Threats of Substitutes
 Products and services from non-traditional
telecom industries
 Cable TV and satellite operators now compete for
buyers
 Internet becoming a viable vehicle for cut-rate
voice calls

21. Recommendation
 Solve the big threat cyber security
 Separate between Huawei company and
Chinese government
 Provide better localization for overseas
customers

22. Thank You