Facing the China’s Telecom Equipment industry double-digit grow and becoming the largest telecom market in the world, all leading firms in each subsectors of Global telecom equipment take this opportunity to invest in china. Huawei, a Chinese challenge, was starting its challenge to Cisco insurmountable leadership position in international telecom equipment industry.
Besides, to succeed its challenge Cisco in this industry, Huawei’s needed to show it pin-point company strategy on its capabilities and core competencies, generic competitive strategy framework and international strategy to against Cisco.
Huawei’s Capabilities and Core Competencies
Huawei’s Resources audit
First of all, Huawei’s existing finance funds is large included
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Finally, Huawei’s owned many intellectual properties-patent. At the ended of 2004, more than 8,000 patents was owned, which 800 is applied for more than 20 countries. Value Chain Analysis
Value Chain Analysis describes the activities that take place in a business and related to the business core competencies. It can classify by primary activities and supporting activities.
First, from the firm infrastructure of supporting activities, leadership of maturity background affect the human resources to establish a strong service culture in aggressive marketing policy by provide maturity training. Huawei’s also concerned the primary activities improvements by replica the Western Management Systems to the Company includes financial, human resources systems. etc. The management systems enhance the company efficiency management on human resources and marketing together with the other primary activities. Also, in Human Resources activities, Huawei’s giving high salary to keep the workforce and the morale of the Company. Huawei’s staff is exceptionally high pay by Chinese standard with housing and other benefits. The higher morale and educated levels help the services delivery more effective and efficiency by actively obtain customers opinion.
Huawei’s director vision is to build innovation capability into the company. The
HTC’s competitive position is not sustainable. In fact, the disappointing financial performance in Q1 2012 and the increasingly decreasing operating margin all points to a slower growth. Besides the statistics, HTC also face several imminent threats, such as the popularity of Samsung and Apple’s smartphone offering, the increase in competitors in the smartphone market, the shift in market, from operator push to brand pull, and the ongoing patent war with Apple. However there are also opportunities HTC can take advantage of to keep its competitive position. The opportunities are presented in the high growth rate of Smartphone Market, 61% in 2011, and the lack of well made Android Tablet.
Value chain is a set of activities a company performs in order to provide a valuable solution to their customer problem in their market space or industry. The value chain is made up of primary and support activities. Primary activities being research and development, production, marketing and sales and customer service. These are the primary steps that are required to get a product or service to market to solve the customer problems. Some of the secondary steps include company
A value chain analysis is a strategic analysis of an organization that uses value creating activities (Dess, McNamara, & Eisner, 2016, p. 76). The value chain analysis describes a company’s activities and relates them to an analysis of the competitive strength of the company
HTC start up as a professional original engineering manufacture company (OEM) for PDA and other computer parts in 1999. While it changes its core business from PDA to smart phones, it discovered an opportunity of developing its own brand. In 2007, it brands itself into HTC while introducing the “TOUCH” series. This paper discusses the theory of global strategy for individual organizations and the necessary strategic actions for HTC in order to transfer itself into a leading smart phone company in the
“We always keep on pace with the demand of our end customers, delight them through continuing maintain a close relationship between manufacturing, ongoing Research and Development as well as working closely with supply chain and outsourcing partners, to provide cost-effective, high-quality Smart phone, wireless devices and software to our customers, internationally. Constant Training and Development program and strong culture practices are held to motivate the employees, also, to ensure infinite innovation and creation come out from them. Most importantly, offer attractive
Value chain analysis looks at every step a business goes through, from raw materials to the eventual end-user. The goal is to deliver maximum value for the least possible total cost. It is a systematic approach to examining the development of competitive advantage. The most basic breakdown of primary functions includes inbound logistics, operations, outbound logistics, sales and marketing and service. People should use the other models and frameworks within this software to further differentiate between, and add to, these domains. Product Innovation is one area that is not normally included in the de jure model but is often included in the de facto model. Value Chain Analysis describes the activities that take place in
We have selected Huawei Technologies Company Limited for our MIS project. We selected Huawei Technologies Company Limited because this is a Chinese company .At first we selected Citycell (Telecom Operator), but when we visited City cell we learnt that City-cell is now using Huawei product, and Huawei is a Chinese company. We know about the quality of Chinese product. Most of the Chinese product can not make people happy or satisfied. But we found that Huawei now is one of the top positions in the world. This inspired us about the Huawei.
The industry value chain is the process from the suppliers of the raw material to the end customers who demand the service of transportation.
Cisco System becomes a $12 billion high-technology company with over 47,000 employees in not less than 54 countries of the world due to its strategic management policies and practices among which is diverse
Nokia’s aggressive strategy to dominate mobile communication cluster would be the main reason how Nokia could become a world leader in the sector among other reasons. Nokia’s passion for mobile communication industry was great enough to give up more than 40% of its revenue in is pre-owned communication industry to concentrate only in mobile communications. Nokia was also lucky enough to see the possibility of mobile communication early enough to predominate the industry and prevent any competition from
On January 23, 2003, the world’s leading computer networking equipment maker Cisco Systems, headquartered in San Jose California, filed a lawsuit against China-based Huawei Technologies and its United States subsidiaries Huawei America and FutureWei Technologies. In the lawsuit, Cisco alleged that Huawei stole intellectual property by copying its Internet Operating System (IOS) software and its copyrighted user manuals. Cisco also claimed that Huawei infringed on its patents. After numerous failed attempts to resolve these complaints directly with Huawei, which included a cease and desist letter to one of Huawei’s United Kingdom distributors, Cisco decided that a lawsuit was necessary to
Nowadays, Huawei get worldwide people’s eyes since it become the second-largest integrated provider of telecommunications equipment in the world since 2009(Economist,
A value chain is a chain of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market. The concept comes from business management and was first described and popularized by Michael Porter (Porter, 2013)
As mentioned in introduction part, Huawei involved in development, production, and marketing of telecommunication equipments. Its headquarters located at Shenzen China and operate at there so it enjoys low cost labor as all of us know the labor cost at china is low. This is the first strength of Huawei. Market leader in term of low cost can compete in whatever situation. Huawei can use the money for other purpose like Research & Development to further improve their product (Huawei vs Cisco brand research, 2013). Second advantage of Huawei is
Value chain is an approach to know how an item or activities create value for consumers. The most of value provides to consumers, the most of competitive advantage an organization build. In this analysis, value chain model has separated into primary and support activities. Primary activities are included in the physical creation of the item and service. On the other hand, support activities give the inputs and infrastructure that enable the primary activities to happen. This value chain model can be refer to below figure 5.