HUAWEI’S STRATEGY OUTSIDE CHINA
DOING BUSINESS IN CHINA
Marine SulpiceEmilie de Panafieu
I. Presentation of the brand
II. Its perception in China III.The brand’s strategy
IV. How to adapt outside china ?
BRAND PRESENTATION
Presentation of the brand
• Largest networking and telecommunications equipment supplier in China.– Established in 1988– Translated as "achievement", "magnificent act",
"splendid act", or "China can".• Serves 45 of the top 50 telecoms operators • 2001: Increased its expanding abroad
Huawei’s products
• Category of products: – wireless, – fixed line, – software & service, – datacom, – terminals
Realize Your Potential !
I. BRAND PERCEPTION
Perception of the brand
« We feel Huawei has strong departmental walls- hard to relate a message to the right party »
Hutchison Crossing
« Vendor must take the view of the stand as operator to solve problem »
BJ Suburb Telephone
« Well there is no backing of management support to the identified focal point-he seems to be very powerless »
Hutchison Crossing
Perception in China• Strong chinese brand :
– strong manufacturing capabilities, – governement support, – low cost, – strong R&D, – good service and support
• However, many criticisms: – Technology theft– Customer relations– Security concerns
II. BRAND STRATEGY
Semiconductor specialists
Electronic manufacturers
Service providers
Retailers
SUPPLIERS CUSTOMERS
Suppliers: semiconductors and electronic specialists
Customers: service providers
Customers: retailers
www.directorycellphones.com
http://www.5sur5.fr
Huawei ‘s competition
A clear concentrated competition
Competitors and their core activity
Competitors ranked by net sales in billion euros
Source étude IBM consulting group
Key success factors of the sector
Reliability efficiency
Customized serviceFull range of products and
services
Support
Ease of use
To what extend the KSF are mastered by Huawei
Overall performance comparison
Key Success Factors: Huawei/ Nokia/Samsung
III. Huawei principle issue: Adapt Outside China
Huawei Outside China
NORTH AMERICA
AFRICA
EUROPE
LATIN AMERICA
MIDDLE EAST & NORTH AFRICA
CIS
CHINA
PACIFIC ASIA
Huawei’s worlwide offices
Adapt Outside China
1. Adapt R&D– 10% of revenue in R&D each year– 7 centers in China, 1 Sweden, 2 in
USA, 1 India, 1 Ireland, 1 Russia, 1 Indonesia, and 1 Netherlands.
2. Local Formation for employees 3. Technical Assistance (TAC)
Objectif: ANSWER CLIENTS NEEDS
4. What structure to use to implement?
• joint-venture CEI• FutureWei vend en indirect USA
5. Cooperation/ partnerships (Africa)
6. Social implication (Asie Pacifique)
Huawei’s solution: ACT GLOCAL
Adapt Outside China
Conclusion:Huawei outside China
Conclusion:Huawei outside China
Sources• http://en.wikipedia.org/wiki/Huawei
• http://www.huawei.com/fr/catalog.do?id=51• http://edissertations.nottingham.ac.uk/195/1/06MAlixwh8.pdf
• http://support.huawei.com• www.huaweidevice.com/
• http://com.chinabyte.com/huawei/• http://www.globrand.com/brands/huawei/
• www.pointgphone.com/test-huawei-u8230-9262• www.mobiles-actus.com/test/huawei/
• www.journaldunet.com/.../060904-huawei-technologies.shtml
HUAWEI’S STRATEGY OUTSIDE CHINA
