HUAWEI INSIGHTS MEMO

 HUAWEI INSIGHTS MEMO

 Huawei is a company based in China, which is among the largest economies in the globe. China has made tremendous breakthroughs in terms of technological developments. Its vast population has a very high enthusiasm for work and innovation. The country’s high-quality products have attracted many foreign markets across the world increasing its market base. A company like Huawei, which is a giant in the field of technology, has its products consumed around the globe. Its penetration into foreign markets remains astonishing, given that it has highly competitive advantages over other companies in the industry. China is a peaceful country whose citizens value and uphold the best work ethics. Besides, the Chinese have revolutionized many aspects of their economy. This has been made possible by good governance and the ever-motivated individual who will stop at nothing other than seeing their country among the top economic giants like the US and Russia.

1. Competition

Over the past few years, Huawei has climbed to be the second mobile phone manufacturing company after Samsung and even surpassing Apple. This has been made possible by the competitive advantage of the company. Huawei produces high-quality products at relatively lower prices compared to its rivals, which has seen it to a better financial state. It has also invested aggressively in research and innovation with the aim of attaining a more significant market share. But since their rivals, Samsung and Apple are also doing the same. Huawei needs to take their research a notch higher to be able to compete more favorably. For instance, Huawei is at a leading position in the area of 5G and AI (artificial intelligence). However, there is a lot to researched the field of 5G and AI

1. Governance

Politics affects all aspects of international trade and has gained more relevance in the past few years. For instance, in the technological sector, political effects have been felt more intense than before (Huawei Pestel Analysis – Notesmatic, 2020). International trade profitability and productivity are also being affected by increased government control and oversight as well as ties between countries. Various governments have raised issues concerning privacy and data security among large companies. Government oversight on the technology industry has posed the main obstacle for international trade expansion and growth. Huawei is domiciled in China proves difficult for the company to extend and establish its tentacles in a country like the US due to the cold war between the two countries, which discourages Chinese firms from doing business in the US. It’s in a scenario like this where the Huawei’s CEO was arrested in Canada. The US accuses Huawei of using their brand to spy on them on behalf of their government due to the close relationship between Huawei and the Chinese government. This has undermined Huawei’s international expansion (Huawei Pestel Analysis – Notesmatic, 2020).

1. Economic

Economic issues affect technology businesses as well. Huawei rose very fast in the smartphone industry and has been ranked among the top in the industry. It has since then established a stable financial position. Despite the economic fluctuations in the foreign markets, Huawei has used a competitive pricing strategy to sell more units compared to their rivals and beat international economic volatility. The Chinese economy has snowballed over the past decade, and Huawei is a leading player, has realized a lot of profits (Ma, Roberts & Kelly, 2017). With these regards, economic factors have significant impacts on international trade. If the economy is stable, there are many job opportunities, and people have higher purchasing capabilities. This means that there is more disposable income that can be spent on technology and lifestyle products such as smartphones.

1. Technology

The innovation business is the quickest developing industry worldwide, and now an enormous piece of the universal populace utilizes web and web-based administrations. The development and expansion of web innovation have supported the development of global brands like Huawei. An ever-increasing number of individuals are purchasing cell phones to get to online administrations like internet-based life and email too different types of diversion like games and films. Huawei is an innovative brand and places a substantial spotlight on research and advancement (Huawei battles security concerns, 2019). This is additionally an explanation for the quick development of the brand. Its camera telephones have been exceptionally well known in a few corners of the world. Besides, it is in front of the vast majority of its rivals in the territory of 5G, and it is effectively exploring AI to bring new items and administrations for its clients. Its driving situation in 5G and the cell phone industry will undoubtedly profit the brand in the coming years. The interest for innovative items has consistently developed in the ongoing years, and keeping in mind that the web has brought higher openness, cell phones have become a vital piece of individuals’ way of life everywhere throughout the world. Huawei has cooperated with a few firms everywhere throughout the world to develop its 5G organization. Be that as it may, there is additionally exceptional rivalry and a few different types of difficulties in the web and cell phone industry.

1. Legal

Lawful components have likewise procured a significant job around world business as well as innovation business. Amid concerns identified with client protection and information security, legitimate organizations have developed their degree of oversight of the cell phone and web organizations. Everywhere throughout the world, the requirement for consistency has evolved, and organizations are mainly concentrating on this region to dodge weighty fines. The degree of penalties for any infringement has likewise grown a ton, and business may lose a huge piece of its income for resistance (Huawei battles security concerns, 2019). Aside from client, protection, information security, there are different territories like work and item quality just as conditions too where consistency is necessary (Huawei Pestel Analysis – Notesmatic, 2020). Huawei is now dealing with criminal indictments in the US identified with surveillance and taking competitive innovations that have demonstrated it exorbitant. Besides, aside from causing loss of income claims can likewise portray unfavorable for brand reputation. In the more drawn out terms, the legal struggle in the US could cause huge misfortune for Huawei.

References

Academy, P. (2020). Marketing Theories – PESTEL Analysis. Retrieved 4 March 2020, from https://www.professionalacademy.com/blogs-and-advice/marketing-theories—pestel-analysis

Balding, C. (2019). Huawei Technologies’ Links to Chinese State Security Services. SSRN Electronic Journal. doi: 10.2139/ssrn.3415726

Huawei battles security concerns. (2019). Network Security, 2019(3), 3. doi: 10.1016/s1353-4858(19)30031-5

Huawei Pestel Analysis – Notesmatic. (2020). Retrieved 4 March 2020, from https://notesmatic.com/2019/05/huawei-pestel-analysis/

Ma, G., Roberts, I., & Kelly, G. (2017). Rebalancing China’s Economy: Domestic and International Implications. China & World Economy, 25(1), 1-31. doi: 10.1111/cwe.12184