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Report on How Huawei developed and become one of the biggest (mobile phone) companies in China.

Category: Electrical Engineering Paper Type: Report Writing Reference: APA Words: 4100

Contents

Brand history of Huawei 3

Three different business groups of Huawei 4

Huawei Brand Philosophy. 5

Building up the global leadership for Huawei 7

Huawei brand communications. 8

Some of the different future challenges for this Huawei mobile phone brand. 12

Conclusion. 13

References:

Mentioning Huawei along with other people, they would immediately start associating this brand with other latest along with other high-quality technology products. Certainly, this Huawei is the mobile phone brand that has come a very long way since the time period it was being founded back in 1987. Within a very short history of almost 30 years, Huawei in today’s world is considered to be the global behemoth that is competing against many other mobile phones like Samsung and Apple. This pleads to the question, what is that secret for the rapid success of Huawei? Here, you will get to know some of the key factors to the accomplishment of Huawei.

Title: Report on Brand history of Huawei

This Huawei technology was being founded in year, 1987 in the city of Shenzhen, China as it is the rural sales agent for the Hong-Kong that is based on phone along with the other businesses of cable network. In the period of 1996-1998, Huawei first of all expanded into some of the metropolitan areas of the China as population of urban area started to shatter.

There are number of different cities that require the complex communication of the different networks and Huawei is the one that that continued growing at a large scale through expansion and then servicing all of the needs.

In today’s world, this Huawei products along with the solutions are being organized in more than 170 different countries and this Huawei is almost serving one third of the population in whole world. Huawei is known to be the third largest global manufacturer of different switches, routers along with many other telecommunication network equipment as well and recently this mobile brand has joined the ultra-competitive race of different smartphones. (Borquez, 2019)

 For many of the different observers, Huawei has apparently come out of nowhere in the world to become one of the most dominant mobile phone brand like other famous ones. Major customers of this brand include, telephone and the internet users that are using the expertise of Huawei for the provision of different kind of services to the number of customers under the name of their brand but not the Huawei’s brand. This has also lacked in the fame of globally because of the origin in China. By the 1/5th population of this whole world within the borders of China, Huawei has become completely capable to be grown and then still remaining isolated relatively.

Three different business groups of Huawei

Core business of the Huawei can be further divided into three different groups. First group is the carrier network business group that further helps in proving the wireless connections, networks that are fixed, global services, and different solutions for the network energy that are being used by almost all of the major carriers of communication globally. From the last seven years leading up to 2012, growth rate of this Huawei annually managed out the different services that mostly got exceeded 70 percent by making the Huawei one of the most fastest growing managed service provider in the whole world. (Fu, 2018)

Then the second business group is the Enterprise Business Group that leads the company towards the perfect compliment. At the moment when all of the information is being sent and then received through the pipes as well, all of the data needs to be analyzed, translated and saved as well by the help of Huawei data center along with some of the storage products as well.

The third group is called as the Consumer Business Group that push the spread heads of the company in the segments of smartphone and persona handset as well. This is being called as the “pipe strategy” by Huawei that gives a complete focus on the storage information along with processing it as well, transportation of the information along with the creation and its presentation as well. Back in year April 2017, this Huawei brand has announced its complete plan for the creation of a separate cloud business unit as part of a plan for investing of USD 1 billion for the expansion of cloud business. (Hawes, 2011)

Personal handset of Huawei business has built up all of the expertise steadily from the component of low cost along with the provider of assembly for the top most global mobile phone makers. There is no doubt in it that this brand didn’t receive any of the branding benefits by the year 2008 and it was being ranked as Number 3rd in the whole global mobile equipment market. Successfully it has shed down its role as the original design manufacturer also termed as ODM and start manufacturing along with the brand and some of its smart devices as well. Moving up the value chain from different segments of manufacturer to the maker of self -branded smartphone and it is the current and future growth strategy of the Huawei.

Huawei consumer group of business has become one of the third largest manufacturer of smartphone through the market share in 2017 by giving commands to the 10% of the global market.

Huawei Brand Philosophy

Vision of Huawei is to enrich the life of every individual through different ways of communication with the loved ones and for other purposes as well. Number of different people are now connecting with one another in the whole world on the much faster devices. Everyone wants great speed, easy to use along with the personalized and secure experience. Every kind of the business has their own demand and they further use the technology for managing of the logistics, different kind of operations along with every kind of a consumer data as well. By the year of 2020 and the coming years as well, interaction among different people, things around them and the environment to result in many other different things apart from just communication like GPS, cameras and phones. To deal with all of these digital different kind of digital floods, Huawei is the one that has committed to provide smarter, broader and the different kind of the efficient pipes as well. This mobile brand has now set up almost 15 different kind of the centers and institutes and 36 of the joint innovation centers as well that operates directly with all of the leading carriers in the whole world for the creation of customized technologies for every individual along with the competitive edge for every customer. (Ke, 2015)

Back in 2016, Huawei was being ranked the 46th most innovative company in the whole world through the Boston Consulting Group. It has been ranked first two years in a complete row in the terms of global patent cooperation treaty from the year of 2016-2016. Having employees in the number of 180,000, this Huawei Company has almost 80,000 researchers and the development employees in different countries like UK, Germany, Sweden, US, France, Belgium, Italy , China, Russia and India. (Magri, 2019)

Huawei completely understands that some of the strong brands drive innovation and this whole is being reflected in the different operations of whole world. The complete R&D expense of the Huawei technology has summed up 14.6 percent in an annual if we look back at 2016 year. Huawei believes in this that if all the resources of Huawei technology remains solely committed for the sharply defined aim of enriching the life by the communication, it gets improved consistently.

After the successful foray of this Huawei technology into this smartphone business, it has purposed the philosophy of positioning out their products being the technologically advanced solvers of different problems. This aims to link out the solution by providing the legacy to this biggest communication provider of the whole globe in the future platform for making and then selling out the most advanced mobile phones. (Raushan, 2019)

Transition from the non-visible ODM towards the visible manufacturer of the brands is considered to be challenging journey for this brand of Huawei to manage it out and then excel it. All of this requires the dedicated efforts through the team of leadership to unlock all of the global potential.

Building up the global leadership for Huawei

To be one of the best choice along with the best partner of the different carriers of telecom, this Huawei brand not only have master out the current level of technology, but all of this also anticipates the future needs of customer. Outsmarting of the current technology along with the setting of all the industry standards are considered to be the integral methods for the Huawei brand.

Almost there are 200 fourth generation of the different networks that operates commercially almost 75 different countries in today’s world and still 200 in the planning stages. At the same time, team of this Huawei brand is now working on all of the developing the 5G networks for the several years, and now it has been expected to introduce 5G networks by this year of 2020. Team of Huawei will be the first one to be the make-over in 5G technology when the time comes. 5G off course will be 100 times better than 4G in every aspect.

Huawei is further taking up the benefit for the growth by being an international leader in the different industrial standards. Being the leader in storage and cloud standardization, this Huawei brand holds over 20 different key positions in the international standards of an organization. Through this leader platform, Huawei can shape up the future of information technology policy and it also helps in staying ahead of different competitors. (Tao, 2016)

This Huawei brand has now taken great strides in the alignment of different internal leaderships along with the hierarchy as well to stay responsive in this kind of fast moving industry. No doubt that this chain of command which further helps in promoting the uniformity along with the control quality is being important for the branding, all of this can also be detrimental towards the innovation. Making more of the decentralized decisions is considered to be much important and essential, Huawei has begun up with the making of delegating decision to the different customer facing the different kind of roles along with the field offices and encouraging out the idea of flow.

The most brilliant strategy of leadership is Huawei’s rotating CEO system where number of different small group of the executives take different kind of the turns for fulfilling all of the duties related to CEO. In Comparison to one of the single CEO, who is being expected to handle number of different strategies having in-depth insight, group of the rotating along with the active CEOs are believed to be effective. All of this also makes sure that wider breadth of the different expertise is available in most of the senior leadership positions over the time period.

Huawei mobile brand is constantly leveraging the technology experts in the positioning of different kind of the products. This company don’t hesitate at all for using out the words along with different phrases as well for the description of products as fastest or the best. The underlying plan is to create up a very high valued proposition being attached towards the different products. People are very much satisfied by the applications which they have in their mobile phone and along with all of this, there are number of different individuals who also think that this Huawei mobile is not as expensive as compared to the other famous mobile phones. (Wu, 2016)

Huawei brand communications

Landmark of the Huawei upon the global stage came back in year 2005, when the international contract orders for the first time exceeded all of the domestic sales of china. Knowing about the identification, all of the change would be required to accompany all of the ascendance upon the global stage. Huawei has been redesigned all of its corporate identity to reflect upon the different principles of the different customers focus, harmony, innovation and steadiness. A very new picture was used for the balancing of all the internal challenges that takes place within the Huawei, reflecting all of the transition from the traditional point of view, local brand towards the modern one along with the international one as well.

Officially Huawei has all of its new visual identification along with the new logo on 8th May, 2006. After all this, Huawei has also been awarded as the “Broadband infrastructure Vendor of the year in the Asia pacific”. Huawei at that time was known as the global leader and still it is known to be so. (Platon, 2015)

For the re-imagining itself being a brand of mobile as compared to just called as the B2B service company. Initiative of this smartphone started by telling the different stories about their product as compared to just promoting the product featuring back in 2013. In different technological industries, focus upon the branding should be less but more focus should be done on the understanding about the demands and needs of customers that what they want and how they want to improve their lives by using the technology.

Customer satisfaction should be the top most priority for any of the brand no matter whether it is mobile brand of Huawei or any food brand, because at the end everything comes upon the customer satisfaction so until or unless the customers are not being satisfied completely. It becomes difficult for any of the brand to become popular or famous in the market. (Zailskaitė-Jakštė, 2017)

There are number of different brands in the market that communicate with one another by the help of pricing, Huawei’s USD 80 of the Android mobiles has helped it a lot in gaining the footholds from the number of different markets that are being ignored completely through the premium smartphone makers of other different brands like Samsung, Apple, HTC and blackberry as well. In a country Africa, Huawei is the mobile brand that has put almost tens of millions of different kind of smart devices in the hands of the youth of Africa and then further brought almost 1 million smart and the medium sized different enterprises online in Africa.

Core pricing technique of this Huawei mobile phone has been done to make sure about the low prices as compared to the most of different competitors, even without the pricing that is too low it would compromise upon the quality or even put the quality of different products in a form of question by showing to be one other low cost of the different Chinese provider. This is another reason that Huawei lowers itself only 5%-15% that most of the major competitors.

For the different consumers in a mature market like Europe and US, there are chances that Huawei may even have to consider a different kind of the pricing technique. No doubt that consciously or unconsciously there are number of different customers who use out the pricing of the product as a source of reliability or the quality indicator. In all of these markets, premium price is the one that infers as the premium product. In addition to this, pricing is very difficult for the Huawei to avoid all of the negative “Made in China” giving an idea in mind that it is low in the cost along with the low quality of the phone as well. (Boutellier, 2008)

For the mobile phone of Huawei, getting entered as being the provider of low cost having a broad margin, this brand has risked itself being segmented alternative as low in its quality. Back in 2013 especially in US, Huawei is the brand that made its very first formal marketing push among the mobile. But the government of US got suspicious that there are chances, this Huawei Company may act as a spy on the behalf of china. This mobile phone brand received number of different rejections on number of different kind of reasons, this was completely banned from getting bidding in the government contracts of different types and along with all this, marketing and sales efforts were restricted severely.

By the end of first quarter of a year 2014, this Huawei Company announced officially as well as unofficially all the intentions for not getting to be pursued in the market of US. In today’s world, the leadership of tis Huawei brand remains that US is not a priority now at all for the branding now but yes there are chances for the coming years. (Balmer, 2017)

Investments of this company in the marketing along with the communication have paid off successfully in a very short time. Again back in 2017, this brand became the very first Chinese brand to break up in the top 100 being ranked 70 of the brand consultancy globally of the most valuable brands. All this happened because of the continuous investments that are being done in the improved management of brand, different sort of public relations, events and lobbying as well. Even this Huawei toyed with one of the idea for changing the name so that the pronunciation can become easy for the number of different western consumers but at the end they got stuck up by their name.

Due to the global technique, it has been aimed at increasing the awareness and visibility of the brand. Advertising and marketing campaigns of this Huawei mobile brand are global in their nature and this mobile phone shot launched in more than 40 different markets at the same time without any delay or gap. (Alkhawajah, 2019)

Heavy along with the continuous investment in the communication and advertisement has become one of the mainstay of the different brand strategies of Huawei. All this will continue as the company keeps on trying to strengthen up the visibility along with the awareness of products worldwide and still stay competitive in the terms of marketing same like of apple and Samsung, as these two brands are being used at large scale and people like to have the mobile phones of this brand. (Zhijia, 2016)

Some of the different future challenges for this Huawei mobile phone brand

There is no doubt in it that due to their continuous efforts and struggle, this Huawei mobile phone brand has got tremendous success over the past 30 years but still this brand has its own unique sets of the challenges. Being in the technology as well as the digital sector, there are number of different things that are changing at a very large scale and in a very huge speed on daily basis. Here this is also even way too important for the Huawei to put an innovation in the forefront of the whole game. Now here we are going to discuss some of the challenges that Huawei will face in their different efforts or struggles for building up the better connected world. (Chen, 2019)

Continuity for the pace of innovation: History of this Huawei mobile phone brand has shown that monopoly of this control is temporary. Different kind of the structural realities in almost every industry have and for sure will keep on changing as shown by the blackberry to fall from the dominant heights. One of the biggest mistake of the successful companies is complacency. For the Huawei, to keep on continuing for pushing all of this forward by the help of R&D is considered to be insufficient. Being the cautionary sale, Nokia is the mobile phone brand that spent almost ten times more on this R&D as compared to even Apple between the year of 2004 and 2007. Nokia built different products steadfastly for the satisfaction of current needs of the key segments by ignoring out the small number of different consumers who showed a huge interest in some of the future touch screens. Same is the case here, Huawei need to seek and then create the future continually for the needs of consumers as compared to all of their current needs.

No doubt that this Huawei mobile Company is completely an employee owned Private Company, this will certainly grab all of the attention from the number of different investors looking to handle upon some of the impressive growth. It need to resist all of the shareholder value syndromes that has fallen different kind of the great tech innovators. Focus upon the stock marketing for the quarterly returns entrenched all of the management system in many great companies that discourages all of the dramatic change due to a reason that game changing innovations are considered to be much risky. Initially, stock markets don’t respond pretty well to all of the disruptive innovators. (Ku, 2015)

Brand oriented global leadership: There are number of different Asian companies that make up their mark against all of the Western players that further shares one of the common denominator. To get successful in the building of a strong brand of global, Huawei needs to rotate more marketing operated personnel in the roles of CEO as compared to other traditional experts in the finance as well as in the operations too. Huawei needs to have more of the managers that have a global vision in their minds and lives apart from the nationality which they have or the background even.

Conclusion of Brand history of Huawei

Before five years, there are pretty much chances that consumers may not have even heard anything about this brand of Huawei. But now in today’s world it is known to be the third largest manufacturer of the smartphone by the share of a market. Growth of this smartphone has been phenomenal and impressive as well. From the year of 2012-2016, Huawei doubled out its sale on the annual basis to the USD 75 billion in which more than half of all of it coming outside from the china. Some of the key factors for success include the unwavering commitment with the investment and spending of R&D. These all are considered to be the valuable takeaways for the different brands that needs to be excel upon the global stage.

There is no doubt in it that this Huawei smartphone brand has still weak presence in the India, South Asia and the North American markets. This is the reason that limits the capability to take up the sustainable second place in the position behind the Samsung. If Huawei wants to be the leader of this world in the global information and communications of the sector of technology, it needs to be bold, daring and need to take number of different challenging decisions.

References of Brand history of Huawei:

Alkhawajah, W. (2019). Huawei: An Information and Communications Technology Company. . Journal of Information Technology & Economic Development,.

Balmer, J. M. (2017). China’s brands, China’s brand development strategies and corporate brand communications in China. In Advances in Chinese Brand Management . 19-47.

Borquez, A. (2019). Exploring the nontraditional foreign investment in Sino–Latin American relations: The Chilean case. .

Boutellier, R. G. (2008). Huawei: Globalizing through innovation. Managing global innovation: Uncovering the secrets of future competitiveness,. 507-522.

Chen, J. C. (2019). Data Management at Huawei: Recent Accomplishments and Future Challenges. . 13-24.

Fu, X. S. (2018). Reverse knowledge acquisition in emerging market MNEs: The experiences of Huawei and ZTE. . Journal of Business Research, 202-215.

Hawes, C. (2011). The cultural transformation of large Chinese enterprises into internationally competitive corporations: case studies of Haier and Huawei. Journal of Chinese economic and business studies, 67-83.

Ke, J. (2015). Analyses on Strategies of Enhancing Brand Competitiveness of HUAWEI Company. In 2nd International Conference on Intelligent Computing and Cognitive Informatics (ICICCI 2015). .

Ku, M. L. (2015). Advances in energy harvesting communications: Past, present, and future challenges. . 1384-1412.

Magri, P. (2019). CHINA’S RACE TO GLOBAL TECHNOLOGY LEADERSHIP. .

Platon, O. E. (2015). Brand Communication on Social Networks. Challenges of the Knowledge Society,.

Raushan, B. (2019). Research on Marketing Strategy of Huawei Brand in Kazakhstan. International Journal of Engineering and Management Research, , 64-68.

Tao, T. D. (2016). Huawei: Leadership, Culture, and Connectivity. SAGE Publications India.

Wu, G. H. (2016). Huawei Device Shenzhen Co Ltd, 2016. Mobile phone.

Zailskaitė-Jakštė, L. O. (2017). Brand communication in social media: The use of image colours in popular posts. In 2017 40th International Convention on Information and Communication Technology, Electronics and Microelectronics. 1373-1378.

Zhijia, C. (2016). The Influence of Brand Communication on Consumers' Purchase Intention: Focus on Moderating Roles of Brand Familiarity. .

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