Phase 1 of the Case Development
Task 1 (Background of the Chosen Organization)
Huawei Technologies Co Ltd
Huawei is a multinational Chinese networking and telecommunication company. This company is in the limelight due to its high-quality telecommunicating and networking servces to customers in different countries. It has been revealed that this company has become the largest telecommunication equipment producer in the world. Interestingly, it is the 72nd fortune 500 companies. This firm has evolved with the passage of the time, and now, it is the largest producer of Smartphone in the world. Main products or services of this company are Mobile and fixed broadband networks, multimedia technology, consultancy and managed services, Smartphone, and dongles. According to 2017 financial reports, revenue of the company is US$92.549 billion. The business of the company is expanding, and the number of employees is 180,000. The company intends to become the leader of Smartphone and telecommunication equipment. However, the firm is facing intense competition in the competitive market. Still, the company has to do plenty of work to get a sustainable impact over its rivals. The headquarter of the company is in Shenzhen, Guangdong
Rational of Choosing Organization
The rationale for choosing this organization is its evolvement. It seems a successful journey for the company in the telecommunication market. It has become a large organization that has operations in different parts of the world. Thus, fascinatingly, choosing this organization can help to derive some key business insights. The company has faced many issues regarding the market and the business. It looks interesting to navigate the intentions of the company to get rid of all these issues and problems. This company looks sharp and aggressive in strategy and decision-making process, especially in different crises, and it can help me obtain some key actions that the company usually takes to eliminate these problems.
Furthermore, this organization is growing up as a number Smartphone and telecommunication giant (Shepard, 2016). Obviously, examining the number one company or a large manufacturer seems worthy. As mentioned, the big reason for choosing this company is its evolvement. For instance, the company is dumping its traditional business model and adopting the new one to become the global leader and the prominent contender of Apple Inc. It has been observed that Huawei sold more than 10 million units in different markets. It is a big shift as compared to Apple and Samsung, as sales of these technology giants are flat in the year. It compels me to choose this organization, as definitely, the company has the capability to grow up in an intense rivalry. Issues that the company is facing can easily be found.
Organizational Background
Well, the origin of the Huawei Company comes from different initiatives by the Chinese government. In the 1980s, the government took initiatives to lift or power up the telecommunication infrastructure. Ren Zhengfei founded the organization in 1987. Instead of focusing on joint ventures or mergers or acquisitions, the company emphasized local researchers and streamlined the engineering process to compete with international telecommunication technology providers. The business expansion started in 1997, as the company started producing GSM products for different companies. The prominent contract with IBM has helped the company transform the product development and management structure. The background of the company also depicts the evolvement.
Phase 2 of the Case Development
Task 2 (Identifying Issues/Problems and Possible Solutions and Actions)
Three Issues or Problems Faced by the Organization
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Market Penetration
The biggest issue that the company is facing is the business expansion in the United States. It has been revealed that the United States government does not rely on products, especially technology products, which are manufactured in China. It is a fact that convincing the US carrier to support Smartphone of the company has become the biggest challenge. Despite being the third largest provider after Apple and Samsung, the company is struggling in the US market. The market penetration is not up to the mark due to some political interventions. For Instance, carriers are not working with the company to carry different security equipment, as they think that this security equipment can be used to derive sensitive information. The political relationship between the two countries has limited the expansion in this potential market (Cheng, 2018).
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Lacking Brand Recognition
Another issue that this company is facing is the lack of brand recognition. As compared to other companies in the international market, the company did not power up its brand strategy to position better in the minds of customers. In this modern or contemporary business era, the management of the company did not emphasize cultural integration when emerging in different markets. For instance, brand recognition and the image are triggered by cultural integration, and people are still finding it relevant to contain the attachments with the brand. Therefore, Apple and Samsung are still preferences of customers due to their remarkable cultural integrations and promotions (Velasco, 2018).
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Growth Rate
According to observations, Huawei Company is looking to contain organic growth in the competitive market. The company is not interested in different mergers or acquisitions. It has created the growth issue, as this growth strategy is not aligned with the growth requirement. However, if the company contains the merger and acquisition the chances of success are at least 1 out of 100 mergers or acquisition can be successful, and it is the big risk for the company. The reason for the limited growth in the international market is the focus on quality. Still, the company is facing many quality issues in different Smartphone. The company wants to fill the technology gap and accelerate growth through merger and acquisition. Thus, the growth rate is inconsistent and less than its rivals, and it is a major concern, as far as the business development is concerned (Scmp.com, 2013).
Impact of these Issues on the Organization
The impact of these issues on the company is negative. These issues are creating big hurdles in business development and sustainability. Furthermore, it seems tough for the firm management to gain a sustainable competitive advantage over its rivals. The firm, despite becoming the largest producer or manufacturer, is still behind, and it is a big thing to worry about.
Issue or Problem Requires the Most Immediate Attention
The issue which requires immediate attention, is the lack of brand recognition. The high brand image or recognition is a powerful source for the company to explore technology in different technology markets. The company can get the customer response and increase their assertiveness in buying products. The well-shaped brand recognition and image can help the company grow and expand, and therefore, this issue needs immediate attention.
List of Possible Solutions or Actions
- Streamlining visual campaigns
- Initiating gamification to change customer behavior
- Cultural Integration
- Using social influencers
- Celebrity endorsement
These are five prominent solutions or actions that Huawei can implement to make the difference. Increasing the brand image and recognition in the international market is mandatory to attract customers and increase buying behavior. The company can take these actions for better positioning, and people will recognize the Huawei brand in an effective manner. It can open ways for business expansion and rapid growth.
References
Cheng, R. (2018, March 27). Why some of the flashiest Android phones aren’t in the US. Retrieved from https://www.cnet.com/news/why-some-of-the-flashiest-huawei-android-p20-p20-pro-mate-10-pro-phones-arent-in-the-us/
Scmp.com. (2013, November 7). Huawei looks to organic growth, not acquisitions. Retrieved from https://www.scmp.com/business/china-business/article/1349422/huawei-looks-organic-growth-not-acquisitions
Shepard, W. (2016, May 25). China’s Huawei ‘Growing Up’ To Become the World’s No. 1 Smartphone Brand. Retrieved from https://www.forbes.com/sites/wadeshepard/2016/05/25/chinas-huawei-growing-up-to-become-the-worlds-number-one-smartphone-brand/#317c72233adf
Velasco, J. (2018, March 23). Huawei’s uphill battle for brand recognition. Retrieved from https://www.phonearena.com/news/Huaweis-uphill-battle-for-brand-recognition_id103231
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