Phase 1 of the Case Development:
Mini Task 1(background of the chosen organisation)
1-Identify an organisation which you have chosen for the Course
Huawei is a multinational Chinese networking and telecommunication company. This company is in the limelight due to its high-quality telecommunicating and networking s2ervces 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 headquarters of the company is in Shenzhen, Guangdong.
2-Why did you choose the organisation
The rationale for choosing this organization is its evolution. 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 evolution. 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 is 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.
3-Research and provide a short write-up of the organisation background
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 on the 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:
Mini Task 2 (identifying issues/problems and possible solutions and actions)
4-Identify and explain at least three issues or problems faced by the organisation. You need to include an explanation why you think these are the issues and the impact of these issues on the organisation.
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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 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 minimum 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 acquisitions. 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
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 the 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.
5-Which one of the issues or problems requires the most immediate attention? Why?
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.
6-Based on the main issue faced by the organisation, make a list of possible solutions or actions that the organisation can undertake.
- 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.
Phase 3 of Case Development
Task 3 (Identifying the best solution and action)
1-Selection of Solution and Rationale
Selection of the solution is important to get rid of different problems. Huawei Technologies is facing many issues such as brand recognition, lack of growth rate, and market penetration. Thus, the pertinent solution for all these issues is cultural integration, especially when expanding business in different countries (Bastin, 2014). There are some benefits or advantages of using this solution. The elaboration is as below.
2-A-Benefits and Addressing Problems
Expanding the business in the United States of America has become the biggest problem for this technology company. The cultural integration can help the company to derive some key cultural insights, which are to be reflected in the product design and the marketing process. The biggest benefit that this company can gain is the positioning, as the firm can position better in the minds of the customer in the United States of America. In the market penetration process, the management of the company can create the humanistic values in the United States, and it seems one of the best benefits of cultural integration. On the other hand, when addressing brand recognition, cultural integration can help to exchange different innovative ideas to lift the brand strategy (Cremer, 2016).
2-B-Cost and Resource Requirement
The cost of cultural integration is moderate. For Instance, the management of the company will have to invest heavily on advertising and promotions to integrate with the culture effectively. On the other hand, there are several resources which are to be utilized effectively. Technological, human, and financial resources are needed to implement this strategy or solution when addressing these issues (John & Zhu, 2018).
2-C-Time Scale and ROI
This company needs 1 to 2 years to contain the cultural integration. It may take much time for the company to derive some cultural or social insights and reshape the business model. All key resources mentioned above are to be utilized by the company within this timescale. The company can expect a higher return on investment due to the cultural integration. The firm can depict the brand exposure, and it seems the great return that the company can have in the future. Interestingly, the firm can predict the possible return on investment through the cultural integration, and it can help to sustain the business for a long run-in different country (Zaagman, 2017).
2-D-Risk Preventing Successful Implementation
Maintaining the culture is the big risk for the company. For Instance, employees in the company may resist major transformation. It may create the biggest hurdle in gaining success. In cultural integration, there are some unwritten rules, which are to be executed, while it puts the business process at risk. The business model may contradict these new unwritten rules. Despite successful cultural integration, the risk of homesickness may emerge, which may prevent the successful implementation. The relation between the US and China is triggered by many issues, and it seems a big risk for the company to successfully implement the strategy (John & Zhu, 2018).
2-E-Possible factors affecting the implementation
Institutional and legal barriers are two main factors that affect the implementation. It is a fact that Huawei technologies may not have the legal power to implement the strategy. Furthermore, financial barriers may also hit the strategy implementation. To integrate a diverse culture of different countries, there is a need for adequate resources to make the difference. Thus, these factors and risks are to be considered by the company management for successful execution. Obviously, in the future, the firm management needs some thoughtful strategic considerations to gain the success and get an edge over other rivals in the competitive technology market (Zaagman, 2017).
References
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
Bastin, M. (2014, October 14). Huawei leads the charge in EU quest. Retrieved from http://www.chinadaily.com.cn/kindle/2014-09/14/content_18595153.htm
Cremer, D. D. (2016, April 16). Lessons from Huawei: when Chinese companies go global. Retrieved from https://www.london.edu/faculty-and-research/lbsr/lessons-from-huawei-when-chinese-companies-go-global
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
Zaagman, E. (2017, October 9). Thinking About Working For A Chinese Company? First, Find Out If It’s A ‘Lenovo’ Or A ‘Huawei’. Retrieved from https://supchina.com/2017/10/09/thinking-working-chinese-company-first-find-lenovo-huawei/
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
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/
John, A., & Zhu, J. (2018, August 27). BRIEF-Huawei Technology changes name to HUAWEI CULTURE CO.,LTD. Retrieved from https://www.reuters.com/article/huawei-brief/brief-huawei-technology-changes-name-to-huawei-culture-co-ltd-idUSL3N1881SI
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