Analysis on Business Strategies of Smart Phone Department of Huawei Technologies
Analysis on Business Strategies of Smart Phone Department of Huawei Technologies
Introduction
In 2012, Huawei Technologies built a new brand Ascend to enter high-end smart phone market. In this business analysis, we consider smart phone department a strategic business unit (SBU), do external environment investigation through PESTAL and Porter’s five forces models and analyze the internal strategic capabilities through VRIN model. After integrating all the resources, we determine the most favorable business strategies for Huawei’s smart phone department on the basis of a SWOT analysis.
Company Background
The head quarter of Huawei Technologies was located in Shenzhen, Guangdong province in 1987. And Huawei is a private enterprise producing and selling communication devices. The main fields the Huawei involved are switching network, transmission network, wireless and wired network, handsets and wireless end products. Brian Law (2007) mentioned that Huawei technology is now the largest telecom vendor in China. The sales revenue for Huawei is 3.54 billion dollars equal to 22.02 billion RMB which is 7.97 percent increased comparing to last year. And operating profits of Huawei is 3.20 billion dollars equal to 1.99 billion RMB which is 7.39 percent increased comparing to last year. Huawei has expanded its international markets to developing countries like South-East Asia, Central Asia and Latin America, Middle Eastern nations, and developed nations including the UK, USA, Sweden and The Netherlands.
Table 1 Annual finance situation of Huawei Technology
Items
2012
( USD million)
2012
( RMB million)
2011
( RMB million)
Compared rate (%)
Sales revenue
35,353
220,198
203,929
7.97
Operating profits
3,204
19,957
18,582
7.39
Data via the annual report of Huawei investment holding co., LTD in 2012
With the rapid expansion of worldwide smart phone terminals, Huawei sold 127 million units of the hand phone including the 32 million units for smart
Introduction
In 2012, Huawei Technologies built a new brand Ascend to enter high-end smart phone market. In this business analysis, we consider smart phone department a strategic business unit (SBU), do external environment investigation through PESTAL and Porter’s five forces models and analyze the internal strategic capabilities through VRIN model. After integrating all the resources, we determine the most favorable business strategies for Huawei’s smart phone department on the basis of a SWOT analysis.
Company Background
The head quarter of Huawei Technologies was located in Shenzhen, Guangdong province in 1987. And Huawei is a private enterprise producing and selling communication devices. The main fields the Huawei involved are switching network, transmission network, wireless and wired network, handsets and wireless end products. Brian Law (2007) mentioned that Huawei technology is now the largest telecom vendor in China. The sales revenue for Huawei is 3.54 billion dollars equal to 22.02 billion RMB which is 7.97 percent increased comparing to last year. And operating profits of Huawei is 3.20 billion dollars equal to 1.99 billion RMB which is 7.39 percent increased comparing to last year. Huawei has expanded its international markets to developing countries like South-East Asia, Central Asia and Latin America, Middle Eastern nations, and developed nations including the UK, USA, Sweden and The Netherlands.
Table 1 Annual finance situation of Huawei Technology
Items
2012
( USD million)
2012
( RMB million)
2011
( RMB million)
Compared rate (%)
Sales revenue
35,353
220,198
203,929
7.97
Operating profits
3,204
19,957
18,582
7.39
Data via the annual report of Huawei investment holding co., LTD in 2012
With the rapid expansion of worldwide smart phone terminals, Huawei sold 127 million units of the hand phone including the 32 million units for smart
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