Huawei's Core Competencies
Introduction
Facing the China’s Telecom Equipment industry double-digit grow and becoming the largest telecom market in the world, all leading firms in each subsectors of Global telecom equipment take this opportunity to invest in china. Huawei, a Chinese challenge, was starting its challenge to Cisco insurmountable leadership position in international telecom equipment industry.
Besides, to succeed its challenge Cisco in this industry, Huawei’s needed to show it pin-point company strategy on its capabilities and core competencies, generic competitive strategy framework and international strategy to against Cisco.
Huawei’s Capabilities and Core Competencies
Huawei’s Resources audit
First of all, Huawei’s existing finance funds is large included working capital such as investment on more than US$370 million for its own Code-Division Multiple Access Technologies. On the other hand, Huawei’s have its “guanxi” relationship network to raising funds. For example the bank will give financial support and give favorable credit limit for the company. This showed Huawei’s have enough finance resource to supporting it strategy.
Secondly, Huawei’s human resources own total 24,000 employee’s majority of staff have high education level such as bachelors, master or Phd. Furthermore, the overall standard of the staff training is higher because all new employees were put through intensive military-style training for few months. In addition, it affects the intangibles resources such as the morale and business culture. The morale is high because military-style focus on team-success rather than individuals, the business culture of Huawei’s was aggressive on marketing and highly sensitive of global trend.
Thirdly, Huawei’s physical resources included production facilities, six research laboratories in china, Russia, India and Sweden, it headquarters technologies house was 1.8 square-kilometer properties together with 55 branch offices worldwide eight regional headquarters.
Facing the China’s Telecom Equipment industry double-digit grow and becoming the largest telecom market in the world, all leading firms in each subsectors of Global telecom equipment take this opportunity to invest in china. Huawei, a Chinese challenge, was starting its challenge to Cisco insurmountable leadership position in international telecom equipment industry.
Besides, to succeed its challenge Cisco in this industry, Huawei’s needed to show it pin-point company strategy on its capabilities and core competencies, generic competitive strategy framework and international strategy to against Cisco.
Huawei’s Capabilities and Core Competencies
Huawei’s Resources audit
First of all, Huawei’s existing finance funds is large included working capital such as investment on more than US$370 million for its own Code-Division Multiple Access Technologies. On the other hand, Huawei’s have its “guanxi” relationship network to raising funds. For example the bank will give financial support and give favorable credit limit for the company. This showed Huawei’s have enough finance resource to supporting it strategy.
Secondly, Huawei’s human resources own total 24,000 employee’s majority of staff have high education level such as bachelors, master or Phd. Furthermore, the overall standard of the staff training is higher because all new employees were put through intensive military-style training for few months. In addition, it affects the intangibles resources such as the morale and business culture. The morale is high because military-style focus on team-success rather than individuals, the business culture of Huawei’s was aggressive on marketing and highly sensitive of global trend.
Thirdly, Huawei’s physical resources included production facilities, six research laboratories in china, Russia, India and Sweden, it headquarters technologies house was 1.8 square-kilometer properties together with 55 branch offices worldwide eight regional headquarters.
Bibliography: 1) Phoebe Ho, Ali F. Farhoomand (2006). Huawei: Cisco’s Chinese Challenger. Hong Kong: The Asia Case Research Centre , The University of Hong Kong