Huawei
Formulating Technological Innovation Strategy
Application of Huawei Technological Co., Ltd [pic]
4/25/2010
FULL NAME STUDENT NUMBER
QIAN HUANG M00227215
YIN XIN M00175390
SONGMAO WU M00175404
MODULE LEADER: HONG WOO
MODULE NAME: MGT3130 (09/10) INNOVATON AND TECHNOLOGY MANAGEMENT Table of contents
1. Abstract……………………………………………………………….4p
2. Introduction………………………………………………………..4-5p
3. Methodology…………………………………………………………5p
4. Technological Innovation strategy Formulation…………………...6p
4.1 Defining Huawei’s strategic direction………………………………....6p 4.1.1 Current position assessment………………………………………………………………….6-9p 4.1.2 Strategic direction……………………………………………………………………………9-10p
4.2 Choosing Innovation projects……………………………………….....11p 4.2.1 Net profits of Huawei five-year financial statements………………………………….11-12p 4.2.2 Utilization of screening questions………………………………………………………..12-15p
4.3 Collaboration strategies……………………………………………….15p 4.3.1 Reasons for going solo……………………………………………………………………15-16p 4.3.2 Main forms of Huawei’s Collaboration arrangements and advantages…………..16-17p
4.4 Protecting Innovation…………………………………………………18p 4.4.1 Ptents…………………………………………………………………………………………...18p 4.4.2 Trade secrets………………………………………………………………………………..18-19p
5. Data and Findings…………………………………………….20-22p
6. Conclusions and Limitations………………………………....22-23p
7. References………………………………………………….....24-25p
8. Appendix………………………………………………………....26p
Table of figures
Figure 1: Five forces model analysis for Global communications equipment market in 2008……...7p
Figure 2: Divers of Rivalry in 2008…………………………………………………………………7p
Figure 3: Huawei’s ABC Strategy………………………………………………………………….10p
Figure 4: Total operating expenses and other income………………………………………………11p
Figure 5: Inventories………………………………………………………………………………..13p
Figure 5: Market shift………………………………………………………………………………14p
Figure 6: China communications equipment Market value
Application of Huawei Technological Co., Ltd [pic]
4/25/2010
FULL NAME STUDENT NUMBER
QIAN HUANG M00227215
YIN XIN M00175390
SONGMAO WU M00175404
MODULE LEADER: HONG WOO
MODULE NAME: MGT3130 (09/10) INNOVATON AND TECHNOLOGY MANAGEMENT Table of contents
1. Abstract……………………………………………………………….4p
2. Introduction………………………………………………………..4-5p
3. Methodology…………………………………………………………5p
4. Technological Innovation strategy Formulation…………………...6p
4.1 Defining Huawei’s strategic direction………………………………....6p 4.1.1 Current position assessment………………………………………………………………….6-9p 4.1.2 Strategic direction……………………………………………………………………………9-10p
4.2 Choosing Innovation projects……………………………………….....11p 4.2.1 Net profits of Huawei five-year financial statements………………………………….11-12p 4.2.2 Utilization of screening questions………………………………………………………..12-15p
4.3 Collaboration strategies……………………………………………….15p 4.3.1 Reasons for going solo……………………………………………………………………15-16p 4.3.2 Main forms of Huawei’s Collaboration arrangements and advantages…………..16-17p
4.4 Protecting Innovation…………………………………………………18p 4.4.1 Ptents…………………………………………………………………………………………...18p 4.4.2 Trade secrets………………………………………………………………………………..18-19p
5. Data and Findings…………………………………………….20-22p
6. Conclusions and Limitations………………………………....22-23p
7. References………………………………………………….....24-25p
8. Appendix………………………………………………………....26p
Table of figures
Figure 1: Five forces model analysis for Global communications equipment market in 2008……...7p
Figure 2: Divers of Rivalry in 2008…………………………………………………………………7p
Figure 3: Huawei’s ABC Strategy………………………………………………………………….10p
Figure 4: Total operating expenses and other income………………………………………………11p
Figure 5: Inventories………………………………………………………………………………..13p
Figure 5: Market shift………………………………………………………………………………14p
Figure 6: China communications equipment Market value
References: ◆ External environment analysis When looking at external environment, we can identify how does the external forces affects Huawei’s performance, in contrast to its competitors ((Schilling, 2008) [pic] Source: Global Communications Equipment, Industry profile (Datamonitor, 2009). Source: Global Communications Equipment, Industry profile (Datamonitor, 2009). ◆ Competitive advantages and core capabilities In order to obtain sustainable competitive advantages, a firm must leverage between its strategies and core capabilities (Srivastava, 2005) Source: Huawei Annual Report, 2009. (Huawei, 2009) 4.2 Choosing innovation projects [pic] Source: Huawei Annual Report, 2009( Huawei, 2009) 4.2.2 Utilization of screening questions Huawei has more than 81 thousands employees and 43 percent of them work in R&D department (Huawei, 2009) ◆ Role of Capabilities Until 2009, Huawei has set up 14 R&D research institutes worldwide and been a member of 91 standardization organizations like (ITU, 3GPP, 3GPP2, ETSI, IETF, and OMA)(Huawei, 2009)