How is Huawei’s internationalisation endeavour a good success story example for other companies wanting to pursue global growth?
Introduction
Huawei Technologies Co., Ltd. provides telecommunications equipment and solutions to operators in China and internationally. The company’s products include wireless and networking equipment, applications and software, and terminals; smartphones for French users; and metro services platforms, which help operators to build broadband metro area networks. It also offers mobile network, broadband network, IP-based and optical network, and telecom value-added services.
Huawei Technologies Co., Ltd. has strategic partnerships with IBM, the Hay Group, PwC, FhG, Intel, Texas Instruments, Freescale Semiconductor, Qualcomm, Infineon, Agere Systems, Microsoft, Sun Microsystems, and HP.
Huawei Technologies is a Chinese company. It was established in1988 by Ren Zhengfei, a former People’s Liberation Army officer and telecom engineer. Huawei’s headquarters site, of modern and impressive building fittings, is situated in Shenzhen, southern China (Guandong province). In 2006, Huawei Technologies was among the ranks of China’s “National Champions”, along Haier, Lenovo TCL, and the Wanxiang Group, poised to compete with global leaders in the international market place. Huawei has also been dubbed as the Cisco of China. It is thus a multinational corporation with branch offices in 100 countries which serves over one billion users worldwide.
The question is then begged as to why Huawei is so competitive? What were and could be the challenges the Chinese-based company faces? What are the implications of Huawei’s strategy?
In this paper I will attempt to analyse Huawei Technologies strategy to internalisation by taking in account the company’s starting point in China, and by setting the stage for the comparison of Huawei’s to that Cisco’s strategy. I will then proceed with some recommendations on what a Chinese
Bibliography: Business Week, retrieved 2 March 2010 from (http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=1259829) Zeng, M Farhoomand, A., The Asia Case Centre, The University of Hong Kong, “Huawei: Cisco’s Chinese challenger “, 2006 Chen, J