Introduction of Huawei:

Established in 1987, by Ren-Zhengfei former engineer in the people liberation army.

Headquarter in Shenzhen,Guangclong China.Huwaei technologies is a high Tec
enterprise which specializes in research and development, production and marketing of
communication equipment, providing customized network solutions for telecom carriers
in optical fixed and mobile and data communications network.
Vision of Huawei Now:
To enrich life through communication
Change vision:
To improve life through communication and stylish look
Mission of Huawei:
To focus on our customer market challenges and needs by providing excellent ICT
solutions and services to order consistently create maximum value for our customers.
Missed Components Of Mission:
Markets.
Philosophy.
Employee.
Changed Mission:
To focus on our customers all over the world, market challenges and needs by providing
excellent ICT solutions and services, in order to leading technology and consistently
create maximum value for our customers.
We aim to work as a tear wipe employees and achieve a win solution with our suppliers
and partners.
External Factor Evaluation for Huawei (EFE Matrix):

Opportunities Weights Rating WR

Domestic Political 0.15 2 0.30
Stability.
Acquisition With 0.05 3 0.15
Other Companies.
International 0.05 2 0.10
Expansion.
New Product 0.05 2 0.10
Extension.
 Labor Cost 0.20 4 0.80
Advantage.
= 0.50 = 1.45

Threats Weights Rating WR

Intense 0.20 2 0.40
Competitors.
Substitute 0.05 2 0.10
Products.
Re-shuffling of 0.05 1 0.05
Telecom Industry
In China.
Security Issues. 0.10 3 0.30
Low Awareness 0.10 4 0.40
and Confused
Pronunciation.
= 0.50 = 1.25

4 = Super Response.
3= Above Average.
2= Average.
1= Poor average.

Competitive profile matrix:

Critical HUAWEI Samsung Lenovo

Success Weight Rating WR Rating WR Rating WR
Factors
Advertising 0.30 3 0.90 4 1.2 3 0.90
Technology 0.20 3 0.60 4 0.80 3 0.60
Customer 0.15 2 0.30 4 0.60 2 0.30
Loyalty
Price 0.10 3 0.30 3 0.30 3 0.30
 Market 0.20 2 0.40 3 0.60 3 0.60
Share
Global 0.05 3 0.15 4 0.20 2 0.10
Expansion
= 01 =2.65 = =
3.7 2.8

Interpretation:

Huawei has some of the key competitors which are used for CPM analysis. Lenovo and
Samsung are the major competitors. The weighted score for Huawei is 2.65 whereas,
Samsung has a weighted score of 3.7and Lenovo has a score of 2.8. The major weakness
that is identified by the CPM analysis can result in its success more than that of Samsung
in its market share.

Strengths of Huawei:
Huawei had been emphasizing on building a strong R&D Team.
High salaries by Chinese standard.
They are short term financing and long financing options available from the state
owned Chinese bank.
Low operation cost that support low cost pricing strategy.
Huawei Company has shown improvements in developing its company status.
The strength of Huawei is, they are able to get high quality and up to date
software.
Less labor disputes.
Heavy advertisement on internet for ease of access to information
Highly quality and skilled work force.

Weakness of Huawei
Have to fail to organize the structure of the company.
Relatively small managed services base.
Poor customer services.
Weak brand portfolio.
Weak supply chain.
Bad software allows at lockers to gain access.
Mainly rely on Weston engineers.
 Very low profit margin.
Lack of publicity.
High cost in some departments.

Internal Factor Evaluation Matrix for Huawei Company:

Key internal factors weight Ratings WS
strengths
1 Focus on R&D 0.2 4 0.8
2 High salaries by Chinese standard 0.1 3 0.3
3 Investment in new technologies 0.05 4 0.20
4 Short and long term financing 0.05 4 0.20
5 Low operation cost 0.05 3 0.25
6 Focus on company status 0.05 3 0.25
7 Able to get high quality 0.05 3 0.25
8 Skilled work force 0.05 3 0.25
Weakness
1 Fail to organize the company structure 0.1 1 0.1
2 Small manage the service base o.o5 2 0.1
3 Weak supply chain 0.1 1 0.1
4 Mainly Rely on Weston engineer 0.05 2 0.1
5 Low profit margin 0.05 2 0.1
6 Poor customer service 0.05 2 0.1
1 207

Opportunities of HUAWEI:

The domestic politics is stable in the national economy is growing fast.

The high and new technology has broad prospectus.
The degree to which the nation values the proprietary intellectual property rights is
growing.
The information safety is more and more important to the users.
It can present itself better in the world by collaborating with the same mobile company.
New product extension.
International expansion.

Threats of HUAWEI:
No acquisition.
Perception is weak.
 Substitute products.
Security issues.
Low awareness.

SWOT Matrix of HUAWEI:

Strengths Weaknesses
They are long and Bad software and
short term financing. access to hackers.
High quality and Lack of publicity.
updated software. Intense competition.
Low price strategy Low profit margin.
and low labor wages. Rely on western
Heavy engineers.
advertisement on
internet.
Opportunities SO Strategy WO Strategy

The domestic 1. Build strong 1. Provide features that

politics is stable and relationship with are attractive to
favorable. government. (S1, customers to remain in
Low cost advantage O1) competition. (W3, O3)
over the 2. Intense product line
competitors. and supply chain.
New and highly (S3, O2)
innovative
technology.
New product
extension.
International
expansion.
Threats ST Strategy WT Strategy

Low awareness and 1. Increase awareness 1. Secure software and

weak perception. on different media. provide customer
Security issues. E.g TVC , Print Ads service (W1, T2)
Weak brand (S4, T1) 2. Provide awareness on
portfolio. media. (W2, T1)
Tight monetary
policies.
Space Matrix:

Internal Analysis External Analysis

(FP) (SP)

1. Cash flow. +2 1. Technology changes. -5

2. Revenue. +2 2. Competitive pressure. -4
3. ROI. +3 3. Pricing challenges. -2
Average 2.3 Average -3.6
(CP) (IP)

1. Customer loyalty. -4 1. Profit potential. +2

2. Quality of product. -3 2. Ease of entry in new market. +1
3. Service quality. -5 3. Market penetration. +1

Average -4 Average +3