HUAWEI TECHNOLOGIES

SWOT ANALYSIS
ASSIGN#2

Syed Haider Ali Junaid Ali

01-235181-083 01-235181-017

SIR AYYUB KHAN

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Table of Contents
1. SWOT Definition
1.1
Strength . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.......................
1.2Weakness. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.3 Opprtunities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.4Threats. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. SWOT of HUAWEI
2.1 Strength of HUAWEI. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.2 Weaknesses of HUAWEI. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.3 Opportunities for HUAWEI. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.4 Threats for HUWAEI. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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What is SWOT analysis?
SWOT analysis is basically a study taken organizations to identify their internal strengths and weakness,
as well as their external opportunities and threats.[1] Basically SWOT stands for Strengths Weakness
Opportunities and Threats.

SWOT analysis is a strategic planning technique used to help a person or organization identify strengths,
weaknesses, opportunities, and threats related to business competition or project planning.

1. Strengths:
Strengths are internal positive attributes of a company. These are things that are under a
company’s control. Such as

 What business processes are successful for a company.

 What assets do a company has in it’s team such as knowledge, education, network, skills
machinery and reputation.
 What business processes of a company are successful .
 In which field a company is best such as Apple is best in their Mobile phone department.

2. Weakness:
Weakness are negative factors that detract a company from it’s strengths. These are things that a
company needs to improve on to compete in the market.

 What a company needs to improve. Such as PTCLs internet speed is comparatively slow
than other companies. It’s a big weakness of PTCL.
 What are the factors which effecting the company’s sale negatively.

3. Opportunities:
Opportunities are external factors in a business environment that are likely to be positively
contribute in a company’s success.

 Are there any upcoming events from which a company can be take advantage to grow
it’sbusiness.
 Changes in Government policy which is giving an opportunity for a company to earn
more.
 IS the changes in social patterns , population profiles , lifestyle changes will let a
company to expand its business.

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 4. Threats:

Threats are external factors that a company has no control over. But a company can prepare a
strategy to overcome the threats.Whether the threats are in present or the company can make a
strategy to overcome them if any of them rise in future. Such as

 What are a company’s competitors doing.

 Do a competitor has potential to interrupt a company’s market.
 Is your competitor’s move causing your profit reducer.[2]
 For example a new burger shop is opened next to xyz Burgers the new shop will
definitely break xyz’s customer and reduce xyz’s profit.

SWOT analysis of HUAWEI TECHNOLOGIES

Strengths:
 Emerging Leadership
 3rd largest smart phone company
 Focus on innovation

Weaknesses:
 Made in China preconception
 Lots of competitors
 Failure to enter in USA

Opportunities:
 Lower price grater quality
 Government’s support

Threats:
 Threats from lawsuits
 Threats from smart phone competitors
 Literally threats from Network competitors
 Growing strength of local distributers

STRENGTHS:[3]
Emerging Leadership:
Globally No.1 in terms of sales of networking equipment (like Smart Ea5800 etc). Huawei
had held onto this position since 2014 when it overtook Sweden’s Ericsson.

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  3rd largest Smart Phone Company:
Huawei is ranked as the 3rd Largest Mobile phone company. Huawei is disrupting smart phone
market of Apple & Samsung. Not only it is the leader in its home country , but over the past 2
years Huawei has climbed to the top in Finland too , selling over 10 times as many phones as
Apple. Huawei is the leader in smart phone sales in Portugal & the Netherlands & the second
biggest in Spain , Italy , Hungary & Poland. With more than 15.8% increasing revenue every year.

 Focus on innovation:
Huawei has kept its focus on innovation from its early days. Be it World’s first 5G implementation
on power grids or Hybrid Cloud Core Network or even IOT. Huawei has been the undisputed pioneer
in network communications. Huawei has the receipt of ‘Best IOV innovation’ award at World
Intelligent Vechile conference 2017. Every year it invests 10% revenue on R&D.

WEAKNESSES:
 Made in China preconception:[3]
Actually there is a lot of smart phone companies in China which produces cheap mobiles . Due
to this reason Huawei’s brand image some how effects all around the world. And secondly
Huawei is beating all Network companies like JUNIPER , CISCO etc. Therefore some countires
raised this issue to harm its brand image.

 Lots of Competitors:[3]
Somewhere Huawei is leading , some where it is on 3 rd number and somewhere Huawei is
beating small companies on their levels. Huawei has no. of competitors in their Network
department (like Juniper,Cisco,ZTE) , no. of competitors in Smartphone department on higher
level (Samsung & Apple) and no. of competitors in smartphone deparment on lower level (like
Xiamai , oppo).

 Failure to enter in USA:[5]

Due to USA’s some dramatic issues It banned Huawei’s products in it. Because Huawei is growing
day by day due to their(huawei) innovative products in both terms Smart phones & Networks. Due
to USA’s ego they don’t can’t see the success of China.

OPPORTUNITIES:[4][5]

Lower Price & Greater Products:

Huawei brought the revolution in the smart phone world since 2015-16 by providing mobile
phones with same features (having Apple & Samsung) in very reasonable price. Like now a days
Huawei released Huawei NOVA 3 which is beating Samsung Galaxy A series & Apple(literally).
And in Network world as we know Huawei is king since 2014 .

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 Government’s Support:
Chinese government is giving free shipping service to Huawei. It’s a big advantage for Huawei.
Hence this agreement saves/saved a lot of investment of Huawei. It is basically in million dollars.
And the Chinese Government leveled Suppliers are marketing Huawei products according to the
government order.

THREATS:[3][4]

Threats from lawsuits:

Lawsuit of Five Eye (USA, Australia, Newziland, Canada and the great Britans) is harming Huawei
very badly. Because USA don’t want to Huawei let rise. USA has already banned Huawei
products and it’s(USA’s) allies are gradually banning Huawei by applying their dramatic fake
alligations. Hence they are just effecting on their revenue but not on Brand Image.

 Threats from smart phone competitors:

At a time Huawei is competing with low level companies(xiamai , infinix etc) as well as High
level companies(Apple & Samsung). But Huawei is nicely playing with it’s all competitors. Yet
Huawei has great threat from Apple & Samsung due to their Inovative products. Yeah Huawei is
day by day rising it’s innovative products are bringing a revolution (good quality low price) but
yet it isn’t capable to beat Apple & Samsung. Apple’s I series & Samsung’s S & NOTE series still
better than HONOR.

Threats from Network competitors:

Due to banned in USA and going to be in remain 4 Eye it is an great opportunity for Huawei’s
competitors(Juniper , Cisco , ZTE , Amway) to rise. Its an big threat for Huawei but this is the
type of threat which Huawei can’t overcome .

Growing strength of local distributers:

With in China and other companies the small mobile phone companies like xiami , infix etc
offers more commission to distributers. Therefore some of the distributers prefers these type of
brands because everyone do job , business to earn money.

[1]q=what+is+swot+analysis&rlz=1C1GCEU_enPK838PK838&oq=what+is+swo&aqs=chrome.1.69i57j0l5
.5630j0j4&sourceid=chrome&ie=UTF-8 [Accessed 16 Mar, 2019]

[2]Parsons, N. (2019). What Is a SWOT Analysis, and How to Do It Right (With Examples) | LivePlanBlog.
[online] LivePlan Blog. Available at: https://www.liveplan.com/blog/what-is-a-swot-analysis-and-how-to-do-
it-right-with-examples/ [Accessed 29 Mar. 2019].

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[3] SWOT & PESTLE.com. (2019). Huawei Technologies SWOT & PESTLE Analysis - SWOT &
PESTLE.com. [online] Available at: https://www.swotandpestle.com/huawei-technologies/ [Accessed 29
Mar. 2019].

[4] prezi.com. (2019). HuaWei company SWOT analysis. [online] Available at:
https://prezi.com/umxyswpe2zcy/huawei-company-swot-analysis/ [Accessed 29 Mar. 2019].

[5] Fern Fort University. (2019). Huawei SWOT Analysis Matrix [step by step] Weighted SWOT. [online]
Available at: http://fernfortuniversity.com/term-papers/swot/1433/1033-huawei.php [Accessed 29 Mar.
2019].

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