1- SWOT:

a- Strengths: is a resource advantage relative to competitors and the needs of the

markets a firm serves or expects to serve.
b- Weaknesses: is a limitation or deficiency in one or more resources or competencies
relative to competitors that obstructs a firm’s effective performance.
c- Opportunities: is a major favorable situation in a firm’s environment: breakthrough
technology, improved supplier relationship, changes in regulatory circumstances,
technological changes or identification of a previously overlooked market segment.
d- Threats: is a major unfavorable situation in a firm’s environment: entrance of new
competitors, slow market growth, increases bargaining power of suppliers,
technological changes and new or revised regulation.

Strengths
1. Second most valuable brand in the
world valued at $76 billion
2. Diversified income (5 different
brands earning more than $4 billion
each)
3. Strong patents portfolio (15,000
patents)
4. Investments in R&D reaching 4
billion a year.
5. Competent in mergers & acquisitions
6. Have an access to cheap cash reserves
7. Effective corporate social
responsibility (CSR) projects
8. Localized products
9. Highly skilled workforce
10. Economies of scale or economies of
scope
Weaknesses
1. Investments in R&D are below the
industry average
2. Very low or zero profit margins
3. Poor customer services
4. High employee turnover
5. High cost structure
6. Weak brand portfolio
7. Rigid (bureaucratic) organizational
culture impeding fast introduction of
new products
8. High debt level ($3 billion)
9. Brand dilution (the firm has too
many brands)
10. Poor presence in the world's largest
markets

Opportunities Threats
1. Market growth for the main firm's 1. Corporate tax may increase from 20%
product to 22% in 2013
2. Growing demand for renewable 2. Rising pay levels
energy 3. Rising raw material prices
3. New technology, that would drive 4. Intense competition
production costs by 20% is in 5. Market is expected to grow by only
development 1% next year indicating market
4. Our country accession to EU saturation
5. Changing customer habits 6. Increasing fuel prices
6. Disposable income level will 7. Aging population
increase 8. Stricter laws regulating environment
7. Government's incentives for pollution
'specific' industry 9. Lawsuits against the company
8. Economy is expected to grow by 4% 10. Currency fluctuations
next year
9. Growing number of people buying
online
10. Interest rates falling to 1%
TOWS
Strengths Weaknesses
1- 1-
2- 2-

Opportunities SO strategies WO strategies

1- (S1 – O3)
2- Matched with intensive strategies

Threats ST strategies WT strategies

1- Matched with defensive strateg
2-

O T

S Attack Diversification

Turn around – Oriented strategy

W (Reorganization – Retrenchment – Defend
Repositioning)
TOWS analysis
Opportunity
1- New Markets (Asia - Middle S1-O1: we will use our Geographical
East) presence to support the new market
(market development)
2- Family travelers
3- Internet & Social
Networking
4- Increase the level of the
travel related to
international studying.
5- Franchising becomes more
strong
6- Competitors weak Financial
position
Threat
1- Timeshare is not popular
anymore
2- Economic Recession
3- Political Instability
4- Terrorism
5- More foxing on low cost
Hotels
6- Increased Staff Costs
Strength
1- Geographic Presence
2- Strong Website and Social
Network
3- Strong Brand Equity & well-
known Brand Name
4- Environmentally friendly and
Focus
S2-O1,O3,O4: we will upgrade the
website and add more languages to
respond to new markets (product
Development)
S3-O5,O6: we will allow franchising
in the new markets (Forward
Integration)
S1-T2,T3,T5: we will upgrade our
services and add new low cost offers
(Product Development)
S1,S2-T1,T5: cancel some of the
Timeshare facilities and use the
existing facilities to offer Low cost
services (Related Diversification)
S3-T2,T5: Offer new low cost service
supported by the strong Brand name
(Related Diversification)
Weakness
1- Domestic market focus
2- Luxury brands & Lack of a low-cost
lifestyle brand
3- Little Presence in new markets (Asia
- Middle East)
4- Marriott operates most of its
facilities
W1,W3-O1,O5,O6: we will focus more
on the international market and new
opportunities (Market, Product
Development)
W4-O5: we will allow franchising in the
new markets (Forward Integration)
W1,W2-T1,T5: we will change the
activity for some of our Timeshare
facilities to new low cost facilities
(Retrenchment, Related Diversification)
W4-T6: we will allow franchising in the
new markets (Forward Integration)
A. SWOT Analysis:
SWOT analysis is one of the situational analysis tools. It examines both the internal
(strengths & weaknesses) and external (opportunities & threats) environments of
the organization. Below is the SWOT Analysis for Huawei:

Internal Environment

Strengths Weakness

 Rich diversified portfolio of products • Weakness in designing operating

and services Including ICT solutions Systems (OS).
,fixed & mobile networks, routers
,smartphones And other mobile • Weakness in designing applications
devices. (App.)
 Rank No. 1 in global telecom • Limited ability to control its value
equipment's market. (supply) chain.
 Provide products and services to 1/3 • Still design smartphones for
world populations in 170 countries telecom carriers (20% of its
worldwide (Tremendous expansion). products) (lack user’s preferences).
 Opportunities hunter (GSM based
solution creation & innovation, access
servers).
 Continuous customer-centric
innovation through 17 R&D centers
and 36 joint innovation worldwide.
 Win-win
cooperation/partnership/collaboration
with leading telecom carriers
(Vodafone, FTE, PCCW and EMobile).
 Pioneered the distributed base station
in the market reducing Equipment's
volume and weight by 10 & 15 times
respectively and operating
&maintenance cost by 30%.
 Strategic or superior supplier for top
telecom carriers e.g. (Vodafone ,British
telecommunications and century
network(21CN))
 Focused business synergies model
(cloud-pipe-device).
 Premium wireless network
infrastructure & mobile telecom
technology enabled it to set up more
than 400 LTE network, 180 EPC, 280400
G network routers and 40000 hotspot
by 120 carriers over 75 countries (62%
of 4 G share worldwide).
 Founded SBU ‘’Huawei Device Co., Ltd’’
in 2004, charged for development,
manufacturing, marketing and sales of
mobile devices and accessories (focus
business model).
 Successful market repositioning as high
end/premium products.
 Rapid understanding of consumer fast
changing preferences.
 Differentiation from other Chinese
companies who still rely heavily on
telecom carriers.
 Development of different delivery
channels (offline and online platforms).
 Huawei is the state-of-art-design in
hardware and software thanks to its
strengths in telecom equipment and
cross-business synergies.
 Devotion of substantial (financial &
managerial) resources for SoCs
&smartphones design development.
 Founded SBU ‘’Hisilicon technologies
Co., Ltd’’ in 2004(Huawei driving
force), charged for Ics/SoCs
manufacturing and development.
 Huawei dedication to creation and
innovation through its R&D (79000
employees and rank No. 1 in R&D
expenditure, 15.1% of its total
revenues).
 Huawei smartphones ‘’collision
between high tech. and fashion’’
emphasizes both high tech. capabilities
and best user interface design through
collaboration with leading camera and
 audio companies (Leica and
Harman/Kardon) (P9 smartphone).
 Acquisition for global talents in
industrial & user interface design:
Hagen Fendler, BMW&SIEMENS.

Joon Suh Kim, LG-Philip-Nokia-

Samsung.

Abigail Sarah Brody, Apple.

 Driving synergies between businesses:
-Kirin 950 development, enhanced CPU
performance and Improved battery life
(competitive edge).
-Ensured smartphone security thanks
to Successful Kirin 950 and pseudo
base station integration so, auto
filtration to send signals or information
(competitive edge).
 Huawei's competitive weapon ‘’its
telecommunication patents leverage’’
against others (Huawei licensed 796
patents to apple including GSM, UMTS
and LTE while apple licensed 98 patents
to Huawei).
 Huawei's network assets and
relationships (62% of global market
share for 4G).
 Unique access to wireless data transfer
and speech communication (Mate 8
can connect networks of more than
1000 carriers, 5 2G, 10 3G, 18 4G
frequency bands.
 Chinese governmental recognition.
 Strong Huawei’s governmental
relationships thanks to Mr.Zhengfei
Ren (former engineer of the people's
liberation army).
 External Environment
Opportunities
• Emerging markets potential growth
e.g. (emerging APAC &Middle East
and Africa) and potential
profitability.
• China accession to WTO guaranteed
Huawei's entry & growth in the
global market of equipment and
telecommunications.
• Information communication
technology (ICT) dynamic changes,
(5G).
• Globalization.
Task Environment
Opportunities
• Cloud computing (using remote
server network hosted on the
internet to manage, store and
process data rather than on local
server or personal devices, Mobile
Cloud Computing).
• Online sales platforms (great
global audience, broad scale,
lower operation and setup cost
and higher volume of sales).
• Competitors (leaders) unable to
match Huawei's resources and
capabilities.
• Brand recognition.
Mega “PESTEL” Environment
Threats
• Rising manufacturing and
operating costs in china.
• Decreased smartphones annual
growth rate especially in
developed countries
(high end market ,Huawei's new targeted
segment)
• Saturation of smartphones
developed markets e.g. (North
America and developed APAC).
• Limited protection of intellectual
property rights.
• Technology complications.
• Fast changing market.
Threats
• Competition with well-established
leaders including but not limited
to (Apple & Samsung) globally and
(Lenovo & Xaiomi) domestically.
• Market is still developing and it is
always possible for any one
provide new design, feature or
app to win over consumers.
• Risked retaliation from telecom
carriers.
• Brand loyalty.
• High switching cost.
• Differentiated products.
SWOT Analysis interpretations:

 Telecommunication and smartphones industry is promising and still growing.

 Huawei has good opportunities to continue its aggressive growth by
developing new markets, developing new products and penetrating the
existing markets.