Ahmad Hairil Aswar

Nonreg2
Mid Test
IFE & EFE Matrix
Huawei: Cisco's Chinese Challenger

Huawei
Weight
Key External Factor Weight Rating
Score
Threat
In a country like the US, low-cost was not the only thing they
1 could run with. They had to improve to be on par and set-up 0,07 3 0,21
their footprint in the US
A company representative had taken photographs of internal
parts of innovative hardware from Fujitsu. Huawei clarified
2 0,05 1 0,05
that the photographs were never utilized, and it was the
worker’s first visit to the US
Due to the above claim recorded against the company,
3 numerous arrangements were executed off. When the charges 0,06 1 0,06
cleared, the organization had lurched once more

Six months after their set up in the US, Cisco sued Huawei for
4 purportedly encroached some of Cisco’s licenses and 0,08 3 0,24
copyrights for running their low-end switches
Contrary to winning arrangements in Europe and other outside
destination, the company had a tangle in the American market.
5 0,10 4 0,40
Even though Huawei managed to get their hands on some of
the deals, they failed to get a major contract
Oppurtinity
The first nation to which they contributed were Russia,
6 empowering switches. Huawei had undermined the costs. 0,08 3 0,24
However, it was their administration that awed the Russians

Following Russia and creating areas, the company went ahead

7 0,06 1 0,06
to put resources into developed regions
The item given to the Dutch were a decent illustration of
8 expense development, which gave propelled highlights at a 0,07 2 0,14
diminished cost
For those nations that were searching for moderate
9 0,05 1 0,05
innovation, the company was their accomplice
Huawei made a deal to the French administrator by offering
less cost and building some portion of it gratis and permitting
10 0,06 1 0,06
the administrator to run it for 3 months to test it before they
buy
 An ensuing deal to the United Arab Emirates made the nation
11 0,07 3 0,21
the first Arab nation to include 3G administration

Huawei was included in 14 out of 19 3G systems construct outs

12 0,05 1 0,05
internationally in 2004

British Telecom (BT) made Huawei as a favored supplier for its

cutting edge systems. This had been a pivotal element for
13 0,06 1 0,06
Huawei ascend after not long after a supplier concurrence with
Vodafone in 2005
Huawei was undisputedly the largest Chinese telecom
equipment manufacturer, with an annual revenue of US$6.7
14 0,08 3 0,24
billion in 2005, and a net profit of US$470 mil-lion. Market
capitalization was estimated to be up to US$10 billion.
Enter a joint venture with 3Com in China and Japan, called
15 0,06 1 0,06
Huawei-3Com, in which held a 51 percent stake.

Total 1,00 2,13

Huawei

Weight
Key External Factor Weight Rating
Score

Strength

The latest technologies provided at a cheaper rate made

1 0,10 4 0,40
people buy in the other parts of the world except for the US.

They were continuously innovating as they had invested a lot

2 0,08 3 0,24
of money in the R&D department

As a result of their R&D department, they had about 8000

3 0,08 3 0,24
patents, like most major companies

4 The Chinese government had their backs monetarily 0,06 2 0,12

Weakness

Their connection with the army put a shadow over their

5 0,05 2 0,10
customers worldwide
Expansion for them in the US became difficult as people
6 couldn’t understand the company’s name, and Americans 0,07 3 0,21
found it difficult to work with the Chinese people
The picture of Chinese items that were modest and
problematic had an untoward impact on the company. Because
7 0,06 3 0,18
of this terrible picture on Chinese items, Huawei had utilized
forceful strategies to win contracts
 To maintain a strategic distance from extreme rivalry from
8 organizations like Cisco and 3Com, Huawei had wandered into 0,06 3 0,18
creating regions where there is less rivalry
By the above procedure, the company put their first universal
deal into the Russian telecom administration supplier, trailed
9 by Advanced Info Service (Thailand’s portable administration 0,05 2 0,10
supplier) and Tele Norte Leste Participacoces (Brazil’s altered
line Carrier).
The Chinese discovered the Texas articulation and different
10 0,04 1 0,04
parts of the neighborhood society troublesome

Due to the above reasons, they needed to change the

11 0,05 2 0,10
organization’s name to Futurewei

Though the company employed Americans for some positions,

12 the Huawei officials and the Americans had a strained 0,07 3 0,21
relationship
Unlike in Europe, where less value would win you bargains, in
13 America, the client will change just because of the forefront 0,05 2 0,10
innovation instead of less cost
Another significant test for the company was that they couldn’t
14 0,05 2 0,10
match up with the brand estimation of organizations like Cisco
Some watched that Huawei’s items seemed, by all accounts, to
be gotten from those of different organizations, either through
15 0,04 1 0,04
patent-mining or figuring out. The company needed to change
this picture

Huawei’s association with the Chinese military had an awful

16 0,04 1 0,04
picture among some of their abroad customers

There were inquiries of trust and notoriety which hampered

17 0,05 2 0,10
Huawei to win abroad contracts
Total 1,00 2,50

SWOT ANALYSIS
Huawei: Cisco's Chinese Challenger

The strengths are:

❖ The latest technologies provided at a cheaper rate made people buy in the
other parts of the world except for the US.
❖ They were continuously innovating as they had invested a lot of money in the
R&D department.
❖ As a result of their R&D department, they had about 8000 patents, like most
major companies.
❖ The Chinese government had their backs monetarily.
The weaknesses are:

❖ Their connection with the army put a shadow over their customers
worldwide.
❖ Expansion for them in the US became difficult as people couldn’t understand
the company’s name, and Americans found it difficult to work with the
Chinese people.
❖ The picture of Chinese items that were modest and problematic had an
untoward impact on the company. Because of this terrible picture on Chinese
items, Huawei had utilized forceful strategies to win contracts.
❖ To maintain a strategic distance from extreme rivalry from organizations like
Cisco and 3Com, Huawei had wandered into creating regions where there is
less rivalry.
❖ By the above procedure, the company put their first universal deal into the
Russian telecom administration supplier, trailed by Advanced Info Service
(Thailand’s portable administration supplier) and Tele Norte Leste
Participacoces (Brazil’s altered line Carrier).
❖ The Chinese discovered the Texas articulation and different parts of the
neighborhood society troublesome.
❖ Due to the above reasons, they needed to change the organization’s name to
Futurewei.
❖ Though the company employed Americans for some positions, the Huawei
officials and the Americans had a strained relationship.
❖ Unlike in Europe, where less value would win you bargains, in America, the
client will change just because of the forefront innovation instead of less cost.
❖ Another significant test for the company was that they couldn’t match up
with the brand estimation of organizations like Cisco.
❖ Some watched that Huawei’s items seemed, by all accounts, to be gotten from
those of different organizations, either through patent-mining or figuring out.
The company needed to change this picture.
❖ Huawei’s association with the Chinese military had an awful picture among
some of their abroad customers.
❖ There were inquiries of trust and notoriety which hampered Huawei to win
abroad contracts.

The opportunities confronted by Huawei are:

❖ The first nation to which they contributed were Russia, empowering switches.
Huawei had undermined the costs. However, it was their administration that
awed the Russians.
❖ Following Russia and creating areas, the company went ahead to put
resources into developed regions.
❖ The item given to the Dutch were a decent illustration of expense
development, which gave propelled highlights at a diminished cost.
❖ For those nations that were searching for moderate innovation, the company
was their accomplice.
 ❖ Huawei made a deal to the French administrator by offering less cost and
building some portion of it gratis and permitting the administrator to run it
for 3 months to test it before they buy.
❖ An ensuing deal to the United Arab Emirates made the nation the first Arab
nation to include 3G administration.
❖ Huawei was included in 14 out of 19 3G systems construct outs
internationally in 2004.
❖ British Telecom (BT) made Huawei as a favored supplier for its cutting edge
systems. This had been a pivotal element for Huawei ascend after not long
after a supplier concurrence with Vodafone in 2005.
❖ Huawei was undisputedly the largest Chinese telecom equipment
manufacturer, with an annual revenue of US$6.7 billion in 2005, and a net
profit of US$470 mil-lion. Market capitalization was estimated to be up to
US$10 billion.
❖ Enter a joint venture with 3Com in China and Japan, called Huawei-3Com, in
which held a 51 percent stake.

The threats are:

❖ Contrary to winning arrangements in Europe and other outside destination,

the company had a tangle in the American market. Even though Huawei
managed to get their hands on some of the deals, they failed to get a major
contract.
❖ Six months after their set up in the US, Cisco sued Huawei for purportedly
encroached some of Cisco’s licenses and copyrights for running their low-end
switches.
❖ Due to the above claim recorded against the company, numerous
arrangements were executed off. When the charges cleared, the organization
had lurched once more.
❖ A company representative had taken photographs of internal parts of
innovative hardware from Fujitsu. Huawei clarified that the photographs
were never utilized, and it was the worker’s first visit to the US.
❖ In a country like the US, low-cost was not the only thing they could run with.
They had to improve to be on par and set-up their footprint in the US