Introduction

Global trade supported many organization to expand as it facilitate the process of transmitting
goods and services between countries. Huawei is a global brand and it succeeded to expand in
many countries which is going to be discuss in this essay besides declaring why it expanded,
Huawei’s success reasons, marketing strategy, competitors & Competitive advantages in addition
to how Huawei customize itself in local marketing, what ethics it considered in marketing and
post covid-19 challenges and opportunities.
Huawei is a Chinese company which is fully owned by its employees who manage it through
the Union of Huawei Investment & Holding Co., Ltd since its foundation in 1987. Huawei
succeeded to be global organization through being the largest supplier of telecommunications
and the third cellphones manufacturer which reflects its mission and vision of building a fully
connected and intelligent world which help individuals, businesses and governments for digital
transformation. Huawei products which can be used by individuals, businesses and
governments. Huawei products and services for individuals are cellphones, audio, routers,
laptops, TVs, tablets, wearables, EMUI and accessories. Huawei products for business and
governments are Carrier Network, Enterprise Wireless, Enterprise Networking, Enterprise
Optical Networking, Huawei Cloud, Intelligent Computing, Data Storage, Intelligent Vision,
Intelligent Collaboration and Ascend Computing. While Huawei services for business and
governments are Telecommunications, Services & Software for Carrier Networks, Smart
Services for Enterprises, Huawei Cloud Migration Service, Education, Finance, Internet Service
Provider and Industry Solution (Our Company, 2022).
Global organizations have the ability to control, manage, operate and market its business in
more than one country besides considering the whole world as one market and operating globally
gives those more advantages over their costs and production with more ability to market its
production in many markets which is not available for local organizations. Huawei operating its
business in over 170 countries and regions through more than 195 thousands employees and it
serves more than 3 billion all over the worlds while its headquarters is located in Shenzhen,
China. Operating globally gives Huawei the ability to invest in R&D as Huawei invested
22.40% of its revenues over its R&D amount of CNY142.7 with total 110 thousands of its
employees who provide the world with more than 45 thousands patent during 2021. The
government of USA banned Huawei while the government of UK & Japan partly banned Huawei
but Huawei keep expanding in Over 700 cities and 267 Fortune Global 500 companies
worldwide choose Huawei for being their partner in digital transformation by the end of 2021.
Organizations take expanding decision by many reason. Reducing costs of raw materials or
labor or even imposed customs. When Indian government decided to raise the imposed customs
on cellphones by 20%, Huawei decided to expand there to avoid paying 20% extra customs duty
on its cellphones (ZTE And Huawei Plans Local Manufacturing, 2019). In order to offset the
unfavorable conditions in a country organization may decide to expand into other countries.
When Huawei was banned in USA and partially banned in UK, Huawei seeks expanding in
Africa to offset the bad conditions in UK by building the world's first cloud service provider in
South Africa which will serve the whole Africa (Huawei cloud unveils in South Africa, 2018).
Expansion of an organization’s competitors provokes it to expand too. Huawei decided to
expand in personal computing by launching the MateBook (convertible tablet) to compete
against Apple's iPad Pro and Microsoft's Surface Pro (Pilcher, Pat, 2016). Organizations will
seek expansion to be able to invest in R&D as the scope of its market is small. Huawei
expanded its existence in New Zealand with Spark NZ to bring new mobile technologies to the
market.

The reasons behind Huawei success are being owned by its employees which make them more
motivated to work and achieve their work duties and prioritizing customers’ needs through
understanding their needs, depending on long-term vision and avoiding quick decision (Huawei’s
culture is the way to its success, 2015). Huawei marketing strategy is based on using
competitive prices to be able to convince customers to buy, Huawei enter new countries by
making joint venture with local organizations or governments, depending on many
communication channel for advertising like TV & social media, being a leading
telecommunications equipment company who provide integrated telecommunication solution.
Huawei competes with ZTE, Sony, Microsoft, Xiaomi, Apple, Lenovo, Google and Ericson.
Competitive advantage of Huawei are investing much money in R&D which helped it to
produce many patents and expanding through joint venture make it easy to understand local
markets.
It’s became easy for social and cultural trends to move between national boundaries with
goods and services because of globalizations which made organization had to localize itself
with every country it wanted to enter because a new country is like new segment which had
different needs so organizations may need to adjust its products or produce new products.
Huawei depends on joint ventures with local organizations or government to expand in new
countries which made it easy for Huawei to localize itself to enter new countries and adjusting its
product and services through adding its local language on its products or services Huawei also
can provide exclusive service in order to enhance its existence like building 17 Service Centers
in India to enlarge its after sales services of mobile handsets. Advertising may need
Adjustment as many advertising can be used globally but some advertising need to be subject to
cultural conventions. Communication channels will need adjustment too in order to enter a
certain country. Huawei choose its advertisement and communication channel in every country
with its partners their which knows more than it. Huawei uses different communication channels
between countries like using WeChat in China and Facebook in many other countries. The cost
of serving new markets is high because of transportation costs and tariffs which require
adjustment in price formulation. Huawei uses competitive price policy which is based on
offering its products and services with lower prices than its competitors so serving new markets
costs will not affect its price decision. Distribution networks may need adjustment because of
different infrastructure and transport network between countries. Huawei is depending on joint
venture to enter new countries which represent its distribution network besides its products and
services aren’t related with good infrastructure and transportations means.
There are ethical issues that should be considered when organizations expands in new markets.
Organizations should consider differing consumer protection which caused by different
regulations between countries as organizations should avoid marketing their products where
there are less constraints over their industry. Huawei industry is beyond that ethical issue as
governments themselves of many countries are customers or partners with Huawei. Increasing
consumerism and cultural homogenization should be considered by organizations as
consumerism which caused by the embedded values of exported goods which encourage the
spread of consumerism and it lead to customers’ depression. Consumerism can be caused by
cultural homogenization which increased by decreasing local culture and dismissing local
organizations outside its markets. Huawei’s expansion based on making partnership with local
companies which will never cause cultural homogenization and on the other hand Huawei
products are made to facilitate its customer’s daily duty so it’s not going to increase
consumerism. Organizations should be careful while targeting low-income people in
developing countries because if they couldn’t pay high prices, they will be dissatisfied and if
they pay high prices they will be exploited while never targeting them is vital for their society.
Huawei price strategy is based on competitive prices which are affordable to low-income people
of developing countries and affordable to business and governments there for digital
transformations which increase the welfare of their societies
The world has been changed after Covid-19 which came with many challenges and opportunities
for organizations who specialized in information Technology as Huawei that faces many
challenges post covid-19 like the hard competition with its competitors for digital
transformation as many organizations and government accelerates the need of digital
transformation. Another challenge is that Covid-19 has created many new requirements for
digital infrastructure which require more talented people and more patents to meet the new
requirements. Huawei has many opportunities after Covid-19 like being innovative through
investing large investment into R&D which give it the ability to record more patents through 110
thousands employee in R&D department which helps in digital transformation. Another
opportunity is using competitive prices which encourage business and governments to signing
contracts with it rather than other competitors so it can meet more customers demand. Another
marketing opportunity is depending on joint ventures to expand will help Huawei to meet the
increasing demand of digital transformation rather than its competitors because it depends on
local partners.

Conclusion
Huawei succeeded to be largest telecommunication manufacturer and the third of cellphone
industry because of its ability to customize itself in local markets through partnership with
companies their which facilitate the process of its expansions and brought many revenues which
used in R&D investment.

References
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