Analysis on Business Strategies of Smart Phone Department of Huawei Technologies

3472 WordsDec 2, 201314 Pages
Analysis on Business Strategies of Smart Phone Department of Huawei Technologies Introduction In 2012, Huawei Technologies built a new brand Ascend to enter high-end smart phone market. In this business analysis, we consider smart phone department a strategic business unit (SBU), do external environment investigation through PESTAL and Porter’s five forces models and analyze the internal strategic capabilities through VRIN model. After integrating all the resources, we determine the most favorable business strategies for Huawei’s smart phone department on the basis of a SWOT analysis. Company Background The head quarter of Huawei Technologies was located in Shenzhen, Guangdong province in 1987. And Huawei is a private…show more content…
When it comes to the technological factor, the global technology industry is dominated by several big enterprises and fewer chances are left for emerging enterprises. The rapid development of technology increases the quality of products, reduces the cost of manufacture and also shortens the life cycle of the products. There are many patents remained in the patent database for no one finds them and makes them profitable. The cost of independent research and development is so high and the revenue is not returned in equal way. Although the risk of technology investment is high, the technology is a symbol of company strengths. Regarding to the fact that Huawei has the largest number of applied patents in China compared to other companies in the same industry, it can continue its independent research and development on technological updating which will make Huawei outstanding and unique in the market. When it comes to the environmental factor, the green and environmental friendly thoughts are widely accepted around the world. People are paying more attention to the environment protection nowadays. The environment protection carrier started in 1972 by the United Nations issuing declaration on the human environment. In China, there is a ministry of environmental protection observing and controlling the pollution and emission of every industry. And the International Environmental Protection

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