Evaluation Of Huawei's Expansion Strategy

Increase foothold in China's telecommunications industry via deals like JBC, given there is a prospect of liberalization of state owned telecommunications markets

The purpose of this assignment is to create a brief outline of how BCE Inc. (Bell) operates as a company. Bell is one of the largest telecommunications and media companies in Canada. Bell has established itself as a well-known and respected company by putting first and offering reliable products and services. By collecting secondary research, it is possible to have a better understanding of Bell’s market strategies and objectives.

What does a review of the current press reveal about the attitudes of Canadians in terms of global business and international trade?

When a certain point is reached regarding a company’s success, a set of different opportunities arise and partnerships may unfold. However, with every possible strategy available, risks and benefits also come into play; without discarding any of them beforehand, every option is a strong candidate until a final decision is made. In this case study we will analyze the current business strategy pertaining

As far as wireless goes, given the distinct network advantage that Rogers has (with a coverage of 95% of Canada and the most roaming partnerships) and taking advantage of a 69% penetration in Canada, the strategy to push customers into adopting smart phones (also considering that only a 31% of Rogers wireless users were smart phone users) is the right one. One area that we should explore is the enterprise segment. Given our relationship with Apple and other manufacturers, we should seek partnerships with devices manufacturers, where we could agree to buy in bulk, with a significant discount per phone and a minimum-term contract. Wireless expected growth of 5% annually for the next several years, there´s an increased customer demand for data-driven services, data is twice as profitable as voice, and the significant data revenue growth experienced in 2009, all support the previous statement (even though the ARPU ha a minor decline in 2009).

T-Mobile is a well-known U.S enterprise with a good reputation in the wireless industry because of good practice of business ethics. Under the leading of John J. Legere, in 2012, the company was recognized as one of the world’s most ethical enterprises (T-mobile Makes Ethisphere’s Most Ethical Companies List, 2012). The firm’s core value includes “respect and integrity drive our behaviour”, “customer delight drives our action”, “I am T-mobile - count on me”, etcetera (T-mobile, 2016).

Making hundreds of millions of dollars, RIM is blowing other competitors out of the water with huge demands for their products. Skipping almost a decade to 2007, when RIM’s subscriber base jumps to 8 million and revenues double to over $3 billion. That same year, RIM becomes Canada’s most valuable company, surpassing Royal Bank of Canada’s market worth on the TSX. BlackBerry’s innovation is what started the company and continues to improve it. Canadian inventions like the first telephone, Java programming language and the famous Canadarm required great innovation, like BlackBerry, to make them prominent and to stand out from the rest of the world. In conclusion, BlackBerry’s bold features and breakthroughs in telecommunications have shaped our mobile experiences we have

Verizon is a major telecommunication provider in the United States. The company is the market leader, with $110 billion revenue and $2.4 billion in profit (MSN Moneycentral, 2012). Verizon has steady revenue streams that are largely based on a subscription model. It has several business segments, including wireless (63.3% of revenues) and wireline (36.7%) (2011 Verizon Annual Report). Most of this report will therefore focus on the wireless business, not only because this is the largest business that the company operates but because it is a rapidly growing and evolving business as well, a function of the rapid pace of smartphone adoption in America.

The goal of the global expansion project is to identify a network organization that can be worked with to create a partnership in China. Once the network organization is identified the goal is to measure the reliability and cost. The objectives of this goal consist of recognizing and mitigating potential risk that may arise when attempting to create a partnership from another country. Additional objectives include planning strategies that need to be developed to deal with any type of risk that may arise. The overall tool that will be utilized is by accessing the internet to determine what and how the different networks are identified and what types of laws and regulation govern the partnership in another country.

A company that is looking to break into the global market is excited and ready, but in almost every case there are challenges that lie on route to their global achievements. I have specifically chosen one of Canada’s most popular businesses in Tim Hortons. Tim Hortons has recently teamed up with Burger King, meaning that as Canadians know it ‘Timmies’ will soon be on a full-fledged mission to become successful and powerful in the global market through the United States. Some challenges that may lie in the way of Tim Hortons are in the form of, culture, competitors, markets and the factor of being ‘unknown.’

One example is that China’s one child policy has forced a generations of young adults to be sole providers for older family members, thus giving them less money to spend (Washington Post, 2015). To protect the market shares for domestic organizations, countries such as China, have attacked foreign multinationals. In one year, as many as thirty multinational organizations were placed under investigation. Thus, more and more multinationals are becoming cautious about their international affairs. In 2013, it was said that “at least 3,000 U.S. companies were victims of data theft and network disruptions” and many state-owned enterprises (SOEs) have gotten access to local contracts and markets which are unavailable to foreign firms (Washington Post, 2015). Due to such failures, companies are working to find the best international business model such as reshoring and localization. Therefore, according to the author of this article, “there’s money to be made for multinationals the world over, but they are going to have to rethink their strategies for making it” (Washington Post,

We have selected Huawei Technologies Company Limited for our MIS project. We selected Huawei Technologies Company Limited because this is a Chinese company .At first we selected Citycell (Telecom Operator), but when we visited City cell we learnt that City-cell is now using Huawei product, and Huawei is a Chinese company. We know about the quality of Chinese product. Most of the Chinese product can not make people happy or satisfied. But we found that Huawei now is one of the top positions in the world. This inspired us about the Huawei.

Huawei also pitched the fact that any Cisco-trained engineer could operate the Quidway router with ease. Cisco’s rise to the leadership in networking equipment and technology was the result of many years of diligent, hard work and creativity. Cisco holds several patents, copyrights, and trade secrets that are critical to its success. Huawei, on the other hand, chose to make shortcuts and had complete disregard for the sanctity and legality of intellectual property. In fact, Huawei’s Vice President confessed that “all the world’s leading equipment suppliers are our learning modules.”[1] Can Huawei’s belief in “learning” from their competitors and Cisco’s belief that Huawei stole and copied intellectual property be attributed to a differing ethical perspective due to culture? We will discuss this in Section 3.

Apple is being criticized in China for three main issues, including slave labor, guarantee scandal and underdeveloped infrastructure. However, China is a significant market for Apple. Apple’s market share in China is continuously growing while decreasing in mature countries. Issues related to human rights and labor protection in China are sensitive and of globally mutual concern. If we do not address these issues properly, we will lose Chinese customers as well as suppliers and sub-contractors. This may also seriously impact the reputation and sales of Apple products worldwide.

Besides, to succeed its challenge Cisco in this industry, Huawei’s needed to show it pin-point company strategy on its capabilities and core competencies, generic competitive strategy framework and international strategy to against Cisco.