Huawei's Core Competencies

2548 Words Mar 28th, 2012 11 Pages
Introduction
Facing the China’s Telecom Equipment industry double-digit grow and becoming the largest telecom market in the world, all leading firms in each subsectors of Global telecom equipment take this opportunity to invest in china. Huawei, a Chinese challenge, was starting its challenge to Cisco insurmountable leadership position in international telecom equipment industry.

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.

Huawei’s Capabilities and Core Competencies
Huawei’s Resources audit
First of all, Huawei’s existing finance funds is large
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Moreover, to increase the products quality, the Company had integrating its marketing people into its core R& D team, thus the R&D headquarters are less timely and responsive manner and purchases of Western Management systems.

In primary activities, adopt western model of corporate systems lead to improve Huawei’s management system by international best practices. It was also benefit to inbound logistics as supply chain management and quality control on operations. As the company infrastructure and culture are aggressive. Huawei’s marketing is focus on organizational aggressiveness, for examples; they invited as many prospective buyers as possible to visit their headquarters and went all kind of trade shows and exhibitions. Furthermore, they offered some free of charge testing period services for their clients and aggressive pricing strategy.

Capabilities and Core competencies
The value chain analysis showed Huawei’s have two core competencies. First, Huawei’s can develop new products from low cost engineering because the linkages of Human Resources and Technology development. Second, design and improve products to meet customers need by the linkages of marketing and technology development. Third, aggressive market strategy from Company specific culture is the linkages of firm infrastructure and marketing. Those core competencies meet the criteria of valuable to the customer, because the products are reliable, suitable and low price to meet customer

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