Internal Competencies Of Huawei

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Introduction: Established in 1988, Huawei Technologies is a high-tech enterprise which specializes in research and development (R&D), production and marketing of communications equipment, providing customized network solutions for telecom carriers in optical, fixed, mobile and data communications networks (Chinese Embassy, 2017). As of 2016, Huawei boasts of 180,000 employees, which includes upward of 50,000 foreign employees. Huawei currently stands at number 83 on the Fortune 500 Forbes list as it continues its meteoritic rise as a global company. This report will evaluate the external environment and analyze the industry in which Huawei operates and its internal functions and competencies. Based on these observations, we will recommend…show more content…
In fact, as the Huawei founder Ren Zenghfei admitted “Huawei was somewhat naïve to choose telecommunication equipment as its business domain in the beginning. Huawei was not prepared for such an intensified competition when the company was just established. The rivals were internationally renowned companies with assets valued at the tens of billions of dollars. If there had been no government policy to protect [nationally owned companies] Huawei would no longer exist” (Li et al., 2016; Arhens, 2013; Fan, 2003). Because of this support and relationship with the Chinese government, Huawei have faced significant political obstacles in its international expansion. The Chinese company, in fact, has been considered as a threat by different western countries, becoming the “focus of contract exclusion and finger pointing by certain western governments” (Chung and Mascitelli, 2015). The most evident case is represented by the conflicts that the Chinese company faced with the US market. A paramount factor affecting the company’s relationship with USA is the intense attention in the Huawei’s presumed tie with the Chinese government (Arhens,
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