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HUAWEI’S INTERNATIONALIZATION STRATEGY

INTRODUCTION

In October 2016, Shenzhen-based networking and telecommunications equipment and services company Huawei Technologies Ltd. (Huawei) unveiled its 14-port and 3-D Hexa-beam antennas to address the challenges associated with the 4.5G and 5G era at the 5th Annual Global Antenna and Active Antenna Unit Forum held in Paris. Commenting on the launch, Zhang Jiayi, president of Huawei’s antenna business unit, said, “Huawei focuses on satisfying the requirements of operators in the MBB (mobile broadband) era.”

Founded in 1987 in Shenzhen by Ren Zhengfei (Ren), a former military engineer in the People’s Liberation Army (PLA) – the unified organization of the armed forces of China, Huawei started as a sales agent for a Hong Kong-based company selling private branch exchange (PBX) switches. Soon, the company innovated and started selling its own PBX switches. Having established its domination over the Chinese telecommunications market, the company entered the global markets of Russia and Africa in 1996 and later mature The origin of Huawei Technologies Ltd. (Huawei) dated back to 1987 when Ren Zhengfei (Ren), a former military engineer in the People’s Liberation Army (PLA), founded the company in Shenzhen with the aim of making it the backbone of China’s communications industry.

The company started as a sales agent for a Hong Kong company selling private branch exchange (PBX) switches with an initial investment of US$ 3400. By 1990, it had acquired enough resources to open its first research laboratory. In the same year, i.e. 1990, the company made its own PBX and started selling the switches to hotel networks at prices lower than those of imported devices

HUAWEI’S INTERNATIONALIZATION STRATEGY

In the mid-1990s, the Chinese domestic telecommunications networking equipment market was dominated by giant international telecom equipment companies. Their dominance led to Huawei having a relatively weaker position in China. Ren believed that the Chinese telecommunications market was the largest and among the most open markets in the world attracting global telecommunication giants to the country. As a result, he felt, “The best food has all been eaten up by the global giants and what we can do is to have those leftovers.” This prompted Huawei to consider entering international markets. Commenting on its international expansion, Ren, said, “We were forced to go into the international market for our very survival.”

CHALLENGES IN THE GLOBAL TELECOM MARKETS

Though Huawei achieved huge success in several global markets, the US was a different story altogether. Despite bidding several times since the company first entered America, Huawei failed to win a single big contract from top-tier carriers such as AT&T, T-Mobile, and Verizon. The US telecom companies had had long relationships with home-grown suppliers such as Lucent, Motorola, and Cisco. Moreover, the US telecom majors felt that while the telecom equipment manufactured by Huawei was fine for emerging markets, it was not reliable or suitable for the 24/7 service required by networks in the US. Though by 2011, Huawei had developed some of the most innovative and fastest equipment in the telecom industry, it continued to face resistance in the US.

THE CHALLENGES CONTINUE...

While Huawei was making several efforts to crack the global telecom markets, in July 2015, Malcolm Turnbull, Communications Minister, Australia, stated that amidst security threats, telecom companies in Australia had been barred from using equipment from Huawei and ZTE. This meant that Huawei would lose its existing business in Australia since it provided equipment for consumer devices and backend networks for Vodafone and Optus. There could also be more trouble in store for Huawei with the Pentagon and the US military announcing plans in October 2015 to ban the use of Huawei equipment.....

LOOKING AHEAD

In November 2016, when the US telecom market announced its plans to build the nation’s 5G wireless network, Huawei was also gearing up to roll out its 5G wireless network by 2020. Though Huawei had earlier stated that it had given up on the US market, Ren hinted that the company had not given up on the country permanently and that it planned to make a “glorious” return to the US. However, Huawei stated that it would not focus on the US market currently but would concentrate on other global markets. According to Ken Hu (Hu), Huawei’s CEO-in-rotation, “For our 5G strategy, we currently focus on markets like China and Japan among others. In the US right now, we’re not making significant progress and we don’t have big plans for that market.”

Case study question

In the context of Huawei discuss the strategies for having a global footprint which is followed by companies in an International Business setting.

1. Do you believe that an “identifying characteristic” should be protected by the tort of misappropriation, or do you believe that society has gone too far in recognizing property rights? A First Amendment exception exists for comedians who engage in satire and comedy (think of Saturday Night Live’s impersonations of the Trump-Clinton debates during the 2016 presidential campaign, for example). Does it make sense to you that comedians can make money through misappropriation, but other businesses cannot?

Tommy Teenager (TT) is an enthusiastic, new employee at a local grocery store, Food Fetch (FF). His boss is Mary Manager (MM). One day, while accepting a shipment of food from Dandy Distributor (DD), Mary tells the DD driver about TT. She exclaims in front of TT what a great job he is doing, and that she would not be surprised if he ended up running the place someday. One very busy Saturday, before a blizzard is forecast to hit the area, TT is the backroom working when DD pulls up with a delivery. DD is in a hurry to get unloaded and get on the road to beat the weather, and DD remembers what MM told him when he sees TT; DD asks TT to sign for the shipment. TT does not have any idea what he is doing. Still, he realizes how rushed MM is and how FF is running low on groceries on this busy, snowy Saturday. TT just wants to help, and signs for the shipment. TT puts the invoice on MM’s desk but forgets to tell her about it. Three months later, DD calls MM to ask when she is going to pay for the shipment. MM knew nothing about TT signing for it and did not see the invoice on her messy desk.

Respond as : explain why FF might be liable to pay.

Explain how numbers are sorted in consecutive numbering, terminal-digit numbering, and middle-digit numbering

Read the case study - "Do you really think we are so stupid?" A letter to the CEO of Deutsche Telekom (A)"

1. What are the major challenges at Deutsche Telekom and what is critical for its survival and future success?
2. What do the think the customers, general public, investors, and employees thought of the leaked letter?
3. Put yourselves in the shoes of a middle manager who is witnessing employees discussing the letter during the hours that they should be working. How would you handle that?

Discuss how the Metro-E can contribute with respects to both the POS and the company’s telephone systems for an inventory manager. Suggest ONE advantage for the POS and ONE advantage for the phones in perspective for an inventory manager.

Considering a macro project that aims to break down oxygen and water from the moon crest and bring the same to the earth surface along with focusing on creating a livable space station in moon for refueling the spaceships travelling from earth to moon & back to earth, Explain in detail

a) what could be some of the best marketing plan and

b) public relations strategies for the project

List and describe strategies for maintaining good governance practices at the project level and organizational level.

What are the potential impacts of the Coronavirus pandemic on engineering projects?

Four economic classifications of mergers are (1) horizontal, (2) vertical, (3) conglomerate, and (4) congeneric. Explain the significance of these terms in merger analysis with regard to (a) the likelihood of governmental intervention and (b) possibilities for operating synergy. Use a practical example for illustrative purposes.

Question 1:

You are the Inventory Manager. Being in this post, answer the following:

a) Discuss how the Metro-E can contribute with respects to both the POS and the company’s telephone systems.

b) Suggest ONE advantage for the POS and ONE advantage for the phones in the Inventory Department.

c) Request information from TWO other departments that could assist in your investigation. Please specify both the TYPE, and specific CONTENTS of the report you are requesting.