Question

How sustainable is Huawei’s competitive advantage in the smartphone industry?

Answer 1

Huawei's vision and mission is to bring digital to every person, home and organization for a fully connected, intelligent world. Based on the company's vision and mission, Huawei has developed its sustainability strategy, considering sustainability to be one of its priorities and incorporating it into the company's overall development strategy.

Huawei was set up from a producer of phone switches in Shenzhen in 1987, the company is now a Chinese multinational networking and telecommunications equipment and services company, becoming a global leader in telecommunications networks by 2012 . According to a report from IDC in 2015, the research firm said about the global demand for smart phones, Samsung had the largest market share in Asia, representing a 22.7% of market share, followed by iPhone (16.2%), and Huawei (8.1%), respectively. In China, research firm GFK latest data showed that in 2014 to 2015, Huawei’s market share was up to 13.57%, representing the Chinese market sales of the market leader, followed by Apple and Samsung, the market share was 12.37% and 10.15%.

In the mobile phone market, consumer recognition and market access are critical issues, so mobile phone suppliers should establish a strong brand image through high quality and service so as to attract consumer attention.

There has social forces behind Huawei’s success; it is believe that China is a huge country with a population of 1.3 billion, leading the growing popularity of telecommunication services, so China’s mobile phone market still has a huge space for development. Today, telecommunication has become a vastly important part of the daily life of the every person

Huawei’s smart mobile phones gradually occupy the broad market, even in the comparatively poor regions; because consumers demand for telecom services are expected to deliver basic needs of telecom services to rural areas. Basically, the consumers live in rural areas are less of a concern on style of mobile phone and brand image compared to urban consumers.

The Chinese government strategy is intended to drive development and imagination in working environments, particularly in the data and interchanges innovation (ICT) industry. In this way, the requirements of individuals in modernization society are progressing, For instance, individuals need cell phones with web access in a hurry, so Wi-Fi web has been worked in somewhere else. This prompts more interests in Huawei Company who holds a solid impact over advancement in cell phone.

Huawei has innovation qualities as the world's biggest supplier of ICT arrangements. Today, Huawei has earned a notoriety for being one of the most unique, quickest developing, inventive worldwide innovation organizations today. In addition, Huawei has constructed its worldwide gracefully chain to become environmentally friendly, by which they work and decrease its own vitality utilization so as to limit its own carbon impression just as that of flexibly chain accomplices. This makes Huawei has the preferred position in the part of activity cost effectiveness. With a decent connection with association: Huawei is determined to turning into the key collusions and organizations for creative ICT arrangements in conveying cutting edge innovation. They generally construct more grounded cooperationamong overall associations for example, Google, Android and IBM. Other than development, the organization gains a major benefit from a decent pricevalue-offer in the telecom advertise

Absence of capital spending plan is the best restricting element of the organization that can't contend with worldwide media transmission marks as expected in the remote markets. Second, low value system, by offering lower priceson a cell phone, it exists an emergency of anyconfidences in quality item. At some point has a hindrance to embracing of Huawei's picture

China's work cost remains extremely low comparative with the worldwide level, and that is the primary motivation behind why Chinese producers have the bit of leeway of making cell phone locally. In addition, a wide scope of motivations from Chinese's legislature was accommodated urging Chinese assembling exporters to create solely for the remote showcase. Ultimately, E-trade is the favored selling technique among Chinese makers, particularly Huawei, Xiaomi, and Meizu, they have not burned through cash on building their own physical stores, since they try not to have the expense of opening and running the stores, in contrast to, Apple or Samsung. Exchange insurance strategy is additionally a hindrance of Huawei when going into global markets. The explanation is that every nation has government activities furthermore, strategies that limit universal exchange request to secure country enterprises. Another danger is a lessening in the import levy in China that makes an outcome in countless outside producers taking this chance to moving more organizations in China, making serious weight on Huawei. Huawei Organization has confronting a danger because of the previously established inclinations in Chinese mark.

Huawei should use its own advantages of resources to increase the publicity of its smart phone brand. Moreover, the company should mainly focus on users’ experience creating brand value by means of technological innovation and physical stores.

Huawei should continue to adopt the different strategies, in order to satisfy the demand of target market, as well as expand its market share.