Huawei Strategic Marketing Audit

NBS-7025Y Strategic Marketing Management

Huawei Strategic Marketing Audit

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Kai-Chieh Chen

100153162

8th November 2016

Word count: 1960

Introduction

Huawei is the pioneer in global information and communications technology solutions provider. Founded in 1987, this Chinese corporation has started with a small company and become a global company with the top of market share in 2015 Chinese smartphone market. At present, Huawei has more than 170,000 employees, operating in more than 170 countries and regions, serving more than one-third of the world's population. Huawei applied it guiding principle of Business-Driven ICT Infrastructure to lead the transformation of enterprise IT towards cloud architecture, and the transformation of enterprise networks towards SDN (Huawei, n.d.). Moreover, in the global market, Huawei maintain the steady growth in consumer business. For example, P9, Mate 8, Mate Book as the representative of the flagship product has been recognized and loved by consumers around the world, in nearly 30 countries to become the most popular one of the terminal brand consumers (ibid.). In this report we will be looking to various fields of marketing in relation with Huawei Corporation, it inspects topics on marketing mix, Porter five forces analysis, product life cycle and SWOT analysis.

Vision & Mission Statement

The vision of Huawei's consumer business is visionary and dare to challenge, and through the positive and enterprising efforts to achieve the goals. Huawei's consumer business goal is to bring the latest technology to consumers, creating an extraordinary experience for the user. In terms of products, Huawei is focused on high quality products, and committee to innovation and break through existing technology, so that more people around the world can enjoy the latest technology consumers (ibid.).

Marketing Mix Analysis

Product

Focusing on the ICT infrastructure, Huawei provides innovative ICT products and solutions that can be integrated by partners to help customers improve the efficiency of their communications, office and production systems, based on continuous innovation in customer needs. Huawei will continue to focus on consumer-centric, through operators, distribution and e-commerce and other channels, and committed to creating the world's most influential terminal brand, for consumers to enjoy a simple mobile Internet applications experience.

Place

Services and products of Huawei are deployed in nearly 140 countries around the world, and serves the top five operators in the global telecommunications industry. The company has 170,000 employees to provide efficient work. Huawei, in China, the United States, Canada, Germany, the United Kingdom and other countries, has 21 R&D institutions. Distribution channel of Huawei has been very effective all the time. It believes in developing joint ventures with local authorities, in which it offers dividends to exchange Huawei's use of products. (Hitesh, 2016)

Price

The main reason that Huawei can become a leading company is due to the different price strategy for different countries and regions. Huawei has different price strategy in the low, medium and high class market. In the high-end market, it uses brand-oriented cognitive to decide value pricing method, which includes two aspects: First, Huawei is confident in their products and brands. Second is judgment of consumers on products and brands. In the medium and low-end market, Huawei has adopted a competitive pricing method, which is based on lower price than rival smartphone performance which provide the similar function.

Promotions

The Huawei’s strategy for promotion is to use all the channels to promote the product and to make the loyal customers or brand customers. including print media, electronic media ,TV commercials and ethical marketing report. Moreover, people currently tend to shopping online and hence Huawei has maximized its promotional activities through online channels.

Porter’s Five Forces Analysis

Threat of new entrants

In the telecommunications market, Huawei entered the market early, and it creates a high level of market awareness and customer loyalty to the Huawei brand, which allowed Huawei to a certain extent, to avoid new entrants of the competition. In addition, if a new company want to enter the telecommunications market, it requires a lot of investment and mature distribution channels. This constitutes an entry barrier.

Intensity of competitive rivalry

In terms of the global telecommunications industry, Huawei is facing competition from several rivals such as Sony, Apple and Samsung, which, due to their leading position in the industry, and they can have a greater impact on market prices. Given the rapid growth of the telecom market, relatively substantial profits will encourage new entrants and existing competitors in the industry to become very competitive with Huawei.

Threat of substitute products or services

Although Huawei is already in the market leading position, Huawei still needs to pay attention to existing and potential alternatives to competition. In particular, there is a high degree of emphasis on products that can improve the quality of existing products and have a high value for profits. Furthermore, if substitutes are produced by highly profitable industries, they will become more competitive. In this regard, Huawei should increase product development efforts, improve product technology content, and make the product more competitive.

Bargaining power of Buyers

The power of buyers is the extent to which buyers of the products or service in an industry have the ability to influence the suppliers. In term of the size of the buyers, as the smartphone products target mainly at the individual consumers in the market rather than the business users. Moreover, sometimes consumers would not be given very strong bargaining power to bring down the market price immediately, because individually they are in smaller size compared to with the supplying industry. However, the individual customers still can gain their power by choosing not to buy the Huawei’s product or instead choose another supplier.

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