HUAWEI’S STRATEGY OUTSIDE CHINA

DOING BUSINESS IN CHINA

Marine SulpiceEmilie de Panafieu

I. Presentation of the brand

II. Its perception in China  III.The brand’s strategy

IV. How to adapt outside china ?

BRAND PRESENTATION

Presentation of the brand

• Largest networking and telecommunications equipment supplier in China.– Established in 1988– Translated as "achievement", "magnificent act",

"splendid act", or "China can".• Serves 45 of the top 50 telecoms operators • 2001: Increased its expanding abroad

Huawei’s products

• Category of products: – wireless, – fixed line, – software & service, – datacom, – terminals

Realize Your Potential !

I. BRAND PERCEPTION

Perception of the brand

« We feel Huawei has strong departmental walls- hard to relate a message to the right party »

Hutchison Crossing

« Vendor must take the view of the stand as operator to solve problem »

BJ Suburb Telephone

« Well there is no backing of management support to the identified focal point-he seems to be very powerless »

Hutchison Crossing

Perception in China• Strong chinese brand :

– strong manufacturing capabilities, – governement support, – low cost, – strong R&D, – good service and support

• However, many criticisms: – Technology theft– Customer relations– Security concerns

II. BRAND STRATEGY

Semiconductor specialists

Electronic manufacturers

Service providers

Retailers

SUPPLIERS CUSTOMERS

Suppliers: semiconductors and electronic specialists

Customers: service providers

Customers: retailers

www.directorycellphones.com

http://www.5sur5.fr

Huawei ‘s competition

A clear concentrated competition

Competitors and their core activity

Competitors ranked by net sales in billion euros

Source étude IBM consulting group

Key success factors of the sector

Reliability efficiency

Customized serviceFull range of products and

services

Support

Ease of use

To what extend the KSF are mastered by Huawei

Overall performance comparison

Key Success Factors: Huawei/ Nokia/Samsung

III. Huawei principle issue: Adapt Outside China

Huawei Outside China

NORTH AMERICA

AFRICA

EUROPE

LATIN AMERICA

MIDDLE EAST & NORTH AFRICA

CIS

CHINA

PACIFIC ASIA

Huawei’s worlwide offices

Adapt Outside China

1. Adapt R&D– 10% of revenue in R&D each year– 7 centers in China, 1 Sweden, 2 in

USA, 1 India, 1 Ireland, 1 Russia, 1 Indonesia, and 1 Netherlands.

2. Local Formation for employees 3. Technical Assistance (TAC)

Objectif: ANSWER CLIENTS NEEDS

4. What structure to use to implement? • joint-venture CEI• FutureWei vend en indirect USA

5. Cooperation/ partnerships (Africa)

6. Social implication (Asie Pacifique)

Huawei’s solution: ACT GLOCAL

Adapt Outside China

Conclusion:Huawei outside China

Conclusion:Huawei outside China

Sources• http://en.wikipedia.org/wiki/Huawei

• http://www.huawei.com/fr/catalog.do?id=51• http://edissertations.nottingham.ac.uk/195/1/06MAlixwh8.pdf

• http://support.huawei.com• www.huaweidevice.com/

• http://com.chinabyte.com/huawei/• http://www.globrand.com/brands/huawei/

• www.pointgphone.com/test-huawei-u8230-9262• www.mobiles-actus.com/test/huawei/

• www.journaldunet.com/.../060904-huawei-technologies.shtml

HUAWEI’S STRATEGY OUTSIDE CHINA