Huawei Solutions technical variation of its portfolio and value addition to its existing products is usually highlighted simply by Huawei being ranked numerous top 5 in the world in terms of important UMTS patents. By 06 2008, Huawei had submitted 30, 569 patent applications. (Huawei Business Information-Huawei Mass media release). The top inclination towards R&D and solid cost differentiation has enabled Huawei Technologies to achieve what the other dominating players inside the telecom industry have been struggling to achieve- customization!.
This strong client focus is usually the face of Huawei Systems projected through its brand logo. The Huawei Technologies brand logo reflects their core principles of customer-focus, innovation, steady and environmentally friendly growth, and harmony, selling Huawei Technologies sincere determination to supporting its buyers realizing all their potential to kick off a variety of competitive services through continuous advancement and a great enterprising heart. (Huawei Corporate Information-Huawei Media release). The Huawei Technologies logo was just lately changed and modified to reflect tranquility as also one of its key elements, so as to present its interpersonal responsibility. Huawei Corporate Information-Huawei Media release).
This has introduced the much needed picture change necessary by Huawei Technologies generally being seen as a Chinese seller. Figure1: Huawei Contract Sales (Source Huawei Corporate Information-Huawei Media release) Opex & Capex leveraging which Huawei Technologies has become able to offer it is customers offers enabled this to demonstrate expense leadership which is evident as 72% of its agreement sales had been from overseas market in 2007. Not to say in 2007, it had 45% increases in the contract product sales revenue.
Observe figure 1 ) Huawei Company Information-Huawei Multimedia release). The strong carry which Huawei Technologies is being able to keep also originates from the socio-political environment functions in while the work cost in China is a single sixth of the of United states of america or European countries. Thus it has become a key exterior environmental factor. Internally Huawei Technologies has capitalized about human resource and R&D.
Nevertheless has the expense differentiation been enough, will it still assurance growth and even more market share? These are generally the biggest queries which have to be addressed for the guaranteed continuous growth. This kind of question has made Huawei Systems rethink its marketing strategy to value idea, and to worth chain research (Porter 1985) for a greater market share. Before that however lies another hurdle of poor quality perception a question mark on the quality of Chinese branding. Issue 2- The dragon company wagon.
With all the FMCG marketplace taking blows after blows because of cut Chinese recycleables, the general consumer perception upon Chinese quality is battling to establish a stand. Nevertheless it specifically affects because said the FMCG industry or the organization dealing in B2C but the standard perception affects all which includes B2B. And this has been among the prime challenges. From 98 to 2001 Huawei was looked at with distrust & doubt. With all the Cisco lawsuit the market transmission in the produced economies had become more difficult and required 1000 times even more effort in comparison with its American or Western counterparts. (The Economist, Nov 2007).
I really believe that the emphasis needs to be moved towards setting up a strong company if Huawei Technologies should keep its foothold in the global telecom market. Hence strengthening in the Huawei company has become even more important. Remodeling to determine Huawei being a brand has been at this point the new emphasis to develop an improved perceived quality & produce brand equity.
The need of brand recognition has also become incredibly vital to be seen as a appreciated collaborator due to its customers. Brand development is never big in China; with large volume level market company recognition never existed in the Chinese market. Consequently it becomes more essential as well as difficult for Huawei to develop it is brand photo to compete in the global economy. The strong need for branding and alter for the marketing orientation to move for the service sector becomes more vital whenever we look into the 5C’s of Huawei Technologies. Issue 4- The 5C’s.
Going through the 5 C’s of Huawei Technologies shows the main competencies of Huawei and helps us in understanding why a brand new orientation procedure is required. Because discussed previously Huawei Technology dominates in cost differentiation and is armed with a strong R&D to achieve customization in a excessive barrier market and it is a key strength of Huawei Technologies. Yet a quick SWOT analysis brings about the lack of identified quality in the market as one of the very best threats Huawei Technologies faces.
Its significant competitor Ericsson currently leading the market discuss comes with a very strong branding and high recognized quality. The dilemma is not only the market notion but also the belief of the personnel themselves even though human capital is a important resource & strength of Huawei Systems which as well drives to low labor costs.