Huawei Swot Analysis Essay

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1. Finance Short-term and long-term financing options are available. Huawei's financial backing from the state-owned Chinese Development Bank of over US$10 billion for a facility and US$600 million from the Export-Import Bank of China which both represent forms of long-term financing. 2. Risk Management Major types of business risks include: • Price risk • Credit risk • Pure risk As Huawei has markets abroad, price risk is present when there is any variation in foreign exchange rates as their payments are transacted in foreign currencies. Additionally, pure risk is presumed to be present in nearly any industry and there are four forms of pure risk that affect business: damage to assets, legal liability, workers' injury as well as employee benefits. 3. Organization Design Huawei uses departmentalization as its workforce is divided…show more content…
By listing the difference resources that Huawei has we can conclude that Huawei is able to create innovate products, as evidenced by holding an unusually high number of patents by Chinese standards. Additionally, coming from a military background, Ren Zhengfei's connection to the Chinese military and government helps provide a network which is very helpful to Huawei. Being based in China, Huawei is able to produce and offer products at a lower price than competitors abroad (typically 30% lower than those of established suppliers). • Core Competencies Core competencies are described as capabilities that provide a source of competitive advantage for a company over its competitors. Huawei's main competence is its R&D. Because of the cheap labor force in China, Huawei maintains an advantage over its international rivals. Moreover, Huawei connects its marketing staff into its R&D team, hence the needs of telecom companies and service providers are conveyed through the marketers to the R&D department in the shortest

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