China's increasingly becoming one of the biggest manufacturing centre in the world, because of this reason, it has given Huawei a greater cost advantage in equipment manufacturing. In addition, China's huge market capacity makes it possible for Huawei, which occupies the majority of the market, to realize economies of scale on a manufacturing scale. Compared with developed countries, a large number of low-cost knowledge-based talents in China make China have strong potential in research and development such as: Since Huawei was established in 1988, it started to enter the international market only in 1995. Compared with the foreign communications equipment giants, Huawei is still only a new entrant. However, Huawei takes full advantage of the backwardness and adopts a combination of imitation and independent development.
The first foreign partner becomes the Hutchinson Telecommunications in Hong Kong, which purchased switches and related equipment for its fixed-line network. Providing flexible solutions to a new generation of telecommunications, Huawei helps the company to withstand competition of the Hong Kong telecommunications market. During the cooperation the company requires Huawei strictly monitor the quality of their products and adhere international standards of the industry. The company gets first experience of international operations. According to Wu & Zhao, “Huawei spent only 3 months on helping Hutchison to realize the service instead of quotation of at least 6 months set by European telecommunication manufacturers.
In fact, the Chinese population continues to grow steadily and this could change the social and cultural trends. Another important point is the education; in fact China emphasize on the literacy rate that in China was over 90% (huebler.blogspot.ch, 2008). China is known to be a country where the population prefers to receive implicit messages and not to make any idea. For those wishing to open a business in China, the key to success is the relationship with the private relationships with various stakeholders. Another problem in China is corruption.
This case study highlights the issue of Huawei’s Marketing Strategy and its Independence day facebook message, which all led to the failure of the brand in Pakistan. This case study covers the fundamental basis on why Huawei as a brand couldn’t reach out to customers and increase their Sales The major Results that were obtained that Huawei was not being able to tap in this huge Mobile consumer Market in Pakistan. It is essential for the company after making Investments of Rs 550 Million in Pakistan not to die down, rather revive itself by providing stiff competition to competitors like Q-mobile, Voice, Nokia, HTC etc. KEYWORDS WITHIN CASE STUDY Market penetration, Technology, Market Analysis, Competition OVERVIEW OF HUAWEI MOBILES: Huawei was founded in 1987 by ex-military officer Ren Zhengfei and formed as a private company owned by its employees. Its core missions are building telecommunications networks; providing operational and consulting services and equipment to enterprises inside and outside of China; and manufacturing communications devices for the consumer market.
For a fierce company like Huawei, they realized that they couldn’t keep up with the fast growing economy as a sole company on its own. Instead, they decided to tone down their predatory attitude and start building rapports with established telecom equipment suppliers in return to gain entry to the international markets through them. Following the LLL framework, Huawei has then managed to establish joint R&D with global giant such as Texas Instruments, IBM and Microsoft. As of 2005, Huawei owns ten joint research labs. Being a latecomer in industrialization.
Except for company cultural building, Huawei carried out several structure adjustments as well. Hay Group has been checking Huawei’s improvement in human resources since 1998, to find out the problems in order to provide best possible solution .Because of all theses efforts in human resources management , Huawei build a successful sales team following its talented leader , bringing unforgettable success .In consideration that Huawei is a Chinese multinational company operates in the global market , I recommend Huawei to practise cross-cultural coordination ,promote outstanding excellent host country employees . In addition , unified the staff’s understanding from different culture background by utilizing the company goal and corporate culture to solve possible cultural conflicts between its employees , ultimately , each of its employees are in line with Huawei’s vision “to enrich life through communication” and mission “to focus on customers’ desire and needs by providing competitive communications network solutions and services so as to consistently create maximum value for customers” , ultimately ,enabling and supporting sustaining innovation continuedly
The status of Chinese women in the workplace The communist party has attempted to liberate the workforce, they promoting women work and equality between men and women. In the last decade, the government proposed the goal of building a “Harmonious Society”, following with a series of social security system projects and various welfare programs. Those policies have greatly contributed to the reduction of social inequality. According to The Economist (2011), in 2010, Chinese women labour- force participation rate is almost 70%, which is the first in the world. Women not only in China but also all over the world have made huge progress in the workplace.
Technology, knowledge, politics and many more ideas were all becoming influences of the west. China was in a crisis. In order for China to emerge from this, had to observe their level of national power, discover the problem and progress as a whole (Chen). Chen Duxiu’s call for nationalism explained the negative connotations that imperialism had on their country. In his eyes, the lack of nationalism was a result of the conflicting ideas of the old and the new.
That has been a recurring problem in the country for a long time. Although the government has been implemented the birth control. However, the government still cannot achieve his aim. Therefore, the government must improve the employment for the citizens, that is, to provide them more working opportunities for the Chinese people. Moreover, more schools and universities should be set up for the youth and children.
This theory is based on the duality between the managers’ pursuit of growth in order to build their reputation as to ensure job security and the shareholders search for maximized profits in the long run. Since its foundation, Huawei’s strong suit has been its devotion to R&D as well as its in-house tech development. In 2016, Huawei has focused its attention on R&D and has outspent tech-giant Apple in this department with a major investment of 11.08 billion dollars which constitutes 14,6% of its 2016 total revenue. (Huawei annual report, 2016) (The economist, 2017) Shenzhen hothouse of innovation” (April 8th 2017) Today, Huawei’s market strategy has been an aggressive one. When arriving in a new market (US & Europe), their main aim was to broaden their market segment by selling reliable and low-end smartphones for a much more affordable price than its competitors.