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What Are The External Business Environment Of Huawei

1433 Words6 Pages

The external business environment consists of a set of external factors, such as economic factors, social factors, political and legal factors, demographic factors, technical factors amongst others, which are not controllable in nature and affects the business decisions of a firm. The external environment includes opportunities and threats which can impact on the marketing strategy of Huawei. As mentioned, marketers cannot control the factors of the external environment. However, they should try to understand the changes in the external environment and assess the impact of those changes on the target market. In fact, a proper understanding of these factors helps organizations to identify potential business opportunities and threats in the international market (Baines et al., 2011). Huawei, being a multinational company is affected by the external business environment. As such the impact of the external business environment factors on Huawei’s marketing strategy are explained by the PESTEL Model as follows:

1. Political Factors Political factors include laws and legislations which are of great importance due to the fact that they enclose many aspects of a company policy. Through regulatory bodies, the government implements policies that affect businesses in various ways (Vrontis and Pavlou, 2008). Huawei’s country of origin is china and the Chinese government has various political legislations which impacts on Huawei’s external strategic environment. As a

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