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Competitive Analysis and SWOT analysis of Huawei - Essay Example

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This essay declares that started in 1988 by ex-military personnel, Huawei Technologies Company limited has grown to be the leading networking and telecommunications service provider in the world. The company specializes in the production of hand held communication devices…
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Competitive Analysis and SWOT analysis of Huawei
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Introduction
Started in 1988 by ex-military personnel, Huawei Technologies Company limited has grown to be the leading networking and telecommunications service provider in the world. Headquartered in the Guangdong area of China, the company specializes in the production of hand held communication devices such as mobile phone and tablets and the production of other communication services. The company prides itself in the production of quality products and services to its customers thus developing a strong reputation for itself. Through its dedication to quality, the company has grown to gain a market share bigger than its previous competitor the England based Sony Erickson (Fournier, 1998).
Competitive analysis
The success of the company arises from a number of marketing strategies that that the company has employed over the time. Business is normally more of an idea than the capital, with an executable idea the Ren Zenghfei, the founder of the company began working on way of marketing his idea and achieving his dream. This he began by having an effective market research thus having an effective understanding of his competition through a process known as competitive analysis.
Competitive analysis is a study of the products in the market, analyzing their specific features most of which make them more sellable than the products of other companies in the market. Huawei specializes in the production of a number of products ranging from mobile phones to tablets and laptops among others. Each of these products has a competitive advantage over the others produced by other players in the market. Currently the mobile market continues to attract a myriad of players key among which includes Samsung and Nokia all of which access the international market. One competitive feature of most of the mobile devices produced by Huawei is the longevity of the battery. The battery of life of mobile phone batteries determines their convenience to their consumers. Huawei has thus continued to improve the performance mechanisms of their mobile phones by introducing lighter processors which consume lesser power thus lengthening the battery lives of their mobile devices. This is a major competitive point in the mobile market (Jiaming, 2008).
Furthermore, the company continues to design better performing and smatter looking phones thus attracting to a wider section of the international market (Aaker & Aaker, 2010). The company operates on diverse product base thus attracting every segment of the market. This becomes a competitive advantage as the company receives sales from every section of the possible mobile telephony market.
SWOT analysis
Debelak, ( 2006) asserts that this is an effective mechanism of determining the current performance of a business organization by analyzing both the internal and external factors affecting its operations in the specific market segment. The strengths and weaknesses refer to internal factors that the business organization has control over and will therefore choose its way within the marketing chaos. The opportunities and threats arise from the market and the organization may not do much to make such favor its operations. It may however use the other two internal factors effectively to ensure that the other two external factors favor its operation (Abrams & Eugene, 2003).
The main strength that the Huawei Company has continued to make use of over time is the diversification in production. The company produces a myriad of products with different features. This implies that the company has a wide market and does not therefore risk rejection oof its products. Mobile phones, tablets and laptops all represent different markets, the company proceeds to produce these products but with different performance features which infers that a single product such as a mobile phone further has a wide market consisting of every market section. Some of these products are targeting the rich and have advanced features thereby retailing at higher prices yet others target the poor, thus have the basic features, and retail cheaply (Frey, 1956).
The company operates in china one of the countries in the world with the best labor laws. Constantinides, (2006) explain that China is rich in human resource; furthermore, other factors of production such as electricity and transportation are cheaper. This makes Huawei the biggest beneficiary in the mobile industry producing its high quality products cheaply in china and accessing the international market where the products retail differently thus maximizing its revenue. This is the greatest opportunity that the market presents the company consequently making it in charge of its destiny depending on how it manipulates this provision.
However, the market presents the company a big threat by attracting more investors thus widening the competition (Thomas & Michael, 2001). Currently the company faces competition from previously existing companies such as Toshiba, LG, Samsung and Nokia among many others all of which manufacture their products in China yet access the international market. Competition devalues the products thus making companies make losses. The company therefore has a challenge of ensuring that it carries out an effective marketing master plan and establish an effective brand positioning tool to result in increased sale despite the rising competition in the seemingly stagnant market.
References
Abrams, R.& Eugene, K, 2003, The Successful Business Plan: Secrets & Strategies. 4th ed. Palo Alto, Calif: The Planning shop.
Aaker, D. A., & Aaker, D. A, 2010, Marketing research. Hoboken, NJ: John Wiley.
Debelak, D, 2006, Perfect Phrases for Business Proposals and Business Plans: Hundreds Of Ready-To-Use Phrases For Winning New Clients, Launching New Products, And Getting The Funding You Need. New York: McGraw-Hill.
Frey, A. W, 1956, The Effective Marketing Mix; Programming For Optimum Results. Hanover, N.H.: Amos Tuck School of Business Administration.
Fournier, S, 1998, Consumers and their brands: Developing relationship theory in consumer research. New York: New York Times.
Constantinides, E, 2006, The marketing mix revisited: Towards the 21st century marketing. Journal of Marketing Management, 22(3/4) 407-438.
Jiaming, Y, 2008, Computer Supported Cooperative Work in Design. Melbourne: Springer.
Thomas, D. & Michael, C, 2001, Successful Management Projects. Oxford: OUP Publishers. Read More
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