Huawei Telecommunications - Report Example

Marketing in global economy Huawei Telecommunications Executive summary Table of contents Introduction Huawei is the second largest global telecommunications equipment company that is headquartered in China. The company was founded in 1988 as a distributor for phone switches, but has grown to leading telecommunications company that engages in network equipment, mobile broadband devices, convergence devices and handsets. Huawei current business strategy entails growing the average revenues per users and increasing the telecommunication bandwidth while concentrating on cost cutting measures. The company is currently providing both operational and maintenance to both the hardware and software customers. The growth in bandwidth is driven by emerging telecommunication technologies such as cloud computing, device computing, network convergence and video teleconferencing technologies that consume high rates of bandwidth. The company’s revenues. Huawei is a preferred supplier of next-generation network devices Huawei telecommunications has been granted a license to manufacture and market 3G/4G USB and pocket internet modems for a well-known American company. The licensing agreement includes exclusive marketing rights to a number of countries including Australia where the product is to be introduced. The report will analyse Huawei’s customer aspect of the 5C’s model using 6W model to determine the viability of the company in undertaking the contract awarded by an American company for exclusive marketing rights of 3G/ 4G USB and pocket internet modems to a number of countries including Australia. Limitations of the findings Description of the marketing models 5 C’s model The 5C’s model is useful in conducting situational analysis of the marketing environment that faces Huawei telecommunications in the exclusive marketing contract in Australia and other countries. The analysis focuses on the customers, company, competition, collaborators and context in making the strategic marketing decisions. The company aspect of the model identifies the company resources such as people resources, production and development activities, the company facilities, the marketing capabilities, the corporate culture, the product lines, technological capabilities and corporate reputation that is essential in attaining competitive edge in the market. The collaborators include the suppliers, distributors and partners that complement the efforts of the company. The analysis considers the benefits of strategic alliances, and the risk and rewards that can be gained from the collaborators. The competitor analysis aims at identifying the strengths of the competitors, their competitive positioning and market share in order for the company to decide the best marketing strategy that will enable the company to attain competitive edge in the market. the context (climate) refers to the macro-environment that exists such as the political factors, the economic environment, the social and cultural environment, and technological environment that may foster or hinder the operations of the company. The customer aspect of the model considers the market size and growth potential and unique customer segments in the market. The analysis of customers enables the company the consumer buying behaviour, the preferred distribution channels, the expected product value and benefits and changing consumer preferences in the market. 5C’s analysis- Customers The customers are the providers of the demand and companies engaged in marketing in the global economy must consider various aspects of their potential customers in order to understand their needs. The customer analysis should consider the demographics, market potential, customer needs, and customer motivation to buy, available distribution channels, the frequency of purchase and income levels of the consumers. 6 W model The 6W (what, where, when, who, when and how) model considers six dimensions of customer analysis that will enable the management make strategic marketing decisions in the new market. The model is useful in conducting customer analysis since it identifies the current potential customers of the product, the uses of the product and benefits derived from use by the customer, the places that customers purchase the products and frequency of purchase of the product. The model also factors reasons or steps that customers undergo in their buying behaviour in selecting the product and reasons that potential customers may not purchase the product. The customer analysis is a critical in making strategic marketing decisions and a thorough analysis will enable the business to attain long-term success. Who are the current and potential customers This aspect of the 6W model focuses on the current and potential customers of the Huawei products and include the market size and growth potential of the market. The global ICT market is estimated to be worth US $ 3000 billion per annum. Huawei current customers include leading global telecoms such as Vodafone, T-Mobile, Motorola and Cox communications. Huawei customers are organised around the business segments that include telecom carrier networks, enterprise business and devices that included the customers for the electronic communication devices. The company is planning to increase the enterprise business sales to US $ 15 billion by 2016 through expanding the data center, the cloud computing solution and wireless communication solutions such as the modems. Huawei customers include business organisations and government departments that use various products such as storage devices, data communication solutions, core network products, fixed access products, radio access and transport network. The individuals customers mainly purchase products such as mobile phone,s mobile broadband, home internet devices, tablets and home media devices that connect to the internet. What do the customers do with the product The 3G/4G and pocket internet modem customers use the devices to connect to the internet and build profitable enterprises that are based on e-commerce model. The commercial customers will use the product for mobile data revenue growth, develop their IP video business and grow their cloud-based ICT revenues. The individual customers mainly purchase the modems in order to connect to the internet with their electronic devices and perform numerous functions on the internet such as sending web messages, e-mails, downloading digital music, books and communicating with friends via social networks. Where the customer purchase the product The 3G/4G and pocket internet modems customers purchase the products from distribution partners, distributors and retail outlets. Huawei distribution channel network is made up of channel partners who include the distributors and value-added partners (VAPs). The partners are registered with the company through a certification process and are tasked with attaining business targets in their specific region and also provide commercial and post-sales technical support to the customers. The value added partners assist in customer development and support customer relationship platforms in their designated regions. Huawei individual customers mainly buy the modems from retail outlets or appointed distributors while the large business organisations purchase the modems from appointed value added partners. There are millions of retail stores across Australia where Huawei can distribute the products thus leading to customer convenience. When do customers purchase the products Customers buy the network devices mainly when the need arises and not often. The customers expect durable and high quality devices that can provide the required service over a long period of time before the device develops technical malfunction. The customers will buy innovative a more advanced network device when the current product is incapable of attaining the expected download and upload speeds or handling the internet traffic levels of that will meet the requirements of the user. Why and how do customers select the products The customers recognise the need to purchase the network device and start searching information on the available alternatives in the market from various information sources such as friends, technology journals, and the internet. The next step entails evaluating the alternatives depending on customer requirements such as the data speed levels, the design, LED indicator display, dimensions, weight, supported systems such as windows XP and Windows 7 and windows 7 and MicroSD card memory capacity. The next step is the purchase decision that is followed by the post-purchase evaluation of whether the product offers the expected customer benefits. Some of the key features that customers consider in the purchase of the products include the screen page setting and screen display, the power control features, the temperature protection, and SD card information. The customers want devices that allow faster network access with wireless terminals coupled with larger battery capacity and external antenna port. The customer select Huawei network products due to their Pocket WiFi Hotspot capabilities and thus easy to use while travelling and performing outdoor activities. Customers enjoy convenience with pocket WiFi Huawei E5 product. Huawei E583X is a 3 G Pocket WiFi that offers the customers portability and easy to use through wireless interface that enabling customers to connect to the internet via numerous devices such as notebook, PDA, digital camera, mobile phones and game console. Why do potential customer not purchase the product The customers may not purchase the products if they perceive them to be of low quality while compared to substitutes offered by the competitors like ZTE. Accordingly, the customers must be assured about the security and network reliability that will be offered by the internet modems in order to make the purchase decision. Poor post-sale customer experience and technical support is another factor that can make the customers avoid repeat purchases. The customers are also concerned about their health and safety while using the network devices and health concerns may limit the purchases of the products. Strengths The 6W model has certain strengths in analysing customers since it enables the company understand the customer value and customer needs. The model is capable of identifying the customer segments and their product buying behaviours The model will enable the management of Huawei understand the market growth potential, the attractiveness of the model and potential profitability in the market. The model will enable the company to assess its ability to meet the customer needs with the current resources and skills that are essential in satisfying the demands of the customers. Weaknesses Customer value According to Kotler and Keller (2006), the total customer value is the perceived monetary value of the bundles of economic, functional and psychological benefits that customers expect the gain from the product. The customer value is the perceived benefits minus the perceived costs that are incurred while evaluating, using and during the final disposal the product. The costs entails the monetary, energy, time and psychic costs. Customer segments Huawei customers can be segmented depending on the income levels, the lifestyles and motivation of purchase. The individual customers consist of students, middle income individuals and youthful customers who are interested in searching the internet for news, information and entertainment. The other customer segments include the corporate, enterprise companies and internet carrier companies that use various Huawei network and transport devices. The attractiveness of identified segments The customer segments are very attractive since the high literacy levels and advanced communication devices such as tablets Analysis and findings Huawei has served more than 800 telcos in more than 160 countries and has considerable experience in the marketing of 3G/4G and pocket internet modems. The company will not only support the marketing, but will offer integrated and innovative internet solutions that will satisfy the needs of customers. The company has global competence centers in UK, Singapore and Hong Kong and several consumer and experience labs that will enable the company monitor the changing consumer buying behaviour and needs. Digitalisation and networking is on growth trajectory path due to acceleration of the convergence of innovative telecommunication technologies. Huawei telecommunications Conclusion Recommendations References: Urban, J.G Appendices Read More