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Case Analysis Final project – Huawei
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Case Analysis Final project – Huawei
The selected company for the case analysis report is Huawei Investment and Holding Co.
Ltd. The company was founded in 1987 and is currently considered one of the leading providers
of information and communication technology (ICT) smart devices and infrastructure (Huawei,
2020). The company has more than 197,000 employees operating in more than 170 regions and
countries. Huawei is serving more than 3 billion people globally. Huawei is determined to create
value for its customers, offer secure and stable network operations, and bridge the gap that exists
in the digital divide. This case analysis is focused on the current elements of the company,
current strategy, issues, and the new strategy recommendations to solve the issues that the
business is experiencing.
Section 1: CURRENT STRATEGIC ELEMENTS
Q1.
Huawei has various strategic elements that help it to keep up with the high
competitiveness in the market. These can be determined from the Huawei 10k document.
A. The company uses the strategy of working together for shared success to strengthen the
bargaining position with distributors, suppliers, and others. This is where the firm seeks to
approach forward-looking when cultivating, developing, supporting, and motivating its partners
(pg 4).
B. The company gains market share for performance through fueling intelligent upgrades of
various industries by embracing technological innovation (pg. 39). Through artificial
intelligence, the company can gain a vast market share by improving its performance, better
quality, customer service, and a wide selection of products.
C. Huawei gains increased profitability and market share by redefining its hybrid cloud (pg. 40).
This facilitates intelligent upgrades and hence better performance and profitability.
D. The firm uses the strategy of effectively leveraging and designing regional capabilities and
resources in ICT strategy to upgrade and acquire critical capabilities and resources (pg. 145).
E. The firm has activated its plans for network assurance to help in managing its R&D
production immediately after an earthquake had struck (pg. 156). This enabled Huawei to
finalize its network recovery within 20 minutes, thereby improving its sales, production, finance,
marketing, and other essential activities.
F. The creates a shared service platform to strengthen its competitiveness through collaborative
partnerships and strategic alliances (pg. 146). The shared service platform has made Huawei
have a strong competitive base as this helps in supporting the development of multiple
businesses.
G. Huawei strengthens its corporate culture by using the strategy of the control environment.
This helps create a corporate culture characterized by integrity, compliance with laws and
regulations, and business ethics (pg. 57).
H. The company is focused on building a greener and more sustainable digital world to
strengthen its reputation and market standing (pg. 10). The company also has other sustainability
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strategies such as digital inclusion, security and trustworthiness, environmental protection, and a
healthy and harmonious operational ecosystem (pg. 150).
I. Huawei has an intelligent twins' architecture. It uses as the blueprint to closely work with the
enterprises, governments, partners, and carriers to help them get scenarios where they can
address the real challenges and create value and provide targeted solutions (pg. 3). By so doing,
the company is exhaustively capturing the opportunities in the emerging market and defending
itself against any external threats that might affect the operations of the company's business
prospects.
J. The company uses an established Stand-alone selling price (SSP) within the enterprise and
carrier businesses for products that use an approach of average prices for their product categories
(pg. 97). This has helped the company to enter new geographic markets and then exit some
smoothly affectively.
Section 2: CURRENT STRATEGY
Q2. A proper evaluation of Huawei's current strategy to determine if it creates a sustainable
competitive advantage requires a review of the VRIN test. This applies to its capabilities and
resources. VRIN test is mainly for assessing the sustainable competitiveness of a company. The
first element of this test is valuable. This component is concerned with financial assets and other
assets such as having experienced employees, talented staff, company capabilities, and contacts
(Gamble et al., 2019). After this, it is essential to see which assets are valuable to the target
market.
The next component of the test is rare. This is where the resources found in the company
are rare to find in other companies (Gamble et al., 2019). The importance of this factor is that it
helps the company achieve maximum competitiveness as other companies may not get the
resources to compete or reach the level to which the company of reference is.
The third aspect the test assesses is imitable. Even though a company might have
resources and offer services that are rare to find, it is imperative to ensure that these resources
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