Huawei Case Study
Also participated trade shows and exhibitions to show its products and services in order to create visibility. A survey report of 100 telecoms operators worldwide also showed that Hawaii increased its ranking from eighteenth to eighth in 2005, which built the value to Hawaii. 2. 4 Services Hawaii hires local personnel in customers’ home country as part of its strategy to aileron technologies and services according to the customers’ needs, such as hire American receptionist in Texas. 2.
5 Procurement Hawaii dispersed 3500 R&D staffs to research centers and research development center in China and overseas.
Six research laboratories in China, software development center in India with 1,500 engineers, in order to find different customers’ need in different countries. 2. 6 Technology development Hawaii had a low-cost and high quality R workforce to find out innovative and customized solutions to international businesses. Besides it invested more than 10% f total annual revenue in its R which was more than other companies, also the heavy and early investment in the 36 mobile communications technology in 1995, it means Hawaii really focused on its R capabilities.
It also Joint with lots of foreign R companies such as MM, Fig.
Based on the team of foreign experts, Hawaii developed diversity management systems to be a more aggressive film and used to complement Hussein’s innovation capabilities. 2. 7 Human resource management Hussein’s employees had a relevant high salary compare with other films because they have a higher knowledge level relatively. It also engaged a team of foreign experts to adopt international best practices for its company.
Moreover, It Ana a unique Dustless culture, ten Mao Leaning’s tongues Ana patriotism.
Its employees were having a military-style base, according to the “Wolves” strategy, and those new employees were put through intensive military style training for the initial months, Hawaii was organizational aggressiveness. 2. 8 Firm infrastructure Hawaii had a good infrastructure such as the financial support, which enables it to identify its threats, resources, capabilities and support core competencies effectively ND consistently. 3. Core competencies 3. Valuable At the beginning, Hussein’s vision was to exchange market for technology, so it provides a broader product scope, from intangible services wireless network to tangible products handsets.
It provided lots of value to meet different target market. 3. 2 Costly and different to imitate The business strategy, Military-styled Wolf-Pack is difficult to imitate because it is an effective way to let the employees learn a totally different mentality of work compare with other companies. In addition, based on the military background, it helped
Hawaii to create an extremely helpful Guiana network, and that was the way Hawaii came to operate from the beginning. Besides, the patent of its products were many enough for protecting its products, so it may improve an organization’s competitive standing.
3. 3 Rare & Non substitutable The business model of Hawaii, telecoms business is not rare and can be substituted easily because there are lots of similar businesses in the world, Just see the telecoms market in China, as we can see the table 2 in the case, there are more than 10 company in China sharing the market.
So the business model can easily to substitute ND not rare enough. 4. Strengths According to the lower labor force in China, Hawaii had advantages over the global competitors which can offer and manufacture its products at lower prices, generally 30% lower than other competitors.
In addition, it concentrated its employees into its R&D team, so other businesses can communicate through marketers to the R&D headquarters in a timely and responsive manner. So Hawaii had a strong R&D team and high caliber employees which gave it an edge over its competitors.
Besides, Hawaii had an intimate relationship with Chinese military that enabled Hawaii to create a Guiana network which was few competitors could confront and helped Hawaii to secure the support from the Chinese government which was essential to working In 5. Weakness Being a Chinese company, Hawaii viewed in different ways compared with other international companies. In general, the sensation of Chinese companies mainly relying on western telecoms technology and turning the higher margins and complex products into lower image commodities.
Thus, Hawaii had to move over this to view as a critical global competitor. Question 2 Hawaii is not only focus in the China market, it targets the broad market. Hawaii could price its products cheaper than other established brands because of the low labor cost in China and can make it more attractive, Hawaii offers attractive incentives as a sales package when pitching for major contracts. Besides, the image of Hawaii in foreign businesses is a low-cost vendor to penetrate worldwide. So the competitive strategy of Hawaii mainly is cost leadership.
Besides, Hawaii had turned high-profit and complex products into standard commodities because its lots of patents. And Hawaii hired local personnel in America to tailor technologies and services according to customers’ needs to offer deter differentiation products. Also the relationship with the Chinese military had helped to secure big contract orders. Moreover, Hawaii reduced cost while making use of its ability to develop innovative products simultaneously. This increased its flexibility which was beneficial to implement an integrated cost leadership and differentiation strategy.
In other words, Hawaii adopted an integrated strategy for its competitive strategy.
Hawaii focused on R and owned more than 8,000 patents, it able to differentiate its products in many ways. Also being located in a low-cost workforce market, Hawaii as addle to nutcracker Its products at a lower cost compared to toners. Hawaii engaged in both value creating primary and support activities that let it used the cost leadership and differentiation strategy simultaneously. By having an efficient production, low costs can be maintained by creating unique products which provide value to differentiate.
Question 3 Since the past few years, China, as well as the world has gone into a fast telecommunication development generation. With the wireless network and 36 appeared, the needs of function and design for telecommunication products and services are overpowering in this generation trend.
However, people in different countries can only use their own country’s telecommunication services, such as 36 network, thus customers can only buy the services locally. Also manufacturing of telecoms equipment tend to become more centralized in order to decrease the unit costs and increase production volumes, so there is a relatively high economic of scale.
More importantly, there are lots of competitors in global market, they are more diverse than ever, so the international competitors are good at standardized approaches, and those new products need for effective ways to promote in order to rate a higher competitiveness than others, so quickness introduce new products is a major Doctor, also require null Innovative satellites. I en sales are oases on technical as products and services are all kinds of technology products such as wireless, optical network.
As the result, the global integration/local responsiveness grid shows that telecoms industry in the appendix, it evaluates that telecoms industry is using the transnational strategy. Innovation is an important mind of those chairpersons as the only way to develop and survive in this increasingly competitive world.
However, many Chinese genuineness core factors still focusing on low-cost labor pool thus having an aggressive pricing strategy, rather than focus on innovative thus having higher profit margins. So Hawaii went overseas to acquire high-technology and R&D capabilities, which provide Hawaii to develop a differentiation advantage.
Having been a licensee of intellectual property right for a long period of time, Hawaii tried to transform itself as a creator of its own technologies and patents. The purposes were to escape from status that its R&D was dominated by patent of multinational corporations overseas. Compared with traditional manufacturing, high-technology companies tend to take resolute factor was choosing their entry mode into other markets.
The internationalization of Hawaii from China in early Twentieth Century was more difficult than those companies from developed countries.
For Hawaii, the technology level and reputation in China influence the firm’s internationalization significantly. As the case shows that Hawaii in order to win contracts with the international business, it offered free customers network to let engineers test it and ran it for three months before committing to buy it because the products were unreliable. To avoid this negative factor, Hawaii decided to enter developing countries before entering into developed countries. Hawaii first entered Russia market, then the South American markets.
It formed a 36 research Joint venture with Japan’s companies in 2003.
It then entered the mobile handset market in early 2004 to prepare itself for the 36 market down the road. In the same year, it won lots of business opportunities in several countries, and became a global communications supplier in Europe to set up a CDMA network, which was a quickly and significant step for Hawaii to build up its brand and products image in the worldwide. Until 2005, Hawaii has grown from a local smell firm into a powerful, famous global company, which is one of the key telecoms industries in the world, because of its fast and aggressive business processes.