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Huawei’s Thirty Years: From Phone Switch Resellers to Global Telecom Equipment and Service Giant
Kevin Han Huang,Selina Juehua Su,Lulu Ouyang Academy of Asian Business (AAB) 2017 Academy of Asian Business Review Vol.3 No.2
This case study aims to analyse the success story of Huawei, a leading Chinese telecommunication company, best known for its infrastructure equipment manufacturing and its smartphone production. The report is presented in three parts. The first part examines the events and turning points in the years prior to Huawei’s current market leadership. Market conditions and competitors at the key junctures are analysed, and Huawei’s corresponding strategies and consequent performance are discussed. The second part looks into the factors behind Huawei’s success, categorised in terms of internal management and external strategies. Distinct Asian-business features are highlighted and analysed in the context of the markets they are being applied to. The third part examines the current position and future potential of Huawei’s three major business groups in the context of market trends. This is followed by a discussion of the challenges faced by Huawei and recommended solutions. Market conditions underpinning the challenges are explored, while the effects and feasibility of solutions are analysed with specific examples. Finally, the conclusion examines what can be learned from Huawei’s success. As the world embraces rapid technological advancement in all spheres, this case study, by analysing the success story of a technological giant, hopes to offer insights for emerging Asian technological enterprises. Moreover, the many uniquely Asian-style business strategies, while not universally applicable, present valuable lessons for Asian enterprises wishing to succeed in the globalised world. Huawei’s revolutionary management structure, unique marketing strategies and devotion to research and development are particular aspects of its success that are worth examining.