Marketing Strategies Paper

Huawei Situational Analysis

Huawei is a Chinese multinational corporation (MNC) started and set up in 1987, and headquartered in Shenzhen, China. It has grown to be a giant in the telecommunications industry, being among the leading companies in the manufacture, provision, and supply of Information communication and technology infrastructures. The company also provides application software and devices with wireline, wireless, and Internet Protocol technologies. The company has spread its wings to over 150 countries globally and is on a mission to be the leading company in spearheading technological benefits worldwide (Huawei, 2020). The company produces various products like mobile and smartphones, fixed broadband networks, tablet computers, multimedia technology, and Smart TV.

The most significant and cardinal opportunity that the company stands to gain from is marketing. The company has to end up over-relying on quality and pricing as a strategy towards increasing her clientele base. Compared to its competitors, the company is doing dismally in marketing. The company has to advertise herself and making her presence seen and felt through outdoor advertising, print, and media advertisings as a strategy to make its brand better known (Fangzhu, 2018). The major threats that the company faces competition from other telecommunication companies. Huawei risks being driven out of the market if it does not gear up and keep up the pace set in the telecommunications industry. Government regulations and pressures also pose a significant threat. Due to the standoff between China and the USA, the company finds it hard thriving in the USA economy from the sanctions imposed on it and the stringent policies and regulations from host governments. These threats curtail its development will drastically limit Huawei's international business.

The company attributes the under listed strengths for her rapid expansion in the world all in a short period:

International Presence

Huawei has her presence in about 170 countries and has a presence in areas ignored by other telco companies. Huawei is attributed to have a presence in more than half the countries in Africa, with 70% of Africa's 4G networks being her doing (Huawei, 2020). Her presence in these countries has led to good revenue, a large market, and a clientele base. Her global presence has turned out to be her primary strength.

Competitive Pricing

Competitive pricing is a strategy adopted by Huawei in reaching and satisfying its customer base. The company strives towards guaranteeing quality but at an affordable and lower price, resulting in catapulting Huawei in popularity and its recognition as a brand worldwide, more so in developing countries with a high population, thus being projected markets for Huawei products and services (Fangzhu, 2018). The company's prices target all economic classes, therefore fitting comfortably in all the markets and identify with all the different economic levels, which translates to a significant market share, thus increasing her income in terms of revenue.

Innovation in Technology

The company invests a humongous amount of money in research and development and embraced innovation. As a brand, many innovative technologies have come up from Huawei. The company is a vanguard at sponsoring its staff and students in technological courses who become resources. Due to its emphasis on technological development, Huawei is attributed to most of Africa's 4G network and is in the process of rolling out the 5G technology as well (Luong, 2019). These technological developments generate massive revenue for her and save income in her running – the company has embraced artificial intelligence. It has replaced human resources with Artificial intelligence that proves to be more efficient, and saves her revenue.

The company has identified weaknesses that slow her down in its operation. These weaknesses, if addressed and mitigated, will catapult the company to greater heights. These weaknesses are:

Controversies

The company has in recent years been accused of espionage for the Chinese government. Huawei's closeness to the Chinese government has also tainted her image to governments that are always in rivalry with the Chinese government (Deng, 2017). The controversies hurt and tarnish Huawei's image, thus being treated as a plague by potential clients and denying her presence in some markets.

Weak brand

The company does not have a defined nor a strong marketing strategy (Deng, 2017). Despite Huawei's presence in most countries globally, some people in these countries remain unaware of Huawei and the services they offer. The brand is also less prevalent in top markets.

Lack of Capital

Juxtaposed to other brands, Huawei generates less revenue, faces a cash shortage, and foregoes marketing.

The Huawei company should embark on Multinational marketing to increase its sales and customer base around the world. Global marketing will give Huawei a platform that allows her to expand into new markets via the Internet, international distribution, and competitive pricing. The Internet has made the world a global village- one can follow what happens in one corner of the world in real-time despite being separated by miles. Huawei should capitalize on this and make her presence felt on the Internet. The company should run electronic advertisements that come with low budgets to make herself and products felt. The company should also make fair use of its social media platform from where it can interact with its clients to absorb them and use it as an avenue of recruiting more customers. With an increase in clientele base who are more aware of their products and services, revenue will automatically increase. The company should also localize these adverts to connect more with the population. The local community should feature more in their adverts and avoid using foreigners and foreign language since this will detach the intended message from the targeted audience.

References

Deng, H. (2017). China Huawei Enterprise Strategy Analysis. Thesis, 1-59.

Fangzhu, P. (2018). Analysis of the Internationalization Strategy of Huawei. strategic management.