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Environmental Analysis on Huawei Device Company

January 2016

Table of Contents

1. Introduction 1

2. PESTEL Analysis 1

2.1. Political 2

2.3. Social 3

2.4. Technological 3

2.5. Environmental 3

2.6. Legal 4

3. Poter’s Five Forces Analysis 4

3.1. Bargaining Power of Suppliers (medium) 4

3.2. Bargaining Power of Consumers (high) 5

3.3. Threat of Substitutes (low) 5

3.4. Threat of New Entrants (medium) 5

3.5. Industry Rivalry (high) 6

4. Strategic Recommendations 6

4.1. Differential Strategy of Technology 6

4.2. Differential Strategy of Product 6

4.3. Differential Strategy of Service 7

4.4. Differential Strategy of Brand 7

5. Conclusion 7

References 9

1. Introduction

Huawei Device Co., Ltd which belongs to Huawei Technologies Co., Ltd., is one of the 4 big business groups of Huawei. The research and development of Huawei Device began in 1993, and rich experiences have been accumulated in several terminal technology fields, such as WCDMA, CDMA, GSM, video, access terminals, and application terminal. Huawei’s devices cover mobile phone, mobile broadband, fusion terminal and video etc. Now, Huawei Device serves 45th in "the world's top 50 telecoms operators" (Huawei, 2016), thus becoming the strategic partner of the world's leading operators, such as BT, Vodafone and Telefonica.

With the rapid development of mobile broadband technology and mobile communication industry in China, due to its huge market potential, China has become world’s most competitive mobile phone markets where the famous mobile phone brands such as Apple, and Samsung in. Besides, more and more enterprises have also engaged in the global mobile phone industry (Euromonitor, 2016). As the world's leading network