Did you know?
Huawei has partnered with approximately 80% of the world’s top telecommunications companies.
The story of Huawei and its founding father, Ren Zhengfei, is one born out of need and circumstance. It’s a 30-year journey, marked with many setbacks and culminating in the company’s transformation into the behemoth it is today. As of 2019, the company had 194,000 employees. Huawei has supplied its products and services to more than 170 countries around the globe. Huawei aims to make the world digital for every individual and organization.
This can only be achieved through a firm with extensive knowledge, experience, and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities, and threats, it is necessary to conduct a SWOT analysis by Huawei.
Huawei At A Glance – Huawei SWOT Analysis
Company: Huawei Technologies Co., Ltd.
Founders: Ren Zhengfei
Year of establishment: 15 September 1987, Shenzhen, China
CEO: Ren Zhengfei
Headquarters: Shenzhen, China
Employees (Dec 2020): 197,000
Ticker Symbol: Huawei company is not traded on any public market
Annual Revenue (Dec 2020): CNY¥891.4 Billion
Profit net income (Dec 2020): CNY¥64.6 Billion
Products & Services: Mobile and fixed broadband networks Consultancy and managed services | Multimedia technology | Smartphones | Tablet | Computers | Dongles | Smart TV | Harmony OS EMUI
Company Website: www.huawei.com
Top Huawei Competitors
Competitors: Samsung Electronics | Apple | Sony | Nokia | HTC | Lenovo | ZTE | Xiaomi | Juniper Networks | Arista Networks | VMware | Dell Technologies | Ruijie | Cisco | H3C | Motorola
Huawei SWOT Analysis – SWOT Analysis Of Huawei
SWOT Analysis Of Huawei analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Huawei SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Huawei SWOT Analysis. Below Is The Detailed SWOT Analysis Of Huawei.
Huawei Strengths – Huawei SWOT Analysis
1. Large Product Portfolio: The brand’s extensive product portfolio is one of its main strengths. Huawei is experiencing the fastest growth in production of wide variety smartphones. Huawei is among the top three smartphone brands, and the two top-selling smartphones in the international market. Each year, the number smartphones delivered keeps growing. The brand’s higher smartphone sales each year translate into higher profits. The company also produces other products, such as smartphones, fixed broadband networks, tablet computers and multimedia technology dongles. All products and services are targeted at enterprises as well as individual customers. Huawei’s entire business can be broken down into three segments. These are enterprise business, consumer and carrier.
2. Innovation in Technology: Another strength of the brand’s innovation is its technology. Since its inception, the company has placed a lot of emphasis on innovation and research. The brand invests significant amounts of money each year in research and development. This brand is constantly increasing its revenue, which means that many new technologies are being developed every year. Huawei is a leader in both the smartphone industry as well as the 5G technology due to its focus on research. It also invests heavily in Artificial Intelligence technology, which results in a faster growth. It believes that international players will experience a faster growth rate, as there is always some technological advancement.
3. The Smartphone Market is in a Leading Position: Huawei is a major player in the smartphone market. It produces and sells many smartphones. This is the company’s largest source of revenue. Smartphone deliveries by the brand are increasing and revenue is also rising. Huawei is second in the smartphone market after Apple. The company shipped approximately 223 million smartphones in 2018. The smartphones from Huawei are innovative in technology and have great cameras. However, they are affordable and their market share has increased.
4. International Presence: This brand is known for its global reach and primary strength. The company has grown globally over the years, which has led to good revenue and market share as well as a strong customer base. Huawei is a Chinese brand and has operations in approximately 170 countries. It also works with large networks of suppliers, distributors, and business partners from different parts of the globe.
5. Competitive Pricing: Another strength of the brand’s competitive pricing is another. This is the main reason why the brand has achieved greater popularity and increased growth. The brand uses strategy which focuses on quality and lower prices. It has a large market share in the international smartphone market which has helped to increase its revenue. Many products are affordable and target all economically classes.
6. Customer Value: Huawei has partnered with many organizations that provide network solutions and products that are simple, intelligent and innovative. They also offer trustworthy and secure products and services. The brand offers ICT capabilities to enterprise customers. They can access a variety of solutions that are reliable, innovative, secure, and trustworthy. The brand uses multiple innovations in smart devices to improve people’s digital experiences.
7. Secure and Stable Network Operations: Privacy protection and cybersecurity were the top priorities for Huawei. Huawei believes in transparency and honesty. Huawei is constantly focused on improving its software engineering capabilities, business continuity, and increasing network capacity. Huawei has been working with carriers for over 30 years to build more than 1,500 networks in almost 170 countries. The company has attempted to connect approximately three billion people around the globe in a structured manner. The brand works hard to ensure security even in such a vast network.
Huawei Weaknesses – Huawei SWOT Analysis
1. Many Controversies: Since its inception, the brand has been subject to many controversy. This seems to be a major weakness. It has also a bad image on the international market. Other than the controversies surrounding espionage there are many others who have tainted Huawei’s image in many Western countries, mostly in the US. This is due to rivalry between China and the US, as well as the close relationship between Huawei and the Chinese government. Huawei’s image is still a major weakness. The brand was also accused of using its resources to spy on others. It has also lost support from other US partners as a result of the AT&T support it received in the US.
2. Weak market in the US: Huawei is not well-positioned in the US market, which is the US’s leading smartphone market. This is a huge weakness for Huawei, the US being the largest smartphone market and Huawei not able place itself there. The majority of Americans refrain from buying Huawei handsets. Although the company has been subject to numerous investigations in the US, Canada and Britain, the brand is not a huge hit in these countries. Huawei’s market share in the US is steadily declining. The US government is also keen to prevent the brand from flourishing in the US.
3. Capital shortage: Huawei is always in cash crunch. Huawei’s capital is much lower than other top brands around the globe. Huawei has very little capital to support its operations. They must be careful when planning the business operations. It is also short of funds and has limited resources to invest in marketing. It should spend a lot of money on marketing and branding to make its brand more accessible. This is a huge weakness for the brand.
4. Weak brand: Huawei is a smaller company with less capital so it doesn’t have a strong brand image. The brand is weak because it lacks marketing. Although the brand is well-known in some countries, it is less popular in the majority of top markets. This is a serious weakness of the brand because it creates a negative image and affects brand image.
Huawei Opportunities – Huawei SWOT Analysis
1. AI and 5G Technologies: Huawei has seen many opportunities through its research and development. Huawei is a major player in the smartphone market and has also been a key player in 5G technology. It is important that the brand focuses more on AI and 5G technologies. The company has already achieved success in 5G technology. Both 5G and AI are both profitable for the smartphone industry. The company sees many opportunities to expand its technology offerings.
2. Marketing: Although Huawei is a strong technology company, its marketing strategy has been less successful than its rivals. To increase its market share and customer base, the brand relied on its pricing strategy instead of consistent branding. It is a top-ranked brand in technology and must have a solid marketing strategy. This strategy is crucial for its core business strategy. To build a better brand image, it should be more focused on its marketing strategy.
3. Retail Chain: The brand uses online channels to sell its products internationally. Huawei is in a strong position and sees opportunities to grow its global presence by focusing on its retail network. Marketing should not be limited to marketing alone. The company must also be able drive sales and retain customers.
Huawei Threats – Huawei SWOT Analysis
1. Competitors: Smartphone industry has seen a lot competition over the years and continues to grow at a rapid pace. The company is a well-respected brand in the smartphone market, and faces many competitors from Chinese brands and foreign brands. Its competitors include Apple, Xiaomi, Samsung, etc. The company is facing significant competition from many other players in the smartphone market.
2. Regulative Pressures: Global technology players are being threatened by increasing regulatory and political pressures. Huawei’s international business is under threat from the US trade war and political pressures. Huawei faces serious threats not only from the US, but also from other major markets, such as Canada, Britain and Japan. Huawei is under intense political pressure. This is a serious threat to its growth. This could severely limit Huawei’s international business.
3. Trade Pressures: Trade tensions have always existed between China and the US. This has caused problems for the brand. This is because of the close relationship the technology company has to the Chinese government. This poses a threat to business.
Huawei SWOT Analysis Overview Template
This is the SWOT report that Huawei has done. Please let us know if you have additional suggestions to add.
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