Huawei Firms Marketing Entry Strategy in Meeting Its Annual Targets and Objectives - Paper Example

7 pages
1695 words
Boston College
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Research paper
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Executive summary

A strategic plan executed timely with adequate resources and the proper workforce is bound to reap volumes in favor of the concerned institution. Huawei is a world telecommunication and network service provider; it invested much in ensuring a sharp market entry strategies in both local and international markets. The accurately executed strategies managed to increase revenue mainly due to the primary focus subjected in research and development right from the foundation to the more productive period. The major market entry strategies involved the contractual strategy in Western Europe and North America, Direct exporting in Asia, Africa, and the South America and finally the joint venture in the Russian market. In the future, it is recommended that the company applies the acquisition tactic not only as an expansion strategy but as a mechanism to widen the market and attract new niches that were previously dominated by other firms.



Marketing strategic plan executed by any organization in the corporate world is just as important as the business plan. The probability of survival and accomplishment of the goals and targets of an organization without a competent preparation of a bright and sharp marketing strategic plan is equivalent to zero. It, therefore means that, before any group presents its products in the market, it must conduct an assessment to determine the level of competition and the gaps existing in the market so as to be able to create a competitive advantage that it can utilize to make a step ahead of the competitor. Notably, before the entry of the organization into the market, there existed other businesses providing similar services and which had created trust with the public already. The new business is as well driven to capture the same target group, and therefore it is imperative to employ a strategy that can not only create customers but also retain them. As long as ethics are applied in the process, it does not matter whether the strategy makes the competitor to quit or not, the motive is customer satisfaction, profit creation, and social responsibility purely. Every market, national or international has got its own best strategy suited since the capability of the competitors, and the market restrictions and barriers are also present. Some common marketing strategies include the following; joint ventures, partnerships, direct export, franchising, licensing and many others. Similarly, other tactics including acquisition and mergers can as well be applied not only as a growth strategy but as a competent and stronger marketing strategy.

The aim of this research is to critically analyze the marketing entry strategy utilized by the Huawei firm in meeting its annual targets and objectives. Huawei Company is a multinational telecommunication and network service provider. As a multinational company operating in developed and developing nations, it has employed different strategies depending on the government policies, entry barriers and the level of competition (Godinho, and Ferreira, 2013, p. 1048). The project assesses the application of the joint venture strategy in the Russian market, Export entry mode in South America, Asia and Africa and the contractual entry strategy in North America and Western Europe. The objective is to assess the strategies applied and to recommend other available and potential marketing strategy that can be utilized by the firm to meet its future goal and compete favorably in the market.

The significance of the analysis of the organization is to determine the most competent strategy among those executed and other possible available and cheaper approaches that can be utilized by the institution to widen their market and improve profit margin. Furthermore, based on the analysis, the business will be able to identify other existing marketing gaps that they can bridge for their advantage. With the current trends in technology and globalization, the level of competition keeps on rising, and that explains why most of the firms have invested substantially in research and development. For this reason, therefore, businesses utilize every original research related to their company so as to better their services and meet the customers need just as Huawei believes in "customer first."

Orientation: Relevant Literature, Case Organization, and Research QuestionsLiterature OverviewSince the establishment of the company, a period when China was highly dependent on imported telecommunication networks, the institution has been investing much in research and development. It is as a result of such investments which explains the reason why its performance about revenue has been increasing. Some analyses have therefore been carried about profitability, marketing, mode of operation and the specific target groups. Some of the known basic researches relating to market entry focused on internationalization from a general perspective and a low to high strategy (Fan, 2011, p. 837). This mechanism was widely applied by the Huawei firm in the Asia and Europe whereby they began their operation by conquering markets in nations which are technologically weak moving towards those that are stronger and having higher rates of competition. This philosophy though not a sharp entry strategy was viewed by other researchers as being efficient and played a bigger role in expanding the Huawei markets in Europe and Asia.

From the conducted researches, some concerns have been identified and which needs further analysis for purposes of bridging and provision of a more efficient assistance to the company. The designated areas include the following;

The available information fails to give a comparative analysis of the strategies applied in the different continent and the basis of their effectiveness. In the same note, it does not provide the reasons behind the application of the various strategies in different areas. Also, it fails to provide a sufficient data explaining revenue disparity emanating from the different potential markets globally.

Despite the fact that Huawei is one of the best telecommunication companies in the world, there is some firm especially from the United States and other technologically advanced nations which are placing a high competition to it. For this reason, therefore, it would have been prudent for researches to highlight such firms and the strategies they applied in gaining a competitive advantage.

Notably, the aspect of the market entry behavior about joint ventures, contractual and direct exporting mechanism has been highly neglected due to its complex nature. The purpose of this research is to bridge the possible gaps by conducting a comparative analysis of market entry strategies employed in different parts of the world. Furthermore, it provides the basis to which such decisions were reached and the progress of the applied strategies in meeting the goals, mission, and vision of the organization. For the benefit of the team, the research also partly tries to figure the strategies applied by the chief opponents explaining why they are floating a bigger competition. The significance of this is that it assists in determining the weaknesses of the competitors hence strengthening the profile of Huawei by turning all the weaknesses into strengths.

Case OrganizationHuawei Technology Company was founded in 1987 by Ren Zhengfei who mainly concentrated on the production of switches. By this time, China was deficient of telecommunication technology and highly dependent on external sources. Ren had an opportunity to join other foreign technology firms to import the advanced skills, but instead, he decides to venture into the local researches to better his products and explore new ideas and vision to attain his objective of becoming the best network service provider in entire China. As a market entry strategy, Ren did not find it hard initially to join the market since it began its operation in the local Chinese markets. Having an advantage of selling the local products to the people, the organization started to increase with time offering employment opportunities to the locals, but importantly, Ren invested much in the sector of Research and Development (Gifford et al., 2015, p. 231).

During the onset of the company, the idea was not to immediately take it globally but to focus on the demands of the consumers to the level that the aspect of originality can be identified primarily within the Chinese firms (Cooke, 2012, p. 1840). It explains why even after the joint venture opportunity, in the beginning, Ren failed to take such a possibility but instead focused on an in-depth research of the demands of the people putting the time in play.

Despite the existence of some investigations conducted concerning Huawei Company, this particular undertaking was significant because of some elements captured. To begin with, it focuses on the entire entry strategy of the Huawei firm globally. In this course, it analyses some of the loopholes that might have existed in the process and recommendations addressing different mechanisms that might have been utilized in solving the issue hence imperative in case it is aimed to carry out a different entry strategy in the unidentified niche.

Secondly, even though Huawei is a global firm, its competition level is not equal in most parts of the world where it is operating. The paper, therefore, explains some growth the strategy that can be used by the company as a marketing platform to capture the market and compete favorably hence elevating the level of revenue and public image.

Finally, it summarizes the overall achievements of the company through a comparative analysis while highlighting the available options that the company can explore to maximize profitability and competitive advantages.

Research questionsFrom the competence of Ren, investments in research and development, China managed to advance in telecommunication networks and with time reduced the level of imported foreign technology. Evolutionary achievements of the goals and objectives of the institution have acted as a breakthrough opening ways for researches and identification of the gaps which are later on bridged about the current project. Previous researches, therefore, are a prerequisite for this project hence the following questions of discussion.

What is the key potential market entry strategy that can be applied in new niches?

Why was the contractual entry mechanism applied in North America and West Europe?

What factors influenced the use of the direct export strategy in South America, Asia, and Africa?

What strategies can Huawei utilize in the future to increase its profile and create a more advanced competitive advantage?

Research MethodologyAs initially highlighted, some research has been conducted about the marketing strategies of the Huawei Company, though in a smaller perspective. For this...

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