Strategic Plan for Huawei Smartphones
Introduction
The considered case study focuses on analyzing the performance of the Chinese company Huawei Technologies in the framework of the overall operation of the smartphone industry, which has been developing rather dynamically within the last decade. The major objective of the case study is to unite the concepts around competitive strategy to the corporate strategy of the company at the global level. Additional points which were considered are the prevailing trends of the smartphone industry, factors of its growth and existing dynamics. Furthermore, the case study aligns the account of the factors standing behind the success of Huawei and the possible challenges which can come in the way of the existing successes.
In the current paper, the emphasis will be made on the development of the 5 year strategy for Huawei Technologies, taking October of 2015 as the starting point for the analysis. As a first step, the strategic analysis of the current situation prevailing at the enterprise will be conducted, focusing on the potential challenges and the ways to positively leverage various external and internal success factors which can play a major role in the company’s development. As a second step, the choice of strategic actions will be suggested, in order to define the key points of further steps, as well as the major risks existing in the company’s environment and the set of the expected outcomes. Lastly, the set of specific targets and objectives for Huawei will be developed, emphasizing the priorities, focus areas and the potential key performance indicators related to the company’s five year strategy.
As an outcome of the outlined analysis, the strategic planning for Huawei will serve a workable insight into the challenges of entering a highly competitive industry on a later stage, at the point when it is already overtaken by a number of strong competitors such as Google, Apple and Samsung.
Objectives
The major objectives of the current paper are as follows:
Assess the existing situation in the smartphone industry where Huawei operates;
Identify the challenges and success factors which will help the company to move forward;
Composing a workable strategy for the future development of Huawei;
Define the pain points which can undermine the company’s performance, as well as the expected outcomes of the proposed solutions;
Prepare a five year plan of action starting from October 2015;
Define the relevant deadlines, objectives and the key performance indicators.
Strategic Analysis
Within the recent decade, the rapid growth in the smartphone industry as well as the relatively low barriers to entry have caused multiple new entrants to show positive levels of growth, even comparing to the older established companies which are still retaining relatively high market shares. Figure 1 shows the dynamics of market share growth of older companies in the market, while Figure 2 reflects the market share fluctuations of the new challengers.
These favorable industry trends partially contributed to the fact that the external environment for the global market entry of Huawei is relatively positive. As noted in the case study, the smartphone market has been growing exponentially within …
