International Business Management

1.0 INTRODUCTION

This report is about the strategy analysis and choice for Huawei Company. This report will discuss the internal and external factors that contribute to the success and failure to the company. Besides that, we also will discuss the alternative that Huawei will chose based on the internal, external factors, and SWOT analysis.

1.1 Company Background

Huawei Technologies Co. Ltd was established in Shenzhen in 1987 by Ren Zhengfei. It is a Chinese multinational networking and telecommunications equipment and services company. Huawei started as a sales agent for a Hong Kong company and now, they are the largest telecommunications equipment maker in the world and leading global ICT solutions provider. Since the establishment, for the first time in 2010, Huawei was listed in Global Fortune 500 because of the strength of annual sale and net profit.

There are three core business segments in Huawei. First is a telecom carrier network, building telecommunication networks and services. Second is enterprise business, providing equipment, software and services to enterprise customer, and lastly is devices, manufacturing electronic communications devices. They have eight headquarters, more than 70 branches world-wide and 3-level customer services system, which is HQ, regional, and local.

Huawei has over 140,000 employees, around 46% of whom are engaged in research and development (R&D). It has 20 R&D institutes in countries including China, the United States, Germany, Colombia, Sweden,Ireland, India, Russia, and Turkey and in 2011 invested around US$3.74 billion in R&D.

In 1990, Huawei started its own independence research and commercialization and have launched the C&C08 digital telephone switch in 1992. After they won its first overseas contract in 1997, they have launched its wireless GSM-based products. Huawei international business has expand during year to years, from 1998 to 2003, Huawei contracted with IBM for management consulting and...