SWOT Analysis of Huawei focuses on key strengths, weaknesses, opportunities, and threats that allow the business to define its internal and external climate. This article helps you to get an understanding of where Huawei stands.
SWOT Analysis of Huawei reveals the strengths of the brand in which the brand is strong and what separates it from its rivals, its weakness, and its focal point that will stop the brand from doing well.
It lists the opportunities that can be used by the company to raise market share and brand value. It also sheds light on the danger that has the potential to harm the brand.
Huawei is a multinational technology company. Huawei was founded in 1987 and has its headquarters in Shenzhen, China. Huawei is working on consumer electronics, cell phones, networking equipment and communications equipment. Different products such as smartphones, mobile and fixed broadband networks, Harmony OS, multimedia technology, tablet computers, dongles, and Smart TV are developed by the company.
Huawei is producing on telephone switches in its initial years and has extended its business over the years to include numerous operations such as the construction of telecommunications networks, the provision of equipment to companies, and the provision of consultancy and operational services.
Huawei has about 194,000 staff. Huawei has expanded its business to 170 countries around the world with its services and products. The company aims to reach every person, organisation and looking forward to fully connecting the world digitally.
Around three billion people worldwide are represented by the brand.
The mission of Huawei is to extend the advantages of technology to all locations. The organisation has developed a digital inclusion plan to accomplish this, and it focuses on technology, application and skills.
It must resolve the different issues outlined in Huawei ‘s SWOT review to ensure that Huawei meets the long-term competitive advantage.
Let us address SWOT Analysis of Huawei
Strengths in the SWOT Analysis of Huawei – Hauwei SWOT Analysis
1. Product Portfolio
The broad product portfolio is one of the brand’s core strengths. In manufacturing large range of smartphones, Huawei has its fastest growth. Huawei is one of the top three brands in the world of smartphones and the top two in the international smartphone market. The number of smartphone sales continues to increase year by year.
Since the company has a larger smartphone sale every year, it is reflected in its higher earnings. The company manufactures various other products other than smartphones, such as mobile and fixed broadband networks, tablet computers, multimedia technology, dongles, Harmony OS, and Smart TV.
Both its goods and services have also been aimed at companies and individual consumers. The entire company of Huawei is divided into three parts. They are companies, consumers, and carriers.
2. Technological Advancement
Creativity in its technology is another strength of Huawei. Huawei has maintained a major emphasis on research and innovation ever since its establishment. The brand has invested a considerable amount of cash in research and development every year.
The sum continues to rise each year, and so many groundbreaking innovations come from this brand. Huawei has been a leading player in the mobile industry and also in 5 G technology because of its strong focus on research and development.
The business also invests a large amount in the technology of Artificial Intelligence and sees faster growth. Since there is still some kind of technological advancement, a more rapid growth among international players is considered.
3. Leading Player in Mobile Industry
Huawei is a leading player in the mobile industry, manufacturing and selling many smartphones. This has become the leading source of sales. The brand’s smartphone sales have risen, and so revenue is also on the rise.
Huawei, next to Apple, is the second leading player in the smartphone industry. The company’s smartphone sales turned out to be around 223 million units during the year 2018.
While Huawei ‘s smartphones come with advanced technology and good cameras, its prices are feasible, and its market share has increased at a high level because of this.
4. The Foreign Presence
The product has an outstanding global presence, and this is also a crucial attribute of the company. The business has grown internationally over the years , contributing to healthy sales , market share, and a large client base.
Huawei is a Chinese brand which operates in around 170 countries, operating with several large networks of distributors, manufacturers which business partners from different parts of the globe.
5. Competitive pricing
But its aggressive pricing is another strength of the company. This is one of the key reasons why the brand is able to achieve faster popularity and growth. There is a proper plan for the brand that focuses on lower prices and quality.
This has resulted in the international smartphone industry having a large market share, thereby growing its sales. The business has many feasibly priced goods targeting all economic groups of individuals.
6. Worth of Customers
Huawei has partners with numerous associations that provide quick, smart, creative, trustworthy and safe network products and solutions.
The brand also open up its capabilities for corporate customers and provides them with numerous secure, creative, and trustworthy solutions. In its smart devices, the brand makes use of various technologies and enhances the digital experience of people.
7. Operations of Secure and Reliable Network
The brand’s top priorities have always centred on the protection of privacy and cyber security. In the strength of openness and integrity, Huawei still believes.
The organisation still focuses on enhancing its expertise in software engineering and business continuity while enhancing the networks. Huawei has partnered with carrier customers to build over 1,500 networks in nearly 170 countries for over 30 years.
The organisation has attempted to bind about three billion people across the globe in an coordinated way. The brand aims to maintain a proper safety track, even in this vast network.
Weakness in the SWOT Analysis of Huawei – Hauwei SWOT Analysis
1. Many Conflicts
Since its inception , the company has had several controversies, which seems to be a major drawback for the company. In the global economy, it has a distorted reputation as well. There are many others who have tainted the reputation of Huawei in many Western nations and mostly in the US, aside from controversies linked to espionage.
Because of the US-China rivalry and the near relation between the Chinese government and Huawei, this can be blamed. Even now, the image of Huawei is regarded as a great weakness for the company.
The brand was also accused of using its wealth for the purpose of espionage. Since it has lost support from AT&T in the US, it has also ended up losing support from several other US partners.
2. The US‘s Poor Business
Huawei smartphone markets have not been well placed in the US market. As the US is the leading smartphone market, this is also a great weakness for the brand, and Huawei is not able to position itself there.
In the United States , people often refrain from buying Huawei handsets. Although the company has faced inquiries in the US, Canada, and Britain on several topics, in these regions, the brand does not seem to be a huge success. The role of Huawei in the US market continues to grow weaker in the United States as days pass.
The US government is also keen not to let the brand thrive in the US market.
3. Capital Shortage
A cash shortage is still seen by the business. As compared to other top brands in the world, the capital of Huawei is far smaller. The organisation has very little money for its activities. Therefore, when scheduling their business affairs, they need to be extremely alert.
It also has little cash for branding or promotions because of its lack of resources. It should spend a significant amount in marketing or branding to make the brand available. This is becoming a big weakness for the group.
4. The Brand Poor
It does not have a sharp brand picture, as Huawei has less money. The brand has a lack of promotion, and because of this, it is a bad brand.
While in a few countries, the brand has a sharp profile, in most of the top markets it has less visibility. As a poor brand and as it affects the reputation of the brand, this is also a major drawback for the brand.
Opportunities in the SWOT Analysis of Huawei – Hauwei SWOT Analysis
1. Technologies for AI and 5G
Using its research and development, Huawei has seen a lot of opportunities. The firm has also seen a major edge in 5G technology as a leading player in the mobile industry.
The organisation should concentrate more on AI and 5G technologies, and it has already succeeded in exploring the 5G technology. For any smartphone company, both AI and 5G technologies are profitable.
So, the organisation sees a lot of possibilities to get deeper into these innovations.
2. Advertising
As Huawei is strong as a software company, its marketing strategy is weaker compared to its rival. The brand has mainly relied on its pricing approach and product consistency to grow its customer base and market share instead of using a marketing strategy and clear branding.
It must have a good marketing plan in place and it is important for its core business strategy as a leading brand in technology. To get a higher brand value, it should concentrate more on a marketing campaign.
3. Retail Chain and Online Platforms for Sales
The brand makes use of online platforms for its sales at the international level. Currently, Huawei has built a strong position and sees more opportunities to extend its global market reach through efforts to grow its retail chain of brands.
The business should be able to generate more sales and get customer loyalty alongside marketing.
Threats in the SWOT Analysis of Huawei – Hauwei SWOT Analysis
1. The Rivals or Competitors
Over the years, the smartphone industry has seen a lot of competition, and it continues to expand at a rapid rate. Since the company has been recognised as a top brand in the smartphone industry, several international brands and Chinese brands are also facing competition.
Apple, Xiaomi, Samsung, etc. are among its rivals. Therefore, it is a major challenge to the business to have many players in the smartphone market.
2. Regulatory and Political Pressure
Increasingly, many regulatory and political pressures project a serious challenge to global technology players. The political pressures and the trade war between China and the US are threatening Huawei ‘s international sector.
It faces risks not only with the US, but also with other leading markets such as Canada, Britain, and Japan. Huawei is faced with intense political pressure, which is a major threat to its development. This will significantly restrict the international company of Huawei.
3. Pressures for Trade
Trade tensions between China and the US have always been around, and this has been a huge problem for the brand. This is due to the fact that the technology firm has a partnership with the Chinese government. This is a danger to the organisation as well.
Conclusion
In less time, Huawei flourished in the international market. The firm has grown its smartphone industry in recent years. With the advent of smartphones, the brand has seen substantial market growth.
In this report, Huawei ‘s SWOT review highlighted the key strengths of the brand that come from its broad product portfolio, technological advancement, leading position in the smartphone industry , having an international footprint, maintaining feasible pricing, having an outstanding value-form client, and providing reliable and efficient network operations.
Its weakness is evidenced by its many disputes, a poor presence in the United States, less resources, and a poor brand. It sees a big opportunity to join AI and 5 G innovations, to concentrate more on marketing, and to have a large retail chain.
Its challenge comes from its mobile industry rivals, numerous regulatory pressures and trade pressures around the US.
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