Huawei

Part # 1
Purpose
and values
The purpose of Huawei is to help people

enrich their lives through communication.
Huawei is committed to connecting the world.
To connect families and friends. To connect
all people separated by distance and time.
Source
http://www.huawei.com/en/about-huawei/corporate-info/strategy/index.htm
http://www.huawei.com/en/about-huawei/corporate-info/vision-mission/index.htm
http://www.huawei.com/ucmf/groups/public/documents/attachments/hw_126991.pdf
Source
http://www.huawei.com/en/about-huawei/corporate-info/vision-mission/index.htm
Openness
Continuous
improvement
Initiative
Teamwork
Customers first
Integrity
Dedication
Chinas low scores on individualism and

uncertainty avoidance are consistent with
Huaweis values
Power
distance
Individualism Masculinity
Source
http://geert-hofstede.com/china.html
Uncertainty
avoidance
Bengt Nordstrm, a strategic adviser to

European mobile networks, says Huawei has
succeeded because of its ability to learn fast.
Source
http://www.guardian.co.uk/business/2012/mar/25/secretive-huawei-joins-technology-race
In 1999, China Mobile looked to launch a prepaid

mobile phone service. Huawei was able to custom
build a product for China Mobile that worked with its
existing legacy systems, and by 2002, Huawei had
80-90% of the market. Foreign companies either did
not have the product or were too slow to react.
This ability to rapidly respond to customer
needs has been a consistent feature of Huaweis
strategy, both in China and in foreign markets.
Source
http://csis.org/files/publication/130215_competitiveness_Huawei_casestudy_Web.pdf
With our open, collaborative philosophy, we

look forward to cooperating with more
customers and partners in the media and
entertainment industry.
Mr. Zheng Yelai,
Huawei.
Source
http://www.huawei.com/en/about-huawei/newsroom/press-release/hw-127566
-showcasesentertainmentindustrysolutionsnab.htm
Huawei is always open and cooperative.

Ms. Sun Yafang
Chairwoman of the Board
Huawei
Source
http://www.huawei.com/ucmf/groups/public/documents/annual_report/hw_u_256032.pdf
Other sources
http://www.scribd.com/doc/36101450/China
http://www.scribd.com/doc/35468260/Individualism
http://www.scribd.com/doc/35046140/Uncertainty-avoidance
Part # 2
Customers and
customer needs
Customers of
consumer products
and services
Every person who can use an electronic device.

Potential market: The entire world population.
Customers of
enterprise products
and services
Example
Huawei has built more than 260 data

centers for customers around the globe
35 of them cloud-based.
Source
Customers of
operator products
and services
Example
Huawei is helping to build France's

broadband network.
Source
http://www.knowledgeatwharton.com.cn/index.cfm?fa=article&articleid=2717
Mobile phone network operators

http://www.bloomberg.com/markets/companies/cellular-telecom/
http://en.wikipedia.org/wiki/List_of_mobile_network_operators
Part # 3
Products and
services
Huawei ranks among the top 3 world players

in all segments of telecom equipment.
Source
https://www.mckinseyquarterly.com/Three_snapshots_of_Chinese_innovation_2918
Consumer products
and services
Source
Source
http://www.huawei.com/
Huawei is putting more emphasis

on the end user experience.
Source
http://www.globaltimes.cn/content/716495.shtml
Huaweis goal is to become the world's third

largest Android handset provider after
Samsung and HTC in five years.
Sources
http://www.globaltimes.cn/content/770286.shtml#.UVwc9qKwKAg
Operator products
and services
Source
Source
Telecoms-equipment makers.
Numbers in $bn. Year: 2011.
Source: http://www.economist.com/node/21559929
Enterprise products
and services
Source
Source
Part # 4
Supplier partners
Huawei uses the Android operating

system on its tablets.
Source
Huawei outsources much of its manufacturing

to specialists, for example to Foxconn.
Source
http://www.economist.com/node/21559929
Foxconn has operations in Hungary, Mexico,

India, Malaysia, Brazil and Vietnam. It's the
largest exporter in the Czech Republic.
Source
http://bigthink.com/think-tank/the-true-cost-of-foxconns-wage-hikes
In early 2004, Huawei received a USD 10 billion

5 year credit facility for international expansion
from the China Development bank and USD
600 million from Ex-Im Bank of China. This was
later bumped up to USD 30 billion, and possibly
more.
Sinosure, the government insurance company,
has also supported these sales via export credit
financing.
Source
IBM was brought in to help Huawei organize

and manage its R&D processes, the Hay
Group for human resource issues, PWC for
financial management, and others including
Fraunhofer and Towers Perrin for a variety of
purposes.
Source
Other companies, that Huawei has worked

with include Siemens, Global Marine, Texas
Instruments, NEC, Motorola and Qualcomm.
Source
Huawei works with more than

40 learning partners.
Source
http://youtu.be/gMcrCjtgzpY minute 6.
Part # 5
Competencies /
Capabilities
Huawei has had a strong emphasis on

research & development from the very start.
When Huawei had 700 employees, 500 were
working with research & development, i.e.
more than 70%.
Source
Huawei sees itself as an innovator and has

strong focus on education as well as on
research and development.
Source
Huawei is changing from being a product-driven

company to being an end-to-end service
company. Huawei now looks to provide
operation and maintenance to its customers in
addition to hardware and software.
Source
Part # 6
Communication
and distribution
channels
Co-care distribution model of Huawei

The customer sells and delivers its own products.
Huawei delivers products and services to the
customer.
Source
High care distribution model of Huawei

Huawei sells and delivers products and
services to customers.
The customer can resell / retweet Huawei
products and services.
Adapted from
Example
https://www.digitec.ch/
Example
Huawei had a team of engineers travel to

every one of Chinas 2,800 counties to
market its products.
Also in Europe and North America, sales
people and engineers went to whereever they
thought might be an opportunity.
Sources
Example
In China, Huawei established joint ventures or
other forms of partnerships with local bureaus
of post and telecommunications in order to
encourage the purchase of Huawei
equipment.
These local companies eventually became
simple corporate branches.
Source
Examples
http://www.youtube.com/user/HuaweiDeviceCo
http://www.linkedin.com/company/huawei
https://twitter.com/HuaweiPress
https://twitter.com/HuaweiDevice
Example
Huawei participates in open source

meetings and activities.
Source
http://www.huawei.com/en/about-huawei/Partner/openathuawei/index.htm
Example
Huawei participates at trade fairs

such as CeBIT.
Sources
http://youtu.be/eU4VWsB2k0g
http://www.cebit.de/
Part # 7
Capital
Financial capital
Source
Revenue comparison from 2006 to 2011
Source
Huawei is a private company.

Founder of Huawei, Mr. Ren Zhengfei,
owns 1.4% of the companys shares.
Source
http://www.economist.com/news/business/21571180-chinese-company-sells-ever-mor
e-smartphones-and-opens-up-little-clear-mud
98.6% of Huawei shares are tied to a trade union

committee tied to the affiliate Shenzhen Huawei
Investment Holding Co. This body represents Huaweis
employee shareholders. About 64% of Huaweis
employees participate in this scheme.
The shares of these employees are nontradable and
are allocated to reward performance. The shares do
not give holders an effective voice in management
decisions, which are largely controlled by Mr. Ren
Zhengfei. When people leave Huawei, their shares
revert back to the company.
Source
Huawei has filed over 49,000 patents.

Huawei was among the worlds top five
companies in terms of international patents
filed from 2008 to 2010.
Source
https://www.mckinseyquarterly.com/Parsing_the_growth_advantage_of_emerging-market_companies_2969
Huawei invests 10% of sales

revenues in research & development.
Sources
http://youtu.be/usxG7e84Pls minute 2.
Comparison of R&D in % of revenue. 2006 to 2011
Source
Physical capital
Huawei has more than 20 research centers

in Germany, Sweden, the UK, France, Italy,
Russia, India, China, and other countries.
In addition, Huawei has established 34 joint
innovation centers with carriers.
Source
http://www.huawei.com/en/about-huawei/corporate-info/research-development/index.htm
Buildings where Huawei's R&D teams work.

Huawei Global Headquarters in Shenzhen, China.
Source
http://www.huawei.com/en/about-huawei/newsroom/photos/index.htm
Buildings where Huawei's R&D teams work.

Source
Huawei University at Huawei Global Headquarters in

Shenzhen, China. The training center occupies over
155,000 m2, consists of over 100 classrooms and can
accommodate up to 2,000 trainees at any given time.
Source
Inside Huawei University

Huawei Global Headquarters
Shenzhen, China
Source
Testing center for testing product prototypes.

The testing center is used by several research labs.
Source
Logistics center warehouse at Huawei Global

Headquarters in Shenzhen, China
Source
Call Center at Huawei Global Headquarters in

Shenzhen, China responsible for round-theclock monitoring and real-time troubleshooting
of Huawei's IT operations.
Source
Human capital
Almost half of Huaweis employees work

with research & development.
Sources
Huawei engineers at work
Source
Part # 8
Leadership and
organization
Founder of Huawei:
Mr. Ren Zhengfei.
Source
http://www.huawei.com/ucmf/grou
ps/public/documents/annual_repo
rt/hw_u_256032.pdf
Mr. Ren Zhengfei, founder of Huawei. Born in 1944.

1960s
Attended the Chongqing University of Civil Engineering and
Architecture.
1970s
Worked in the People's Liberation Army's Engineering Corps
with information-technology research.
1983
After cuts to the armed forces, Mr. Ren Zhengfei left the army
and moved to Shenzhen, a boomtown near Hong Kong.
1987
Mr. Ren Zhengfei established Huawei.
Sources
Chairwoman of Huawei:
Ms. Sun Yafang.
Source
http://www.huawei.com/ucmf/groups
/public/documents/attachments/hw_
126991.pdf
Huawei board of directors
From the left in the front row

Mr. Hu Houkun, Chairwoman Ms. Sun Yafang, Mr. Guo Ping, Ms. Chen Lifang, Mr. Xu Wenwei.
From the left in the back row
Mr. Zhang Ping'an, Mr. Yu Chengdong, Mr. Xu Zhijun, Mr. Ren Zhengfei, Mr. Ding Yun, Ms.
Meng Wanzhou, Mr. Li Jie, Mr. Wan Biao.
Source: http://www.huawei.com/en/about-huawei/corporate-info/coporate-governance/index.htm
Mr. Ken Hu acts as CEO of Huawei

from April 1st, 2013 to September 30th,
2013.
Huawei Technologies founder Mr. Ren
Zhengfei has split the CEO role with a
panel of 3 executives who will rotate at
6-month intervals.
Source
http://www.zdnet.com/huawei-splits-ceo-role-with-rotating-panel-2062304597/
http://www.huawei.com/en/about-huawei/newsroom/press-release/hw-258234-rotatingceo.htm
In 2013, Huawei will further

simplify management,
reduce internal operating
costs and improve
operational efficiency.
Source
Letter from Mr. Guo Ping, rotating and acting CEO.
Family of Mr. Ren Zhengfei working for Huawei

Ren Shulu, Ren Zhengfeis younger brother
Member of supervisory board that overseas directors.
Meng Wanzhou, daughter of Ren Zhengfei
Chief Financial Officer.
Meng Ping, son of Ren Zhengfei
Customer relationship management director.
Sources
http://www.economist.com/news/business/21571180-chinese-company-sells-ever-more-smartphones-and-opens-up-little-clear-mud
Professor Gary Liu says Ren's determination to

find a successor from within his family stems
from 2000 when his then second-in-command,
Li Yinan, left to start a rival company, Harbour.
Ren fought and eventually bought Harbour, but
the experience, says Liu, destroyed his trust in
non-family members.
Source
Source: http://www.huawei.com/en/about-huawei/corporate-info/coporate-governance/index.htm
Despite Huaweis continued ties to the

state, the Chinese government appears to
have had a relatively hands-off attitude
with regard to management.
Source
Part # 9
Differentiation
Strong investment in
research and development
Perhaps Huaweis most significant sustainable

advantage stems from the fact that it
consciously chose to develop its technology
in house rather than by the more popular and
government encouraged route of joint ventures
with foreign partners.
Source
Almost half of Huaweis employees

work with research & development.
Sources
http://www.wired.com/business/2012/10/spies-or-no-spies-u-s-companies-should-fear-huawei/
Bengt Nordstrm, a strategic adviser to

European mobile networks, says Huawei has
succeeded because of its ability to learn fast.
Source
Lower prices than other companies
Source
Soon after entering Russia in 1997 through a

joint venture with the Beto corporation Huawei
made sales in Thailand, Brazil, and South Africa.
Its pricing became more aggressive, often
undercutting other companies by 30%.
Source
Customer service /
customer education
Huawei's advantage over Western vendors:

Because its cost per employee is lower,
Huawei can deploy its large staff to help train
local operators to run the networks.
Source
Global focus including focus

on emerging markets
Source
Part # 10
Market
development
China
Source
Huawei and ZTE are Chinas two largest

makers of phone equipment. Both are
based in Shenzhen, China.
Source
http://www.bloomberg.com/news/2013-01-02/interdigital-files-new-trade-a
gency-case-against-samsung-huawei.html
China's smartphone market could grow

by as much as 44% in 2013.
Source
http://www.globaltimes.cn/content/768030.shtml#.UVwgE6KwKAg
In China, Samsung, Lenovo and the iPhone

dominate the high end in handsets. Other
Chinese-made phones with similar cost
advantages dominate the low end.
Source
Instead of competing with multinational

corporations (MNCs) in major cities like
Shanghai and Beijing, Huawei cut its teeth in
smaller rural markets where MNCs rarely
tread.
Huawei had a team of engineers travel to
every one of Chinas 2,800 counties to
market its products.
Sources
Asia Pacific
Source
In March, 2012, Australia banned the

company from bidding on its National
Broadband Network.
Sources
In New Zealand, Huawei has won

contracts for work on networks.
Source
In India, Huawei has found itself under attack

by government and media as both a security
threat and an unfair competitor.
Source
Americas
Source
In Canada, Huawei has won

contracts for work on networks.
Source
Alcatel-Lucent and Ericsson currently dominate

the U.S. market for mobile infrastructure.
Source
Huawei has worked on networks for a number of

smallish mobile operators in the USA, but its
repeated attempts to buy American tech firms
have been scuppered by official opposition.
Source
Europe
Middle East
Africa
Source
Huawei employs more than 7,000 people in Europe.

It says that total could double in the next 3 5 years.
Huawei research & development centers in Europe:
Italy.
Spain. In planning.
Helsinki. EUR 70 million investment announced.
Britain. $2 billion investment announced.
Source
http://www.nytimes.com/2012/12/11/technology/huawei-to-open-research-centerin-finland.html
In 2001, Huawei made its first major

sales in Europe, to the Netherlands
and Germany.
Source
Huawei provides managed services for

carriers in the UK, Spain, Germany,
Italy, and Switzerland.
Source
The United Kingdom allowed Huawei into

its market as long as it agreed to open up its
equipment to third-party inspection.
Source
In Africa, Huawei is everywhere, and welcome

almost everywhere.
Huawei undercut Ericsson and Nokia by 5% to
15%. It also showed tenacity and daring. Its
engineers soldiered on through civil wars and
natural disasters; by 2006 sales in Africa were
over $2 billion.
Source
Huawei will supply the South African railway

system PRASA with the train communication
service Global System for Mobile Communications
Railway abbreviated GSM-R.
Source
http://www.globaltimes.cn/content/771621.shtml#.UVwagKKwKAg

Huawei

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Part # 1

The purpose of Huawei is to help people

Chinas low scores on individualism and

Bengt Nordstrm, a strategic adviser to

In 1999, China Mobile looked to launch a prepaid

With our open, collaborative philosophy, we

Huawei is always open and cooperative.

Every person who can use an electronic device.

Huawei has built more than 260 data

Huawei is helping to build France's

Mobile phone network operators

Huawei ranks among the top 3 world players

Huawei is putting more emphasis

Huaweis goal is to become the world's third

Huawei uses the Android operating

Huawei outsources much of its manufacturing

Foxconn has operations in Hungary, Mexico,

In early 2004, Huawei received a USD 10 billion

IBM was brought in to help Huawei organize

Other companies, that Huawei has worked

Huawei works with more than

Huawei has had a strong emphasis on

Huawei sees itself as an innovator and has

Huawei is changing from being a product-driven

Co-care distribution model of Huawei

High care distribution model of Huawei

Huawei had a team of engineers travel to

Huawei participates in open source

Huawei participates at trade fairs

Revenue comparison from 2006 to 2011

Huawei is a private company.

98.6% of Huawei shares are tied to a trade union

Huawei has filed over 49,000 patents.

Huawei invests 10% of sales

Comparison of R&D in % of revenue. 2006 to 2011

Huawei has more than 20 research centers

Buildings where Huawei's R&D teams work.

Buildings where Huawei's R&D teams work.

Huawei University at Huawei Global Headquarters in

Inside Huawei University

Testing center for testing product prototypes.

Logistics center warehouse at Huawei Global

Call Center at Huawei Global Headquarters in

Almost half of Huaweis employees work

Huawei engineers at work

Mr. Ren Zhengfei, founder of Huawei. Born in 1944.

Huawei board of directors

From the left in the front row

Mr. Ken Hu acts as CEO of Huawei

In 2013, Huawei will further

Family of Mr. Ren Zhengfei working for Huawei

Professor Gary Liu says Ren's determination to

Despite Huaweis continued ties to the

Perhaps Huaweis most significant sustainable

Almost half of Huaweis employees

Bengt Nordstrm, a strategic adviser to

Lower prices than other companies

Soon after entering Russia in 1997 through a

Huawei's advantage over Western vendors:

Global focus including focus

Huawei and ZTE are Chinas two largest

China's smartphone market could grow

In China, Samsung, Lenovo and the iPhone

Instead of competing with multinational