1.

Huawei was more concentrating on the strategy of Cost

leadership in the initial years. They had achieved the cost
leadership by adapting the strategy of low product
development cost and using the high skilled low cost labor
which is easily available in China. At the same time they had
adopted some of the differentiation strategies as well, like
improving the product security functionality. On the later
years they had got the cutting edge technologies by joint
venture with foreign companies like Texas Instruments,
Motorola, Intel, Sun Micro systems and Microsoft. Another
strategic advantage which Huawei had was their military
style wolf pack enterprise. This is because the founder of
Huawei was a military personnel. They were able to succeed
more in their product differentiation by setting up R & D
centers on different parts of the world like Sweden, Russia,
India, Moscow, California etc. The advantage they got from
these R&D centers is that when they have it on a foreign
country, they can utilize the expert technically qualified
manpower from that country. That had helped them a lot in
developing new products and that is why Huawei have more
than 8000 patent applications.

2. Vision Statement
To enrich life through communication
Mission Statement
To focus on our customers market challenges and
needs by providing excellent ICT solutions and services
in order to consistently create maximum values for our
customers
Huawei had an initial vision to develop innovation capability
domestically and a goal to build national industry and not joint

ventures and provide markets for other multinationals contrary to

the countrys policy for exchanging market for technology to gain
market share and to compete in international markets.
With the mission Huawei is having they had the goal to attract the
local and global market in carrier network, enterprise business
and consumer business. The mission supported Huawei in
developing low cost high quality products which was the customer
need. That they achieved with the help of cheap labor, low cost of
production, support from the Chinese Government and low R&D
costs. As the mission says they were able to provide excellent
solution to customers by having the R&D centers across the world
and with strategic partnership with worlds leading technology
providers. Thus the mission statement supported them in
providing value for money solutions for the consumers.

3. Huawei had adopted the best internal strategies like

internationalization of R & D, Strict customer focus, value for
money products and Joint ventures & Partnerships. By
adopting the strategy of internationalization of R & D they
had the advantage of proximity to local universities, access
to local specialists / specialized R&D knowledge and the
tapping of informal networks. By the internal strategy of
customer focus they were able to make a customer oriented
high performance corporate culture. By the aggressive price
strategy they were able to win many contracts from the
competitors. As defensive strategy they were able to patent
more than 8000 of their innovations.

4. The external environmental analysis - PEST analysis for

Huawei.
Political

Huaweis transformation has been subject to many political

pressures. For Huawei, the Chinese business political
environment is very serene for growth. In the part of the
government, all possible measures have been undertaken to
ensure that businesses are provided with the right
environment to perform. Existing legislations in any nation,
the government has a very important role to play as far as
organizational environment is concerned and Huawei is not
an exception. The US government had raised issues on
safety and that had created a big challenge for the Huawei.
Economic
The market size is expected to continue to expand across
the world. So Huawei also have the opportunity for growth
and increase their market share and revenues. The rapid
development of the information economy and the internet
industry, which will provide development opportunities and
great development space for Huawei. Huawei has a golden
opportunity to expend its operations not only internally but
also globally. As a multinational, it has a strong economic
background that enables it to effectively compete globally
without expecting major challenges from other similar
multinationals.
Socio-Cultural
Huawei Technologies prides in the social factors provided by
the people of China. The country provides a highly potential
social environment that facilitates growth rate. As a matter
of fact, the people of china are experiencing a highly growing
rate of living standards and same is the case across the
world. Thus it has an opportunity to expand its production to
serve more markets.
Technology

The rates of innovation, times taken in development, as well

as level of investment in technology had given them
tremendous growth and development opportunities. Huawei
was also able to get the technological advantage by setting
up their R&D centers across the world. Also they had formed
joint ventures with international leaders to acquire the
technological knowhow.

5. In my opinion Huawei is making a big challenge for CISCO.

Huawei had expanded from their vast home market to
become a global player. They had started eating the shares
of CISCO in many countries. CISCO was able to defend them
up to an extent only in the United States, when the
Government had raised the issues of security against Huawei
and restricted them. But at the same time as per the policy
of Huawei US is not the only market they are targeting. They
have enough opportunities in many countries across the
world and they already started capturing the market share.
So if CISCO will not adopt effective strategies they will be
definitely left behind Huawei.
CISCO also needs to think about strategic alliances like Huawei to
gain back the market share. The first thing they need to do is cut
down the cost to compete with Huawei. Now if we take the market
it is a consumer market, where we simply say customer is the
king. So the demands of the customers are always increasing.
They need the best quality product at the lowest possible cost. So
to spend more on R&D the company has to generate more
revenue and that is possible only through cost reduction. To
achieve this goal CISCO can think about some alliances who have
a better technology or better processes, through that they will be
able to compete with Huawei. One of the example for the same is
what CISCO did in the German market and they formed Cisco
Internet Business Solutions Group (IBSG). The companies realized
that their strategic goals were similar. They also discovered that

they shared the same visionmoving intelligence into the

network to introduce new functionality and applications that allow
companies to optimize IT and business processes. The Cisco
collaboration architecture and approach also offers customers
choice and flexibility. Combining cloud and premises-based
technology gives partners a choice of technologies that are open,
flexible, and customizable. Through this partnering strategy, they
can deliver real solutions todaynot just visionand help
customers build a robust, open roadmap to support current and
future business needs. Another example was the one with
Accenture.
Accenture Cisco Business Group (ACBG). ACBG
creates a single team that can deliver all of the underlying
technology and the business-process transformational services to
bring the CEBP vision to reality. Based on a one-team concept,
the alliance involves individuals from both organizations. It is led
by an Accenture global managing director and a Cisco general
manager. The joint team designs, packages, sells, and delivers
joint
collaboration
solutions
that
use
Cisco
Unified
Communications.