Huawei Technologies
Introduction
Huawei Technologies, established in 1988 as a private company, is fully owned and operated by its more than 22,000 employees. Huawei’s products include networking equipment, software and services, data communications, and terminals. Of Huawei’s more than 22,000 employees, 48 percent are engaged in Research and Development (R&D) activities. Huawei’s evolution from a China focused business to a global provider of telecom equipment will be the subject of this paper. Applying Hambrick and Fredrickson’s strategy model to Huawei will provide insight into what has made this company successful to date and highlight challenges the company will need to address in the future to be a leader in the global telecommunications market. Hambrick and Fredrickson developed a framework for strategy design that has five elements: arenas (where will we be active?), vehicles (how will we get there?), differentiators (how will we win in the marketplace?), staging (what will be our speed and sequence of moves?), and economic logic (how will we obtain our returns?). This paper will review each of these five elements to provide insight into this Chinese company.
Arenas
Huawei, a manufacturer of customized network solutions, seeks to be a mainstream vendor of products in six principal areas: wireless networking, fixed networking, optical networking, software and services, data communications, and terminals. The product spectrum of end-to-end customer services that Huawei currently provides is highlighted in the Appendix.
Huawei has grown into China's largest provider of telecom infrastructure equipment and associated software. The company has aggressively targeted em ...