iii. Organizational structure and culture – the organization’s internal environment
According to Fortune Global 500 list, Huawei is the only Chinese company that earns more revenue abroad than in China and in terms of sales and profits, it has surpassed Ericsson to be the leader of telecommunications and networks. The key to success for Huawei is its special structure and culture.
Structure Huawei’s corporate governance structure and organizations are pretty special. It is a private company owned by employees. Two main shareholders are the Union of Huawei Investment & Holding Co., Ltd. And Mr. Ren Zhengfei. Core employees in Huawei can join an Employee Shareholding Scheme which effectively aligns employee contributions with company’s …show more content…
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General environment:
The global environment is changing, switching from low-end phone based market to a complex market. The legal environment is actually beneficial to Huawei in terms of its great patent reserve, however, with new labor law, Huawei need to reconsider its employees strategy.
The biggest issue for Huawei is political environment, since China and United States government tit for tat recently. Huawei needs to keep a balance between market in Asia and west, because its oversea income is greater than domestic. Huawei should be more transparent to public especially for western countries and proves its security in telecommunications equipment.
Another key problem is competition from telecommunication equipment giants. Nokia had proposed a merger with Alcatel-Lucent, in order to empower its market competitiveness. What if these old giants lower down telecom-equipment price and use their advantages to challenge Huawei? Huawei need to focus on long-term development and taking up basic standard patents in upcoming 5G era.
Competitive environment:
As a China-based networking and telecommunications equipment supplier, Huawei is facing a number of challenges like competition from other Chinese mobile firms and giant …show more content…
But with economic growth, people become better off and prefer to use high-end mobile phone. Huawei lost a large amount of consumer in the past few years and left a stereotype as inferior product manufacturer in public. At the same time, startups in China like Xiaomi grows amazingly and occupies a significant market share by providing cost-effective product. Though Huawei has expanded its oversea business for a few years, it still has a great potential in smartphone market. In premium phones market, apple still accounts for most and enjoys a net profit around 94% of total market net profit. Unlike startups in China, Huawei can expand freely in global market with patent reserve. Which is important for it to earn more profit and develop
According to Fortune Global 500 list, Huawei is the only Chinese company that earns more revenue abroad than in China and in terms of sales and profits, it has surpassed Ericsson to be the leader of telecommunications and networks. The key to success for Huawei is its special structure and culture.
Structure Huawei’s corporate governance structure and organizations are pretty special. It is a private company owned by employees. Two main shareholders are the Union of Huawei Investment & Holding Co., Ltd. And Mr. Ren Zhengfei. Core employees in Huawei can join an Employee Shareholding Scheme which effectively aligns employee contributions with company’s …show more content…
Recommendations
General environment:
The global environment is changing, switching from low-end phone based market to a complex market. The legal environment is actually beneficial to Huawei in terms of its great patent reserve, however, with new labor law, Huawei need to reconsider its employees strategy.
The biggest issue for Huawei is political environment, since China and United States government tit for tat recently. Huawei needs to keep a balance between market in Asia and west, because its oversea income is greater than domestic. Huawei should be more transparent to public especially for western countries and proves its security in telecommunications equipment.
Another key problem is competition from telecommunication equipment giants. Nokia had proposed a merger with Alcatel-Lucent, in order to empower its market competitiveness. What if these old giants lower down telecom-equipment price and use their advantages to challenge Huawei? Huawei need to focus on long-term development and taking up basic standard patents in upcoming 5G era.
Competitive environment:
As a China-based networking and telecommunications equipment supplier, Huawei is facing a number of challenges like competition from other Chinese mobile firms and giant …show more content…
But with economic growth, people become better off and prefer to use high-end mobile phone. Huawei lost a large amount of consumer in the past few years and left a stereotype as inferior product manufacturer in public. At the same time, startups in China like Xiaomi grows amazingly and occupies a significant market share by providing cost-effective product. Though Huawei has expanded its oversea business for a few years, it still has a great potential in smartphone market. In premium phones market, apple still accounts for most and enjoys a net profit around 94% of total market net profit. Unlike startups in China, Huawei can expand freely in global market with patent reserve. Which is important for it to earn more profit and develop