Huawei can conduct market research to understand the supply-demand situation within the industry and prevent overproduction. The Huawei Consumer BG is dedicated to delivering the latest technologies to consumers around the world. As touched on above, there is a growing demand for smartphones across the world, including China. It’s because they have to comply with the local country’s laws. 5. PESTEL analysis of Malaysia. This environment presents a great opportunity for Huawei and other Chinese companies like Xioami to grow by selling more products in the local Chinese market. As a result, Huawei is subject to political forces from across the globe, especially those relating to China and the European Union. Mobile developers and software engineers are working on the application of AI in smartphones. PESTLEanalysis.com is an educational website collecting all the information and resources related not only to PESTLE but also SWOT, STEEPLE and other analysis that will come useful to business owners, entrepreneur, and students alike. The brand serves about three billion people worldwide. It's often hard for fresh graduates or interns to determine their employability. That’s what the US government is doing and that is to protect the US companies. Strong Brand Portfolio – Over the years Huawei has invested in building a strong brand portfolio. This belief is especially prominent in Western countries like the United States, where some consumers stay away from technology brands like Huawei just because of their origin. The objective of this report is to gain knowledge of the market environment Huawei face, it’s greatest strengths it needs to take advantage of, and to highlight the weaknesses and threats that are posed to Huawei and how they should overcome them. However, Huawei smartphones are sold across the world. An understanding of the overall competitive landscape will prevent investors and entrepreneurs from partaking in any risky ventures if the risk arises out of, say, an unstable political regime or a sudden economic recession. Oct 24,2019: Huawei and Phanes Group Power the Largest Distributed Solar Project in the UAE Reasons to Buy. The company aims to reach digital to every person, organization and looking forward to connecting the world fully. If you have any questions, feel free to reach out to him anytime. If they use the hardware of Huawei, they won’t get government contracts. Read more about Huawei Consumer Business Group's milestones and achievements over the years in our About Us page While their devices might not compete with names such as Samsung and Apple in terms of quality, they appear extremely well-made when compared to other budget-friendly smartphone brands. Founded in 1987, Huawei is a leading global provider of information and communications technology (ICT) infrastructure and smart devices. The company became operational in 1987 and its headquarter is located in Shenzhen, Guangdong, China. In the PESTLE analysis of Huawei, we’ll study macro-environmental factors that how they impact the company globally in the smartphone market. However, this growing need for smartphones is affecting the entire market, not just Huawei. These mostly affect manufacturing processes within China, but — presumably — Huawei has to adhere to certain environmental standards to sell in markets such as the European Union. Huawei was founded in 1987 by Ren Zhengfei, a former engineer in the People's Liberation Army Huawei is a global leader of ICT (information and communications technology) solutions There telecom network equipment, IT products and solutions, and smart devices are used in 170 countries and regions At the time of its establishment Huawei was … Image “Huawei Mate 9” byAndri Koolme is licensed under CC-BY 2.0. If we look at Huawei’s perspective, the tension between the two governments is costing the growth of the company in the world’s biggest market. Huawei itself is an excellent smartphone manufacturer. Puma PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. The relationship between the democratic US government and the communist Chinese government has always been tense. As of June 2018, the GDP stands at around 371 billion USD. The … It makes Huawei a victim of political conflict. The next element to address in the PESTEL analysis of South Africa is the country’s economic environment. One unfortunate sociocultural factor affecting Huawei is the widespread association Chinese products have with poor quality. You can click the link to directly to go to the relevant section. Huawei itself is operated out of China, where most of its manufacturing also takes places. PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. South Africa is the 34 th largest economy in the world in terms of nominal GDP (Statistics times, 2018). Ultimately, Huawei being Chinese has determined and will continue to determine crucial Political, Economic, Sociocultural (to an extent), Legal, and Environmental factors affecting the organization. Letter from Africa: Inside the gated communities of WhatsApp. Trump administration is pressurizing the lawmakers to introduce and pass the bill of restricting the tech products like smartphones of companies like ZTE and Huawei. The Huawei Consumer BG is dedicated to delivering the latest technologies to consumers around the world. Implications of Porter Five Forces on Huawei By using the information in Huawei five forces analysis, strategic planners will be able to understand how different factors under each of the five forces affect the profitability of the industry. Huawei is investing huge resources in training and development of its employees resulting in a workforce that is not only highly skilled but also motivated to achieve more. Top 10 blogs in 2020 for remote teaching and learning; Dec. 11, 2020 1. Here’s the pestle analysis of Huawei; One of the most notable political issues that Huawei is facing with the Trump administration and the US government; it’s not a new thing that a Chinese company is having issues with the US Congress and politicians. The US lawmakers and Politicians have gone one step further, their plans and restrictions are limited to Huawei only. PESTEL analysis provides valuable insight into the operating challenges that any company in the industry appears to face, and so the company in question may face as well. More importantly, the cash flow from operating activities is much more than net profit each year during the last 5 years, this shows Huawei has wide moat. In this post, we will share with you some of the key Pestle analysis examples. In China, Huawei is also subject to a range of labor and environmental laws. That’s why today we’re diving into a PESTLE analysis of Huawei — to see exactly what opportunities and threats it’s facing! After an in-depth study of the pestle analysis of Huawei, we have realized that the company holds a strong position in the international smartphone market. Key elements such as SWOT analysis and corporate strategy are incorporated in the profile to assist your academic or business research needs. Currently, trade policies are widespread and facilitate the export of good from China to the European Union. This means that Huawei shouldn’t struggle should it need more funds to support it. As a technology company, Huawei has to be especially careful with the area of patent law — ensuring it doesn’t infringe on others’ rights while protecting its own designs. Thomas Bush is an English-born writer, entrepreneur, and fitness enthusiast. If Huawei’s target markets perform well economically, Huawei is likely to sell more phones in that target market. Aside from that, Huawei has to manage the many consumer laws in its target markets, like the European Union. The world has issues with the Chinese system of government, but Huawei has to pay the price. This detailed PESTEL analysis of Malaysia aims to address some of the political, economic, social, technological, environmental, and legal factors that affect Malaysia today. Thankfully, Huawei has policies in place to reduce its waste products and carbon emissions. Valuable. Therefore, the company should comply with the local laws and political environment of different, and find ways to move along with it. Huawei unveiled HUAWEI Mate 30 series and Kirin 990 series in 2019, which opens a new era of 5G. Smartphones are very good spying devices that the communist government might be using. It has, for example, pushed aggressively into delivering IP-ready and software-configurable basestations. It won three prestigious awards at the recently held TLME Excellence Awards 2019 in Dubai- The Lifetime Achievement Award 2019, Global Trade Enabler of the Year 2019 Award, Port of the Year 2019. [Shenzhen, China, October 16, 2019] Huawei today announced its business results for the third quarter of 2019. Currently, tr… They are also a major global competitor, overtaking Apple on number of units sold in the last year. The annual revenue of Huawei was 122.972 billion dollars by the end of 2019, out of which the net profit of the brand after excluding all the expenses & costs was 8.971 billion dollars. At the same time, it also presents an opportunity for companies like Huawei to fill the gap by manufacturing easy and user-friendly devices for elderly people. As Trump escalates trade war tensions between the USA and China, Huawei has found itself, like many Chinese mobile and telecommunications companies including ZTE and China Mobile, a victim of the hostile climate the rivalry between the two countries has induced. They plan to impose restrictions on all the Chinese smart devices not to enter the US market. Huawei can win the market by bridging the tech generation gap. The thing about external factors to remember is that companies and businesses usually don’t have control over them. AA (Ahsan Ali) Shaw July 11, 2019 Below is a detailed Pestle analysis of Starbucks, the premium coffee and beverages retailer. Huawei has also improved upon the green credentials of its equipment in recent years. Huawei Technologies Co Ltd - Strategic SWOT Analysis Review - provides a comprehensive insight into the company’s history, corporate strategy, business structure and operations. 5th Feb 2019 Business Reference this Share this: Facebook Twitter Reddit LinkedIn WhatsApp SWOT ANALYSIS Definition. We can see that Huawei still keep good profitablity even invest hugely in R&D. political, economic, socio-cultural, technological, environmental, and legal factors that affect the premium coffeehouse chain brand. According to the most recent report conduct by Statcounter globalstat in September 2020, Huawei ranks in the third position globally with a total market share of 10.58%, Samsung and Apple remain the first and second top brands with a market share of 30.58% and 24.99% respectively. Huawei unveiled HUAWEI Mate 30 series and Kirin 990 series in 2019, which opens a new era of 5G. … Apple. Vodafone is UK’s third biggest telecommunication company commanding 21% of the market share, serving approximately 19.5million customers in the UK. It’s because it’ll be faster than 4G and wire connection. We’re living in a very competitive world; you have to use every advantage you have in your pocket to get ahead of your competitors. However, Huawei smartphones are sold across the world. In particular, Huawei’s economic success is a function of both the Chinese economy and the economy of its target market — mostly the European Union. 2. Whether you’re just getting started or you’re looking to scale up your business, here are 4 ideas on how you can boost your consulting career. The SWOT analysis of Huawei … As above, Huawei smartphones are mostly built in China and sold abroad, which means they are subject to at least two geographies’ macro environments. As we know that the elderly population has been increasing, it would lower the demand for smartphones. The company has spent a considerable amount of resources on the protection and preservation of the environment and nature. 21st May 2019 Assignment Reference this Share this: Facebook Twitter Reddit LinkedIn WhatsApp Report Title: A Business Report on the Mobile Phone Market and Performance of Huawei 2.0 Executive Summary. In particular, their smartphones are extremely popular in the European Union (relatively speaking). How to increase brand awareness through consistency; Dec. 11, 2020. PESTLE Analysis of Huawei. China’s ease of doing business ranking has improved from 46th position in 2018. The relationship between these economic factors and Huawei’s success is very simple. Everyday our market is changing the way it is. The successor to 3G and 4G, 5G is the fifth generation mobile communications technology, which boasts improved speed, lower cost, and energy saving. PESTLE Analysis of Puma analyses the brand on its business tactics. Adidas. However, there are ways to improve your employability and stay competitive. Dec. 15, 2020. You can edit this SWOT Diagram using Creately diagramming tool and include in your report/presentation/website. 3. It’ll be so fast that it would replace some applications of certain industries. We are committed to bringing digital to every person, home and organization for a fully connected, intelligent world. PESTEL/PESTLE analysis of Huawei. It’s because the American people perceive national security when they see the success of the Chinese company in the US market. These laws often increase overheads by forcing manufacturers to treat laborers better and take environmental concerns more seriously, but there is simply no way around them. According to a study, Huawei is serving approximately one-third population of the world with its products and services. Huawei is one of China’s leading smartphone manufacturers. This sample of an academic paper on Pestle Analysis Of Nigeria 2019 reveals arguments and important aspects of this topic. Huawei Technologies: An Overview . It holds great growth potential. As of the first quarter of 2019, Huawei holds 19% of global smartphone market share making it the second largest giant after Samsung (IDC, 2019). As a result, Huawei is subject to political forces from across the globe, especially those relating to China and the European Union. The Chinese economic landscape affects Huawei in a multitude of ways, beyond the growing number of smartphone purchases. Not only that, but the company has also completed the network verification procedure. In particular, their smartphones are extremely popular in the European Union (relatively speaking). Scope of China – PESTLE Analysis and Macroeconomic Trends Report. One of the biggest strengths of Huawei’s products is the combination of high quality and affordable prices. These also help Huawei in combating external threats. Huawei is indeed one of the cheapest smartphone manufacturers … Some companies have even launched the technology in some states of the US. The most notable area of politics is likely trade politics. Strengths Competitive pricing One of Huawei’s biggest strengths is its extremely competitive pricing. A SWOT Diagram showing Huawei SWOT Analysis . Here’s the detail of all of those factors, one by one. Huawei P Smart+ (2019) « Triple capteur photo abordable » Membre de la gamme Enjoy en Chine, le P Smart+ (2019) est un smartphone milieu de gamme vendu sous la barre des 300 euros en open market. The most notable area of politics is likely trade politics. The demand for smartphones would probably be lower. Telecom Sector has become a highly revolutionized industry since the emergence of Internet. Once you provide them with user-friendly devices along with a stable internet connection, they’ll adopt the technology in no time. They’ll be a very good potential market because smartphones would help to spend their leisure time and connect with their friends and family. In the future an external environment will become only it is more difficult. Read this essay’s introduction, body paragraphs and the conclusion below. ENVIRONMENTAL ANALYSIS OF HUAWEI 1. If it happens, then companies like AT & T and Verizon won’t use either the hardware of Huawei or sell their products. Like everyone, Huawei is subject to forces from all six of the PESTLE categories: Political, Economic, Sociocultural, Technological, Legal, and Environmental. According to the VRIO Analysis of Huawei, its local food products are a valuable resource as these are highly differentiated. In the year 2014 and 2015 Huawei’s share grew by 48.1%, ... PESTLE ANALYSIS OF SAMSUNG INTRODUCTION. In the PESTLE analysis of Huawei, we’ll study macro-environmental factors that how they impact the company globally in the smartphone market. The Huawei VRIO Analysis shows that the financial resources of Huawei are highly valuable as these help in investing into external opportunities that arise. Huawei has been quick to develop its own 5G modems, which will allow it to adopt the technology as early as entire years before other major competitors. Ahsan Ali Shaw is an accomplished "Business Writer and Public Speaker." Huawei Technologies is a private company that was founded in 1987 in Shenzhen, located in southern China. The company has reached 170 countries worldwide through its smartphone devices. The growing number of elderly people would greatly impact the growth rate of smartphones and telecom companies. In World Bank’s ease of doing business ranking China was ranked 31 out of 190 countries in Here’s the detail of all of those factors, one by one. She had to push back the growth of Chinese technology in the US market by playing the national security card. Check out his videos on YouTube at https://www.youtube.com/c/shawaa A SWOT Diagram showing Huawei SWOT Analysis . WhatsApp: +923401882219. The report analyzes the data from September 2019 to September 2020. According to a report by CBS News in 2018 that China was planning to become a tech leader in the field of smartphones, robotics, and telecommunications in the international market. Weaknesses, Opportunities, and Threats affecting this dynamic organization, as a follow-up to our recent PESTLE analysis of Huawei. The most interesting technological factor for smartphone manufacturers is the rise of 5G. Table of Content: 1. In January 2018, President Donald Trump requested the US tech companies like AT & T and Verizon to stop their dealings with Huawei completely. 4. It’s clear that Huawei wants to be at the forefront of mobile technological advances, especially with its early foray into the world of 5G, and it looks like that might greatly pay itself off. The brand started its journey manufacturing mobile devices and then keeps on increasing its portfolio with products like broadband, telecommunication devices and equipment, and consultation and operational services as well. Huawei una empresa multinacional de china, ha tenido inconvenientes con sus productos con sobre todo con el gobierno de EE.UU siendo uno de ellos los principales opositores a la globalización de artefacto y la posibilidad de inc0rporar la tecnología de sus aparatos y la señal 5G indicando como principalmente labores de espionaje entre el gobierno chino y Huawei. As a result, it seems that Huawei’s best bet is to make do with the macro environment it has — closely adhering to Chinese regulations and adapting to local needs — and focus on building and optimizing new technologies. It resulted in the form of cancelation of the sale of Huawei’s latest smartphone Mat Pro 10 in 2018. As such, China’s rapidly growing economy has paved the way for growing numbers of smartphone sales — including sales of Huawei smartphones. The usage of Artificial Intelligence trends is growing among smartphone companies in the world. You can edit this SWOT Diagram using Creately diagramming tool and include in your report/presentation/website. A … Furthermore, value added tax in the telecommunications sector increases the operating cost, which diminishes their profitability margins (Lu, 2016). Please consider supporting us by disabling your ad blocker. Those people aren’t resisting and refusing the use of technology, they just don’t know how to use it. Aside from this, Huawei sells its products on a global market — most notably including the European Union — where it has little power in influencing the decisions of regulators or circumventing them. Huawei is subject to all sorts of laws, across multiple jurisdictions. The project concerns the investigation of the current renewable energy market entry and opportunities for Finnish mall and medium-sized enterprises (Seems) in the Nigerian economy. According to a report by Villas-Boas in 2018, 5G technology could revolutionize the telecommunication network industry. (Photo by Xander Heinl/Photothek via Getty Images) PESTLE Analysis of Huawei analyses the brand on its business tactics. Read more about Huawei Consumer Business Group's milestones and achievements over the years in our About Us page There are different factors based on the "Huawei built huge swathes of Africa's current IT infrastructure and if the US is successful in crippling the ... 14 January 2019. It’s because elderly people are a bit slower when it comes to catching up with the latest technology like online shopping, chatting platforms, and using other tech smart devices. During the first three quarters of this year, Huawei generated CNY610.8 billion in revenue, an increase of 24.4% year-on-year. [Shenzhen, China, October 16, 2019] Huawei today announced its business results for the third quarter of 2019. Uber . This analysis will list the 6 factors i.e. Mobile Phone Market and Performance of Huawei - PEST Analysis. Focus on Innovation: Huawei has kept its focus on innovation from its early days. They have to adapt to new trends and change with time, either accept or be … If the company doesn’t pay, then the law would ban Huawei from selling its products in the UK. PESTLE Analysis of Huawei: How China Affects Its Success, PESTLE Analysis of Huawei: Final Thoughts, this has not been a problematic area for most smartphone manufacturers, PESTLE Analysis: Business Environmental Analysis, 4 Ideas on How to Boost Your Consulting …, Understanding Employability and Ways to Improve It, Coronavirus Data Analysis: How the Outbreak may Impact …, Tools To Ensure Your Remote Marketing Team Is …. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. According to a recent study, the elderly population of China aging more than 60 years old has reached approximately 255 million people. Since we know Huawei’s R&D expenditure is totaled CNY131,659 million in 2019, accounting for 15.3% of the company’s total revenue. It puts the company in a very bad position in terms of market expansion and growth against leading competitors like Samsung and Apple. Then, the second one will be Huawei signed a contract with Ethiopian state- owned telecom company-Ethio Telecom for setting 4G network. • Corruption • Globalisation and socio-economic classes • Increased disposable income • Brand awareness • Hi-tech supply chain planning tools • Improved Internal/External Communication across supply chain • Positive effects on … Nike. These days, he spends his time flipping domain names, writing articles and pursuing other interesting business ventures. Globally regionalbusiness integration has become a trend, so Starbucks can expect to grow evenfurther in countries outside the United States. It makes them potential active consumers. Thus, the primary political factor that affects the company is thelaws and regulations of the various regional markets. This will eventually force the company to increase the end cost of its goods, or to absorb the additional costs itself and suffer from reduced net profit. 3.2 Introduction to SWOT analysis method The Chinese government is getting serious about the environment and she has started a campaign against the violation of environmental laws. It’s much different than the contemporary smartphones of Apple and Samsung because it can differentiate between objects and people in different lights. Just like the US, Huawei has also lost a lawsuit in the UK by the Unwired Planet International Ltd over copyrights and patent issues. Although manufacturing companies typically have a hard time when balancing the massive need for new goods with environmental concerns, Huawei seems to be doing a reasonable job of managing this. 5G is the latest development in the technology and telecommunication industry. The Huawei VRIO Analysis shows that the financial resources of Huawei are highly valuable as these help in investing into external opportunities that arise. Additionally, Huawei's competitors, for instance, Apple have vast resource reservoirs while Huawei is struggling to increase its capital (Cao, 2017). Huawei has worked very hard to shed the image of a low-cost manufacturer of telecommunications equipment. Primark. Technology. As we know the stable economic environment of any country determines the growth and proliferation of businesses in the country. What’s more, Huawei has extended an offer to sell its modems to smartphone pioneer Apple.