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International Journal of Innovative Management, Information & Production Volume 3, Number 1, March 2012

ISME International ⓒ2011 ISSN 2185-5439
PP. 25-35

RESEARCH ON EUROPEAN MARKETING STRATEGIES OF HUAWEI TECHNOLOGY CO. LTD AND IT'S ENLIGHTENMENT ON CHINESE ENTERPRISE KE FU, DAN FU
Business School, Jiangxi Normal University Nanchang, 330022, P.R. China, fuke_vip@sina.com ABSTRACT. As the only private enterprise from mainland China which made its way to the world top 500, Huawei has achieved staggering improvement in the international market in the last ten years. Moreover, despite the difficulties met by most Chinese international enterprises when market their products in developed countries, the rapid sales improvement of Huawei in overseas market is mainly due to its success in European and American countries. This paper tries to analyze the advantages and disadvantages of Huawei and other competitors in European markets by radar map. The analysis most focuses on price, technology and service and brand. Based on this analysis, this paper further studies Huawei’s marketing focuses in different phases in European market so as to shed some light to other Chinese international enterprise which also worked on marketing activities in developed countries. Keywords: European Market; Huawei Corporation; High Technology; Low Pricing; Radar Map

1. Introduction. Huawei, an enterprise which works on providing communication network equipment and service, has only taken 14 years to establish its leading position in the international communication industry. By 2010, its worldwide sales reach 34 billion dollars. Over 70% of the sales, which is about 24 billion dollars has been gained from the international market. It hopes to gets its way up to the top 300. Huawei's mainstream product: broadband and optical-fiber network product cover the biggest share in the world-wide market, the sale of mobile product list on the No 2 and data communication also intrudes into the top 3. This overseas sales growth not only appears in the developing countries, but more in developed countries in Europe and America. The sales volume in European market was up to 3.4 billion dollars in 2010, which was 17% higher than that of 2009. The high-tech product, such as mobile 3G has made its way into France, Germany, Span, Italy and Norway etc. It holds over 30% of the newly increased market share. 4G products has also been developed and introduced to many international operators. Huawei (HW for short) has been intruding into the so-called impenetrable European telecommunication market with unthinkable power. There are lots of top international operators in Europe: German Telecommunication DT (TOP3), Spanish telecommunication Telefonica (TOP5), Vodafone(TOP6), French Telecommunication(TOP8),Italian Telecommunication TI (TOP9) etc. The European market is one of the best world high-techmarket, thus, it is a highly- competitive market.

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KE FU AND DAN FU

Meanwhile, the world best telecommunication equipment suppliers are also in Europe: German Siemens, the inventor of the first telegraph; French Alcatel, which had held 90% share of the Chinese fixed-line telecom market. Swedish Ericson, the No.1 in telecommunication, Finnish Nokia, big terminal device supplier. …all of them are the leading roles in telecommunication industry. To survive in this highly competitive market is a miracle, but HW not only survives, it also thrives and becomes prosperous. How did HW make this happen is the focus of this paper. 1.1. Research Method. This paper combines the first-hand investigation and the second-hand material. The writer first consults different resources to collect relevant materials. And then, interview, observation has been adopted to get first-hand material so as to further study HW’s performance in Europe. All the materials have been systematically analyzed. Finally, the writer tries to make a conclusion about the HW’s marketing strategy in Europe...
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