Huawei Globalisation Case Study

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HUAWEI
 GLOBALISATION
 CASE
 STUDY
 
(Sourced
 from:
 Donglin
 Wu
 and
 Fang
 Zhao,
 International
 Review
 of
 Business
 Research
 Papers,
  Vol.3
 No.1.
 March
 2007,
 Pp.183
 –
 196).
 

 

1.
 The
 Profile
 of
 Huawei
 
 
Huawei
 Technologies
 P/L
 was
 founded
 in
 1988.
 It
 provides
 customized
 network
  solutions
 for
 telecom
 carriers
 around
 the
 world
 and
 specializes
 in
 research
 and
  technology
 development.
 It
 invests
 at
 least
 10%
 of
 its
 annual
 sale
 volume
 in
 new
  product
 research
 and
 development.
 
 
  Huawei's
 revenue
 in
 2010
 was
 approximately
 USD30
 bil
 (see
 Figure
 1
 below).
 The
 bulk
  of
 sales
 are
 global
 though
 exact
 figures
 are
 not
 available
 as
 it
 is
 a
 privately
 held
  company.
 As
 an
 example,
 Huawei
 took
 16%
 of
 the
 $78.56
 billion
 in
 revenue
 in
 the
 global
  carrier-­‐network-­‐infrastructure
 market
 in
 2010,
 ranking
 second
 behind
 the
 20%
 share
 of
  Ericsson
 according
 to
 market
 research
 firm
 Gartner.
 
 
 

 

 

2.
 The
 Story
 going
 back
 to
 1999
 -­
 2006
  Huawei
 started
 its
 overseas
 sales
 only
 in
 1999
 and
 by
 2005
 sales
 reached
 USD
 8.2
  billion,
 of
 which
 58%
 came
 from
 international
 markets.
 Overseas
 sales
 have
 been
  doubling
 each
 year
 for
 the
 past
 five
 consecutive
 years.
 At
 the
 end
 of
 2006,
 Huawei
 has
  over
 61,000
 employees,
 of
 whom
 48%
 are
 dedicated
 to
 R&D.
 Huawei
 has
 provided
  products
 and
 service
 for
 over
 300
 telecom
 carriers
 around
 the
 world.
 It
 has
 achieved
  outstanding
 growth
 over
 17
 years
 since
 its
 foundation
 and
 has
 a
 leading
 position
 in
 the
  global
 market
 in
 the
 areas
 of
 3G,
 next
 generation
 network
 (NGN),
 switching,
 xDSL,
  optical
 network,
 and
 data
 communications.
 
 
  The
 first
 step
 of
 internationalization
 in
 Huawei
 was
 providing
 customized
 design
 of
  ‘number
 portability
 service’
 for
 Hutchison
 Telecoms,
 Hong
 Kong
 in
 1996.
 Huawei
 spent
  only
 3
 months
 in
 helping
 Hutchison
 to
 realize
 the
 service
 instead
 of
 the
 6
 months
 set
 by
  European
 telecommunication
 manufacturers.
 Furthermore,
 the
 price
 was
 only
 half
 of
  that
 from
 the
 other
 competitors.
 
  After
 that
 small
 success,
 Huawei
 made
 a
 decision
 to
 enter
 international
 markets.
 The
  Russian
 and
 South
 American
 markets
 were
 first
 selected.
 Huawei
 entered
 the
 Russian
  market
 in
 1996.
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