Table of Contents
The purpose of this report is to find out how Huawei positioned in the industry of mobile phone. We went through all Huawei’s background, offering, purpose, market contexts and understanding the business operations of Huawei. We also analyse and evaluate what marketing strategies and marketing mix to help them hold their position in such competitive industry.
After understanding the concept of the marketing strategies, we investigate that the marketing segmentation and the targeting strategies which Huawei used to position itself in the market. We use it to compare and explain why the Huawei choose the strategies in promoting their products. After investigating the Segmentation, Targeting and Positioning (STP) marketing strategies, we have done our further report with the concept of the marketing mix as known as the 4Ps - Promotion, Pricing, Products and Place. After the identification and discussion of marketing mix, we found out that Huawei is facing some problems and we come up with our ideas, recommendation and suggestion how Huawei can overcome these current concerns and further concerns. Huawei enterprise has segments into different markets which are carrier network business, enterprise business and consumer business. However, Huawei is targeting more towards the consumer business and it segments the market into two parts again which are low income group and high income group. According to the segment variables, Huawei’s products are mainly targeting on low income consumers as Huawei is producing low price smartphones which are affordable by the target groups. Huawei’s positioning as the world’s third smartphone enterprise and known as the world’s largest telecoms operators offering global equipment, operational services and manufacturing electronic communications devices. Huawei enterprise is in the position of low price and personal used entertaining smartphones.
Overview, Company background, Company’s offering, Purpose
Huawei Technologies Co. Ltd. is a Chinese leading ICT provider, which was founded in 1987 September by the Ren Zheng Fei, the company’s president and the ex-People's Liberation Army engineer, established in ShenZhen, China. Huawei is a private firm that owned by its own employees. Huawei is the leading telecommunications equipment manufacturing supplier and was ranked among the top three globally in mobile phone industry. The vision of Huawei is to enhance people’s lives through communication. While their mission is to focus on their clients’ market challenges and desires by providing better ICT solutions and services in order to consistently produce maximum value for clients. Huawei’s core values have been divided into customers first, dedications, continuous improvement, openness & initiative, integrity and teamwork. (Huawei, 2014)
Market contexts, Use of concepts and Theories
Market contexts help firm to analyse and get more personalized and relevant marketing contents. Market context is also known as SWOT. Information shown below is the Strength, Weakness, Opportunity and Threat (SWOT) of Huawei. ( Huawei,2014) (1) Strength: Huawei invested a huge amount in R&D, having wide vision and experienced sales organisation to help them in emerging markets and the cost advantage. (2) Weaknesses: Lack of awareness and experience outside telecom, the margin pressure due their low price products. (3) Opportunities: Their business models are all towards cloud and have huge data solutions.
(4) Threats: Many competitors are entering these developing markets.
Company planned their marketing strategies with 4Ps, which includes product, price, promotion and place. Huawei have produced low-cost smartphone to its low-income target. As its production base is in China which has low labour cost, hence Huawei could enjoy the cost advantage. Besides, Huawei is using the selective distribution strategy and...
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