Marketing Case Study: Huuawei Technologies Co. Ltd.

The first everyday product I have been using is P8 Lite, a smartphone produced by Huawei. Huawei Technologies Co. Ltd. is one of the largest Chinese telecommunications equipment manufacturer headquartered in Shenzhen, China. It is becoming one of the fastest growing and innovative smartphone brands, with approximately 8.3 percent market share worldwide.
Huawei is expanding its global market share in European countries such as Germany, Italy, and Spain. According to the “Asian Business and Management Practices: Trends and Global Considerations”, Huawei has over 70 percent of its sales coming from markets outside of China. In July 2016, the mobile phone shipments of Huawei increased 25 percent in the first half of the year to $61 million. By
Bata is a global footwear and fashion accessory manufacturer headquartered in Lausanne, Switzerland. The company was founded by Tomas Bata in 1894.
Bata operates in countries with varying degrees of freedom. With more than 4,900 retail stores in over 70 countries across the world, Bata runs as a decentralised operation in order for its managers to adjust the operating procedures based on the local environments in which Bata operates. All of the raw materials will be purchased locally. Bata’s global factories exclusively supply its respective domestic markets and keep the transport costs down.
The security of domestic operations is the one of the main reasons Bata chooses not to export goods. Operating domestically avoids problems associated with exporting (e.g. if an importing country were to restrict trade). Bata believes stability is the key to the success of its strategy. One may suggest that the lack of exports would make Bata a less attractive prospect for the host countries as little outside money is feeding into the economy. However, I do not think that would be an issue as people will be benefited by the increase in job opportunities since the operations of Bata are labor intensive which reduce the local unemployment
However, Faber-Castell has kept growing despite the recession. The company’s sales have increased by almost 6 percent as compared to its previous financial year. The Chief Executive Officer of Faber-Castell, Count von Faber-Castell, has spearheaded an effort to internationalize the company. Currently, Faber-Castell has captured 14 percent of sales in Asia and is planning to achieve 25 percent in the next five years. It is also grabbing market share in the rich world by improving quality of its product.
Faber-Castell produces approximately 2.2 billion units of pencil each year. It runs 14 production sites in 10 countries including Brazil, Mexico, Columbia, Peru, India, China etc. It markets its products through 25 distribution organizations and is represented in 120 different countries.
However, although the production of Faber Castell began in Germany, only some of its premium pens are still manufactured there due to the high labor and manufacturing costs in Germany.. Most of the company's consumer products are made in Brazil. One of reasons Faber Castell set up the company’s production sites in south-eastern Brazil is because of its natural resources – wood. Wood is a extremely important resource for Faber-Castell as it needs up to 150,000 tons of wood each year, while the production sites in Brazil ensure a secure and planet-friendly supply of