Huawei B2B
Huawei B2B
Huawei B2B
Employees : 180,000+
Huawei at a Glance
80,000 14
R&D
R&D employees institutes/labs/
centers
170+ No. 70 in
Countries Interbrand's Top 100
Best Global Brands
3
Vision:
To enrich life through communication.
Objective:
Huawei goal is to become the top ICT vendor for telecommunication
overseas
Mission:
• By 1990 the company had approximately 500 R&D staff, and began its own
independent commercialization of PBX switches targeting hotels and small
enterprises.
• Huawei’s first major breakthrough came in 1993, when it launched its C&C08
program controlled telephone switch. It was by far the most powerful switch available
in China at the time.
• By initially deploying in small cities and rural areas and placing emphasis on service
and customizability, the company gained market share and made its way into the
mainstream market.
• In 1994, Huawei gained a key contract to build the first national telecommunications
network for the People's Liberation Army of China.
• Another major turning point for the company came in 1996, when the government
adopted an explicit policy of supporting domestic telecommunications
manufacturers and restricting access to foreign competitors.
International Expansion
• In 1997, Huawei won its first overseas contract, providing fixed-line network
products to Hong Kong company Hutchison Whampoa.
• Huawei launched its wireless GSM-based products and eventually expanded to
offer CDMA and UMTS.
• In 1999, Huawei opened a research and development (R&D) center in Bangalore,
India to develop a wide range of telecom software.
• From 1998 to 2003, Huawei contracted with IBM.
• After 2000, Huawei increased its speed of expansion into overseas markets.
• In 2001, Huawei joined the International Telecommunications Union (ITU).
• In 2004 Huawei made a contract to build a third-generation network for Telfort, the
Dutch mobile operator. It was the first such contract for the company in Europe.
• In 2005, Huawei’s international contract orders exceeded its domestic sales for the
first time.
• Huawei signed a Global Framework Agreement with Vodafone. This agreement
marked the first time a telecommunications equipment supplier from China.
International Expansion
• When willing to enter a country’s market, Huawei will often sign contracts with government entities, to ensure
their image of a reliable brand.
• After several brand awareness steps Huawei finally sell their own brand of handsets directly to consumers.
• The Huawei likes to operate as a partner or a vendor for the country’s telecommunication companies-either for
handsets or their network infrastructure, while studying the market and the culture of the country in the meantime.
• Huawei has joint venture/ investment with-
• Grameenphone Ltd. Bangladesh and Huawei won the Green Mobile Award at the GSMA Mobile Awards
2009.
Expansion Strategies
New markets:
10+ 30+
5G pre-commercial
CloudAIR commercial networks • SDN/NFV
networks
− Best Technology Enabler award at Mobile World Congress 2017
Best strategic partner − Best Cloud & Carrier Service, Best New VNF Application, and other 5 awards at SDN NFV
World Congress 2017
for carriers
− Most Successful Deployment of NFV award by Informa for Huawei and EE in 2017
• IoT
− Best IoT Innovation for Mobile Networks award by GSMA for Huawei's NB-IoT solution at
Mobile World Congress Shanghai 2017
− Best IoT Platform award for the OceanConnect IoT platform at IoT World Europe 2017
− Red Dot Award: Communication Design for the Envision Multi-screen Application in 2017
Enterprise Business: Core Products Approved by Industry
Customers and Authoritative Analysts
14.7% 23%+
Top 3 in European market, and Market share in China, higher
growing fast than ever before
153
Mate10: Word's first AI-powered phone
139
Source: IDC
iF Design Award 2018
Smartphone 108
Increasing global brand awareness shipments
(millions)
75
52
32
25% 86% 20
3
2012 Source: IPSOS 2010 2011 2012 2013 2014 2015 2016 2017
2017
Drivers Behind Continuous Growth
synergy powers
All-Cloud network
Agile digital
Cloud-network
• Huawei Ascend model is sold exclusively • Huawei Honor is sold exclusively through their e-
through traditional distribution commerce site,VMall
• 35,000 Retail stores in 2015 +15,000 planned • They create a localized version of the site in each
for 2016 market (vmall.uk, vmall.mx, hihonor.com (US) etc.)
o Asia – 6,500
o Europe – 6,200
alliances Forward-looking partnerships with Oracle, Microsoft, Salesforce, and Infosys for higher-
value solutions.
Shared
Success Community cooperation and innovation for open platforms and standards
Standards & Active in standards bodies and open source communities (e.g. OpenStack, OPNFV,
open source ONOS, CabonData, Open-O, Lite OS, and Docker) for an open, growing ICTecosystem.
Shared
Benefits Innovation and rich ecosystem enable the digitization of everything and fast TTM for
our customers
Developers Huawei's Developer Enablement Plan is an open platform that empowers developers by
exposing Huawei's leading ICT capabilities.
Global OpenLabs support innovation and commercialization of localizedsolutions.
SWOT Analysis
Strengths Weaknesses
Telecom Relationships – mutually beneficial B2B Global Perception – Chinese brands are perceived as
relationships help Huawei with market entry & penetration. being cheap and low quality in markets outside of Asia.
R&D Investment – Huawei has filed more patents and Inconsistent Branding –disconnected brand image
invested more than any other competitor ($9.2 Billion in 2015) and messaging acrossmarkets.
in R&D centers and technology. Local Market Media Nuances – lack of experience &
Vertical Integration – Huawei manufactures many of their knowledge in the media landscapes of newly entered
own components, allowing them to keep costs down & markets.
control quality.
Opportunities Threats
Brand Growth – In 2 years, Huawei moved from 94th to 72nd Political Uncertainty – Strained geopolitical tensions
on the 2016 Interbrand list of best global brands. The brand betweenChina & the U.S.
value increased by 18% vs. ’15.
Spread Too Thin – Entering new markets is resource
B2B Foundations – Huawei has established B2B
intensive. Huawei risks failure due to lack of focus.
relationships with telecom companies in markets they do not
currently have a strong B2C presence. They could leverage
these relationships to support a B2C push into these markets.
Recommendation
• Solve the big threat cyber security.
• Separate between Huawei company
and Chinese government.
• Provide better localization for overseas
customers.
Sustainable Development: A Responsible Corporate
Citizen
Supporting stable and Protecting the Building
Bridging the Digital Divide
secure networks Environment a Healthy Ecosystem
• Communications for all: First • Supporting stable networks: • Green networks: The average • Caring for employees: Invested
mobile network coverage at Network management for over energy efficiency of major CNY11.2 billion in employee
Everest Base Camp. 1,500 customer networks; products increased 23% year on benefits worldwide.
supported network continuity year. • Contributing to society: Launched
• Broadband inclusion for all:
over nearly 200 key • Green operations: Carbon nearly 200 social contribution
Deployed 100G submarine
events/natural disasters intensity (emission per unit activities in 70 countries and
networks within the Arctic Circle.
worldwide. sales) down 20.6% since regions.
• ICT talent cultivation: Seeds for
• Supporting cyber security: baseline. • Operational compliance: Appointed
the Future program in 96
Released the fourth version of • Green partners: 8 Huawei compliance officers in 97 countries
countries and regions.
Cyber Security White Paper; all smartphone series have passed and regions
• ICT application: Smart healthcare distribution centers in our supply the UL110 Platinum green • Supply chain management: Led the
project in Kenya for 200,000 local chain have ISO 28000 certification. development of IPC-1401 Supply
residents. certification
• Green world: 60% green Chain Social Responsibility
packaging, saving over 123,000 Management System Guidance
cubic meters timber.
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