Huawei, a Chinese telecommunications equipment and services company established in 1987 in Shenzhen, China, has drawn worldwide attention in the recent years. Although many people have not heard of it or even pronounce its name right, the fact that Huawei has become the largest telecommunications equipment maker in the world cannot be overlooked. Benefiting from the Chinese economic reform led by Deng Xiaoping, Huawei gained the opportunity to develop its overseas markets; however, it was not enough for a small company like Huawei to achieve incredible success. Undoubtedly, Huawei’s worldwide achievement is due to many cumulative factors, yet, among all of them, the most important factors are the unique strategies Huawei has adopted, especially …show more content…
In 1997, Huawei formed joint ventures in Russia and Brazil. In the same year, it entered the Russian market. In 1999, Huawei opened a research and development center in Bangalore, India. Soon, Huawei managed to make profits in Yemen, Laos, Thailand, Kenya and other developing countries. By the end of 2002, it had established branch offices in more than 40 countries and its international sales had reached US $552 million (Nakai, Tanaka 2). Most of the countries Huawei targeted in this time period, were periphery regions that had the same GDP and economic levels as China. Long existing discourse of the cheap prices and poor quality of Chinese products in Western countries hampered Westerners’ acceptance of Huawei’s products in a short time period. On the contrary, for developing countries that were looking for affordable and wireless mobile networks, Huawei’s advantage became obvious, since most of these countries could not afford the prices offered by the US and Europe. As for Huawei, entering the market in such countries meant huge profits, because of the lack of competitors. Even though the profit margin was very slim for Huawei by offering prices 5% to 10% lower than Ericsson and Nokia (Huawei’s main competitors in the global market) (3), Huawei was still able to gain remarkable …show more content…
In fact, Ren Zhengfei served as an engineer in the People’s Liberation Army in his former career, which, in recent days, concerns the Western countries of the relation between Huawei and Chinese military. They suspect that if the communication equipment Huawei manufactured can be viewed as a security threat, even potent weapons during the war. Actually, evidence has already demonstrated that, at least till 2000, Huawei kept sending products to the telecommunications bureau of the PLA. Furthermore, although Huawei is a private-owned company, which does not receive funds from government directly, as a successful transnational corporation, during the period China trying to expand the foreign market, it is logical to inspect that Chinese government is more than willing to offer help either by publishing policy or by providing subsidies. These doubts, combined with the less openness of Huawei compared to other companies since Huawei is not a listed company, have cast a shadow on Huawei’s future development. In fact, back to 2001, Huawei had already set up an office in Plano, Texas, the United States; however, up till today, Huawei still has not managed an effective way to enter into the mainstream market of US. Not only US, in 2010, India insisted on cancelling the rest of the contract with Huawei. In 2012, it is reported that the Australian government also excluded Huawei from a contract on constructing the National
his company, John Lin, the CEO and founder of Shang-Wa, approaches Bernard Lester, CEO of Lester Electronics with a serious proposal to form and partnership and expand the business in to a neighboring Asian country. Lester Electronics however, has to decide whether a partnership is the best way to go, or if acquiring Shang-Wa outright would be more beneficial. This paper will go over any issues and opportunities associated with this scenario.
Wignaraja, G. (2012) . Do Exporting Firms in the People’s Republic of China Innovate? ADBI Working Paper 365. Tokyo: Asian Development Bank Institute. Available: http://www.adbi.org/working-paper/2012/07/03/5135.exporting.firm.prc.innovate
Few people second guess Apple or their products, their image is well-maintained and the products are widely owned by people of all kinds. However, the process of making these much beloved iPhones and iPads is widely overshadowed by the company’s rate of constant innovation. In a series of articles by The New York Times, journalists attempt to unmask the controversial use of overseas manufacturers indicate a true crisis; a labor-power problem which abuses foreign workers as well as harming mid-wage jobs of consumers in the U.S. Many different lenses can be used to further analyze the structures, relationships and interactions that characterize this phenomena. Figures such as C. Wright Mills, Karl Marx and Fredrick Engels, Pierre Bourdieu, Immanuel Wallerstein and Leslie Sklair.
Sigurdson, J. (2004), ‘The Sony-Ericsson Endeavour: Part 1’, Institute of Innovation Research of Hitotsubashi Unniversity, Working Paper, (Tokyo: Japan).
With the development of China, the economy of China has become the World’s second largest after the US. On the other hand, the ...
China also provided a labor force that is able to tackle both white-collar and blue-collar job positions. This made foreign companies rush both monetary and technological resources into China to utilize the manufacturing and development power. Both Microsoft and Sun have created research and development centers to implement and design software applications in China. Domestic companies are not far behind either, for example, China's own Evermore Software is on the rise to challenge Microsoft's office suite with its own.4
Smythe went to China to study ideology and technology between December 1971 andJanuary 1972 on the eve of China's reinsertion into the global capitalist economy, a process that started with the formal breakth...
This paper provides the relevant knowledge of international business to examine and analyse the key issues for Huawei in its business and the international market place. Firstly, a brief introduction of Huawei will be given and its main drivers in emerging markets will be presented under the theory of foreign direct investment (FDI) before showing its entry mode. Then, there will be a discussion about the core external environmental issues that Huawei underwent when it operated its business in emerging markets: India and South Africa. Next, it looks forward to justifying the key opportunities and challenges when it moves in to India and South Africa. After that, Huawei’s international business operations with the evaluation of its company structure as well as control mechanisms will be specified. This part includes a section that how human resources management (HRM) impact its international business operations. At the end, the suggestions of external environmental issues need to be coped with in the future will show before drawing a conclusion.
Manufacturers and service providers of cell phones are located throughout the world, although, as inCode, a wireless business and technology consulting firm, suggests, “Not many wireless carriers today have a truly global presence.” However, the company predicts that “the top 10 wireless carriers are going to make a push for globalization in the coming years” (“InCode releases…”). Most especially, inCode foresees service providers reaching to “unconquered markets like China, which is the fastest growing wireless market in the world” (“InCode releases…”). Some companies have already tapped into the global marketplace, spreading areas of coverage across continents. The cell phone manufacturer Nokia, for example, is rooted in Finland, but sells cellular phone products virtually everywhere on the globe. Service providers, although most often more less expansive in scope, are also trying to provide more global coverage.
Gorman, Siobhan. "China Singled Out for Cyberspying." The Wall Street Journal 4 Nov. 2011. Print. (Source E)
This report is mainly based on the case study Emerging Nokia, using the frameworks and concepts we have learned to analyze the case. This report is divided into 5 parts, first is the summary of the case, the second part is about the competition Nokia faced, the third part is the factors that contributed to the success of Nokia, then the challenges Nokia may face in China and the recommendations to them and the last part is the conclusion of the report.
Luo, Y. (1997), Pioneering in China: Risks and Benefits, Long Range Planning, 30(5), 768 - 776
The central facts for Foxconn involved protest by 150 of the 32,000 employees at its campus in the city of Wuhan in China and suicides by 18...
James S. O’Rourke IV, Brynn Harris, Allison Ogilvy: Google in China: government censorship and corporate reputation Journal of Business Strategy Vol. 28 NO. 2 2007
The rise in China from a poor, stagnant country to a major economic power within a time span of twenty-eight years is often described by analysts as one of the greatest success stories in these present times. With China receiving an increase in the amount of trade business from many countries around the world, they may soon be a major competitor to surpass the U.S. China became the second largest economy, last year, overtaking Japan which had held that position since 1968 (Gallup). China could become the world’s largest economy in decades.