Huawei: An Analysis of the company's strategies and success in UK market

Abstract

"Huawei has been a success in the UK (United Kingdom) market, but has not left the kind of impression that it has left in some of the other markets. Huawei has been at the forefront of constant innovation and new product design. The entry of the company in the UK market was marked by the year when the foreign sales of the company exceeded the domestic sales of the company. The first major deal that the company landed was with Vodafone. This was the first time that the company had landed a full supplier status contract in the UK. The organization also signed a deal with the British Telecom major (British Telecom), which was one of the first deals hat allowed it to use the full spectrum of the services outside its primary areas of operations. This also resulted in its revenues getting increased, almost at an astronomical rate. This can also be explained by the fact that the company was investing heavily in the Research and Development of newer products.

The company also signed a deal with Optus that pushed the boundaries of the mobile application to newer frontiers. This also led to the large scale deployment of the UMTA/HSPA services in the UK sector. The overall growth of the company has been around 45 percent globally. But, the growth figures in UK have been a little lower at around 25.6 percent. This can be attributed to the increased amount of competition that it faces from the competitors like Huawei. The other factor that plays against the company is the rising amount of dissent in the general intellegencia in handing over the digital services to a Chinese company. The expected growth of the company is bound to be stymied due t this incumbent reasons. The CDMA market share is at risk, because of the aggressive policies of Eriksson. The pricing strategy of the company has been varied according to the markets and the product offering. The company adopts a premium pricing for the developed markets, whereas it adopts a bundles pricing strategy for the other markets. The growth of the company is also threatened by the large amount of loaned that have been taken from the Chinese Developmental Bank. This would lead to the creation of a fiscal deficit in case of rough times and financial crisis. Although the company faces tough times in the UK market, its experience in the other markets will hold it in good stead over the coming years."