Huawei
Introduction
Nowadays, violent competition is among the telecom equipment industry. Achieving success in this market is not an easy task to do so. However, a Chinese company – Huawei, which was becoming a global corporate, was considered as a “China Achievement”. Although it still left behind the greater challenger – Cisco, it grew quickly and might threat to Cisco. Before discussing how it can strengthen it’s capabilities and challenge Cisco, the basic analysis is to identify it’s resources and core competencies.
For replying Question 1
To identify Huawei’s resources and assess its capability and core competencies, a resource audit and Porter’s value chain should be applied. By using both of these analysis in this case, Huawei has both tangible and intangible resources, and which are recognized and divided into nine categories based on the value chain activities (please refer to the appendix 1).
In firm infrastructure, military background and culture is a unique resource to Huawei. The unique background and culture is due to Ren Zhengfei and his connection to the Chinese army. This resource brought material contract orders from military at the business early stage, and no other companies can have the same background and gain such benefits like Huawei. Therefore, it is an important unique resource to Huawei. This resource not only brought some material contracts to Huawei, but also some financial supports. However, this resource is fragile. If Ren Zhengfei left or join its competitors, this unique resource is no longer existed. Moreover, the management style is strict and aggressive over the organization. As a result, Huawei are going to be global organization, and not only adopt the military management style, but also the foreign corporate management systems in different areas.
Reviewing its human resources, it has high educated but low pay employees, especially in China. Also it provided intensive military-style training to all new staff. Besides
Nowadays, violent competition is among the telecom equipment industry. Achieving success in this market is not an easy task to do so. However, a Chinese company – Huawei, which was becoming a global corporate, was considered as a “China Achievement”. Although it still left behind the greater challenger – Cisco, it grew quickly and might threat to Cisco. Before discussing how it can strengthen it’s capabilities and challenge Cisco, the basic analysis is to identify it’s resources and core competencies.
For replying Question 1
To identify Huawei’s resources and assess its capability and core competencies, a resource audit and Porter’s value chain should be applied. By using both of these analysis in this case, Huawei has both tangible and intangible resources, and which are recognized and divided into nine categories based on the value chain activities (please refer to the appendix 1).
In firm infrastructure, military background and culture is a unique resource to Huawei. The unique background and culture is due to Ren Zhengfei and his connection to the Chinese army. This resource brought material contract orders from military at the business early stage, and no other companies can have the same background and gain such benefits like Huawei. Therefore, it is an important unique resource to Huawei. This resource not only brought some material contracts to Huawei, but also some financial supports. However, this resource is fragile. If Ren Zhengfei left or join its competitors, this unique resource is no longer existed. Moreover, the management style is strict and aggressive over the organization. As a result, Huawei are going to be global organization, and not only adopt the military management style, but also the foreign corporate management systems in different areas.
Reviewing its human resources, it has high educated but low pay employees, especially in China. Also it provided intensive military-style training to all new staff. Besides