Have an Exciting Huawei SWOT Analysis

SWOT Analysis of Huawei

by Shamsul
SWOT Analysis of Huawei
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Have an Exciting Huawei SWOT Analysis 

 

Huawei is a global name in the technology sector. It is a famous Chinese multinational company that was established in 1987, currently headquartered in Shenzhen, China. Huawei is a revered name in smartphones, telecom equipment, electronics, and networking equipment. It manufactures high-quality mobile phones, tablet computers, Smart TVs, dongles, broadband networks, and other tech products. At the start, it was a phone switch manufacturer, but it has expanded its operation by including various products over the years. Let’s read the Huawei SWOT analysis in detail.

Company Name: Huawei

Founder:  Ren Zhengfei

Founded:  September 15, 1987

Headquarter:  Shenzhen, China

CEO:  Ren Zhengfei (1988–)

Sector:  Telecommunications Equipment Company

Unique Selling Proposition: 

Number of Employees:  197000

Revenue:   CNY 891.4 billion ($136.7 billion) (US$136.23 billion (2020)

Net Income:  CNY 64.6 billion ($9.9 billion) (2020)

In 2020, the company had 197,000 employees, and currently, it is operating in more than 170 countries. The company aims to provide top-notch products to consumers in order to make this world digital. Right now, the company is serving more than 3 billion people globally. In order to expand its technology, the company primarily focuses on 3 key areas,

  • Technology
  • Skills
  • Applications

The SWOT analysis of Huawei points out its strengths, weaknesses, opportunities, and threats. These factors will help the company recognize both internal and external strategic factors. Keep reading this guide to understand the current position of Huawei better. It highlights its strong areas, weak points, growth opportunities, and threats. They can evaluate these factors and find out effective ways to enhance their market share, current standing, and reputation. These factors are crucial for achieving long-term goals.

Strengths of Huawei – SWOT Analysis of Huawei

Diverse Product Portfolio: When it comes to Huawei’s strengths, the first thing that comes to our mind is its large product portfolio. Its recorded growth in manufacturing a variety of products in smartphones highlights its strength. It is leading the chart internationally and locally. Its sales are increasing every year. As it sells a higher number of smartphones which results in higher profits, so this thing also indicates the strong position of Huawei in the market. Aside from smartphones, the company also manufactures tablets, broadband networks, dongles, Smart TVs, and multimedia products. Its offerings cover both individuals as well as enterprises. It has separated its business into three main sections: carrier, consumer, and enterprise.

Technological Innovation:

Without innovation in the tech sector, a company cannot achieve desired goals. Huawei’s biggest strength is its innovation in its offerings and services. When it comes to innovation and research, the company is focusing on these factors. They have invested heavily in the research and development sector. Due to these factors, they are producing innovative results in the latest smartphones and other tech products. It is also a global player in 5G technology and smartphone sector.

Huawei also invests in AI (Artificial Intelligence), which is the biggest strength of Huawei. Due to this investment, they are experiencing faster growth in the relative sector. This continuous investment in technology and R&D provides a leading hand in the market.

Read More: What is SWOT Analysis | SWOT Analysis

Top Position in the Market:

Being a global player in the smartphone sector, Huawei offers innovative smartphones to the market. The smartphone portfolio is the biggest source of revenue. On the other hand, the sale of smartphones is continuously on the rise, so the revenue of Huawei is also on the rise. After Apple, Huawei is the most prominent name in the smartphone industry along with Samsung. In 2018, they sold more than 223 million smartphone units. From cameras to batteries and other features, its prices are really feasible. That’s why its market share is growing every year.

Global Presence:

You can’t deny that Huawei has a strong and vast global presence, so it is the main strength of Huawei. Also, the company is also trying to enter into new markets and countries. This results in more revenue, reach, market share, and users. Right now, it has a strong presence in more than 170 countries, and it is because of the good trading relations of China with other countries. They have strong suppliers, distributors, and user networks worldwide that are contributing to the success of Huawei.

Attractive Prices:

According to smartphone market experts, the biggest strength of Huawei is its competitive prices of products. This is the main reason for Huawei’s insane and fast growth and popularity. For this purpose, they have established a special strategy to retain its pricing policy. They are earning impressive market share and respect locally and internationally only due to this factor. Their prices target every type of customer.

User Value:

In order to fulfill the needs of customers, Huawei has made various partnerships and mergers. They offer innovative, secure, trustworthy, simple, and intelligent products and solutions to customers. They are also covering enterprises and individuals through its offerings. The company is trying to develop innovative and smart products to enhance users’ digital experience.

Safe and Stable Network:

The company’s main focus is protecting the privacy of users by improving its cyber security system. They believe in honesty and transparency. They are trying to improve their software engineering and network capabilities. Huawei has developed more than 1500 networks successfully in more than 170 countries.

Weaknesses of Huawei – SWOT Analysis of Huawei

Scandals and Controversies:

Controversies and scandals can destroy the image of any company. The company has been involved in various controversies, which is a big weakness for Huawei. They have tainted their image in the international market due to several controversies. It has bad repo in the US and Western nations. It is because of the conflict between the China and US. Huawei is a Chinese company, so it does not have good relations with the US government. They are also blamed for using their resources for espionage drives. They have lost the AT&T support in the United States, so they are also losing consumer support in this country.

Read more: PESTLE Analysis of Starbucks | Starbucks PESTLE

Poor Marketing in the United States:

Due to the conflict with the US government, they do not have a strong position in the US. So, they are facing strong competition from Apple and other tech brands. It is a big weakness for Huawei because it can earn more revenue by targeting these regions. Customers in the United States abstain from buying the products of Huawei. Moreover, the company is also facing problems in the UK, Canada, and Western nations. On the other hand, the government of the US does not allow Huawei to flourish in its markets.

Shortage of Capital:

Huawei always faces a lack of cash in comparison to other brands. In short, the overall capital of Huawei is very short. They do not have enough cash for their operations. Due to this reason, they have to be careful while planning something new for the business. As the Funds of Huawei is less, so they don’t spend enough money on branding and marketing. In order to gain international reach, they should spend adequate money on branding and marketing. It is the main weakness for Huawei.

Weak Brand Image in Certain Regions:

Huawei does not have a strong brand image and the reason behind this is its less capital. Needless to say, it is a weak brand because they don’t have money for marketing. They have a strong brand image in some particular regions, but they need to focus on other markets too. It is not as famous as Apple and Samsung are.

Opportunities for Huawei – SWOT Analysis of Huawei

Artificial Intelligence (AI) and 5G Technology:

There are so many opportunities for Huawei in the form of 5G and AI. Being a global player, the company can invest in these technologies to gain a competitive advantage. Huawei can focus on AI and 5G technology to increase its consumer base. Both technologies are really profitable, especially for smartphone companies. By entering into these technologies, Huawei can attain competitive leverage.

Effective Marketing and Promotions:

As a technological firm, Huawei is a strong brand. Even though its marketing strategy is slightly weak, it can promote its technology and features in its branding to attract users. They can also use quality and pricing factors to get customers’ interest. These things will help the brand to increase its market share and customer base. As a global brand, they have a great chance to endorse their products on a global level to increase their consumer base. They should add this factor to their marketing strategy to gain a higher and strong brand image.

Retail Chain:

By enhancing its brand retail network, the company can find unique ways to sell its products. Its online channel is really effective and they are earning a good amount of revenue through e-commerce. This strategy can position its brand at both local and international levels. It is a good way to gain the loyalty of consumers, which results from an increase in sales.

Read More: SWOT Analysis of KFC | KFC SWOT Analysis

Threats to Huawei – Huawei SWOT Analysis

Competitors:

The smartphone industry is really competitive and dense. This competition is increasing day by day as companies try to get an innovative edge. Huawei is a revered name in the smartphone sector, so it should strategize its position in order to retain its position. Other big names like Samsung and Apple are a big threat to Huawei. Xiaomi, Ericson, and OnePlus are some prominent competitors of Huawei.

Laws and Regulations:

Political and regulatory pressures are one of the biggest threats to Huawei. Government rules and regulations can also affect the working of tech companies like Huawei. The current example that you can take in this matter is the US. The conflict between the US and China can hurt Huawei’s revenue, image, and business. Other countries like Japan, Canada, and the UK are also applying strict trading rules on Huawei. In short, Huawei is facing stiff political pressure globally. It can damage the business of Huawei internationally.

Trade Burden:

The trading tension between China and the US is a big threat for the company. This kind of trade burden or pressure can affect the working of a big company globally. It is such a big threat to Huawei.

Conclusion – Huawei SWOT Analysis

There is no doubt that Huawei has flourished itself as a global player in the market in a very short time. It has developed itself as a leading smartphone brand in the world. Due to the increasing use of smartphones, Huawei has a wonderful chance to gain the No.1 spot, and they can do this by investing in the latest technologies and R&D.

This Huawei SWOT analysis covers the company’s main features, including operations, pricing, global presence, position, and technology. The conflict with the US can harm the company’s revenue and global reach, but they can target other markets by investing in AI and 5G technologies. The heavyweights in the smartphone industry are a big threat for the company, but with effective strategies and policies, they can get competitive power. By handling regulatory and political pressures, they can work effectively locally as well as internationally.

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