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Huawei Pestle Analysis
BusinessManagementMarketingSWOT & PESTLE 

Gain Successful Knowledge From PESTLE Analysis of Huawei

by Shamsul

Gain Successful Knowledge From PESTLE Analysis of Huawei

 
 
 
 
Huawei is one of the world’s most highly used and best telecommunication, which is at the top in China. It is a smartphone company which offers the best telecommunication. The company started its operation in 1987. The main office of Huawei Company is in Shenzhen, China. It started the main journey with the production of cell phones and keeps on enhancing the portfolios with other products like telecommunication equipment and devices, broadband, operational and consultation services. Let’s read the PESTLE Analysis of Huawei.
 
According to surveys, Huawei perfectly serves the one-third population in the world with all its services and products. They provide cellphone services almost in 170 countries, and it is a considerable number. Huawei is the third most used phone in the world after Apple and Samsung in the world. You can read Huawei SWOT Analysis
 
 
 
 
Political Factors – Pestle Analysis of Huawei
 
Conflict with Trump and The US: Huawei is facing some political issues because of conflicts with the administration of Trump and the US government. Chinese companies having problems with the US government is not something new as it has been going on for a long time. Huawei is becoming the victim of political conflict, and it is due to tension between two political parties.
 
National Protection or Security of the USA Country:
 
China is growing very fast in the world of technology and smartphones, and there are maximum chances that she’ll be at the top in a few years. The USA is the main competitor in this world, and that is why she is trying to hold China back. We live in a world where there is a competitive atmosphere everywhere, and the US government is also pushing hard for its survival in the world.
 
 
 
 
Economic Factors – Pestle Analysis of Huawei
 
Huawei’s Growth and China’s Economy:
 
The economy of China is growing like a speedometer, which creates amazing opportunities for the growth of all Chinese companies. The economic condition of China is very stable, and it determines the betterment of technology here. Business life is perfect and healthy in this country. The natives of China are getting rich day by day, and thus they have a lot of money to use. When the consumer is well, then the companies automatically grow. Chinese companies are selling more products which is a very good thing.
   
 
 
 
 
Read More: How to Design a PESTLE Analysis Template?
 
 
Social Issues – Pestle Analysis of Huawei
 
Immense Population Explosion of China:
 
The population rate of China is increasing very fast, which is why there are so many people in China. The elderly population of china above 60 is almost 255 million, which is a significant number. The elder population rate has impacts on the technology and smartphone companies. It is due to the less catching ability of cell phones by elders because they don’t use social media or online platforms that much.
 
Bridge the Generation Tech Gap:
 
As the elder population increases and the technology required is less in older people, technology is being lowered. It is the best time for Huawei to create a technology that can easily fill the generations’ gap. Huawei can easily do it by creating friendly and easy-to-use smartphones. It will be a great source of leisure for older people too as they will easily connect with family and friends. Basically, older adults are not rejecting the technology; in actuality, they have no idea about technology usage. When the internet connection is stable and the phones will be easy to use, people will be attracted to them. The growth potential will be great and huge.
 
 
 
 
Technological Factors – Pestle Analysis of Huawei
   
 
5G Technology:
 
5G is the latest technological development globally, and people are much excited about it. The telecommunication service will be completely changed by the introduction of 5G as all applications will be operated very fast. Companies will get better opportunities to develop fast and new products that can support the internet’s fast speed. Few companies have launched new technologies regarding 5G. Huawei has firstly launched 5G products, and the verification process is completed. It will help Huawei a lot as people will be able to enjoy the updated technology.
 
AI (Artificial Intelligence) Technology:
 
All now use smartphones in the world, which is why artificial intelligence is trending among all smartphone companies. All phone companies are working on AI technology, and Huawei is also trying hard to achieve the goals of this technology. Huawei has launched so many amazing products which are different from all others and nothing can beat their level. There are few products that can easily differentiate between people and objects present in different colors of light.
 
 
 
 
Read More: PESTLE ANALYSIS and Its Impacts in Marketing
 
   
 
Legal Issues – Pestle Analysis of Huawei
 
Ban in the USA:
 
Every company is almost facing some legal issues, but the case is a bit different with Huawei as it has been facing problems and political issues too. The Trump government was trying to ban companies like Huawei and ZTE in the USA. If the new government continues the same pattern, then Huawei’s products will not work in the US or any of its states.
 
Regulation Issues:
 
Just like USA, United Kingdom has also tried to end Huawei’s success plan by banning it. They gave the copyrights or patent issues laws for banning the process. The court asked from company to pay money for 4G technologies and devices. If the company refuses to pay, then the products will be banned completely.
 
 
 
 
Environmental Factors – Pestle Analysis of Huawei
 
Environmental Laws of the Chinese Government:
 
The Chinese government has been serious about the laws and environment. Now, she started the campaign against violations of laws of the environment. Thus, the company has reduced the emission of harmful fumes and carbon. The company is spending a lot of resources and money just to protect the environment, which is a really good step.
 
 
 
 
Conclusion – Pestle Analysis of Huawei
 
After the PESTLE Analysis of Huawei Company, we noted that the company holds a very high rank in the world, and it is trying its best to serve the people with the best of its products. The company is indeed a victim of many crises because it belongs to China. The world is having issues with China, and more so, Huawei is also paying a cost for those issues, which is not a good practice.
 
   
 
 
 
 
 
 
 
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What is PESTLE Analysis?
 
 by Shamsul   
 
 
 
 
 
 
 
What is PESTLE Analysis?
 
 
 
Pestle is also referred to as ‘’PEST’’ analysis which is an important tool to analyze any business. In this analysis, one can analyze the environment in which businesses are operating and also introduce the latest services, products, or projects according to the market situation. PESTLE is a notation and expanded in the given form:
 
     
  • P= Political
    •  
  • E= Economic
    •  
  • S= Social
    •  
  • T= Technological
    •  
  • L= Legal
    •  
  • E= Environmental
    •  
 
You can get a comprehensive insight into any business environment from various directions or angles. With this analysis, one can improve opportunities and reduce the threats for their business. Many market gurus and experts have introduced alternations in this segment, like E= Ethics in order to find the demographic elements of any market or country.
 
 
 
Asking the Appropriate Questions:
 
It is important to ask some necessary questions before performing this analysis. In this way, you can get an idea about important factors that you need to consider while conducting this analysis. Here are some questions:
   
 
     
  • What is the political condition of the market or country and how can it influence the market?
    •  
  • What are the widespread economic elements?
    •  
  • Find out the impact of culture on the industry or market.
    •  
  • What kind of technological advancements affect the industry structure?
    •  
  • Find out the current legislation that can affect the market.
    •  
  • What are the environmental effects on the market?
    •  
 
All these questions or concerns are important for any business or industry. With the assistance of these factors, you can get a full market analysis like strategic management. But keep in mind that, these factors change for different businesses and industries. But PESTLE provides a complete view that you need to understand the environment in which businesses are running. In short, we can say that PESTLE is a comprehensive version of SWOT. However, it is a little challenging for some people to understand the comprehensive depth of PESTLE.
 
 
 
Political Factors in PESTLE:
 
In this sector, you can determine the influence of the government on a specific market or industry. For example, the change in tax regulations or new tax imposition for generating revenues can affect the overall market. This is a pure political factor and also affects the trade tariffs, tax policies, fiscal policy, etc. These factors can heavily influence the market to a large extent.
 
 
 
Economic Factors in PESTLE:
 
Economic factors describe the performance of the government and its impact on the market. For instance, the price increases in any economy can directly impact the services and products of all the companies which creates a big impact on the economy. Moreover, this thing also changes the purchasing power and habit of customers and also creates a major difference in the supply and demand chain. These factors also contain economic growth patterns, inflation rate, foreign exchange rates, interest rates, etc.
   
 
 
 
Social Factors in PESTLE:
 
With the help of this factor, you can determine the social environment of any market. You can also find out the cultural impact, population, demographics, and more with the aid of this factor. A common example of this factor is that the buying trend in Western countries increases during special festivals and the holiday season.
 
 
 
Technological Factors in PESTLE:
 
It shows the risk of new technologies that can influence the market. New technological advancements can disturb the operations of the market in both favorable and unfavorable forms. It includes automation, R&D, awareness, etc that any market holds.
   
 
 
 
Legal Factors in PESTLE:
 
This factor is consists of both internal and external sides. There are plenty of certain laws that can influence the trade and business environment. There are several things in this sector like labor laws, safety standards, consumer laws, etc that can influence the industry.
 
 
 
Environmental Factors in PESTLE:
 
Environmental factors are very crucial for businesses and industries because they influence the market very strongly. Some of the businesses like agriculture, tourism, farming, etc are totally dependent on environmental factors. It also contains different factors like environmental offsets, climate change, geographical location, weather, and climate. With the support of these factors, you can easily conduct a PESTLE analysis and know each and every factor about business environments, and also create opportunities to increase plans and services.
 
 
   
 
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