Business Plan for Huawei Technologies Co. Ltd.
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Business Plan for Huawei Technologies Co. Ltd.Jay SoniStrategic ManagementDecember 12th, 2016Executive SummaryOverviewHuawei Technologies Co. Ltd is a Chinese networking and telecommunications equipment and service company. It was established in the year of 1987, but gradually became a world player and multinational corporation since the end of 20th century and was included in the Global Fortune 500 companies. (Jason McLure 2012) Though being a leading telecommunication tycoon in the rest of the world, Huawei is comparatively new to U.S. customers. However, the high quality of its products and affordability of its price make Huawei a potential competitor in the U.S. Market. The business plan of our team is to promote Huawei in the U.S. market, and piloting this promotion in the New York metropolitan and some other popular cities in New York State as a start.New York State Broadband Program:In recognition of the growing importance of this technology to the state, this program was created to ensure that every New Yorker has access to the internet with high speed in both urban and rural area. So that, citizens can have greater opportunities to connect educational and workforce related development resources which will help to the state to develop and build an innovative and talented high-tech workforce. But, it has to be affordable to every resident. (NYS Broadband office 2015)As a manufacturer of related products and services we would like to take the advantage of this program in the development of the New York State. The increased demand for high speed network asks for latest technology and advanced products, which Huawei can offer through partnerships with available ISPs in State.There are approximately 80 Internet Service Providers (ISP) in NYS. Huawei can work closely with them to determine the type of broadband technology can provided in different region.Business Structure:The business structure will be set up as follows: Board of Directors, which will oversee operation of Huawei’s U.S. branch; Executive Management Team, which will conduct business operation in all the components of the business including sales and services, products and solutions, finance, marketing, operation and supply Chain, and human resources; Product Investment Review Board, which coordinates the technological research managements and product management, and independently review ethical issues.1.1 Market Summary:Since, the growth in Ethernet Switches has increased to 9% of the worldwide revenue in the second quarter of 2015 reaching a total of $5.6 Billion. Huawei is willing to increase their share in increased business; that to in the larger city of New York. However, the major market share is gripped by the other manufacturers like HP, Motorola, Alcatel Lucent, Cisco, D-Link, Dell etc. (Matthias Machowinski 2015)Among all Huawei’s products, Smartphone is the money machine generating the most sales volume and profits based on the volatility of the product. However, due to the maturity of the smartphone and tablet market, which is predominantly occupied by Apple and Samsung, it would extremely difficult for Huawei to get a market share in the cellphone and tablet market. Apple and Samsung account for almost the whole industry profits, and the situation is the same in New York Metropolitan Area. In the first quarter of 2015, Apple’s profit in smartphone business soared up to 92%, Samsung, after a profit plummet, went through a little spike and rose to 15%. (WSJ 2015)
Instead, Huawei’s strength is really in telecommunication technology. Product innovation has a lot of advancement, but doesn’t have comparative advantage facing Apple and Samsung. More importantly, Huawei as an already well known international network switch vendor, doesn’t have as big role in the US market as the world. The follow graph compares Huawei’s market share both worldwide and nation-wide in the U.S.[pic 1]Source: