HuaWei – The Next Big Telecoms Giant: From local dominance to global challenge

Essay by sunriseparkUniversity, Master'sA, November 2007

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Term Paper

HuaWei - The Next Big Telecoms Giant

From local dominance to global challenge

Julia Somerdin

Submission Date: July 14th 2007

Version: 1.0

Status: Final

Distribution List

List Team(s)

Prof. Ravi Sarathy

Northeastern University

Note: Content in this document has been influenced and prepared with help of following Re-sources:

Charles Hill, Global Business Today, 4th, Irwin-McGraw Hill 2006.

Prof. Ravi Sarathy, INB G280, Northeastern University High Technology MBA Program, Summer 2007

World Investment Report 2006


Table of Contents

41 Introduction �

42 Industry context �

42.1 Company History �

52.2 Competitive Disadvantage and Advantage �


63.1 Achievements �

73.2 Markets and Products Strategies �

83.3 Globalization Strategy �


94.1 Challenges �

104.2 Recommendations �

104.2.1 Technological Advance Development �

114.2.2 Alliances �

135 Exhibits �




Huawei Technologies Co. Ltd. is one of the world's leading networking and telecommunications equipment suppliers.

It is a private high-tech enterprise which specializes in research and development (R&D), production and marketing of communications equipment, and providing customized network solutions for telecom carriers in different areas. Huawei is a major manufacturer of wireless phone and networking equipment.

For the past few years, China's telecom equipment market has been growing by leaps and bounds. As the market is getting closer to saturation, Huawei has switched its business focus from domestic markets to international markets. The Huawei competes with multinational big boys-Northern Telecom, Alcatel, Lucent, Cisco Systems-and wins business from the world's top network operating companies, mostly by significantly undercutting the prices of its competitors in the equipment business. Huawei's global revenue reached $5.6 billion in 2005, with almost half of its sales from international markets.

In 2007, Huawei has now 62,000 employees globally, serves 31 of the top 50 telecoms operators, and...