Part # 1 Purpose and values
The purpose of Huawei is to help people enrich their lives through communication. Huawei is committed to connecting the world. To connect families and friends. To connect all people separated by distance and time.
Source http://www.huawei.com/en/about-huawei/corporate-info/strategy/index.htm http://www.huawei.com/en/about-huawei/corporate-info/vision-mission/index.htm http://www.huawei.com/ucmf/groups/public/documents/attachments/hw_126991.pdf
Source http://www.huawei.com/en/about-huawei/corporate-info/vision-mission/index.htm
Openness Continuous improvement Initiative
Teamwork Customers first Integrity
Dedication
China’s low scores on individualism and uncertainty avoidance are consistent with Huawei’s values
Power distance
Individualism Masculinity
Source http://geert-hofstede.com/china.html
Uncertainty avoidance
Bengt Nordstrรถm, a strategic adviser to European mobile networks, says Huawei has succeeded because of its ability to learn fast.
Source http://www.guardian.co.uk/business/2012/mar/25/secretive-huawei-joins-technology-race
In 1999, China Mobile looked to launch a prepaid mobile phone service. Huawei was able to custom build a product for China Mobile that worked with its existing legacy systems, and by 2002, Huawei had 80-90% of the market. Foreign companies either did not have the product or were too slow to react. This ability to rapidly respond to customer needs has been a consistent feature of Huawei’s strategy, both in China and in foreign markets.
Source http://csis.org/files/publication/130215_competitiveness_Huawei_casestudy_Web.pdf
With our open, collaborative philosophy, we look forward to cooperating with more customers and partners in the media and entertainment industry. Mr. Zheng Yelai, Huawei.
Source http://www.huawei.com/en/about-huawei/newsroom/press-release/hw-127566-show
Huawei is always open and cooperative. Ms. Sun Yafang Chairwoman of the Board Huawei
Source http://www.huawei.com/ucmf/groups/public/documents/annual_report/hw_u_256032.pdf
Other sources http://www.scribd.com/doc/36101450/China http://www.scribd.com/doc/35468260/Individualism http://www.scribd.com/doc/35046140/Uncertainty-avoidance
Part # 2 Customers and customer needs
Customers of consumer products and services
Every person who can use an electronic device. Potential market: The entire world population.
Customers of enterprise products and services
Example
Huawei has built more than 260 data centers for customers around the globe – 35 of them cloud-based.
Source http://www.huawei.com/ucmf/groups/public/documents/annual_report/hw_u_256032.pdf
Customers of operator products and services
Example
Huawei is helping to build France's broadband network.
Source http://www.knowledgeatwharton.com.cn/index.cfm?fa=article&articleid=2717
Mobile phone network operators http://www.bloomberg.com/markets/companies/cellular-telecom/ http://en.wikipedia.org/wiki/List_of_mobile_network_operators
Part # 3 Products and services
Huawei ranks among the top 3 world players in all segments of telecom equipment.
Source https://www.mckinseyquarterly.com/Three_snapshots_of_Chinese_innovation_2918
Consumer products and services
Source http://www.huawei.com/ucmf/groups/public/documents/annual_report/hw_u_256032.pdf
Source http://www.huawei.com/
Huawei is putting more emphasis on the end user experience.
Source http://www.globaltimes.cn/content/716495.shtml
Huawei’s goal is to become the world's third largest Android handset provider after Samsung and HTC in five years.
Sources http://www.knowledgeatwharton.com.cn/index.cfm?fa=article&articleid=2717 http://www.globaltimes.cn/content/770286.shtml#.UVwc9qKwKAg
Operator products and services
Source http://www.huawei.com/ucmf/groups/public/documents/annual_report/hw_u_256032.pdf
Source http://www.huawei.com/
Telecoms-equipment makers. Numbers in $bn. Year: 2011.
Source: http://www.economist.com/node/21559929
Enterprise products and services
Source http://www.huawei.com/ucmf/groups/public/documents/annual_report/hw_u_256032.pdf
Source http://www.huawei.com/
Part # 4 Supplier partners
Huawei uses the Android operating system on its tablets.
Source http://csis.org/files/publication/130215_competitiveness_Huawei_casestudy_Web.pdf
Huawei outsources much of its manufacturing to specialists, for example to Foxconn.
Source http://www.economist.com/node/21559929
Foxconn has operations in Hungary, Mexico, India, Malaysia, Brazil and Vietnam. It's the largest exporter in the Czech Republic.
Source http://bigthink.com/think-tank/the-true-cost-of-foxconns-wage-hikes
In early 2004, Huawei received a USD 10 billion 5 year credit facility for international expansion from the China Development bank and USD 600 million from Ex-Im Bank of China. This was later bumped up to USD 30 billion, and possibly more. Sinosure, the government insurance company, has also supported these sales via export credit financing. Source http://csis.org/files/publication/130215_competitiveness_Huawei_casestudy_Web.pdf
IBM was brought in to help Huawei organize and manage its R&D processes, the Hay Group for human resource issues, PWC for financial management, and others including Fraunhofer and Towers Perrin for a variety of purposes.
Source http://csis.org/files/publication/130215_competitiveness_Huawei_casestudy_Web.pdf
Other companies, that Huawei has worked with include Siemens, Global Marine, Texas Instruments, NEC, Motorola and Qualcomm.
Source http://csis.org/files/publication/130215_competitiveness_Huawei_casestudy_Web.pdf
Huawei works with more than 40 learning partners.
Source http://youtu.be/gMcrCjtgzpY minute 6.
Part # 5 Competencies / Capabilities
Huawei has had a strong emphasis on research & development from the very start. When Huawei had 700 employees, 500 were working with research & development, i.e. more than 70%.
Source http://csis.org/files/publication/130215_competitiveness_Huawei_casestudy_Web.pdf
Huawei sees itself as an innovator and has strong focus on education as well as on research and development.
Source http://www.economist.com/node/21559929
Huawei is changing from being a product-driven company to being an end-to-end service company. Huawei now looks to provide operation and maintenance to its customers in addition to hardware and software.
Source http://csis.org/files/publication/130215_competitiveness_Huawei_casestudy_Web.pdf
Part # 6 Communication and distribution channels
Co-care distribution model of Huawei The customer sells and delivers its own products. Huawei delivers products and services to the customer.
Source http://youtu.be/gMcrCjtgzpY minute 7.
High care distribution model of Huawei Huawei sells and delivers products and services to customers. The customer can resell / retweet Huawei products and services.
Adapted from http://youtu.be/gMcrCjtgzpY minute 7.
Example
https://www.digitec.ch/
Example
Huawei had a team of engineers travel to every one of China’s 2,800 counties to market its products. Also in Europe and North America, sales people and engineers went to whereever they thought might be an opportunity. Sources http://csis.org/files/publication/130215_competitiveness_Huawei_casestudy_Web.pdf
Example In China, Huawei established joint ventures or other forms of partnerships with local bureaus of post and telecommunications in order to encourage the purchase of Huawei equipment. These local companies eventually became simple corporate branches. Source http://csis.org/files/publication/130215_competitiveness_Huawei_casestudy_Web.pdf
Examples
http://www.youtube.com/user/HuaweiDeviceCo
http://www.linkedin.com/company/huawei
https://twitter.com/HuaweiPress https://twitter.com/HuaweiDevice
Example
Huawei participates in open source meetings and activities.
Source http://www.huawei.com/en/about-huawei/Partner/openathuawei/index.htm
Example
Huawei participates at trade fairs such as CeBIT.
Sources http://youtu.be/eU4VWsB2k0g http://www.cebit.de/
Part # 7 Capital
Financial capital
Source http://www.huawei.com/ucmf/groups/public/documents/annual_report/hw_u_256032.pdf
Revenue comparison from 2006 to 2011
Source http://csis.org/files/publication/130215_competitiveness_Huawei_casestudy_Web.pdf
Huawei is a private company. Founder of Huawei, Mr. Ren Zhengfei, owns 1.4% of the company’s shares.
Source http://www.economist.com/news/business/21571180-chinese-company-sells-ever-more-s http://www.globaltimes.cn/content/716495.shtml http://csis.org/files/publication/130215_competitiveness_Huawei_casestudy_Web.pdf
98.6% of Huawei shares are tied to a trade union committee tied to the affiliate Shenzhen Huawei Investment Holding Co. This body represents Huawei’s employee shareholders. About 64% of Huawei’s employees participate in this scheme. The shares of these employees are nontradable and are allocated to reward performance. The shares do not give holders an effective voice in management decisions, which are largely controlled by Mr. Ren Zhengfei. When people leave Huawei, their shares revert back to the company. Source http://csis.org/files/publication/130215_competitiveness_Huawei_casestudy_Web.pdf
Huawei has filed over 49,000 patents. Huawei was among the world’s top five companies in terms of international patents filed from 2008 to 2010.
Source https://www.mckinseyquarterly.com/Parsing_the_growth_advantage_of_emerging-market_companies_2969 http://csis.org/files/publication/130215_competitiveness_Huawei_casestudy_Web.pdf
Huawei invests 10% of sales revenues in research & development.
Sources http://www.knowledgeatwharton.com.cn/index.cfm?fa=article&articleid=2717 http://youtu.be/usxG7e84Pls minute 2.
Comparison of R&D in % of revenue. 2006 to 2011
Source http://csis.org/files/publication/130215_competitiveness_Huawei_casestudy_Web.pdf
Physical capital
Huawei has more than 20 research centers in Germany, Sweden, the UK, France, Italy, Russia, India, China, and other countries. In addition, Huawei has established 34 joint innovation centers with carriers.
Source http://www.huawei.com/en/about-huawei/corporate-info/research-development/index.htm
Buildings where Huawei's R&D teams work. Huawei Global Headquarters in Shenzhen, China.
Source http://www.huawei.com/en/about-huawei/newsroom/photos/index.htm
Buildings where Huawei's R&D teams work. Huawei Global Headquarters in Shenzhen, China.
Source http://www.huawei.com/en/about-huawei/newsroom/photos/index.htm
Huawei University at Huawei Global Headquarters in Shenzhen, China. The training center occupies over 155,000 m2, consists of over 100 classrooms and can accommodate up to 2,000 trainees at any given time.
Source http://www.huawei.com/en/about-huawei/newsroom/photos/index.htm
Inside Huawei University Huawei Global Headquarters Shenzhen, China
Source http://www.huawei.com/en/about-huawei/newsroom/photos/index.htm
Testing center for testing product prototypes. Huawei Global Headquarters in Shenzhen, China. The testing center is used by several research labs.
Source http://www.huawei.com/en/about-huawei/newsroom/photos/index.htm
Logistics center warehouse at Huawei Global Headquarters in Shenzhen, China
Source http://www.huawei.com/en/about-huawei/newsroom/photos/index.htm
Call Center at Huawei Global Headquarters in Shenzhen, China responsible for round-theclock monitoring and real-time troubleshooting of Huawei's IT operations.
Source http://www.huawei.com/en/about-huawei/newsroom/photos/index.htm
Human capital
Almost half of Huawei’s employees work with research & development.
Sources https://www.mckinseyquarterly.com/Parsing_the_growth_advantage_of_emerging-market_companies_2969 http://www.huawei.com/en/about-huawei/corporate-info/research-development/index.htm http://www.huawei.com/ucmf/groups/public/documents/annual_report/hw_u_256032.pdf
Huawei engineers at work
Source http://www.huawei.com/en/about-huawei/newsroom/photos/index.htm
Part # 8 Leadership and organization
Founder of Huawei: Mr. Ren Zhengfei.
Source http://www.huawei.com/ucmf/groups/public/documents/annual_report/hw_u_2560
Mr. Ren Zhengfei, founder of Huawei. Born in 1944. 1960s Attended the Chongqing University of Civil Engineering and Architecture. 1970s Worked in the People's Liberation Army's Engineering Corps with information-technology research. 1983 After cuts to the armed forces, Mr. Ren Zhengfei left the army and moved to Shenzhen, a boomtown near Hong Kong. 1987 Mr. Ren Zhengfei established Huawei. Sources http://www.knowledgeatwharton.com.cn/index.cfm?fa=article&articleid=2717 http://csis.org/files/publication/130215_competitiveness_Huawei_casestudy_Web.pdf
Chairwoman of Huawei: Ms. Sun Yafang.
Source http://www.huawei.com/ucmf/groups/public/documents/attachments/hw_126991.pdf
Huawei board of directors
From the left in the front row Mr. Hu Houkun, Chairwoman Ms. Sun Yafang, Mr. Guo Ping, Ms. Chen Lifang, Mr. Xu Wenwei. From the left in the back row Mr. Zhang Ping'an, Mr. Yu Chengdong, Mr. Xu Zhijun, Mr. Ren Zhengfei, Mr. Ding Yun, Ms. Meng Wanzhou, Mr. Li Jie, Mr. Wan Biao. Source: http://www.huawei.com/en/about-huawei/corporate-info/coporate-governance/index.htm
Mr. Ken Hu acts as CEO of Huawei from April 1st, 2013 to September 30th, 2013. Huawei Technologies founder Mr. Ren Zhengfei has split the CEO role with a panel of 3 executives who will rotate at 6-month intervals.
Source http://www.zdnet.com/huawei-splits-ceo-role-with-rotating-panel-2062304597/ http://www.huawei.com/en/about-huawei/newsroom/press-release/hw-258234-rotatingceo.htm
In 2013, Huawei will further simplify management, reduce internal operating costs and improve operational efficiency.
Source Letter from Mr. Guo Ping, rotating and acting CEO. http://www.huawei.com/ucmf/groups/public/documents/annual_report/hw_u_256032.pdf
Family of Mr. Ren Zhengfei working for Huawei Ren Shulu, Ren Zhengfei’s younger brother Member of supervisory board that overseas directors. Meng Wanzhou, daughter of Ren Zhengfei Chief Financial Officer. Meng Ping, son of Ren Zhengfei Customer relationship management director. Sources http://www.guardian.co.uk/business/2012/mar/25/secretive-huawei-joins-technology-race http://www.economist.com/news/business/21571180-chinese-company-sells-ever-more-smartphones-and-opens-up-little-clear-mud http://www.globaltimes.cn/content/716495.shtml
Professor Gary Liu says Ren's determination to find a successor from within his family stems from 2000 when his then second-in-command, Li Yinan, left to start a rival company, Harbour. Ren fought and eventually bought Harbour, but the experience, says Liu, destroyed his trust in non-family members. Source http://www.guardian.co.uk/business/2012/mar/25/secretive-huawei-joins-technology-race
Source: http://www.huawei.com/en/about-huawei/corporate-info/coporate-governance/index.htm
Despite Huawei’s continued ties to the state, the Chinese government appears to have had a relatively hands-off attitude with regard to management.
Source http://csis.org/files/publication/130215_competitiveness_Huawei_casestudy_Web.pdf
Part # 9 Differentiation
Strong investment in research and development
Perhaps Huawei’s most significant sustainable advantage stems from the fact that it consciously chose to develop its technology in house rather than by the more popular – and government encouraged – route of joint ventures with foreign partners.
Source http://csis.org/files/publication/130215_competitiveness_Huawei_casestudy_Web.pdf
Almost half of Huawei’s employees work with research & development.
Sources http://www.wired.com/business/2012/10/spies-or-no-spies-u-s-companies-should-fear-huawei/ https://www.mckinseyquarterly.com/Parsing_the_growth_advantage_of_emerging-market_companies_2969 http://www.huawei.com/en/about-huawei/corporate-info/research-development/index.htm http://www.huawei.com/ucmf/groups/public/documents/annual_report/hw_u_256032.pdf
Bengt Nordstrรถm, a strategic adviser to European mobile networks, says Huawei has succeeded because of its ability to learn fast.
Source http://www.guardian.co.uk/business/2012/mar/25/secretive-huawei-joins-technology-race
Lower prices than other companies
Source http://www.wired.com/business/2012/10/spies-or-no-spies-u-s-companies-should-fear-huawei/
Soon after entering Russia in 1997 – through a joint venture with the Beto corporation – Huawei made sales in Thailand, Brazil, and South Africa. Its pricing became more aggressive, often undercutting other companies by 30%.
Source http://csis.org/files/publication/130215_competitiveness_Huawei_casestudy_Web.pdf
Customer service / customer education
Huawei's advantage over Western vendors: Because its cost per employee is lower, Huawei can deploy its large staff to help train local operators to run the networks.
Source http://www.knowledgeatwharton.com.cn/index.cfm?fa=article&articleid=2717
Global focus – including focus on emerging markets
Source http://www.wired.com/business/2012/10/spies-or-no-spies-u-s-companies-should-fear-huawei/
Part # 10 Market development
China
Source http://www.huawei.com/ucmf/groups/public/documents/annual_report/hw_u_256032.pdf
Huawei and ZTE are China’s two largest makers of phone equipment. Both are based in Shenzhen, China.
Source http://www.bloomberg.com/news/2013-01-02/interdigital-files-new-trade-agency-case
China's smartphone market could grow by as much as 44% in 2013.
Source http://www.globaltimes.cn/content/768030.shtml#.UVwgE6KwKAg
In China, Samsung, Lenovo and the iPhone dominate the high end in handsets. Other Chinese-made phones with similar cost advantages dominate the low end.
Source http://www.knowledgeatwharton.com.cn/index.cfm?fa=article&articleid=2717
Instead of competing with multinational corporations (MNCs) in major cities like Shanghai and Beijing, Huawei cut its teeth in smaller rural markets where MNCs rarely tread. Huawei had a team of engineers travel to every one of China’s 2,800 counties to market its products. Sources http://csis.org/files/publication/130215_competitiveness_Huawei_casestudy_Web.pdf
Asia Pacific
Source http://www.huawei.com/ucmf/groups/public/documents/annual_report/hw_u_256032.pdf
In March, 2012, Australia banned the company from bidding on its National Broadband Network.
Sources http://www.knowledgeatwharton.com.cn/index.cfm?fa=article&articleid=2717 http://www.economist.com/node/21559929
In New Zealand, Huawei has won contracts for work on networks.
Source http://www.economist.com/node/21559929
In India, Huawei has found itself under attack by government and media as both a security threat and an unfair competitor.
Source http://www.economist.com/node/21559929
Americas
Source http://www.huawei.com/ucmf/groups/public/documents/annual_report/hw_u_256032.pdf
In Canada, Huawei has won contracts for work on networks.
Source http://www.economist.com/node/21559929
Alcatel-Lucent and Ericsson currently dominate the U.S. market for mobile infrastructure.
Source http://www.wired.com/business/2012/10/spies-or-no-spies-u-s-companies-should-fear-huawei/
Huawei has worked on networks for a number of smallish mobile operators in the USA, but its repeated attempts to buy American tech firms have been scuppered by official opposition.
Source http://www.economist.com/node/21559929
Europe Middle East Africa
Source http://www.huawei.com/ucmf/groups/public/documents/annual_report/hw_u_256032.pdf
Huawei employs more than 7,000 people in Europe. It says that total could double in the next 3 – 5 years. Huawei research & development centers in Europe: Italy. Spain. In planning. Helsinki. EUR 70 million investment announced. Britain. $2 billion investment announced.
Source http://www.nytimes.com/2012/12/11/technology/huawei-to-open-research-center-in-fin
In 2001, Huawei made its first major sales in Europe, to the Netherlands and Germany.
Source http://csis.org/files/publication/130215_competitiveness_Huawei_casestudy_Web.pdf
Huawei provides managed services for carriers in the UK, Spain, Germany, Italy, and Switzerland.
Source http://www.huawei.com/ucmf/groups/public/documents/annual_report/hw_u_256032.pdf
The United Kingdom allowed Huawei into its market as long as it agreed to open up its equipment to third-party inspection.
Source http://www.knowledgeatwharton.com.cn/index.cfm?fa=article&articleid=2717
In Africa, Huawei is everywhere, and welcome almost everywhere. Huawei undercut Ericsson and Nokia by 5% to 15%. It also showed tenacity and daring. Its engineers soldiered on through civil wars and natural disasters; by 2006 sales in Africa were over $2 billion. Source http://www.economist.com/node/21559929
Huawei will supply the South African railway system PRASA with the train communication service Global System for Mobile Communications Railway – abbreviated “GSM-R”.
Source http://www.globaltimes.cn/content/771621.shtml#.UVwagKKwKAg