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Huawei Smartphone Assignment

Topic One

Huawei Smartphone AssignmentHuawei is considered as one of the popular multinational telecommunication equipment manufacturing and distributing companies based in China. The company is also popular for the offering of unique and advanced telecommunication services. The management of the company is strongly focused on the expansion of the business operation process in the global market places.

For the business expansion, the management of Huawei needs to develop an important marketing plan to ensure successful business operation process in the global market place. Most importantly, this  is also  essential for the marketing department of Huawei to develop  marketing objectives to construct a successful marketing plan, For the purpose of the development of an effective marketing plan, the  marketing department of Huawei always focuses on  the conduction of valuable  market research before the entering of  the new global market place.

The example of the mobile phones can be considered here. It is acceptable that the manufactured mobile phones under the brand name of Huawei are popular in several developing nations. It is an important consideration that the marketing department of Huawei considers effective marketing research before entering into a particular country and developing a potential marketing plan for the Huawei mobile phones along with the marketing objectives and goals. The marketing department of Huawei used to conduct the secondary market research in order to determine the demand for the quality and price of particular products among the possible target customers. In addition, the marketing department is also responsible for the maintenance of the positioning factors. For example, the marketing department of Huawei is always focused on the price-quality based positioning strategy for the products before entering into a particular market place. Most importantly, the consideration of market research will assist the marketing professional to apply appropriate strategies under an effective marketing plan.

Topic Two

Before going into the theoretical implications, it is important to ensure the name of existing customers. Gionee, Xiaomi, Nokia, Samsung etc are the potential competitors of the company. This is essential to state that the intense market competition has a strong impact on the business performance of Huawei. A market competition analysis through the implication of Porter’s Five Force model can be conducted with respect to Huawei mobile phones.

Porter’s Five Force Analysis

It is an important micro external environmental analytical tool, which will enhance the impact of the market competitive factors on the business performance of Huawei mobile phones.

Bargaining Power of the Customers

The bargaining power  of the customers  is  high for  the  products  of Huawei due to availability of the high quality and  differentiated mobile phones  under different popular brand  names  at competitive price level.

Bargaining Power of the Suppliers

The bargaining power of the suppliers is low for the management of Huawei for the mobile phones due to availability of the sufficient numbers of the efficient and cost effective suppliers.

Threat of Substitute Products

The threat of the substitute products is high for the Huawei mobile phones. It is true that different technological advanced communication devices, internet communication process   and online chatting rooms are regarded as some potential sub statute products, which can pose real threat.

Threat of New Entrants

The threat of the new entrants is quite low for the management of Huawei for the mobile phones considering high market entry cost and high legal entry barriers. It may cause different profitability challenges for the new companies during initial time phase.

Degree of Industry Rivalry

The degree of Indus try rivalry is high for Huawei mobile phones as different popular and leading players are offering differentiated and quality mobile phone devices at economic cost. Therefore, it is clear that competition has a strong impact on the Huawei mobile phones.

Topic Three

PESTL analysis can affect the sustainability and performance of a new product. Before going into the critical discussion, it is important to introduce Te basic concept of PESTL. PESTL is an important strategic analytical tool, which helps the marketing department of a company to determine the major impact of the important macro external environmental factors, such as political, economical, social, technological and legal factors on the business performance of a company in existing market. Following PESTL analysis will showcase how the application of the tool will create problem for new entrant, such as Huawei mobile phones in new market.

Political

The political environment is volatile due to the different ideologies of the political parties within the country, which can cause real problems for the companies. In addition, some legal or environmental challenges can cause political problems for Huawei.

Economical

The economic environment is volatile due to the consideration of the global economic crunch, economic recession, which is causing poor disposable income, low per capita income, high unemployment rate and limited purchasing. Hence, economic environment is also not sustainable for the products of Huawei.

Social

The social environment is also not sustainable and supportive for the mobile phones of Huawei as the target customers are focusing on quality, price effective and branded mobile phones. The lack of strong brand recognition in the   international market can cause social challenges.

Technological

The technological environment is sustainable and supportive for the mobile phones under the brand   name of Huawei as the country is getting technologically advanced and the company can get required technological applications for business operation process quite effectively.

Legal

The legal environment is challenging for Huawei as the government is focused on the development of strict legal policies including environmental policies, employment policies etc.

This is quite clear from the analysis that macro external environment is challenging for Huawei with respect to its mobile phones.

Topic Four

SWOT can be regarded as an important strategic management  tool,  which can  help the  marketing department along with the operation management professionals of  Huawei to assess  internal  environmental strengths,  weaknesses along with the external environmental  opportunities  and threats.  For example, the strengths of Huawei mobile phones are imperial in quality and the management is keen in offering products at economic price level. In terms of weaknesses, lack of brand recognition is major weakness. In terms of opportunities, strong positioning and unique promotion can be regarded as important opportunities. In terms of the threat factors, high market competition, economic slowdown and different legal challenges can affect the business performance of the companies.

The conduction of SWOT analysis is really helpful for the management of any company in the marketing plan. A successful marketing plan generally consists of different situation analytical tools and methods. The implication of these tools, theoretical aspects and methods can assist the particular organizational management of to develop a strong marketing plan, which can help the marketing professionals to meet the developed marketing objectives and goals. On the other hand, implication of the marketing strategy always depends upon the application of a particular strategy. The SWOT analysis in a particular marketing plan generally assists the marketers to determine the core competencies of organizations and potential opportunities for the organizations. A study of the real market demand  along  with  the  consideration  of  the  examination of  critical weaknesses and  threats  will significantly assist the management and  marketing professionals of Huawei to recommend effective  resolutions  through the implication of different unique strategies. Hence, it is identical that SWOT analysis plays an important role in the marketing plan.

Topic Five

In terms of the current trends in the segmentation , targeting and positioning, it  is acceptable that the  marketing  professionals  of   technology  communication manufacturing companies generally focus on  the  implication of  demographic, geographic, psychographic  and behavioral segmentation especially for the mobile phones. This is also acceptable that the marketing professionals of Huawei are using and implementing demographic, geographic, psychographic and behavioral segmentation for the products. This is also important to state that the marketing professional of Huawei considers age group, income segment and geographic location of the target customers. The mobile phones of Huawei are for the people of religious and cultural background considering both male and female members.   In addition, it is already introduced that the marketing professionals of Huawei used to consider price-quality based positioning for the products, such as the mobile phones.

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