Abstract

As the world’s largest telecommunications equipment manufacturer, Huawei has focused on building telecommunications networks and services since its inception in 1987. Leveraging its close relationship with other telecommunications service providers, Huawei entered the mobile devices manufacturing business, supplying mobile phones and other white-label products for them in the mid-2000s. In 2010, Huawei also began manufacturing and selling the first smartphones under its own brand name, targeting mid-range and high end handsets. The Consumer Business Group has grown to be one of Huawei’s three core businesses. By 2015, according to industry reports, Huawei ranked first in China and third in the world within the smartphone market.

Learning Objectives

Using this case, students should be able to:

Lay out a Porter’s Five forces analysis of a market and comment on the suitability of a firm’s entry into this market.
Discuss the benefits of moving into the areas of design/development and distribution as opposed to production (the smiling curve concept)
Develop competitive strategy
Identify key issues in managing a global B2B supply chain an diversification into B2C