What is SWOT Analysis?

The SWOT analysis is a strategic planning method used to assess an organization’s internal strengths and weaknesses, as well as the external opportunities and dangers it faces in its operating environment. SWOT is an acronym for:

Strengths: These favourable traits, possessions, and skills provide a business a competitive edge. They might include things like a strong brand reputation, skilled employees, advanced technology, or unique product offerings and can be a great Essay Help UK based.

Weakness: These are the internal problems that hinder an organization’s success and place it at a disadvantage in the marketplace. A few instances of limitations include a lack of market differentiation, outdated technology, subpar customer service, and insufficient financial resources.

Opportunities: Opportunities are factors or market trends that are outside of a company but that can be utilised either negatively or positively by the company. Opportunities include, but are not limited to, developing technologies, changing consumer preferences, the formation of new market segments, and advantageous industry regulations.

Threats: These are external factors that pose challenges or pose a threat to the organization’s success. Threats might include ferocious competition, economic downturns, shifting market trends, new technologies, and regulatory impediments.

About Huawei

With its headquarters in Shenzhen, China, Huawei is a prominent company OF technology corporation that was founded in China in 1987. Huawei is a company that produces consumer goods, mobile phones, networking gear, and telecom gear. 

The company manufactures a wide range of goods, including smartphones, mobile and fixed broadband networks, tablets, multimedia technology, dongles, Harmony OS, and Smart TV.

By the end of 2019, the company employed about 194,000 people. Around 170 countries around the world have access to Huawei’s services and goods. The business hopes to connect the entire world through digital means, reaching out to every individual and organisation.

Three billion individuals throughout the world are served by the company.

The goal of Huawei is to spread the advantages of technology worldwide. The business has developed a digital inclusion plan that focuses on three key areas in order to accomplish this:

Technology

Applications

Skills

What conclusions can be drawn about Huawei from its SWOT analysis?

Many businesses look for Huawei SWOT analysis because the company has established itself as a significant player in the telecommunications industry, which is fast-paced and extremely competitive. Huawei has garnered plaudits for its cutting-edge products and wide-ranging worldwide presence.  

A detailed Huawei SWOT analysis could reveal more about Huawei’s internal advantages and disadvantages as well as the external opportunities and dangers it faces. By understanding these elements, we may be able to learn a lot about Huawei’s strategic position as well as its prospects for growth and success in the future. (Jessica, 2022)

Strengths of Huawei

Affordable Prices

Due to its aggressive price policy, Huawei enjoys a major competitive advantage. Although Huawei isn’t the most affordable smartphone maker on the market, it is still considerably less expensive than those high-end rivals we previously highlighted. (BUSH, 2019)

Superior Items

Huawei products are generally regarded to be of reasonably high quality despite their incredibly low costs. Huawei’s devices are noticeably better when compared to other low-cost smartphone makers, although not yet achieving the same level of quality as well-known brands like Samsung and Apple. 

This is clear from the continuously excellent reviews that Huawei’s smartphones earn on well-known retail websites like Amazon, which are frequently four stars and higher. Such raving customer reviews are proof of the excellence and craftsmanship of Huawei’s products.

Weaknesses of Huawei 

Numerous controversies

Since the company’s inception, there have been numerous disputes, which appears to be a major weakness for the brand. It also has a bad reputation on the international market. Other than scandals involving espionage, there are many others who have damaged Huawei’s reputation in several Western countries, primarily the US.

This can be attributed to the conflict between the US and China as well as the tight ties between Huawei and the Chinese government. Even now, the perception of Huawei is viewed as a major problem for the company.

Struggling in US Market 

the largest smartphone market in the world, and Huawei is poorly positioned there. Being unable to establish a presence in the US, the world’s largest smartphone market, is another major brand issue for Huawei

The majority of US consumers avoid buying Huawei mobile devices. Huawei doesn’t have a strong brand presence in the US, Canada, or Britain despite being the subject of extensive probes in these nations. The company’s market presence and reputation have declined over time in the US. 

Additionally, the US government is still steadfast in its efforts to obstruct Huawei’s progress and restrict its expansion within the US market.

Opportunities of Huawei 

Emergence of 5G and AI technologies

Huawei has identified numerous opportunities using its research and development. As a dominant participant in the mobile sector, the company has also noticed a significant advantage in 5G technology.

The organisation has to focus more on 5G and AI, and it has already been successful in studying 5G technology. Both the AI and 5G technologies are profitable for any smartphone maker.

The group therefore believes there are many opportunities to learn more about these developments. (Projects4MBA, n.d.)

Advertising

Although Huawei is a great software firm, its marketing approach is less effective than that of its competitor. Instead of employing a marketing plan and distinct branding, the company has primarily depended on its pricing strategy and product consistency to increase its client base and market share.

It is crucial for its main business strategy as a top technology brand to have a strong marketing strategy in place. It ought to put more of an emphasis on a marketing campaign to obtain a greater brand value.

Threats of Huawei 

Highly Concurrent Market 

Despite holding a strong position in the world’s smartphone market, Huawei cannot afford to relax. Competitor businesses like Apple, Xiaomi, Samsung, and others work hard to keep up their competitive edge. Huawei must be alert and constantly innovate in order to stay ahead of the competition in this dynamic and ever-changing sector. 

To maintain its position in the increasingly competitive smartphone market, Huawei must continue to adapt, foresee market trends, and offer attractive products and services. To maintain its position, the brand should therefore be investing in R & D. (Swot&PestelAnalysis, n.d.)

A Rise in Labour Prices

Huawei was able to provide cellphones of lower quality because of the low cost of labour. However, the company now finds it challenging to control its costs and provide the goods at a cheaper price due to recent changes made to the labour rules by the Chinese government.

Conclusion

We have learned important things about Huawei’s strengths, weaknesses, opportunities, and threats through a thorough SWOT analysis of Huawei. Even if the corporation has cutting-edge technology, a sizable global footprint, and a wide range of products, it still has to deal with disputes, security worries, and market dependencies. 

Huawei can successfully navigate the competitive landscape, keep innovating, and prosper in the telecommunications sector by utilising its strengths, seizing on new possibilities, and proactively addressing its shortcomings and dangers. Huawei’s capacity to adjust and stay ahead of the curve as the market changes will be essential to securing its long-term success.

References

BUSH, T. (2019, April 12). SWOT Analysis of Huawei: Tackling Competition in Smartphone Market. Retrieved from https://pestleanalysis.com/swot-analysis-of-huawei/

Jessica. (2022, April 14). How You Can Complete Your Assignment in 5 Steps? Retrieved from ukssignmenthelp.uk: https://www.ukassignmenthelp.uk/how-you-can-complete-your-assignment-in-5-steps/

Projects4MBA. (n.d.). SWOT Analysis of Huawei. Retrieved from https://www.projects4mba.com/swot-analysis-of-huawei/4773/

Swot&PestelAnalysis. (n.d.). SWOT Analysis of Huawei. Retrieved from https://swotandpestleanalysis.com/swot-analysis-of-huawei/