Subject category:
Strategy and General Management
Published by:
Asia Case Research Centre, The University of Hong Kong
Length: 17 pages
Data source: Published sources
Abstract
Huawei was China''s largest telecommunication equipment provider. It boasted an annual revenue of US$6.7 billion in 2005, of which 60% came from international sales. Globally, Huawei had a strong position in the market for low-end routers and switches, offering products that were 40% cheaper than its competitors. However, unlike the threat from most Chinese companies, Huawei''s threat came not from low-cost manufacturing but from low-cost engineering. Can Huawei leverage its strengths to climb up the technology value chain, replicating its success in low-end telecom networking in high-technology products and services? Can it build a global brand?
About
Abstract
Huawei was China''s largest telecommunication equipment provider. It boasted an annual revenue of US$6.7 billion in 2005, of which 60% came from international sales. Globally, Huawei had a strong position in the market for low-end routers and switches, offering products that were 40% cheaper than its competitors. However, unlike the threat from most Chinese companies, Huawei''s threat came not from low-cost manufacturing but from low-cost engineering. Can Huawei leverage its strengths to climb up the technology value chain, replicating its success in low-end telecom networking in high-technology products and services? Can it build a global brand?