While no concrete proof indicating its clear involvement has been found, its close relationships with the Chinese government have become a pain for the brand in the international market. According to the most recent report conduct by Statcounter globalstat in September 2020, Huawei ranks in the third position globally with a total market share of 10.58%, Samsung and Apple remain the first and second top brands with a market share of 30.58% and 24.99% respectively. PESTLE analysis is a framework which is imperative for companies such as Huawei, as it helps to understand market dynamics & improve its business continuously. A Pestel analysis of the smartphone industry. People want to be connected to the internet, and this leads to better sales. PESTLE Analysis : The PESTLE Analysis for Huawei Technologies is given below: Political Economical 1.Trump's Protectionist policy 2.Help from Chinese Government 3.Arrest of CFO and ban due to political pressure 1.Strong GDP growth in emerging markets 2.Increasing Labour Costs However, the road ahead in the area of 5G is fraught with challenges. Higher economic stability results in a higher flux of income and thus purchasing power of customer increases and customers are then willing to buy new smartphones of Huawei. The demand for technological products has steadily grown in the recent years and while internet has brought higher accessibility, smartphones have become an integral part of peoples lifestyle all over the world. While its financial position . PESTLE analysis is also referred to as PESTEL analysis. Apart from user, privacy, data security there are other areas like labor and product quality as well as environment too where compliance is essential. Here is the is PESTLE Analysis of Huawei. Were living in a very competitive world; you have to use every advantage you have in your pocket to get ahead of your competitors. The growth and proliferation of internet technology has aided the growth of international brands like Huawei. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. Other than that, hes a fun loving person. Competition in the technology industry has also grown quite intense. It puts the company in a very bad position in terms of market expansion and growth against leading competitors like Samsung and Apple. The firm can take competitive advantage by snatching the opportunities. The espionage trial began on Tuesday in Warsaw court (Ptak & Pawlak, 2021). Huawei Pestel Analysis. Huawei uses next-generation technologies to help businesses apply targeted marketing methods that increase revenue and brand awareness. In the Huawei PESTLE Analysis, the environmental elements affecting its business are as below: The technology brands need to invest in sustainability to lessen carbon footprints so that they minimize the environmental impact. No plagiarism, guaranteed! In January 2018, President Donald Trump requested the US tech companies like AT & T and Verizon to stop their dealings with Huawei completely. Looking at the company's history, Huawei was focused . Chinese people are getting richer and theyve extra money to spend. Political factors have gained a lot of importance in the field of international business in the recent years. Innovative minds will ensure quality products are manufactured. Particularly, in the technology industry, its impact is now more direct than ever. After an in-depth study of the pestle analysis of Huawei, we have realized that the company holds a strong position in the international smartphone market. This strategy has given the company a competitive advantage as it sales both to low-end and high-end users. 4. BusinessTeacher.org provide free business resources and online learning tools, perfect for helping students and professionals to develop their knowledge and gain a better understanding of different aspects of business. The demand for smartphones would probably be lower. Read our cookie policy here, https://www.theguardian.com/commentisfree/2019/jan/29/the-guardian-view-on-the-us-case-against-huawei-the-conflict-sharpens, https://www.huawei.com/en/about-huawei/sustainability/environment-protect. Huawei deals with many employees in various countries, and it should comply with the wages and labour laws for all its jurisdictions of operation. Lastly, the resources analysed are summarised as to whether . The technology industry is marked by intense competition and each major rival of Huawei invests aggressively in research and innovation to gain market share including Apple and Samsung. The PESTLE Analysis enables you to create a list of the potential issues within your macro-environment that have or could have implications for your organization. It is an important technique to understand the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) Huawei is facing in its current business environment. Huawei can win the market by bridging the tech generation gap. Huawei needs to be very precise by the patent rights as it should not hinder any other country's law and also protect its brand. The growing number of elderly people would greatly impact the growth rate of smartphones and telecom companies. Worldwide governments have grown their level of oversight and supervision of large businesses amid concerns related to user privacy and data security. Internal Analysis Huawei is very successful in the Chinese telecommunications industry because of several internal strengths that they leverage. Dual channel involve the use of both offline retailers and online distribution channels. Looking for a flexible role? Huawei P40 Pro Camera Analysis: The Huawei P40 Pro is a quad camera phone which features-. PDF | The Strategic Analysis of Huawei Investment & Holding Co., Ltd. as a capstone in the MGN512 - Strategic Management, MBA. Huawei has held onto this position since 2014 when it overtook Sweden's Ericsson. Smartphones are very good spying devices that the communist government might be using. However, Huawei has also gained a leadership position in 5G. The Chinese government has expressed its support for Huawei, while U.S. politicians have expressed their concerns about the security issues of Huawei equipment. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. China, India, and the United States remain the largest markets for smartphones with the highest number of users. It is very important that an organization considers its . Huawei is the largest telecommunications equipment manufacturer in the world, and its products are used by more than two-thirds of the worlds mobile carriers. The company has spent a considerable amount of resources on the protection and preservation of the environment and nature. The world has issues with the Chinese system of government, but Huawei has to pay the price. Primary activity: Huawei's good inbou nd logistics helped Huawei to handle 10,000 orde r lines per day Huawei is already facing criminal charges in US related to espionage and stealing trade secrets which have proved it very costly. Being the technological giant that Huawei is, the brand needs to focus on the investment in the achievement of sustainable goals. If the company doesnt pay, then the law would ban Huawei from selling its products in the UK. It has been researching 5G for more than decade and has managed to make significant advances in this area. They plan to impose restrictions on all the Chinese smart devices not to enter the US market. It makes Huawei a victim of political conflict. (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_23289101301") }), Conflict with the US & Trump Administration, Relationship b/w the US & China; Huaweis a Victim, National Security or Protection of US Companies, Environmental laws by the Chinese Government. According to a recent study, the elderly population of China aging more than 60 years old has reached approximately 255 million people. If you are looking for additional support andresources related to PESTELAnalysis, please find more PESTEL Analysisresources below: To export a reference to this article please select a referencing stye below: Our academic writing and marking services can help you! It is also important in the tech business to realize that the same trends that are happening in the current market are also occurring in other countries, both big and small. However, the company should also keep in mind that any strained relation between the two countries will adversely impact the . Legal factors have also acquired a major role in international business and the technology industry. With the companys current market share, it is unlikely that the Chinese government would seek to supplant Huawei as the worldwide provider of network equipment.if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[300,250],'howigotjob_com-leader-2','ezslot_17',199,'0','0'])};__ez_fad_position('div-gpt-ad-howigotjob_com-leader-2-0');if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[300,250],'howigotjob_com-leader-2','ezslot_18',199,'0','1'])};__ez_fad_position('div-gpt-ad-howigotjob_com-leader-2-0_1');.leader-2-multi-199{border:none!important;display:block!important;float:none!important;line-height:0;margin-bottom:7px!important;margin-left:0!important;margin-right:0!important;margin-top:7px!important;max-width:100%!important;min-height:250px;padding:0;text-align:center!important}, Your email address will not be published. Analyze the Huawei Geo external competitive environment to identify opportunities and threats. Advertisement. Therefore, any occurrence that influences the Chinese politics has a heavy impact on Huawei's profitability. It was founded in 1987 by a man named Ren Zhengfei. Huawei responded by capturing the majority of aggregate global contracts (40%) and expanding access to 45/50 of the world's largest . PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. The technology industry is the fastest growing industry worldwide and now a very large part of the international population uses internet and internet based services. 2.0 Huawei Pestle Analysis 2021 2.1 Political environment 2.1.1 Government ban from 5G network in UK 2.1.2 Tensions between China and America 2.1.3 Chinese government's loans and incentives to Chinese companies 2.2 Economic environment 2.2.1 Economic growth in the UK 2.2.2 Post-Brexit tariff regime 2.2.3 Growth of Chinese economy PESTLE Analysis of Huawei analyses the brand on its business tactics. At Oak Spring University we have updated the Huawei Toys A PESTEL Analysis is light of emerging geo strategic and geo-political factors such as Russia Ukraine war, tensions between China & Taiwan, chances of stagflation, interest rates hikes, volatility in the financial world etc. Introduction. Huawei is an international information and communication technologies provider that offers services for consumers worldwide. Furthermore, value added tax in the telecommunications sector increases the operating cost, which diminishes their profitability margins (Lu, 2016). Notesmatic uses cookies. Huawei has also focused on sustainability and invested in several areas for reducing its carbon footprint including improving resource utilization in its operations. Globally, the organisation's profitability is subject to the political climate in the respective countries. To date, it remains the only company to have been awarded a five-year, US$10 billion contract for the development of 5G radiofrequency. Thats what the US government is doing and that is to protect the US companies. One more opportunity for Huawei is the proliferation of 5G in communication technology which improves the speed and energy-saving and it also reduces the cost. PESTLE analysis helps to analyse all external factors which affect businesses (organisations or projects). This is also a reason behind the fast growth of the brand. Below are the economic factors in the PESTLE Analysis of Huawei: Though Huawei is sold globally and it is a global brand, the main market of the company is the European Union and China. The PESTLE analysis of Huawei is a six-factor analysis that uses a framework to determine the potential for and the nature of competition in the telecom equipment market. The companies are not associated with MBA Skool in any way. 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