Huawei Technologies SWOT & PESTLE Analysis

Strength

1. Global leader in networking equipment: Globally No.1 in terms of sales of networking equipment. Huawei has held onto this position since 2014 when it overtook Sweden’s Ericsson. Huawei is disrupting smartphone market oligopoly of Apple and Samsung. Not only it is the leader in its home country, but over the past 2 years, Huawei has climbed to the top in Finland too, selling over 10 times as many phones as apple. Huawei is the leader in smartphone sales in Portugal and the Netherlands and the second biggest in Spain, Italy, Hungary, and Poland. While the industry enjoys only single-digit growth, Huawei clocked its shipments growth by 30% and revenue growth by 40% for 2016.

2. Focus on Innovation and R&D: Huawei has kept its focus on innovation from its early days. Be it World’s first 5G implementation on power grids or Hybrid Cloud Core Network or even IoT, Huawei has been the undisputed pioneer in network communications. Huawei was the recipient of ‘Best IoV Innovation’ Award at World Intelligent Vehicle Conference 2017. Open Innovation has been at the core of the company, and the company has invested at least 10% of their annual revenues in R&D every year for the past 26 years. Its continued investment has produced positive results, giving it the ability to provide our customers with innovative products and more efficient services.

3. Strong intellectual property bank: Long-term R&D investment has made Huawei one of the world’s largest patent holders. As of December 31, 2018, its total number of granted patents reached 87,805. Among them, 11,152 core patents were granted in the United States. Huawei’s patented technologies provide significant value to information society on a global scale, including the United States. We actively protect our own intellectual property rights and respect the rights of others. It has signed cross-licensing agreements with many companies around the world.

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Weakness

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Opportunity

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Threat

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Political

1. Trump’s Protectionist policy: Donald Trump has been talking about making America great again. In fact, globalization has been at the root of making the United States what it is today. But Trump’s policies can have an adverse impact on the global economy, thus impacting businesses across the globe.

2. Help from Chinese Government: Chinese cell phone producers have profited, and still do, from government bolsters. For instance, they have possessed the capacity to use the assembling framework in Shenzhen, a purpose-built city constructed that obliges gadget creators and along these lines manufacture cell phones with leader standard specs effortlessly and at very low cost.

3. Arrest of CFO and ban due to political pressure: The federal prosecutors in the US have fiercely inflicted Huawei with a string of crimes in 2018, charging the organization and its executives of trade secrets larceny, money-laundering, impeding investigations and defrauding banks to elude US sanctions. The chief financial officer of Huawei, Meng Wanzhou was also arrested in Canada in Dec 2018 and faces extradition to the United States. US is also campaigning to convince its allies from shutting Huawei technology for usage in critical infrastructure, especially the Five Eyes, a group of five English speaking countries (US, Canada, New Zealand, Australia, Great Britain) whose intelligence agencies share information on a large scale. Thus the stern western political resistance may hurt Huawei’s revenue.

Economic

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Social

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Technological

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Legal

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Environmental

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