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Huawei Technologies SWOT & PESTLE Analysis

ID : 52285053| May 2019| 16 pages

COMPANY PROFILE -Huawei Technologies

Business Sector :Telecommunications

Operating Geography :China, Asia, Global

About Huawei Technologies :

Huawei Technologies is a leading global information and communications technology (ICT) solutions provider headquartered in China. Founded in 1987, Huawei's products, and services and ICT solutions, are consumed in more than 170 countries. With a workforce of 180,000 employees and sales volume of over USD 39 billion , Huawei is committed to leveraging the power of Internet of Things(IoT), cloud computing, big data, and software-defined networking (SDN) to help customers across industries, including energy, transportation, government and public sectors, manufacturing and financial services, to achieve their goal of digital upgrade.

Huawei Technologies Revenue :

603.62 billion yuan - FY 31, March 2017 (y-o-y growth +15.7%)
521.57 billion yuan - FY 31, March 2016

Ownership / Major shareholders :

Huawei technologies is an employee-owned company. Ren Zhengfei, the president of Huawei retains a direct 1.42 percent share of the company. The remainder of the shares is held by “a trade union committee tied to the affiliate Shenzhen Huawei Investment Holding Co.” This body represents Huawei’s employee shareholders. About 64 percent of Huawei staff participate in this scheme, and hold what the company calls “virtual restricted shares.” (As on April 2018)

Competitive Analysis of Huawei Technologies

The SWOT analysis for Huawei Technologies is presented below:
1. Emerging leader
2. Focus on Innovation
3. Cost leadership
4. Technical Advantage
1. The MADE IN CHINA preconception
2. Failure to Enter into the US
1. Untapped Indian market
2. 5G Opportunities
1. Threat of New Entrants
2. Huawei facing ban in western countries:
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Detailed SWOT Analysis of Huawei Technologies


1. Emerging leader:Globally No.1 in terms of sales of networking equipment. Huawei had held onto this position since 2014 when it overtook Sweden’s Ericsson. Huawei is disrupting smart phone 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: 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.

3. Cost leadership: Huawei has been competing with Xiami with its lower-priced Honor which is exclusively available online, thus cutting on retailer costs. At the same time, it has been competing with Apple and Samsung with its high-quality higher-priced Huawei-branded phones.

4. Technical Advantage: Huawei makes all products of wireless communication, that is, the chipsets inside smart phones that interact with the networks, the telecom networks that transmit signals, and the handsets themselves. Huawei leverages this advantage by offering discount coupons to carriers who buy Huawei's network communication products, thus making them a sweet deal on the smart phones.


This section is available only in the 'Complete Report' on purchase.


This section is available only in the 'Complete Report' on purchase.


This section is available only in the 'Complete Report' on purchase.

Major Competitors :

Major Brands :

  • Huawei Products( Smartphones,Tablets,PCs,Other Accessories)
  • Huawei Cloud
  • Fusion Solar Smart PV
  • Honor
  • Huawei Marine

Key Business Segments / Diversification :

Huawei Technologies
Wireless network Fixed line Consultancy servicesMultimedia technology
Enterprise network infrastructureElectronic and communication devices Cloud

Recent Acquisition / Mergers / Alliance / Joint Ventures / Divestitures :

Open Table Preview
Business Segment
Objective/Synergy Achieved
HexaTierCloud Data Services, database security and compliance solutions2016AcquisitionHuawei acquired HexaTier at $42 million and will use HexaTier to set up a research and development center in Israel for databases in the cloud.
Toga Networks IT Networking Company2016AcquisitionHuawei which is the world’s biggest telecom vendor has reportedly acquired Toga Networks at more than $100 million .Toga Networks is seemingly developing products for the telecom industry and has also branched out into cloud storage systems and applications for data centers, so it’s entirely in line with Huawei’s line of business.
AmartusSoftware developer and SDN service solutions provider2015AcquisitionThe acquisition of will enable Huawei to accelerate its SDN (Software-Defined Networking) roadmap and improve its competitiveness in SDN solutions and services by introducing fast business innovation and multi-vendor capability.
Source: Company website and other reliable sources. The detailed table is available in the Complete Report.
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Check Out Analysis of Other Relevant Companies

References used in Huawei Technologies Analysis Report

1. Huawei Annual Report 2018 -

2. Huawei Revenue Jumped 39 Percent to $27 Billion in First Quarter -

3. Huawei Revenue Jumped 39 Percent to $27 Billion in First Quarter -

4. Huawei Research & Development -

5. Huawei- our philosophy: relentless pursuit of innovation in an open ecosystem -

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Huawei Technologies SWOT & PESTLE Analysis - SWOT & PESTLE.COM

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In-text: (SWOT &, 2020)

Copyrights and Disclaimer

Huawei Technologies SWOT and PESTLE analysis has been conducted by Nikhil Dargan and reviewed by senior analysts from Barakaat Consulting.

Copyright of Huawei Technologies SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

Huawei Technologies SWOT & PESTLE Analysis
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