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Case Study - Huawei

In: Business and Management

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Case Study - Huawei

Question 1
This question requirement bases on Huawei’s resources, capabilities, and finally finds out its core competencies. It uses the internal analysis to find out the strengths and weakness of a film. Resources create organizational capabilities when group together and, capabilities result in the core competencies of a firm, and these are the foundation of competitive advantage.

1. Resources
1. Tangible resources
1.1.1 Physical
Shenzhen, China is Huawei’s headquarter, and had worldscale research institutes and customer support and training centers. It also built a worldwide sales and services network that include eight regional headquarters and 55 branch offices outside China.

1.1.2 Financial
Huawei had the financial support from the Export-Import Bank of China and the state-owned Chinese Development Bank. Therefore, Huawei received a US10 billion facility for its international expansion over five years and US$600 million respectively.

1.1.3 Human Resources
Huawei was started with only 200 production staff and 500 R&D staff. Until 2005, there were 24,000 employees and 48 percent were worked in R&D. There were more than 85% of Huawei’s employees had a higher degree or bachelors, and about 60 percent owned a PhD or masters, which means the education level of Huawei’s employees were higher than the average workers in China.

1.2 Intangible resources
Huawei held more than 8000 patent applications, and 800 were applied in more than 20 countries and territories in 2004. It may enhance the value of its products.

There were more than 400 million people communicating in China used Huawei's networks, it had 25 percent market share, and supplied 80 percent of all short messaging services from China Mobile

2. Value Chain
2.1 Inbound logistics
Huawei built its strategy based on its own R&D, it put in lots of labor resources and…...

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