Battling Perceptions: The Next Challenge in Huawei's Globalization Agenda




Case Details Case Introduction 1 Case Introduction 2 Case Excerpts

ABSTRACT

This case discusses the journey of Shenzhen-based networking and telecommunications equipment and services company, Huawei Technologies Ltd. (Huawei), and its emergence as a global brand from China. Huawei entered the Chinese telecommunications equipment market in 1987. Despite its late entry, it quickly made its presence felt, outwitting giant international telecommunications companies in the process. The company was also hugely successful in the developing markets such as Russia and Africa. However, Huawei faced several challenges in mature markets such as the US, Australia, and Europe.

In 2011, the company started facing opposition in the US, Australia, and the European Union for its telecom equipment. Both the US and Australia alleged that Huawei entered backdoors into its establishments at the behest of the Beijing government, giving China a better chance to spy on the US. The allegations had their roots in the past association of Ren Zhengfei (Ren), Huawei’s founder, with the PLA...

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Issues

The case is structured to achieve the following teaching objectives:

  • Analyze the effectiveness of Huawei’s lobbying efforts for tackling espionage accusations against the company.
  • Design a cohesive global corporate communications program to proactively address media speculation about Ren’s close ties with the PLA..
  • Tackle concerns related to lack of openness and transparency at Huawei.
  • Apply strategies that help Huawei achieve brand recognition in the intensely competitive US smartphone market and enterprise market.
  • Apply strategies for Huawei to become a US$ 100 billion company by 2020.
Contents
INTRODUCTION
HUAWEI – FROM SHENZHEN TO GLOBAL MARKETS
LEADING THE CHINESE TELECOM EQUIPMENT MARKET
ENTERING GLOBAL MARKETS
THE CHALLENGES
HUAWEI’S RESPONSE
BYPASSING CHALLENGES IN TELECOM MARKET – FOCUSING ON NEW ENGINES OF GROWTH
THE RESULTS
LOOKING AHEAD
EXHIBITS

Keywords

Huawei Technologies Ltd, Ren Zhengfei,People’s Liberation Army, Chinese telecommunications market, National security, Espionage, Wolf culture, Cyber security, Smartphone market, Consumer business,Enterprise business, Internationalization strategy, National broadband network, Cisco,Xiaomi, Apple, Samsung, Google, ZTE Corporation

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