In Shenzhen, Guangdong province, Huawei Technologies is a worldwide technology company with Chinese roots. Ren Zhengfei founded Huawei in 1987, and it has since grown to be a well-known international supplier of ICT infrastructure and smart goods. The company boasts a 207,000-strong workforce and a presence in more than 170 countries and territories. Its services are available to a sizable community of more than three billion people globally. committed to fostering a fully integrated and intelligent society by promoting digital accessibility for people, homes, and institutions (Windsor, 2020). The target market for this good or service is made up of people between the ages of 20 and 49, and it includes both sexes. The middle-class group makes up the primary demography and is a sizeable and productive cohort.
Huawei’s Sustainability
According to Shmatko et al. (2021), Huawei’s business vision and objectives include making it easier for every person, home, and organization to use the internet in order to build a globally interconnected, intelligent world. In line with its business vision and goal, Huawei has developed a sustainability plan that expressly places sustainability at the top of the agenda. This strategy has been thoughtfully included into the company’s overall development plan. With regard to its four strategic pillars of sustainability, which include digital inclusiveness, security and trustworthiness, environmental preservation, and the pursuit of a robust and harmonious ecosystem, Huawei has made tremendous strides in the preceding years (Ditlev-Simonsen, 2021). Furthermore, Huawei has significantly advanced the Sustainable Development Goals (SDGs) of the United Nations.
Huawei’s Compliance with UN’s Sustainable Development Goals
Weiland et al. (2021) note that the Sustainable Development Goals (SDGs), a set of 17 objectives, were established by the United Nations (UN) in 2015. The United Nations’ member states have formally approved a plan and subsequently agreed to support many other strategies that seek to promote economic growth and address a range of social challenges, including education, health, social protection, and employment opportunities. The strategy asks for group initiatives to advance strategic methods to achieve these objectives (Berning, 2019). The design of Huawei’s selection of smartphones and electronic products stresses cutting down on energy use and carbon emissions. Berning (2019) acknowledges that the utilization of environmentally sustainable materials, such as bioplastic and soy-based ink, along with the incorporation of reduced packaging and recyclable waste, have primarily aided in the advancement towards achieving Sustainable Development Goals (SDGs) 12 – Responsible Consumption and Production, and 3 – Good Health and Well-being.
Huawei’s cloud computing and big data solutions help with digital transformation projects’ affordability, accessibility, and effectiveness. This include updating the electrical system, streamlining processes in the supply chain, or keeping an eye on earthquakes. Huawei’s contribution to the accomplishment of Sustainable Development Goals (SDGs) 9 and 11 may be seen in the improvement of urban sustainability and security as well as in the provision of mobile money solutions in the lack of conventional banking services. According to Berning (2019), these objectives are relevant to the fields of infrastructure, industry, innovation, and sustainable urbanization. In addition, Huawei has reaffirmed its unwavering commitment to moral purchasing and the growth of sustainable supply chain management as a signatory to the United Nations Global Compact.
Huawei’s big data and cloud computing solutions promote the efficiency, affordability, and cost-effectiveness of the digital transformation process. For instance, supply chain management, seismic monitoring, or modernizing the electrical system. Examples of how Huawei contributes to SDGs 9 (Industry, innovation, and infrastructure) and 11 (Sustainable cities and communities) include making cities more safe and sustainable and offering mobile money solutions when banking services are unavailable (Berning, 2019). Additionally, Huawei has pledged its unshakable commitment to ethical procurement and the development of sustainable supply chain management as a member of the United Nations Global Compact. Huawei’s active involvement in enhancing lithium-ion batteries’ upstream cobalt supply chain. Suppliers must uphold human rights, mitigate reasonable handling risks, and carry out quantifiable due diligence in the procurement and traceability of minerals (Berning, 2019). Huawei significantly advances SDGs 12, 13, and 8, which pertain to responsible consumption and production, climate action, decent work, and economic growth.
Huawei’s utilization of ICT, such as enterprise networks and data center switches, benefits businesses and communities. Solving problems with rural networks, public safety, healthcare, transportation, retail logistics, and education is possible. One instance of Huawei obtaining fast internet services to remote places in Thailand, Ghana, and Mexico (Berning, 2019). This reduced access prices, greatly extended network coverage, and facilitated distant learning. Thus, achieving SDGs 8 (Decent work and economic growth) and 4 (Quality education).
SWOT Analysis Of Huawei
Strengths
Huawei’s primary commitment has been towards research and innovative practices, with a notable emphasis on this objective. Annually, the brand allocates a substantial sum towards research and development endeavors. With a significant emphasis on research and development, Huawei has positioned itself as a prominent player in smartphone production and the advancement of 5G technology (Xi, 2021). Additionally, the corporation has allocated considerable resources toward developing artificial intelligence technology, resulting in swift expansion prospects.
Weaknesses
Huawei is a prominent and influential brand in contemporary society. However, the brand performs inferior to industry rivals such as Samsung, Apple, Google, and iPhone. The enterprise exhibits varying levels of market participation within distinct market segments. Luxury brand consumers perceive Huawei as a subpar Chinese brand. The company’s market stronghold is more significant in Europe compared to the United States. Huawei is a highly esteemed brand with a considerable net worth in the billions. By omitting all expenditures, the resulting funds available for future undertakings of the company become significantly limited. Companies such as Apple and Samsung have significant financial worth, constituting trillions of dollars in market value (Furr et al., 2022). Hence, due to financial limitations, the organization must exercise prudence and caution in undertaking strategic initiatives.
Opportunities
Huawei is a formidable technology company with a weaker marketing strategy than its competitors. The brand has primarily relied upon its pricing strategy and product quality to expand its customer base and market share rather than a comprehensive marketing strategy and consistent branding. As a prominent and established brand in the technology sector, the organization must have a robust marketing strategy to support its core business objectives (Lin, 2022). The primary emphasis should be devising an effective marketing approach to elevate the brand’s overall reputation and image.
Threat
The present organization has garnered recognition as a leading brand within the smartphone industry. Despite this, the company has a multitude of competitors from both foreign and domestic markets. Among these competitors are prominent entities such as Apple, Xiaomi, and Samsung (Szunomar et al., 2020). Therefore, numerous players in the smartphone industry represent a considerable menace to the organization.
Recommendations
Huawei should devise divergent pricing tactics to cater to diverse markets. In the context of pricing rivalry in international markets, adopting strategies that promote low-cost products may lead to swift market expansion. Nevertheless, such an approach may also trigger price wars, thus undermining profitability and the overall competitiveness of the brand. When considering various factors, such as comprehensive price positioning, implementing flexible pricing strategies can effectively enhance the price competitiveness of enterprises while simultaneously preventing the ill effects of harmful price competition. Huawei should leverage its internal technical team to acquire knowledge of cutting-edge technologies globally (Dmitrijevs, 2020). By doing so, the company can enhance the autonomy of its products, respond proactively to market demands, cultivate brand value, and optimize production efficiency through advanced technologies. Furthermore, incorporating such technological prowess can reduce production costs, bolster product profitability, and augment overall labor productivity.
Dmitrijevs ( 2020) acknowledge that the optimal marketing channel selection process warrants Huawei’s critical examination of the prevailing market conditions and contemplation of the anticipated developmental trajectory of the marketing environment. Significantly, Huawei’s chosen channel must exhibit an adaptable capacity in response to the dynamic international market conditions.
Conclusion
Sustainability holds significant importance for Huawei, with a particular focus on value creation. Huawei aims to establish an exemplary sustainability management system, operate with ethical conduct and adherence to regulatory requirements, and foster conscientious business expansion. Henceforth, the sustainability strategy enacted by the organization is diverse, safe, environmentally friendly, and purposeful operations. The primary outcomes suggest that Huawei can advance sustainable development at a global scale through three distinct categories: its products and services, business operations, and social contributions.
References
Berning, S. C. (2019, October 1). The Role of Multinational Enterprises in Achieving Sustainable Development – The Case of Huawei. European Journal of Sustainable Development, 8(3), 194. https://doi.org/10.14207/ejsd.2019.v8n3p194
Ditlev-Simonsen, C. D. (2021, December 15). Key Tools for Social- and Environmental Performance, and the UN Sustainable Development Goals (SDGs). A Guide to Sustainable Corporate Responsibility, 61–101. https://doi.org/10.1007/978-3-030-88203-7_4
Dmitrijevs, R. (2020). Research on Marketing Strategy of Huawei Mobile Phone in European Market. Open Journal of Business and Management, 08(03), 1138–1150. https://doi.org/10.4236/ojbm.2020.83073
Furr, N., Ozcan, P., & Eisenhardt, K. M. (2022, May 23). What is digital transformation? Core tensions facing established companies on the global stage. Global Strategy Journal, 12(4), 595–618. https://doi.org/10.1002/gsj.1442
Lin, H. (2022). The Strategy for Huawei Going Global. Proceedings of the 2022 7th International Conference on Social Sciences and Economic Development (ICSSED 2022). https://doi.org/10.2991/aebmr.k.220405.057
Shmatko, A., Barykin, S., Sergeev, S., & Thirakulwanich, A. (2021, March). Modeling a Logistics Hub Using the Digital Footprint Method—The Implication for Open Innovation Engineering. Journal of Open Innovation: Technology, Market, and Complexity, 7(1), 59. https://doi.org/10.3390/joitmc7010059
Szunomar, A., Karas, J., & Oehler-Sincai, I. M. (2020). Huawei in Central and Eastern Europe: Strategic Partner or Potential Threat? Huawei Goes Global, 105–128. https://doi.org/10.1007/978-3-030-47579-6_5
Weiland, S., Hickmann, T., Lederer, M., Marquardt, J., & Schwindenhammer, S. (2021, February 26). The 2030 Agenda for Sustainable Development: Transformative Change through the Sustainable Development Goals? Politics and Governance, 9(1), 90–95. https://doi.org/10.17645/pag.v9i1.4191
Windsor, D. (2020). Analyzing Huawei as a Chinese Multinational Operating in Three Worlds: Domestic Policy Instrument, Global Economic Agent, and Foreign Policy Target. Huawei Goes Global, pp. 171–193. https://doi.org/10.1007/978-3-030-47564-2_8
Xi, W. (2021, March). Analysis of Huawei’s International Marketing Strategy Based on the SWOT Analysis. 2021 2nd International Conference on E-Commerce and Internet Technology (ECIT). https://doi.org/10.1109/ecit52743.2021.00041
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