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Analysis of Huawei's Enterprise Strategy: Huawei's Integration Strategy

(1.) horizontal integration strategy

Huawei's main business scope is switching, transmission, wireless and data communication telecommunications products, providing network equipment, services and solutions to customers around the world in the telecommunications field.

(2) vertical integration strategy

Huawei faces fierce competition and strong strength in the communication information market. In the process of competition, Huawei can always be in an invincible position and take the initiative. This is due to the implementation of Huawei's intelligent vertical integration strategy.

The implementation of forward integration strategy can help Huawei control sales and distribution channels, and help to improve the situation of inventory backlog and output decline.

(3) Backward integration strategy

That is, the production and operation of raw materials, auxiliary materials, raw materials, packaging and services needed for the original business development of enterprises. Huawei has successively established Huawei Technologies Co., Ltd., Hisilicon Company and Huawei Symantec Company. From raw materials, research and development, cooperation with distributors, technical support and services. Huawei has greater control over the cost, availability and quality of raw materials. At the same time, we have many independent property rights and differentiated products and services, and we have enough confidence and strength when negotiating with communication giants such as Cisco, Ericsson, Nortel and Bell. 3), diversification strategy-the choice of related diversification strategy.

Huawei is constantly exploring new products and technologies in the telecommunications industry. Analysis of Huawei's Enterprise Strategy: Competitive Strategy

Huawei did not take the road of diversified development, but chose to be only an equipment supplier and chose a professional development strategy. Its positioning is "to become a world-class and leading supplier of communication equipment." It was written into Huawei's basic law and settled in the form of a system.

1. Outsourcing non-core business

Professional product system

Huawei's low-cost strategy: make full use of China's cheap and abundant labor resources and raw material costs. So that the manufactured products are cheap and beautiful.

Has long-term cost and price advantages;

Second, the advantage of lower operating costs;

Third, the input cost of outsourcing resources is low; Fourth, technological progress to further reduce production costs; 5. Process reengineering. 1998, IBM was hired to rebuild the whole Huawei enterprise from the aspects of organization management, corporate culture and product line.

Further improve the efficiency of enterprises and reduce production costs and operating costs.

By providing excellent service and differentiated after-sales service advantages, Huawei's response speed is very fast. Make their products have strong competitiveness.

Mixed strategy

Hybrid strategy refers to the strategy of providing high-quality differentiated products at low cost and providing super-value to establish competitive advantage. Not selling is the most expensive, selling is the best.

This strategy chosen by Huawei has its own advantages. In 2004, Huawei won the favor of Neuf, the second largest network operator in France, at a price 20% lower than that of its competitors.

For differentiated products in terms of price advantage, Huawei also directly invests, co-owns shares or shares in the other party when appropriate, and integrates with partners at the capital level to provide value-added services for buyers.