The Globalization of an Asian Firm - Huawei

The Globalization of an Asian Firm - Huawei
Table of Contents TOC \o "1-3" \h \z \u Huawei: Brief Introduction and Reasons for Globalization PAGEREF _Toc111304659 \h 3Issues Facing Huawei in its Globalization Efforts PAGEREF _Toc111304660 \h 4PESTEL Analysis PAGEREF _Toc111304661 \h 5Competition within the Telecommunication Equipment Industry PAGEREF _Toc111304662 \h 8Michael Porter’s Five Forces Analysis of the Telecommunication Equipment Industry PAGEREF _Toc111304663 \h 8Competitive Advantage of China PAGEREF _Toc111304664 \h 11Michael Porter’s Diamond Model of National Advantages PAGEREF _Toc111304665 \h 11Government’s Role in Improving a Country’s Competitive Position PAGEREF _Toc111304666 \h 13Recommendation to Improve Huawei’s Competitive Position PAGEREF _Toc111304667 \h 13Conclusion PAGEREF _Toc111304668 \h 15References PAGEREF _Toc111304669 \h 16
The Globalization of Huawei
Globalization has enhanced the growth of firms in international markets. When firms saturate their domestic market, the next strategic step is usually penetration of foreign markets. The main driver of the globalization of firms is the acquisition of new markets and strategic resources that are otherwise limited or unavailable in the home country (Lattemann et al., 2017). Globalization allows firms to become integrated into the global economy. To achieve this, firms must have a global competitive advantage (Lattemann et al., 2017). This research paper will explore the globalization of Huawei Technologies by identifying its reasons for globalization, the issues it faces in penetrating the US market, and its competitive advantage as a Chinese firm. Further, the paper will provide recommendations on how Huawei can become a competitive firm in the global market.
Huawei: Brief Introduction and Reasons for Globalization
Huawei Technologies is a Chinese global firm in the telecommunication equipment industry. It provides smart devices and other information and communication (ICT) infrastructure in over 170 countries (Huawei, n.d.). The company was established in 1987 with the mission and vision of ensuring that individuals, homes, and organizations are digitally connected. It employs about 195 000 employees to serve over 3 billion people worldwide (Huawei, n.d.). Consequently, it has become a major player in the global economy.
Huawei continues to pursue its globalization strategy to become a world leader in the telecommunication equipment industry (Huawei, n.d.). As a firm in an emerging economy, Huawei has proven that it can compete in the international arena with other companies from developed economies. According to Guo et al. (2019), Huawei is a latecomer multinational company that is slowly catching up with iconic multinational firms by transferring its competitive advantages from its home country to foreign countries. Also, Huawei has been pushed towards globalization by the home market saturation. According to Guo et al. (2019), Huawei has been forced to compete for market shares with other multinational companies from advanced countries serving the Chinese market. As Huawei grew in China, it became evident that it needed to make a strategic decision to expand internationally because the Chinese market was slowly...