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Case 11:

Huawei: Ciscos Chinese


Challenger

Huawei: Ciscos Chinese Challenger


Chinese Challenger

Bisa Huawei bisa menggunakan rantai nilai teknologi, replikasi nya dengan keberhasilan dalam jaringan telekomunikasi low-end da
Mungkinkah membangun
merek global?
Problem

Root
Cause

Current
Strategy

Recommendation

persepsi pasar terhadap produk Cina berkualitas rendah.

Kemampuan teknologi masih kurangdari pemimpin pasar global. hubungan dekat Huawei
dengan militer Cina

Five Business-Level Strategies

Current Strategy

Uniqueness

Broad Target

Cost
Differentiation :

Cost Leadership :
- High skilled low cost labour
- Low product development cost

- 60% of 24.000 employee are masters /Phds


- Research centres in Shenzen + 6 other in China, Bangalore, Moscow,
Stockholme, Silicon Valley.
- Military style wolf-pack enterprise
- Global chinese relationship (Guanxi)
- Easy Access to government financial resources (military Guanxi)
Integrated Cost leadership/Differentiation:

Narrow Target

- Global image building campaign


- CRM improvement
- JVC with recognize global brand (3Com, Fujitsu)

Focus Cost Leadership :


Region:
^ Customer incentive -> free at trial charge
(france operator)
^ Initial overseas move in developing
countries

Focus Differentiation:
- Hiring local personnel to tailor technology & services
(middle-east)
- Heavy investment in 3G

Broad Target

Cost

Uniqueness

Recommendation

Cost Leadership :

Differentiation :

- Implement lean manufacturing facility


to maintain low cost production

- Improve product security functionality


- Development test bed centers in potential region to
proof product quality.

Integrated Cost leadership/Differentiation:


- Optimize JVC and joint research to improve brand

Narrow Target

- Increase R&D spending (up to 13 % of revenue)


- Marketing campaign to minimize negative impact of military connection
- Improve after sales service to match global player performance
Focus Cost Leadership :
- Improve R&D head count and skill in products
with high market demand and
/ or strong market share
- Join with global retail network to increase
sales in retail product

Focus Differentiation:
- Focus R&D investment in future technology
(WiMax, LTTE, Telco 2.0, UMTS/HSPA)
- Optimize JVC with 3 com to enter US market
(Using pure 3Com brand)
- Develop joint innovation center with global operator
(Vodafone & BT)

Five Business-Level
Strategies

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