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The Analysis of HUAWEI’s International Marketing Principles

2020-10-10 来源: 51Due教员组 类别: Essay范文


面为大家整理一篇优秀的essay代写范文 --The Analysis of HUAWEI’s International Marketing Principles,文章讲述华为技术有限公司,成立于1988年,总部设在中国深圳。是一家由生产和销售电信设备的员工拥有的技术公司,是一家电信网络解决方案的提供商。华为的主要业务范围包括交换、传输、无线和数据通信等一系列产品。为全球客户提供网络设备、服务和解决方案,是电信领域的知名供应商。目前,华为的产品和解决方案已在全球140多个国家使用,覆盖了世界三分之一的人口。

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1.The Basic Theory of International Marketing

1.1 Theory of Target Market Positioning

International marketing is for goods and services delivered to the consumers or users in more than one country, which is the activities that are in process of planning, pricing, promotion and guidance, in order to obtain the profit. International marketing is different from domestic marketing. International marketing activities are carried out in more than one country, which has explained its complexity and diversity.

US marketing scientist Wendell Smith proposed Market Segmentation concept in 1956.After that, the concept was further developed by the American Marketing experts Philip Kotler who eventually formed a mature STP theory that market segmentation (Segmentation), target markets (Targeting) and market positioning (Positioning).

1.2 Theory of International Marketing Strategy

Jerome McCarthy in his book Basic Marketing (1960) generally summarized marketing strategy elements into four categories: Product, Price, Place and Promotion. That is what we have known the famous 4Ps. In 1967, Philip • Kotler in his book Marketing Management further emphasized the 4Ps is the core of the marketing mix methods:

 

2. HUAWEI Company and Its International Marketing Background

2.1 The Profile of HUAWEI Company

HUAWEI Technologies Co., Ltd., a private enterprise, was established in 1988 and headquartered in Shenzhen, China. It is a technology company owned by the production and sales of telecommunications equipment employees and a provider of telecommunications network solutions. HUAWEI's main business scope includes a series of products of switching, transmission, wireless and data communications. And it has been a famous supplier in the field of telecommunications to provide network equipment, services and solutions to customers around the world. Currently, HUAWEI's products and solutions have been used in more than 140 countries worldwide, covering a third of the world population.

 

2.2 Reason of HUAWEI Entering the Overseas Market

There is fierce competition in the domestic market, and the expansion of space is very limited. Since 1995, the telecommunications market competition pattern of China has changed dramatically. The tariff of communications equipment is easier relatively, accordingly, the competition between the domestic and the international market become fiercer than before. On the one hand, the shrinking of international market directly threats the Chinese enterprises to expand the international market. On the other hand, in the case of foreign demand tightening, some giant companies of international communications equipment, inevitably, make the nascent Chinese market as its target to grab, so that they can compensate the decline leaded by the market, which undoubtedly create great competitive pressure to HUAWEI and other domestic enterprises. Since 2000, in fact, the foreign communications companies have started to make a much lower price using to compete in the domestic market with HUAWEI and other companies.

 

3. The analysis of HAUWEI Porter's Five Forces Model

According to the Harvard Business School's Michael Porter competition industry theory, there are five kinds of models of basic competitiveness in an industry, namely: The Threat of Entry, The Power of Buyers, The Power of Suppliers, The Threat of Substitutes and The Competitive Rivalry. These five forces model gather a number of different factors into a simple model, in order to analyze the basic competition in an industry.

3.1 The threat of new entrants

Currently major international communications equipment manufacturers have entered the Chinese market, to achieve localization of production. Furthermore, communications industry itself needs a high investment in the industry, which means there will be also some high barrier to the new entrants. Thus, Currently, China's telecommunications manufacturing market basically does not have a stronger competitor, what we call "the threat of new entrants' is relatively lower.

3.2 Threat of Substitutes

Due to the high replacement rate of communication technology, therefore, for China's telecommunications manufacturing enterprises, "the threat of substitutes" still relatively high. For HUAWEI, although already leading position in the industry, still need to pay attention to the competition of existing and potential alternatives. HUAWEI should increase efforts to improve the technological content of products, to make the products more competitive.

3.3 Bargaining Ability of Customers

Because of China's telecommunications equipment market is a fully competitive, the equipment manufacturers will make all their efforts to obtain the corresponding market share. As for the Chinese telecommunications manufacturing companies, they will see that with the user's own cost controlling and the competition between the equipment manufacturers, the bargaining power from the customers will become increasingly stronger. Thus, this competitiveness to HUAWEI is tremendous.

3.4 Bargaining Ability of Suppliers

According to the research, with the continuously improving of design and production levels of microelectronic components in China, the raw material supply channels of communication equipment has become broader, therefore, domestic telecommunications manufacturing companies will have more selective suppliers, and  "supplier bargaining ability." correspondingly will be weakened.

3.5 Existing threats between competitors

China's telecommunications manufacturing market is basically a fully competitive market, "competition between existing competitors" in the Chinese communications equipment market mainly refers to the competition between domestic and foreign telecommunications manufacturers. Currently, HUAWEI have faced with several old rivals like DATANG and ZTE. But due to the leadership position in the industry, these companies can make a greater impact on the market price, and play a role in establishing a good order in the industry. Because of the rapid growth of the telecommunications market, the relatively substantial profits will attract the new entrants and the existing competitors in the industry who will make HAUWEI face a great competition.

To sum up, according to a brief analysis of the "five forces model", it can be seen that HUAWEI faces the threats of entrants, the competition of existing competitors, replacing threats and bargaining power of suppliers, HUAWEI relative to major competitors has its own advantages; in the range of customer’s bargaining, HUAWEI confronts a huge competition.

 

4. Research on HUAWEI's Target Market

4.1 Market Segmentation

HUAWEI's marketing strategy has always been on the basis of market segmentation. It goes to great lengths to lean about their customers’ needs and demands. HUAWEI, with the reasonable market segmentation, understood the competition situation in the market and the customer’s satisfaction with products, moreover, developed those yet to be segmented potential parts to establish a market for their own development goals, even access to the market advantages, increase its market share.

4.2 Target Market Selection

HUAWEI began to make its determination to the telecommunications industry, and successfully make the Transformation – to achieve a strategic shift from rural to urban areas; and from traditional phones to multimedia communications market; which achieves the transition from technology to the ability of market advantages, and achieve the transformation from market challenger to market leader.

4.3 Market Positioning

In the process of carrying out any business marketing, we are faced with how to conduct a competitive market position. HUAWEI will position itself on the best communications equipment suppliers in the world, and targeting the high-level telecom operators.

 

5. HUAWEI's Marketing Strategy

5.1 Product Strategy

HUAWEI's product strategy has always been surrounded one principle: to customer demand, implement strategies of product differentiation in the first few years, although HUAWEI has invested a lot of capital and energy in the independent research and development, but completely independent research and development will only backfire. After HUAWEI was aware of this situation, and under the guidance of market direction, it first started to independently research and produce of the high-end routers, and subsequently launched GSM standard. Since the product was developed with the customer-driven market strategy, the needs of customers all reflected in the performance of the product, and the final product on the market have achieved impressive sales performance and won the majority of the rural market, GSM enable HUAWEI became the mainstream equipment supplier of China Mobile.

5.2 Place strategy

HUAWEEI took the construction of the pipeline as an important pathway in its product marketing in the early time. Different strategies on sales channel have proposed in different stages. In the initial stage, HUAWEI just put direct sales channels as their only choice, but HUAWEI have gradually built a comprehensive distribution channel platform later.

5.3 Price strategy

In the preliminary days, low-cost strategy was an important principle during the competition in the domestic and international market. After being developed to a certain stage, HUAWEI has joined into the competitive pricing method.

5.4 Promotion Strategy

Advertising is one of major tools in HUAWEI’s promotion. And maintaining a proper communication with media is also one of its promotion strategies. Meanwhile, HUAWEI attaches great importance to the brand and image building.

 

6. Summary

Since 1995, HUWEEI Technologies Co., Ltd. has started its international marketing efforts, till to 2005 the sales volume overseas has exceeded that in China, which has achieved marked success. We can draw a conclusion from all we have studied that marketing principles have great impacts on the international market competitiveness. The goal of every marketer is to create more value to customers. Selecting customers to server, choosing a value proposition and marketing management orientations are very profound. Additionally, preparing an integrated marketing plan both focusing on market mix and target market is also very important. And the product, place, price and promotion must be considered to the plan. Undoubtedly, HUAWEI will continue to be confronted with new challenges, and the new performance and the management need to be improved. Therefore, under the international market orientation, HUAWEI should combine its enterprise advantages with the implementation of marketing principles to enhance the level of the company's international operations, so as not to lag behind the world's leading technology products and solutions.

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