Answer

1. Marketing Analysis of Huawei

   Introduction

   • Huawei Technologies Co LTD is a Chinese telecommunication company.
   • Its primary services are designing, developing, and selling information and communications technology (ICT) devices and infrastructure.
   • Huawei is currently a leading player in the global ICT market.
   • Their commitment is to bring digital technology to all organizations, homes, and individuals worldwide.
   • With increasing globalization, Huawei is forced to consider the global market as a key space.
   • It also has to cope with increasing local competition in the Chinese market.

   Introduction

   Huawei Technologies Company Limited is a Chinese telecommunication company whose headquarters are in Shenzhen, Guangdong. The company’s primary services are designing, developing, and selling information and communications technology (ICT) devices and infrastructure. Having been founded in 1987, Huawei has grown to become a leading player in the global ICT market.  Their commitment is to bring digital technology to all organizations, homes, and individuals worldwide.  The company maintains an open collaboration, which enables it to partner with various players in the sector and thereby create significant value for its clients.  However, with increasing globalization, Huawei is forced to consider the global market as a key space while also needing to find ways to cope with increasing local competition in the Chinese market. As such, this paper explains Huawei’s market conditions, potential concerns, and solutions for managing them.

   Organizational Concerns

   • Huawei is currently having problems related to various segments of its business model.
   • There is increasing competition from significant players lead by Apple and Samsung.
   • Huawei has lost its geographical production advantages.
   • It faces implementation challenges for the development of 5G technology(Balding, 2019).
   • Cultural challenges in serving global markets.
   • Increasing diversity in business challenges its local workforce.

   Organizational concerns

   Huawei is currently having problems related to various segments of its business model. Primarily, there is increasing competition from significant players lead by Apple and Samsung. What makes this a concern for Huawei is the fact that the two other market leaders have penetrated the Chinese market and even managed to set up production facilities in China. As such, Huawei has lost its production advantages, such as low production costs and limited expenses involved in serving the Chinese market.  Another problem for Huawei is the development of 5G technology. Whereas local instantiation has no issues, penetration of international markets such as the US is still in doubt as the country banned Hawaii citing security reasons (Balding, 2019).  The growth of the company to serve global markets has elicited cultural challenges as the firm now has to manufacture products for different markets based on their cultural preferences. As such, the company is grappling with changing the cultural orientation of most of its employees, especially in China, to help it appreciate diversity.

   Marketing Goals

   • Huawei’s primary business goal is

    to become competitive in its industry of operation while building trust with its clients as a means of surviving marketing competition.

   • The business objective leads to five main marketing goals that  comprise;
   • Raising the company’s brand awareness.
   • Increasing customer value.
   • Enhancing customer satisfaction while meeting all their demands.
   • Increasing organizational sales
   • Acquire larger market share

   Marketing Goals

   Huawei’s primary business goal is to become competitive in its industry of operation while building trust with its clients as a means of surviving marketing competition. The business objective leads to five main marketing goals that shape the company’s promotional approaches. Primarily, the firm’s marketing goals is to raise its brand awareness. Even though Huawei is a market leader in Asia, new markets in continents like Africa are a target for the company’s brand growth.  Another marketing goal is to increase customer value. In this regard, the company seeks to enhance customer satisfaction while meeting all their demands.  Increasing organizational sales is also a core marketing goals as it has a direct relationship to revenue generation. The need to acquire market share is also a marketing goal for Huawei and is also the reason for using the low pricing strategy.

   Marketing Strategy

   • Huawei uses a differentiation marketing strategy.
   • It utilizes segmentation, targeting, and positioning (STP) in its approach to the market.
   • Differentiation enables an organization to compete with others in the same industry using other techniques rather than prices.
   • For Huawei, the strategy allows it to cater to the needs of different categories of consumers (Faisal, 2016). 
   • Segmentation helps categorize clients based on their needs.

   Marketing Strategy

   Huawei uses a differentiation marketing strategy. In this regard, the company utilizes segmentation, targeting, and positioning (STP) in its approach to the market. Notably, differentiation as a marketing strategy enables an organization to compete with others in the same industry using other techniques rather than prices. For Huawei, the differentiation strategy allows it to cater to the needs of different categories of consumers (Faisal, 2016).  In this regard, segmentation helps categorize clients based on their needs. As such, the company manages to satisfy all customers despite their differences by grouping them based on their unique needs.  Currently, the company operates in various sectors of consumer products. As such, it can offer enterprise solutions to markets needing them while selling phones to markets that only require phones.  Consequently, the company’s brand name continues to grow.

   Market Position

   • 2020 has seen Huawei emerge as a market leader.
   • It recorded the highest number of phones sold abroad.
   • The fact is based on the 20 percent market share Huawei holds.
   • Globally, Huawei has the third-largest share of modular data.
   • In China, Huawei holds 17% of the total market share.
   • On the market, Huawei’s itself as a low-cost quality provider.

   Market Position

   2020 has seen Huawei emerge as a market leader regarding the number of phones sold abroad.  The fact is based on the 20 percent market share Huawei holds.  Globally, Huawei has the third-largest share of modular data behind Apple and Samsung. In China, Huawei holds 17% of the total market share, enabling it to be the leading telecommunication company in the region. Despite this, Huawei’s market positioning is derived from its strategy in which it positions itself as a low-cost quality provider.  Moreover, the company has positioned itself as a telecommunication infrastructure service provider. Therefore, in situations where buyers are not interested in the company’s core products, Huawei is often willing to offer them support services such as Qualcomm.

   Segmentation: Market Segments

   • The leading segment is based on demographic segmentation.
     • analyzes its clients’ specific features, including age, education,
   • Geographic segmentation is also used by the company.
     • Helps in targeting international markets.
   • Psychographic segmentation
     • Operating in emerging markets
   • Benefits segmentation- seen in the channel strategy
   • Uses the volume segmentation
     • Reflected in its use of the low-cost, high penetration price strategy.

    

   Segmentation: Market Segments

   Huawei uses various technological approaches, including big data, to segment its customers. In this regard, the leading segment is based on demographic segmentation. Ideally, the company analyzes its clients’ specific features, including age, education, gender, income, and household sizes, to determine differences between their markets. Geographic segmentation is also used by the company, especially in targeting international markets. For instance, the company is committed to changing its current marketing strategies in Spain to ensure its market share grows from the current 3%. Huawei operations in emerging markets, especially in Africa, indicates the use of psychographic segmentation. Ideally, the company develops products that marry well with the personalities, lifestyle, and interests of the involved populations. The channel strategy used by Huawei is a product of its benefits strategy. In this regard, Huawei serves other telecommunication companies intending to generate value over time and not just for profits.  The company also uses the volume segmentation approach, especially in its use of the low-cost, high penetration price strategy.

   Market Penetration: Pricing Strategy

   • Huawei generates penetration using pricing strategies for new markets.
   • The approach helps it to acquire new customers.
   • The price strategy is part of the segmentation approach by the company.
   • The products are often priced low below the prices of competitors.
   • Effective promotional strategies support the price strategies.
   • Profit is generated based on the economies of scale (Jin and Yin,2019).

   Market penetration: Pricing Strategy

   The marketing strategy for Huawei utilizes price variations to enable it to acquire new customers. Ideally, the price strategy is part of the segmentation approach by the company. In this regard, Huawei generates penetration using pricing strategies for new markets. In this regard, the products are often priced low below the prices of competitors.  Moreover, effective promotional strategies support the price strategies that help the firm occupy a new market or increase its market share quickly.  In this regard, profit is generated based on the economies of scale.  As per Jin and Yin (2019), Huawei sells many products at the same time at lower prices and generates more profits as compared to competitors that sell a limited amount of products at high prices.

   Targeting: Channel Strategy

   • Huawei provides communication and hardware equipment solutions to both individuals and organizations.
   • Thus, the company can serve other telecommunications firms.
   • The approach allows the company to create a new market segment.
   • Interaction with other organizations influences cooperation.
   • Cooperation expands Huawei’s share in the consumer electronics market.
   • Targeting: Channel strategy
   • Huawei provides communication and hardware equipment solutions to both individuals and organizations. As such, the company can serve other telecommunications firms, especially those operating at a lower scale. The approach allows the company to create a new market segment. Moreover, interaction with other organizations influences cooperation, which expands Huawei’s market share in the consumer electronics market. By selling to other telecommunication players in other markets such as Europe, Huawei managers penetrate and have a presence in these markets, albeit subtly.  To support the channel strategy, Huawei has changed some of its philosophies. For instance, it moved to “joint innovation” from “leading innovation.”

   Factors Influencing Marketing Practices

   • High market volatility
   • Competition
   • Consumer behavior.
   • Market segmentation.
   • Ethical considerations.
   • Increasing diversity.
   • Cost

   Factors influencing marketing practices

   The market volatility that characterizes contemporary industries is a leading source of concern for Huawei regarding its marketing practices. Initially, the company only considered the quality of products and consumers’ accessibility to develop its marketing activities. However, recent experiences mean that competition is the leading influencer of marketing practices and strategies to utilize. Another consideration is consumer behavior. In this regard, the marketing practices have to marry with consumers’ preferences to elicit a proper response. Another factor influencing marketing performance is segmentation. Notably, promotional activities have to be well prepared for the right category. Moreover, ethical considerations and increasing diversity mean that the company must be conscious of the differences in the markets and observe consumer rights. Lastly, price influences marketing practices as some are costly, which, if implemented, may adversely affect the revenue of the company.

   Huawei’s Marketing Issue

   • The recent political spat between Chain and the United States seems to have dragged in Huawei.
   • President Trump made some targeted attacks on Huawei.
   • Trump banned some Huawei products and services.
   • The attack was mainly detrimental to Huawei’s 5G plans.
   • Huawei faces the daunting task of maintaining its hold in the US market.
   • It risks losing most of its customers from the United States.

   Huawei’s Marketing Issue

   The recent political spat between Chain and the United States seems to have dragged in Huawei. Being one of the leading companies from China operating in the United States, President Trump made some targeted attacks on Huawei, such as banning some of its services as well as updates. Consequently, most of the company’s operations got halted. The attack was mainly detrimental to Huawei’s 5G plans. The challenge is unique, as it has never been experienced previously.   Therefore, as a business, Huawei faces the daunting task of maintaining its hold in the US market. On the low side, it risks losing most of its customers from the United States. From a marketing perspective, the concern is significant as promotional activities without services are likely to be futile.

   Recommended Solutions

   • Use social media to engage clients.
     • Assure clients of continuing support through social media interaction.
   • Enhance existing service portfolio.
     • focus on optimizing customer experiences for available services.
   • Enhance its segmentation, targeting, and positioning (STP) approach.
     • to target consumers in direct engagement

   Recommended Solutions

   The first approach to solving Huawei’s issues in the United States is using social media to engage its clients.  In this regard, the company can offer assurances to the customers that it will continue to support their current systems even if upgrades are not available. Another solution is enhancing its existing service portfolio. Ideally, Huawei offers various products ranging from phones to consumer electronics. Therefore, to maintain the US market, the company can focus on optimizing customer experiences and satisfaction regarding products and services that have not been affected by Washington’s directives on the company’s products. Lastly, Huawei can enhance its segmentation, targeting, and positioning (STP) approach to target consumers in direct engagement to position the company as a quality service provided that is a victim of differing political ideologies between the US and China.

   Social Media Marketing

   • Huawei can use social media marketing to engage its US clientele.
   • It can publish promotional posts on social media to connect with its clients.
   • The targeted clientele category is the millennials who are fond of social media
   • Recognize social media’s value in promoting customer interaction.
   • Social media can offer Huawei an option to cut on its marketing.
   • Social media marketing activities are less costly.

   Social Media Marketing

   Huawei can use social media marketing to engage its US clientele. Primarily, the company can publish promotional posts on various social media platforms as a way of connecting with its clients. Notably, the targeted clientele category is the millennials who are fond of social media. Moreover, the company can recognize social media’s value in promoting customer interaction as most people respond to social media posts and messages with ease (Alves, Fernandes, & Raposo, 2016). Also, social media can offer Huawei an option to cut on its marketing expenses as most marketing posts on social media are not charged. Regarding banning some of Huawei’s services and updates in the United States, the firm can use social media to communicate its side of the story while actively engaging their clients in the US.

   Conclusion

   • Conclusively, Huawei is a leading telecommunication company in China with a 17% market share.
   • Globally, it is the leader in the number of phones shipped.
   • As an organization, Huawei faces significant challenges comprising;
     • growing competition
     • challenges in implementing its 5G technology,
     • cultural challenges in global markets,
     • the growing cost of operating a business.
   • Primarily, these issues can be solved by having effective marketing practices guided by a well-developed marketing strategy.
   • Currently, Huawei utilizes the segmentation, targeting, and positioning approach.
   • The company can utilize social media to remain engaged with its clients in the US at the moment.

   Conclusion

   Conclusively, Huawei is a leading telecommunication company in China with a 17% market share. Globally, it is the leader in the number of phones shipped.  As an organization, Huawei faces significant challenges that comprise growing competition in both local and international markets, challenges in implementing its 5G technology, especially in the US, cultural challenges in global markets, and the growing cost of operating a business. Primarily, these issues can be solved by having effective marketing practices guided by a well-developed marketing strategy. Currently, Huawei utilizes the segmentation, targeting, and positioning approach, which allows it to segment its users into five segments, target their users, and position as a low-cost quality service provides.  Regarding the limit on the company’s operations in the US, the company can utilize social media to remain engaged with its clients in the US while also maximizing the products and services that have not been affected by the degrading diplomatic relationships between China the US.

Answer

Assessing Risk and Reward

The Nissan Motor Company is one of the leading automobile makers in the world. The Japanese carmaker has primarily enjoyed a successful run, allowing it to enter various regional and international markets such as the United States. However, the changing business environment was not favorable to the company in 2019. Notably, the cooperation recorded losses amounting to 7.8%. The experience pushed the management into making tough decisions, requiring almost all of its North American workforce to go for unpaid leaves.

In late 2019, the company announced that the decline in sales necessitated a two-day unpaid leave for the North American workers. The stated days for the vacation were January 2 and 3^rd    (Chicago Tribune, 2019).  Notably, this move was a crucial decision for the company because of its conflicting impacts. Whereas on the positive side, it could help the firm minimize expenses, it threatened to affect the public perception of the company regarding employee welfare.

The rewards for the decision involved cutting expenses by not paying the workers on leave, which eventually would translate into reduced expenses. Another reward was that the decision could allow the company to optimize performance by evaluating employee performances then developing new milestones. However, on the low side, the company risked affecting its public image and brand name, especially in the North American market. As per Chakravorti (2010), the way an organization treats its employees influences the firm’s public perception. Thus, Nissan risked eliciting a negative public perception. With a distorted public image, the company could fail to revive its declining sales.

I would have advised the management of Nissan to utilize the Predictive Analytic perspective in determining the right decision to take. Ideally, the approach tries to predict what might happen in the future if particular decisions or actions are undertaken at the moment (Traymbak & Aggarwal, 2019). Looking at the situation at Nissan, the company needed to develop a goal such as increasing sales. After that, they would have made decisions aimed at realizing the set goal. In this regard, the predicted outcome could give the management an overview of whether more risks existed or significant rewards could be realized.

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