The strategy of an enterprise is a guiding development rule that focuses on the long-term and adapts to the internal and external conditions of the company. I
The strategy of an enterprise is a guiding development rule that focuses on the long-term and adapts to the internal and external conditions of the company. It points out the company's living condition, management policy and development direction in the competitive environment, and then determines its important work content and competition mode, so strategy is very important to enterprises. The following is what I collected for you. Welcome to read the reference!
Huawei Enterprise Strategy Analysis Paper 1 Strategic Analysis of Huawei Company
Enterprise development strategy is a kind of enterprise strategy, a strategy for enterprise development, and a strategy for solving overall, long-term and basic problems in enterprise development. In today's increasingly fierce market competition, the development of enterprises has become a problem that more and more entrepreneurs think about. Nowadays, more and more enterprises are pouring into the market, which also proves that more and more enterprises are dying. So how can enterprises achieve sustainable development?
Taking Huawei as an example, this paper focuses on the analysis of its development environment and strategy customization, summarizes how Huawei formulates correct and effective development strategies on the road of development, points out the importance of development strategies, and describes the differences between Huawei and its competitors and the differences of development strategy models. Finally, choose and evaluate Huawei's development strategy!
Foreword Today, with the globalization of information product production, countries' participation and intervention in the information industry are further strengthened, which is manifested in policy and financial support; Protection in international economy and diplomacy; Directly participate in organizing the formulation of information technology strategic development plan and supervise its implementation. It embodies the strong intention of * * to compete for technological advantages in 2 1 century, and to maintain and enhance economic competitiveness and national defense strength.
Huawei Technologies Co., Ltd. is a private technology company headquartered in Shenzhen, Guangdong Province, China, which produces and sells telecommunication equipment. Huawei Technologies Co., Ltd. was established in Shenzhen, China on 1987. It is the world's largest telecom network solution provider and the second largest telecom base station equipment supplier. 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. In the list of the top 500 private enterprises in China released on 20 13, Huawei Technologies Co., Ltd. ranked first. At the same time, Huawei is the only unlisted company in the Fortune 500 and the sixth largest mobile phone manufacturer in the world. The problem to be studied in this paper is to analyze Huawei's environment, industry, market and other aspects, to study Huawei's enterprise development strategy and the difficulties it faces in development, to evaluate its chosen development strategy, and to show that enterprises can greatly promote their competitiveness by formulating and selecting strategies suitable for their own development. Customized development strategy is very necessary.
This paper takes Huawei's development strategy as the research object, applies the basic theory and analysis method of enterprise strategic management, embarks from the industry characteristics, and combines the current international industry development situation, domestic communication industry development situation and communication technology development trend to deeply discuss the formation mechanism and implementation method of the company's development strategy. Firstly, this paper expounds the external environment and internal resource capacity of Huawei in detail, and summarizes and analyzes the opportunities, threats, advantages and disadvantages faced by Huawei. After determining its core competitiveness, it comprehensively uses the strategic management analysis methods SWOT analysis and PEST analysis to analyze and evaluate the company's strategy and determine the significance of Huawei's development strategy. Finally, some ideas and suggestions are put forward for Huawei's future development strategy.
Overview of Huawei 1. 1
1. 1. 1 introduction of Huawei
Established in 1987, Huawei Technologies Co., Ltd. specializes in the research, development, production and sales of communication network technologies and products, and is committed to providing telecom operators with network solutions in the fields of fixed network, mobile network, data communication network and value-added services. It is one of the major suppliers in China telecom market and has successfully entered the global telecom market. At present, we are focusing on 3GWCDMA/CDMA2000/TD-SCDMA, NGN, optical network, xDSL, data communication and other fields, hoping to become a global leader in these fields through continuous investment and efforts. Huawei currently has more than 24,000 employees, including more than 3,400 foreign employees. In 20 13, China ranked 3 15 in Fortune Global 500, up 36 places from the previous year. Huawei is the world's leading provider of information and communication solutions. The business of Huawei Technologies Co., Ltd. covers mobile, broadband, IP, optical network, telecom terminals and other fields. , and is committed to providing all-IP convergence solutions, so that end users can enjoy a consistent communication experience through any terminal anytime and anywhere, enriching people's communication and life.
Huawei has established 8 regional departments, 55 representative offices and technical service centers around the world. Its sales and service network covers the whole world and serves more than 270 operators. Its products have entered more than 70 countries such as Germany, France, Spain, Brazil, Britain, the United States, Japan, Egypt, Singapore and South Korea. According to the statistics of Dittbemer, the global market share of Huawei NGNNext Generation Network is 18%, ranking first in the world, and the global shipment of switching access equipment ranks first for three consecutive years. According to Gartner's statistics, Huawei's DSLDigital subscriber line ranks second in the world in terms of digital subscriber line shipments; According to RHK statistics, Huawei's optical network market share is the second in the world; Huawei is one of the few vendors in the world to realize the commercialization of 3GWCDMA. It has fully mastered the core technologies of WCDMA, and has taken the lead in successful commercialization in the United Arab Emirates, Hong Kong, Mauritius and other regions, ranking among the first camp of WCDMA and becoming one of the few manufacturers in the world to provide a complete set of commercial systems.
Huawei has carried out in-depth cooperation with Heyi Group, PricewaterhouseCoopers, FHG and other companies in integrated product development IPD, integrated supply chain ISC, human resource management, financial management and quality control. After years of management improvement and transformation, as well as the implementation of customer-driven development processes and supply chain processes, Huawei has a differentiated competitive advantage in line with customer interests and further consolidated its core competitiveness in the industry.
1.2 Huawei's external environment analysis
Macro-environmental analysis, pest analysis
Macro-environment, also known as macro-environment, refers to various macro-forces that affect all industries and enterprises. Analysis of macro-environmental factors, different industries and enterprises will have different specific contents according to their own characteristics and business needs, but generally four external environmental factors affecting enterprises should be analyzed: politics, economy, technology and society. Simply put, it is called pest analysis.
1 political factors-political and legal environment
In the telecom equipment industry, with the support of * * * *, the telecom equipment industry has gone through the private network switching stage, GSM stage and 3G stage, achieving leapfrog catch-up and opening the door for China enterprises to enter the telecom market. After 2000, Huawei completed the initial task of market development and formed a relatively complete global market system and product system. At this time, Huawei urgently needs the support of China's export credit. Like ZTE, Huawei has actively participated in entrepreneurs' delegations led by China leaders, and almost every visit has brought China's export credit policy to promote bilateral cooperation and expand the sales of enterprises in China, with the focus on supporting major cooperation projects.
2 economic factors-economic environment
Socioeconomic structure-industrial structure. The rapid development of global information economy and Internet industry provides rare opportunities and huge development space for communication equipment manufacturing industry, making it one of the fastest growing industries at present. In foreign markets, the financial crisis that began in 2008 led to financial difficulties in western rich countries, which frequently reduced investment in communication equipment, which brought opportunities to Huawei equipment with low product prices.
3 social and cultural factors-social and cultural environment
In recent years, China has gradually grown into the world's largest mobile phone market, but the mobile phone manufacturers in China are always catching up with the world's major brands, both in the domestic and foreign markets. 20 10 this situation has finally changed. The following figures can illustrate the problem: according to the statistics of market research company iSuppli, Shenzhen Huawei ranks ninth.
4 technical factors-technical environment
With the advent of digital existence, on the basis that broadband networks will become more popular, everyone's social attributes will be further enlarged and the world will be flatter. Within the scope of authorization, anyone can get the information he needs at any time and place on an equal footing, free from the information sea and barriers. At the same time, interactive video has become the main form of information. The development of information carrier has experienced the process of "words, pictures, sounds and videos", and video is the most intuitive form of information expression. The improvement of ICT infrastructure, the popularization of broadband and the cloudization of services will push people to change from "voice+text" to "video and image".
1.2.2 Huawei's external opportunities and threats
1 opportunity
First of all, Huawei is in a fast-growing communications industry with a huge market. People's demand for communication is increasing day by day, and the telecom equipment manufacturing industry has huge excess profits.
Second, relying on the persistence of the military background, the state's support policies, the accumulated financial and material resources since the reform and opening up, and the substantial growth of China's overall economy, we can say that Huawei's opportunities are given by the market, but the market relies on competition and strength, so the opportunities are reserved for those who are prepared.
Thirdly, the low cost of R&D and the low cost of human resources in China have brought huge cost advantages to Huawei. According to statistics, the per capita expenditure of Huawei's R&D department is $25,000/year, while that of European enterprises is about $654.38+$200,000 ~ $654.38+$500,000/year, which is six times that of Huawei. The average annual working time of Huawei R&D personnel is about 2750 hours, while that of European R&D personnel is about 1300 ~ 1400 hours, and the per capita investment time ratio is 2: 1. Therefore, Huawei responds quickly in terms of product response speed and customer service, which is its core advantage of defeating the strong with the weak. It also makes Huawei's delivery cost and delivery efficiency form a good reputation in the industry.
Fourth, in recent ten years, the economic development of developed countries has been greatly inferior to before, and the products made in China with good quality and low price are very popular. Under this opportunity, Huawei and ZTE stand out, not only sharing the Asia-Pacific market, but also using their "cost-effectiveness ratio" to further increase their market share in Europe and America.
Fifth, China has given many support policies to the communication industry. Huawei is the first private enterprise in China's communication industry, so the policy support provided by the state and * * * has played a vital role.
2 threats
First, threats from the communications industry. At present, there is a saying that the communication equipment manufacturing industry has gradually become a sunset industry, and the surplus of technical capabilities and services and the inertia of end users' inherent consumption habits make the profitability of telecom operators decline, which will inevitably affect the income and profits of equipment manufacturers.
Second, pressure from RMB appreciation and inflation. At present, more than 75% of Huawei's sales revenue comes from overseas. If the RMB continues to appreciate, it will definitely reduce Huawei's competitiveness.
Third, the threat from peer competition. Through mergers and acquisitions, telecom equipment manufacturers gradually formed a competitive group, but obviously Huawei was excluded. The joint suppression from competitors, if Huawei is not prepared enough, is likely to hurt the bones.
1.3 Huawei's internal environment analysis
1.3. 1 Huawei's core competitiveness
Huawei's unique core competitiveness, which can't be copied, is ranked in order of importance: first, research and development capabilities and product differences; Second, corporate culture; Third, the general customer relationship.
1 R&D function
A low-cost research and development. In China, where 3 million engineering students graduate every year, Huawei can recruit excellent students to work for Huawei. In China, the salary of an R&D engineer is one-third to one-quarter that of Europe, and the legal working hours are 1.5 times that of European engineers. At the same time, China people are diligent and often work overtime. More than 80% of R&D expenses are human resource costs, so Huawei's investment in R&D is 1 yuan, which is equivalent to the investment of European companies 10 yuan. In other words, our R&D cost is one tenth of that of European companies.
B high-quality research and development. Judging from the formulation of "Huawei" knowledge strategy, it is not less than 10% of the company's income every year, and 10% of R&D funds are invested in new technology pre-research; Judging from the number of R&D personnel, R&D employees exceed 5 1 1,000, accounting for 46% of the total number of the company, of which more than 1 1,400 are engaged in medium and long-term technical research; From the research and development results: Up to now, Huawei has applied for 40 148 patents worldwide.
2 corporate culture
Huawei culture is mainly two points: first, the culture of struggle; Second, don't let Lei Feng suffer. To put it simply: as long as you struggle, you will have good returns and opportunities for development and growth. When I was in a hurry to interview and visit Huawei, I wrote down two slogans of the company: "Going to work on time means getting into work on time" and "Repeating simple things is an expert, and simply doing repetitive things is a winner".
3 General customer relationship
Huawei advocates universal customer relationship. Unlike western companies that only focus on decision makers, Huawei has established comprehensive customer relationships with decision makers, technicians, users, business departments and financial departments. In the international market, Huawei has also inherited and promoted this common customer relationship working method. Regardless of the operator's testers or ordinary engineers, directors, CTO, CEO and Huawei employees have all-round contact. Let customers feel respected.
The first point of Huawei's leadership quality model is to develop customers' ability, which is defined as the behavioral characteristics of trying to understand customers' needs and actively satisfying them in various ways.
1.3.2 Huawei's internal strengths and weaknesses
Advantages of 1
A Huawei has the most complete product line in the communication equipment manufacturing industry, which can provide the most complete end-to-end solution and "one-stop" service in the industry, eliminating the compatibility problem between different devices, not only improving the equipment utilization rate, but also saving debugging time and creating value for users.
B products have high cost performance and fast delivery. 48% of Huawei's employees work in R&D, and not less than 10% of its annual sales are invested in R&D, which ensures the company's technological leadership and reserves. At the same time, because Huawei's human resource cost is lower than that of developed countries, its products are much cheaper.
C advanced production technology system shortens the production cycle of products and improves production efficiency and quality. The complete supplier certification process ensures the quality of products and engineering implementation and wins the relative competitive advantage of fast, high quality and low cost.
Corporate culture and execution. Huawei's "wolf-like" culture emphasizes unity, dedication, learning, innovation, efficiency and fairness, and emphasizes enterprising and performance-oriented. Huawei has a unique set of human resource management methods, including new employee training, employee assessment methods, criticism and self-criticism, posters and slogans, etc., which ensures Huawei to maintain its "wolf culture" and "professionalism".
Two shortcomings
A brand problem. People in many developed countries don't trust products made in China. In their view, China goods are synonymous with low price and inferior quality, which is very unfavorable to the sales of Huawei telecom equipment. In addition, the internationalization strategy of "countryside surrounding cities" sacrifices Huawei's brand image to some extent, which is not conducive to the promotion of its brand value.
The basic links of b R&D are weak, with many improvements and innovations and few original innovations. Although Huawei has been the unit that applied for the most patents in China for several years in a row, there are basically no original products among these numerous patents.
C marketing model. In the initial stage of internationalization, Huawei used the sales team sent by China to adopt the same direct selling mode as China, and directly negotiated with telecom operators. But practice has proved that this is more effective in developing countries outside South America, and even less feasible in developed countries.
2. Selection and formulation of Huawei's development strategy
2. 1 Huawei's development strategy choice
Huawei will continue to adhere to the principle of "customer-centric", gradually establish the comprehensive advantages of three business areas: telecommunication network, global service and terminal, provide customers with cloud, management and terminal products and solutions, and help operators to increase their revenue ARPU, enhance their bandwidth competitiveness and reduce their total cost of ownership, thus achieving commercial success. The boundaries of traditional industries are increasingly blurred, and the information technology industry and the telecommunications industry are moving towards integration. The telecommunications industry is standing at a new starting point, pushing other traditional industries to develop more efficiently, and it is undergoing far-reaching changes-from focusing on voice to focusing on data, from focusing on pipelines to focusing on content, from people to connecting machines, from traditional telecommunications services to integrated information and communication technology services.
2. 1. 1 market leading strategy
The market is the source of all work. Without the success of the market, the company can not only develop competitive products and leading technologies, but also realize all strategies.
1 Market is the life of Huawei. Huawei's success today is mainly due to its market and technical strength. In fact, Huawei has only gradually taken the lead in technology in recent years. A few years ago, the products and technologies were far from perfect, but Huawei's marketing staff were able to sell poor products. Therefore, there used to be a saying in the industry to describe Huawei: "First-class market, second-class service and third-rate products." We know that even if the product is not good, it can be made up by strong customer relationship. The establishment of customer relationship is obtained by paying close attention to customer needs and responding quickly, that is, establishing different types of interest relationships with customers through various channels.
The market is the core of all work. First of all, it is reflected in product research and development, such as whether product research and development is approved, how to determine product design ideas and R&D signboards, how to choose product technical standards, how to improve and perfect products, etc., all of which are based on market prospects and market feedback.
2. 1.2 core technology strategy
Huawei is a high-tech company composed of "marketing team +R&D center", which is engaged in the research and development and sales of the most advanced IT and communication technologies in the world. Therefore, core technology and product research and development are the two most critical systems to ensure Huawei's success. Ensuring the world's leading core technology is one of Huawei's four strategies, because Huawei firmly believes that the competitiveness of products comes from core technology. R&D investment has reached the world leading level.
In order to continuously improve the innovation ability around customer needs, Huawei R&D Center has long insisted on investing no less than 65,438+00% of sales revenue in R&D, and further increased its investment in recent two years. In 2005, Huawei invested 4.7 billion yuan in R&D, accounting for 14% of the total market sales in the previous year, ranking first among the top 100 electronic enterprises in China in terms of total amount and proportion. Huawei also insists on 65,438+00% R&D investment for pre-research and continuous research and tracking of new technologies and new fields.
2. 1.3 full shareholding strategy
The unique shareholding system has played a great role in the history of Huawei's development. Without this system, Huawei could not survive and develop to this day. Therefore, the full shareholding strategy is one of Huawei's four successful strategies. However, this system is the most controversial topic in Huawei and has always been one of the focuses of social attention. The most successful incentive method of "drawing eggs to hatch chickens" in the world
2. 1.4 internationalization strategy
Only when a company internationalizes from management system, process, supply chain, production, R&D, human resources and other aspects to form a complementary, adaptive and supportive internationalization system can it finally realize the comprehensive internationalization of the market.
Like developing countries, the first step is to internationalize the supply chain and then gradually localize production. After Huawei won the first pot of gold for PABX PBX agent, the huge market capacity and high profit return in the communication industry forced Huawei to set up its own technical team, began to research and develop its own brand products, gradually mastered the production technology of PABX, and began to sprint to carrier-level products with larger market and higher capacity, which was called "office program-controlled exchange" in the industry.
At present, most of Huawei's materials can be obtained from the domestic market, so the cost of material procurement is greatly reduced, and the company's supply chain has naturally changed from "internationalization" to "localization". This is a successful example for developing countries to obtain international industrial transfer. "Localization" refers to the success of China enterprises by virtue of their strength in the international competition environment, which is completely different from the administrative monopoly that all supply chains had to come from China before the reform and opening up.
2.2 Huawei's development strategy effect analysis
1 Huawei's financial situation
In 20 13 years, Huawei's sales revenue reached185.2 billion RMB, up 24. 1% year-on-year. This is mainly due to the substantial growth of Huawei's overseas sales revenue and the balanced and rapid development of telecommunications networks, terminals and service industries. The net profit reached 23.8 billion RMB, and the profit rate was 65,438+02.8%. At the same time, Huawei realized a cash flow of 28.5 billion yuan from operating activities, which will help the company and customers seize the market opportunities brought by industry integration and achieve sustained and stable growth. See figure 4- 1. As can be seen from the figure, Huawei's sales revenue, operating profit and cash flow from operating activities are increasing year by year.
2 Huawei's market share
In 20 13 years, Huawei's balanced global layout enabled the company to achieve rapid and steady development in the fields of telecommunication networks, global services and terminal services, and achieved annual sales revenue of 185,1760,000 yuan, a year-on-year increase of 24.2%. The domestic market achieved sales revenue of 647,765,438+0 million yuan, a year-on-year increase of 9.7%. Due to the decrease in investment of major telecom operators, the growth rate of sales revenue slowed down, but it maintained a stable market position.
3. Suggestions for improvement of Huawei's development strategy
While Huawei ranks among the top telecom equipment manufacturers in the world, it also pulls the entire telecom equipment manufacturing market from a high-profit era to a low-profit era. Due to the intervention of Huawei and ZTE, the cost of purchasing equipment for China telecom operators has been greatly reduced. While defeating the opponent, I also brought myself into a realm that I had to face: how to survive in the increasingly fierce competition.
3. 1 strategic suggestions for high-level talents
Ren Zheng Fei encouraged employees to start businesses at Huawei through his personal authority and inflammatory words, but it was a dangerous signal. Once employees lose trust in him, Huawei will "fall apart". At the same time, this is a short-sighted behavior. Don't rely too much on entrepreneurial leaders, train professional managers to take charge of senior management positions, and appropriately increase airborne troops like Kai-Fu Lee.
3.2 TD strategic recommendations
Huawei really shouldn't give up such a big market as TDS-CDMA, but should give up some of the company's views on TD and change the company's strategy on TD, that is, catch up on TD, and Huawei should still have time.
3.3 Suggestions for cooperation with ZTE
At present, there is news in the market that Huawei and ZTE are fighting a price war overseas, which is beneficial and inspiring. Where there is Huawei, there is ZTE, which is put together and finally falls into the hands of Chinese enterprises. However, it has increased internal friction, and at the same time, due to the merger of international telecom giants, the process of catching up with Huawei and ZTE has been lengthened again. If these two companies form a consortium, it will save the cost of R&D, have strong R&D teams all over the world, and form a consortium to avoid price wars. "
3.4 humanized management suggestions
Huawei should pay more attention to the true connotation of humanization. In addition to material needs, people have other levels of needs. Material comes first, spirit comes second. In terms of cultural assumptions, Huawei needs to consider other needs of employees as social people in addition to material needs.
Concluding remarks
Through the study of Huawei's development strategy, we can draw the following conclusions: With the increasingly close global economic integration, with the continuous development of market economy and the influx of foreign-funded enterprises, China's communication market will face fierce competition in the process of maturity. How can Huawei survive in the crisis, develop in the competition, quickly occupy the dominant position in the market and improve its market competitiveness? This makes the company must pay attention to the management of enterprise strategy and the selection and formulation of enterprise development strategy.
Based on a detailed and thorough analysis of the internal and external environment faced by Huawei, this paper determines the enterprise goals and formulates development strategic measures suitable for the company's development, namely, marketization strategy, core technology strategy, full shareholding strategy and internationalization strategy. At the same time, it puts forward suggestions for Huawei to improve its development strategy, that is, high-level talent strategy, TD strategy, cooperation with ZTE and humanized management, in order to have a better enterprise development strategy for Huawei.
Because the research of enterprise development strategy in this paper is based on the full understanding of Huawei and domestic communication industry, using the knowledge of strategic management, and adopting the method of combining theory with practice for research and analysis. It is hoped that through the research on the development strategy of this enterprise and the improvement suggestions put forward, Huawei will be helped to overcome the difficulties and dangers in development and continue to grow in the competition.
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