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International Business Case -Huawei
Transcript of International Business Case -Huawei
By the end of 1998, grew to revenues of $1.2 billion and 60,000 employees
Other than CEO's 14 year military service, Huawei receives a very small contract from the Chinese government. BACKGROUND COMPETITIVE ADVANTAGES Institution based
view Huawei LESSONS FROM
INTERNATIONALIZATION CONSTRAINTS Viewed as a threat to many major companies (i.e. Cisco Systems)
Accused of spying on United States intelligence and security
Many states/towns/communities are not allowed to use Huawei for their communications systems per the U.S. Government Question 1: From a resource based view, where do Huawei's competitve advantages come from? Question 2: From an institution-based view, what are the lessons Huawei can draw from its internationalization? Question 3: What constraints do Huawei face in its internationalization? Question 4: How do Huawei and other EE MNEs establish themselves successfully against the fierce resistance of MNEs from developed economies? -Invest in R&D
-Around 35,000 employees engaged in R&D can help to project and fulfill customer needs 26,880 Patent
applications Chinese workers New technologies Strategic alliances
Intel, and others Success and Failure of Firms Constrained by Institutions
Institutions Means Rules of the Game
Includes Laws and Values
Institutions Govern Behavior in a Nation Company Influenced by Intellectual Property Laws in America
Sought Opportunities in European Union
Opportunities Sought Due to Deregulation Inward-Outward Linkages
Individual vs. Cooperative