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International Business Case -Huawei

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Julia Prevost

on 27 November 2012

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Transcript of International Business Case -Huawei

To enrich life through communication. To focus on our customers' market challenges and needs by providing excellent ICT solutions and services in order to consistently create maximum value for our customers. MISSION Huawei will remain focused on customer needs as we continue to innovate, openly cooperate with partners, and deepen our commitment to providing telecom carriers, enterprises, and consumers with integrated solutions, products, and services. We will also continue to enhance the user experience, create maximum value for our customers, enrich life through communication, and improve work efficiency. STRATEGY As of 2011, Huawei had filed 36,344 patent applications in China, 10,650 under the Patent Cooperation Treaty (PCT), and 10,978 patent applications overseas. We have been awarded 23,522 patent licenses, 90% of which are invention patents. RESEARCH & DEVELOPMENT Founded in 1998 by CEO Ren Zhengfei with a $9 million bank loan and 30 employees

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
with Vodafone,
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
Cisco Lawsuit
Sought Opportunities in European Union
Opportunities Sought Due to Deregulation Inward-Outward Linkages

RBV framework

Individual vs. Cooperative

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