Business Strategy Level and its Impact on Huawei Company - Case Study Example

Business by Student’s name Code+ course name Professor’s name University name City, State Date Outline the Business strategy level and its impact to the company Business strategy levels help in customer satisfaction or the work of business strategy levels is to satisfy the needs of their customers. They add or provide value to customers thus helping the business firm to gain a competitive upper hand by manipulating essential competencies in precise, discrete products or service markets. Business level strategies take into account that customers are the main foundation for an organization. This means that according to business strategy levels, customers are the most essential people in the organization (Michael 2008, p. 99). Huawei Company has adopted cost leadership strategies. These strategies have enabled the company to adopt and enact a competitive edge in the market. The company has been able to achieve this through reducing its costs and thus enabling its customers to make savings. The company offers quite a number of technological networks and also solutions that enable operators to inflate the competence of the networks of their mobile broadband. They company offers this services at a low cost that is affordable. This means that it is able to attract customers who do not have much to spend. The network services are also of quality and effective which means that customers can be able to enjoy their services at a low cost (Juan 2008, p. 100). The company has also adopted differentiation strategy in which it develops unique products such as smart phones, media pads, modems, video products etc. the company is also able to achieve product differentiation through innovation. When it manufactures unique products, customers will definitely be attracted to the product. They will then purchase the product if it is of high quality and if it is being sold at an affordable price. Huawei Company through the two strategies I have already mentioned is able to gain an upper hand in the market. It is able to attract more customers and win their hearts (Craig 2002, p. 106). The Company has also adopted another business strategy known as “focus strategy”. In this strategy the company is able to focus on markets that are narrow (David 2001, p. 99). It is able to do this by directing its resources into such markets. This in other words means that the company has quality and effective products and services that enable them to satisfy their needs in a competitive way. The company has been able to focus its telecom network services in African markets for example in Kenya where it has enabled a service provider in the country known as “safaricom” provide mobile phone services. The company has also been able to focus its products such as smart phones and media pads into competitive markets in Japan, Europe and in America. The company through this strategy has for example been able to export more than a hundred and twenty million devices all over the world. It exported cell phones that totaled to more than thirty million in Japan, Europe and American markets. Huawei Company also increases its sales in three different segments. It aims at expanding its ICT segment as well as its device and cloud segments. This is a new business strategy level for the company that will aid it in growing or expanding at its inured pace. The company along with its new business strategy also seeks to build value for its customers in the new business sections or segments. The company also intends to inflate to spaces in the new markets and gain new sources of income (McMahan 2008, pp. 78-90). This is another business strategy level that will not only see the company increasing it services for the benefit of its customers but also it will see into that the company’s source of income increases. Another strategy that the company should consider is strengthening its public relations department. There might be a public relations department but it is good if the company considered strengthening it. This will help the company to deal with whatever problems it might be facing when it comes to attracting more customers and also in dealing with weaknesses and other challenges. The strategies have a strategic impact to the company. They will ensure that the company gains more customers and that it retains its old customers also. When customers get please with services and products from the company then nothing will stop them from being loyal to the company and also encouraging other people to hire services from the company and to also buy products from the company. The strategies will also increase the source of income for the company. The company will have a large market base financed by its many customers hence earning a large income. In the long run, the company will enjoy an upper hand in the market due to its wide customer base and sources for income. 2. Outline the corporate strategy level and its impact to the company Corporate level strategy is what guides the organization or firm as a whole. It covers the tactical range of the whole organization. This is perhaps the reason as to why most organizations just opt to have corporate strategic level as its only strategic plan. Huawei company main aim in corporate strategic levels is to follow the idea that its customers and employees are the main focus and foundation for the organization. Huawei Company has come up with a corporate strategy in which it is able to enlarge its activities by manufacturing products or providing services that are similar to the products and services it currently offers. The company started manufacturing devices such as smart phones and media pads along with its telecom network services. This strategy is known as “related diversification” (Nadine 2009, pp. 66-67). The company is thus able to achieve diversification and attract more customers and enlarge its income base and market segments. This strategy enables the company to have a competitive edge over its competitors as it is able to take advantage of “economies of scale”. The company also has a corporate strategy that is based on its management roles. This strategy is aimed at improving its corporate authority structure, to improve its administrative processes and systems of appraisal (Mike 2000, pp. 98-105). This is the main corporate level strategy for the company which is supported by another corporate level strategy in which the company has implemented a scheme on employee shareholding. The scheme ensures that the company’s employees can air their views in the company and that their rights are protected and can be exercised through representatives elected by the employees. This corporate strategy brings into line the contributions made by employees and the company’s goals and objectives (Gabriel 2006, p. 88). This helps in ensuring that the company achieves success. This strategic plan ensures that the company is successful by ensuring that its employees have a place in the company through which they can make contributions to the growth of the company and also through which they can help in decision making within the company. This is a great strategic impact for the company since the company will long continue to be successful. Another strategy would be ensuring that there is proper communication and articulation of information in the company. This will ensure ease of communication and dissemination of information among the various organs in the company. 3. Define the strategy and structure issues that the firm was experiencing at the time and provide an opinion of the type of strategy you would recommend for the firm and the appropriate structure A strategy is more of a plan in which one or more goals that have been set need to be achieved through utilization of resources found in the firm or organization. The resources need to be effectually and proficiently utilized. When coming up with strategies, the company or organization has to come up with a crystal clear comprehension of the assets within it. This is because assets assist in generating more capital for the firm. Assets can be tangible or intangible. Tangible assets include land, machines, inventory; IP etc. intangible assets include human capital, strategic capital, relationship capital and structural capital. Structural and strategy issues entail both tangible and intangible issues. The company thus has to consider both tangible and intangible assets as issues when it comes to structural and strategy levels (Shiv 2012, p. 66). I would recommend that the company increases the production of its products such as smart phones and media pads. This is because there is a new demand in the market for smart phones and media pads. If the company would be able to increase its production on these and sell at affordable prices then they would have come up with a great strategy. I would also recommend a structure that incorporates all communication machinery that will be aimed at ensuring there is good teamwork. This is the best structure because when communication is enhanced and information flows easily in the company it will be able to meet its goals and objectives (Keith 2012, p. 79). 4. List the strengths, weaknesses, opportunities and threats of your firm (SWOT analysis). In your answer explain each of the components of SWOT in some detail See Appendix A for SWOT analysis 5. What new strategies do you feel that your firm should move towards given the outcomes from your SWOT in question 4? Huawei Company is a company that needs to adopt policies that are based on its strengths and its opportunities. The company has no choice as a business to succeed and have an upper hand in the market. That is the goal of each company. The company should come up with a strategy that provides quality goods and services for it to keep on commanding a large market base. The company should also try to set up better customer relations for it to maintain its customers and also attract new customers. The company should also adopt a strategy that is aimed at capturing opportunities that present themselves globally. It should set a very strong and fully resourced department of marketing or else strengthen it. It should also strengthen its public relations department in order for it to be able to tap into new markets or grab opportunities. 6. What strategic recommendations would you make to the CEO of the firm? I would make certain strategic recommendations to the CEO in reference to product, cost structure, strategic direction and regional market. I would recommend to the CEO that he or she increases the manufacture of products such as smart phones and media pads and ensure that their products offer quality services. The CEO should also reduce costs to affordable rates as they look to enter into new markets such as African markets since most people in these countries are poor. This will help in attracting customers to it and thus increasing its income. The company should try and tap into regional markets. The CEO should consider this because it will help the company in having a wide customer base and also it will have royal customers inclined to the company. The CEO should consider a strategic direction that considers the strengths of the company and the opportunities the company has. In so doing, the CEO would have helped in handling competition and will be able to enter into new market bases (Craig 2002, p. 106). Conclusion Huawei Company is dedicated to innovations that are customer centered and in partnerships that are strong. It achieves these through strategies and structures that aid in ensuring its operations bear success. One of the strategies put in place by the company is increasing its sales. This ensures that they have a large income base and that they have captured lots of customers. Other strategies that include letting employees own the company are essential. This is because employees get to work hard having in mind that they are working for themselves. If the company would be able to increase the production of smart phones and media pads it would be able to tap in to the raw market where demand for such devices is on the rise. Appendix I SWOT ANALYSIS Strengths S1: One of the major strengths for Huawei Company is that it has a large market that serves more than a hundred and forty countries. This is strength for the company since it generates a lot of income through its sales which makes it the leader in the market. S2: Another major strength for the company is its corporate strategies in which employees own the company. When employees get to own a company, they work hard to ensure that the company grows .This is strength for the company or firm. S3: diversification of products in the company is strength. The company is able to increase its sales and attract new customers. When the company manufactures smart phones and media pads along with its network services, it is able to increase its income base which means that this is a strength for the company. Weaknesses W1: Its main weakness is the company’s inability to prove itself beyond accusations leveled against it. The company has been described as a spy for the Chinese government. This has led to the company being in conflict and unable to penetrate most markets especially in the USA and Britain. Opportunities O1: Expansion into new markets-the company has new opportunities through which it can enter into new markets such as in African countries e.g. Kenya a third world country that has a high demand for smart phones. Threats T1: The main threat for the company is competition from other companies. The company specifically faces great competition from “Erickson” another company that manufactures telecommunication equipment’s. T2: Another threat that faces the company is opposition from countries such as U.S.A. This may mean that the company may not be able to expand its market in this country which becomes a threat to it. T3: Manufacture of fake products or counterfeits is another threat that may face the company. In countries like China, manufacture of counterfeits such as smart phones which are fake and cheap is on the rise. This is a threat to the company as it may face stiff competition from such products. Reference List Craig, S 2002, Strategies and Organizations in Transition, Carlisle Publishers, Boulevard. David, A 2001, Developing Business Strategies, John and Wiley Sons, New York. Gabriele, S 2006, Corporate Strategies, Open University Press, Buckingham. Juan, J 2008, Multinational Corporations, Oxford University Press, Oxford. Keith, W 2012, Designing World Class Corporate Strategies, Nelson Thornes Publishers, Cheltenham. McMahan, A 2008, Strategic Management, Lea and Blanchard, New York. Michael, P 2008, Global Activities, Pantheon, New York. Mike, P 2000, Business Strategies, Cengage Learning, New York. Nadine, P 2009, SWOT analysis, Cengage Learning, New York. Shiv, M 2012, Creating Valuable Business Strategies, University of California Press, Chicago. Read More