1. HUAWEI TECHNOLOGIES
PRESENTED BY
DEEPTHI
JITIN JOSEPH
HARESH
NAMRATHA
NARASIMHA
BHARADWAJ
NIKHIL

2. CHINA’S TELECOM INDUSTRY OVER VIEW
China’s telecommunication industry was far behind the World during 1949-1978
In 1978 China’s telephone penetration rate was just 30 for every thousand people which was
less than 1/10th of the world’s average
China’s telecommunication equipment was solely prepared by the state-owned enterprises
which were directly under the monopoly of the government.
China started its economic reform policy during 1978 through “Open Door Policy” due to this
the telecom industry grew three times the growth rate of GDP
China’s telecom industry’s development in this quarter century can be divide into three phases
1. Preparation period 1978-1989
2. High-Speed Development Period 1990-2000
3. Globalization period 2001-Present day

3. HUAWEI TECHNOLOGIES
BACKGROUND
 1988: Huawei Technology co.ltd founded in Shenzhen.
 1992: Huawei sales revenue grown to us$10 million with profits of more
than US$1.2 millions.
 1993: Huawei released first digitally programmed switch (c&co8) which
provide the basic voice switching function. It was successfully put into
commercial use in the Zhejiang province
 The success transformed them from a vendor of imported equipment into
an independent manufacturer.
 They expanded their product line from telephone exchange equipment to
other key telecommunication fields.

4.  1996: They signed first overseas sales contract with Hutchison Global
Communications ltd. Hutchison praised the high quality product and
service of Huawei.
 1997: Major reforms happened .
• Designing effective org structure
• Market driven R&D model for developing customized products.
• 40 branch offices, 8 regional head quarters, 4 R&D centers', and many
customer support and training centres outside China.
• Joint laborataries with IBM,Intel, Motorola and Texas instruments.
 2003: Huawei had 22000 employees . One of the worlds major vendors
with full range telecommunication product manufacturing capability.
 40% share in fixed land line switch market
 55% share of transmission equipment in domestic market

5.  C&Co8 switch remain first from 2001 to 2003
 2003: broadband and optic network product ranked second.
 120 telecommunication carriers used world wide
 Sales revenue reached US $ 3.83 bn. Includes US $ 1.05bn from
international market.

6. Strengths
Enterprise Networking Business Assets, Weakness
Engineering, Sales/Marketing resources &
Personnel No awareness (no name recognition)
Customized Solution
Self designed products (20% to 40% cheaper) It involves high capital and is labour intensive
Huawei high margin – low engineering costs
Low cost because it designed its own chips and Market is very dynamic, Demand depends on
used a common platform. technology
Talent Pool
Free to do its own research- superior
innovativeness.
SWOT
Threats Opportunities
Similar to Investment style project – Involve
huge capital & technology outlay Low telephone penetration rates –
increasing telephone users Lagging
Tough Market – Tier 1 companies (Cisco
Systems) Telecom Infrastructure With JV - Entry into
Enormous protocol to enter blocking new world
markets Market (especially North America)With JV
Poor reputation of country - Huawei Product as 3Com (41000
The company’s level of innovativeness may not Distributive partners) outside China &
match the radical change of technology. Japan
Establishing Partnership with other
companies can increase the capability of
research.