Business Plan for Huawei Technologies Co. Ltd.

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Also, the population size in the age between 18 and 65 in New York City is 66.3% of the total population of the city, while the same figure is 63.2% in New York State. There are more people that are in mid age. This means that the purchasing power combined by the size of the population and the median income has great potential for personal device consumption, let alone the fact of being the major tourist attraction in the States. Tourism consumption is adding on the effect of bumping economic benefit and profitability.

The diversity of the New York City metropolitan areas also contributes to the diversity of consumer behaviors. There are more than 200 languages being said in Queens alone. White populations take 44%, with black or African Americans being 25.5%, Asian 12.7%, Hispanic or Latino 28.6%, while the New York State numbers are respectively 65.7%, 15.9%, 7.3%, 17.6%. The City of New York is way much more diverse in terms of population composition than the State of New York, let alone the rest of the country. The free environment of social mentality makes the consumers more welcome to new products and ideas, which means it’s easier to break into the existing consumption norms. From another perspective, the persons below poverty level were 20.3% in during the period of 2009 - 2013, comparing to 15.3% in the State of New York. The polarization of wealth distribution is more extreme than the rest of the country. It is an important indicator that the feature of Huawei product (high quality with affordable price) can fit into the niche of the consumption trends.

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- SWOT Analysis:

- Strength

- Huge Network Coverage

- High port intensity

- Fastest growing network

- Weakness:

- Increasing size, big challenge

- Limited international opportunities

- Opportunities:

- Provides fiber connectivity

- Enhancing efficiency

- Increasing bandwidth

- Weakness:

- Increasing size, big challenge

- Limited international opportunities

- Threats:

- Growing service provider related operations

- Geographical issues

- Products and Services:

Huawei’s products and services cover a large expansion of telecommunication. The three core business segments are: telecom carrier networks, enterprise business, and manufacturing electronic communications devices. Due to trade barrier and block for security reasons, we will mainly introduce “Ethernet Hubs, Switches and Routers” first into the market of the New York State.

Huawei network devices are combined with advanced architecture and design to provide the high performance and stability with the broadband network providers in New York for all network ranges from lower to higher. The network switches are compatible to any network provider.

The both wired and wireless devices are simple and user friendly to manage and provide the high security to users with the speed and increased bandwidth coverage. Huawei switches are deployed worldwide in carrier and enterprise networks, government, finance, education, and the healthcare industry.

Apart from Huawei’s own technological products, Huawei also plans to offer its unique service, as laid out in marketing tactic, named “Huawei Store”, where customers by entering to Huawei Store will be able to access to all and only the Huawei products. In this exclusive way of displaying the brand and products, user experience and company will be shaped and promoted, thus creates invaluable soft power as Huawei expands its market share in the New York metropolitan area and to other States and cities.

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- Keys to Success

The main mission of this company was to provide consulting and operations services to most of the enterprises in China and outside the country. Huawei was initially started as a sales agent where they used to produce private branch exchange switches.

After few years, the company got a research center of its own and started doing research and development. The set up got an initial breakthrough by launching its C&C08digital telephone switch. The company got its first international markets.

Other than starting providing fixed line network products to a company in Hong Kong, Huawei started its first R&D center at Bangalore, India. Slowly, Huawei continued to expand into international markets. Over years, Huawei always focused on enhancing its mobile technology and has a number of partnerships with other companies.

Huawei is a collective company now and not privately owned anymore. By the year 2010, 80% of the top 50 telecom companies worked with Huawei.

- Critical Issues

Critical issues are from several perspectives. The first one is New York’s demographic feature of the large mobile population. As a result, people choose to rent network switches from internet service providers instead of buying new ones. And major network providers already have their own contracted switch merchants.

Another issue might possibly be the excuse of security concern to use Huawei products. Currently, all the major internet service providers are domestic companies in the U.S. Telecommunication industry has always been sensitive to information leak.

Moreover, retail store establishment and contracting with major internet service providers are two independent but intertwined trajectories. The annual sales growth is projected to be relatively slow in the beginning though the market holds promise.

Last but not least, Huawei should be more than prepared for a changing market environment and carefully make its market segment selection. Back up plans could be switching to big retailers like Best Buy and Amazon, etc. to expand the retail side and build the brand name, while at the same time seeking partnership with major internet service