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1、International Journal of Innovative Management, Information Huawei Corporation; High Technology; Low Pricing; Radar Map 1. Introduction. Huawei, an enterprise which works on providing communication network equipment a
2、nd service, has only taken 14 years to establish its leading position in the international communication industry. By 2010, its worldwide sales reach 34 billion dollars. Over 70% of the sales, which is about 24 billion
3、 dollars has been gained from the international market. It hopes to gets its way up to the top 300. Huawei's mainstream product: broadband and optical-fiber network product cover the biggest share in the world-wid
4、e market, the sale of mobile product list on the No 2 and data communication also intrudes into the top 3. This overseas sales growth not only appears in the developing countries, but more in developed countries in Eur
5、ope and America. The sales volume in European market was up to 3.4 billion dollars in 2010, which was 17% higher than that of 2009. The high-tech product, such as mobile 3G has made its way into France, Germany, Span,
6、 Italy and Norway etc. It holds over 30% of the newly increased market share. 4G products has also been developed and introduced to many international operators. Huawei (HW for short) has been intruding into the so-cal
7、led impenetrable European telecommunication market with unthinkable power. There are lots of top international operators in Europe: German Telecommunication DT (TOP3), Spanish telecommunication Telefonica (TOP5), Voda
8、fone(TOP6), French Telecommunication(TOP8),Italian Telecommunication TI (TOP9) etc. The European market is one of the best world high-techmarket, thus, it is a highly- competitive market. RESEARCH ON EUROPEAN MARKETING
9、STRATEGIES OF HUAWEI TECHNOLOGY 27 27 2. HW marketing focuses during its initial period in European market. Hw in 2001, though a success in Chinese market, could only be regarded as a student in European market th
10、en. The European market was one level higher than the market possessed by HW, no matter on internet quality, operator business capacity or end user requirement. Furthermore, most of its competitors had already worked w
11、ith the operators for decades or even more than a hundred years, they have a deep understanding about these operators. With marketing 4p theory, we choose four factors to make analysis by radar map. These four factor
12、s are: price, technology, service (core component of HW's products) and brand (the core component of promotion). Most products in HW are industrial products which are sold to the operators directly, so just like th
13、e distribution channel of other device suppliers; this kind of distribution is flat and direct. Therefore, the strategy of channel construction is almost the same, so it is not necessary to study it here in detail. Fro
14、m figure 1, it is clear that the advantage of HW's products lies on its price and service when HW first started its business in Europe. But the brand popularity and the technology fell behind its competitors. The
15、comprehensive strength was also far behind the big share holder in European market such as Erickson. In the field of telecommunication, “First impression is the strongest”. When there is no big difference among the cos
16、t investments, operators seldom change their supplier in consideration of maintaining good operation. This made it even harder for HW to enter European market. After a clear analysis of its advantages and disadvantages
17、, HW adopted different marketing strategies in different stages. FIGURE 1.The strategy of channel construction 2.1. Provide customers with “l(fā)ow price but stable performance” products according to their requirement. Eve
18、n though the final target of HW in European market is to make its way into high-tech market, in the initial stage, while keeping an eye on the high-tech market, HW remained focusing on the middle and low-tech market to
19、 survive. At the very beginning of its tryout in European market, HW chose operators in Eastern countries to work with, since these operators care more about the price of the equipments because of their tight budget.
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