Nowadays, violent competition is among the telecom equipment industry. Achieving success in this market is not an easy task to do so. However, a Chinese company – Huawei, which was becoming a global corporate, was considered as a “China Achievement”. Although it still left behind the greater challenger – Cisco, it grew quickly and might threat to Cisco. Before discussing how it can strengthen it’s capabilities and challenge Cisco, the basic analysis is to identify it’s resources and core competencies.
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To identify Huawei’s resources and assess its capability and core competencies, a resource audit and Porter’s value chain should be applied. By using both of these analysis in this case, Huawei has …show more content…
As a result, the leapfrogged and advanced development in technology could be achieved. And this linkage makes a core competence, which was performed better than its competitors. Although their competitors can follow this easily, it is time-consuming to gain this advantage.
The second core competence is its core R&D team, which is combined with its marketing employees and low-cost R&D labor in China. The R&D staff could get the detailed customers’ needs directly from the marketers, the equipments and services then could be specifically designed for their customers. Their products and services then not only could be supplied faster, but also could respond to their customers’ requirements. Therefore, their operation could be much more efficient and effective. Quick response to the market needs, a better services and products could be provided. This can help for increasing their market share. And there is no mention about their competitors’ performance in such area. But surely that it brings value in their customers’ eyes. Finally, it is a core competence to make their services and products be both lower cost and differential.
The last one is forming joint venture with 3Com. At the beginning, its culture is that not looking for cooperate with foreign companies. But it was changed and forms joint venture with 3Com