International Business Strategy

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Institution

Business Strategy代写 International Business Strategy:Modern businesses are extending their operations to the global market.

 

Executive Summary

Modern businesses are extending their operations to the global market. The success in the international market is dependent on the robustness of the strategy used. Huawei has contributed immensely to revolutionizing digital technologies, particularly telecommunication. The company has grown to be the world leader in the production of quality smartphone and network technologies notably the new 5G spectrum. Its expansion to Brazil’s market will be a counter to the ongoing political challenges in the United States that have culminated in the company products ban.

Brazil is a new and high potential market and hence will fill the gap being left by the US market. The appropriate entry mode should be direct investment through a subsidiary so that the company will have immediate and better control of the market. This strategic plan will ensure that Huawei brand retains its size of American market. It will also help in expansion to other parts of Southern and Northern American markets.

International Business Strategy

Huawei Technologies Co., Ltd

Introduction  Business Strategy代写

Digital technologies are the trends in the modern world. It is forecasted that the information technology will grow to reach $5.2 trillion by 2020 (CompTIA. (2019). The large and growing market is attributed to change in ways of life as people integrate technologies into their daily life. Mobile is the most demanded as communication is a core part of living and doing business. People are also spending more on entertainment media and networking through mobile technologies. As a result, the demand for smartphones, tablets, laptops, and gaming consoles is high. It is an opportunity in the global market that companies like Huawei have mastered to capture. Nonetheless, to achieve the global market, a winning international business strategy is required.

Though Huawei the leading smartphone brand in the Chinese market, it has the potential to explore other international markets. The main challenge in Chinese market is competition from other brands like Oppo and Vivo (Xia & Gan, 2017). The global politics have made the brand market declining particularly the recent U.S government sanctions (Lyu & Lee, 2019). It, therefore, need strategy to remain a competitive brand in the international market. The fundamental approach is to enter new markets like Brazil. Huawei is planning to establish in Brazil in its international expansion strategy.

Strategic Plan  Business Strategy代写

Five Strategic Decisions

Huawei is a multinational company with its presence in the United States, Europe, India, Africa, and Arab countries. According to Statista report, Huawei’s market share in the smartphone market is about 18 percent (Holst, 2019). It makes the second most preferred brand in the market after Samsung. However, the market is large, and the company has not fully exploited it. The company management decided to enter the Brazil market in its internationalization strategy. It will be the first entry into the market that is dominated by Samsung and Apple.

Additionally, the company plans to use direct investment into the country where it will own warehouses and for phone assembly after direct import from China. Huawei will engage in full-scale production and marketing in Brazil by direct investing in wholly-owned subsidiaries (Wang & Wang, 2015). The company will leapfrog to the market. Because of the company’s good reputation in the market, leapfrogging is the best strategy to create a market impact.

The establishment in the Brazilian market will be part of the numerous company’s subsidiaries around the world. The plan will enable the company to compete more aggressively in the market by being involved directly in market affairs. The entry strategy requires substantial investment and is risky if the company does not fully understand the market conditions.

Three Levels of Market Entry  Business Strategy代写

At firm-level, Huawei Technologies Co., Ltd is the largest in the world in telecommunication equipment maker and largest in China telephone-network equipment maker (Frayer & Almond, 2019). The internationalization brings it near clients and hence established itself as a reputable company with high-quality, reliable, and effective products and solutions. It has also been able to diversify to other digital-related products such as provision of wireless networks with the latest being 5G.

The company enjoys many economies of scale and scope including advanced research and development for new products, methods and markets, cheaper products and better technologies. The determinants are well captured by the Resource-Based view theory that recognizes that Huawei’s competitive advantage is determined by its size, resources, reputation, and profitability.

Moreover, Huawei operates in the high-technology industry.  Business Strategy代写

According to institutional theory, business environments influence firms/industry behavior and hence structure (KorsakienÄ & DiskienÄ, 2015). The emergence of information technology has influenced consumer behavior through marketing strategies. Marketers can offer different prices and differentiated goods to consumers. Consumers have access to market information through the internet and hence search about a product before purchase. Companies practice bundling to attract customers. Customer are loyal since switching cost is very high, and therefore, they are locked in. These features make the industry very competitive.

According to the Department of International Trade (2017), Brazil is an attractive destination for investors.  Business Strategy代写

Businesses enjoy government protection both on intellectual property and trade. Most importantly, Brazil is a high power distance; that is, people respect the differences and inequalities in life regarding class, wealth, and age. People value hierarchical business structure. However, despite the well-functioning business environment, corruption and bribery make doing business difficult in the country.

There are costs that Huawei is likely to incur in the market. Regarding the transaction economics theory, there are costs when a company is entering an international market. Some of them include search and information loss, registration costs, risk mitigation costs, among others, are inevitable.

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Recommendations  Business Strategy代写

Huawei is already a global brand, and the company operates as a multinational company. The international strategy is to expand to Brazil as a new market. The company should implement its internationalization plan to enter the market. Brazil is a proactive and stable and has not been political instability in the country in the recent past (Marques, 2013). The economy, on the other hand, has high growth potential owing to the large population and FDI.

The most appropriate entry mode for a multinational corporation of Huawei stature if through direct investment. As stated above, it will enable the company to have direct control in the market through marketing and consumer influence. The direct investment should be a subsidiary of the parent company to enhance market control, product quality, and prices. The entry should not be gradual since brand is already well-known; leapfrog will have an impact on the company’s presence.

Conclusion  Business Strategy代写

Despite the promises of the Brazil market, there might be risks associated with the entry mode and the market itself. Foreign direct investment is a high risk but if successful, profitable, and thus there have to be precautions. Political changes can cause loss of market by imposing high import tariffs and bans. The rules governing foreign investments may also change. Notably, the product market can fail. The key to mitigating these risks involves having expertise accustomed to working internationally for unobstructed views of the current economic landscape. It will help in monitoring political and market stability and predict future.

Appendices

Appendix 1: Firm-level  Business Strategy代写

a. Huawei Reputation

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Source: https://insights.reputationinstitute.com/blog-ri/why-apple-and-samsung-should-be-worried-about-huawei

b. Size

Business Strategy代写
Business Strategy代写

c. Resources

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Source: https://www.theverge.com/circuitbreaker/2019/5/1/18525034/huawei-apple-samsung-smartphone-market-share-idc-2019

Appendix 2: Industry-level  Business Strategy代写

a. Industry structure

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Source: http://connexion3.gr/the-future-of-retail-2018-and-beyond/

b. High-technology sector

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Business Strategy代写

Source: https://innovationisrael.org.il/en/reportchapter/high-tech-israel-2018

c. Competition

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Source: https://gs.statcounter.com/vendor-market-share/mobile

Appendix 3: Country-level  Business Strategy代写

a. Brazil’s Major Macroeconomic Indicators

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Source: https://www.coface.com/Economic-Studies-and-Country-Risks/Brazil

b. Cultural Distance Scores

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Business Strategy代写

Source: https://www.hofstede-insights.com/country-comparison/brazil,chile,china,the-usa/

c. Corruption index

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Source: https://tradingeconomics.com/brazil/corruption-index

d. East of doing business

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Business Strategy代写

Source: https://tradingeconomics.com/brazil/ease-of-doing-business

References  Business Strategy代写

CompTIA. (2019). IT industry outlook, 2020. Retrieved from https://comptiacdn.azureedge.net/webcontent/docs/default-source/research-reports/comptia-it-industry-outlook-2020.pdf?sfvrsn=8869ad68_0

Department of International Trade. (2017). Overseas business risks – Brazil. Retrieved from https://www.gov.uk/government/publications/overseas-business-risk-brazil/overseas-business-risk-brazil

Frayer, K. & Almond, K. (2019). A rare look inside Huawei, China’s tech giant. CNN. Retrieved from https://edition.cnn.com/interactive/2019/05/business/huawei-cnnphotos/index.html

Holst, A. (2019). Huawei’s share of global smartphone shipments 2012-2019, by quarter. Statista. Retrieved from https://www.statista.com/statistics/299128/global-market-share-held-by-huawei-smartphones/

KorsakienÄ, R., & DiskienÄ, D. (2015). Institutional theory perspective and internationalization of firms. How institutional context influences the internationalization of SMEs?. Entrepreneurship and sustainability issues, 2(3).

Lyu, M., & Lee, C. Y. (2019). RSIS-WTO Parliamentary Workshop–US Blacklist on Huawei: Leverage for the US-China Trade Talks?

Wang, J., & Wang, X. (2015). Benefits of foreign ownership: Evidence from foreign direct investment in China. Journal of International Economics, 97(2), 325-338.

Xia, W., & Gan, D. Z. (2017). The Marketing strategy of HUAWEI Smartphone in China.

Business Strategy代写
Business Strategy代写

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