Success of Huawei

Jianwen Gao

Huawei, a high-tech company producing electronic products, has became very successful in
the field of telecommunications. In fact, with its foundation in Shenzhen, China, a city full of technological energy, Huawei has become the third-biggest smartphone manufacturer in the world.

So how did they do it?

The first reason can be traced to their products. As a Chinese company, Huawei’s business scope includes microelectronics, radio, communications, routes, and interchanges. For example, they have successfully developed and produced their own smartphones. Their software and hardware products are of good quality and inexpensive, resulting in general public praise. In this regard, their ability to offer products that are of good quality at low prices represents one reason behind their immense success as a company.

The second reason can be their enterprise positioning. It is well known that Chinese consumers tend to consider electronic products made by Chinese manufacturers as having poor quality and low technology. And this perception is not without some convincing examples. Therefore, there was a need to change the public’s perceptions. This is where Huawei has been able to stand out. Huawei decided to start with simple products instead of high-tech products to accommodate Chinese consumers’ perception that Chinese companies cannot make high-tech products but perhaps can make low-tech products of high quality at low prices. As a result, Huawei started with simpler phones at lower prices to be closer to the average consumer, and then gradually through good word-of-mouth communication by satisfied consumers, they later entered the high-end market. This has turned out to be a key strategy.

Finally, Huawei generally exudes a positive and caring attitude. It is really clear that they care about their the quality of their products and consumers’ needs and wants. As a result, consumers have praised Huawei’s products as well as the company itself.

China has 1.3 billion people. Today 20% use high-end phones, and 20% have no phones. That is, there still remain many people who require phones. This represents a huge market, and Huawei has effectively seized it using a winning strategy. As a result, they have become famous not only in China but also across the world.