Would you buy an Huawei?

The potential answers to the above question, once explained are revealing.  Why would you prefer an Apple or Samsung phone or are you more cost sensitive?  Huawei has successfully broken into the oligopolist smart phone market based on a low price strategy.  But it is not just phones that Huawei produce: a third of the population of the world indirectly use an Huawei product.  But just as a strong brand acts as a barrier to entry, can a country ‘brand’ prevent a company developing a strong brand identity? China has long been associated with low cost and poor quality products.  If money was not an issue would you really buy a Huawei phone? Innovation in processes and products can lead to significant average cost reductions leading to increased competitiveness and market share.  Chinese firms are now the third largest owners of patents behind the US and Japan.  Has China unleashed ‘the gales of creative destruction’?  Below is a podcast from the BBC’s Business Daily that explores the change occurring in China with its focus on Huawei.  Plenty of chances to practise your chains of analysis and diagrams.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s