Global Context

Resource audit

In the case, the resource is divided into two categories tangible and intangible resources1.

For the tangible resources, Huawei owned a well-designed and high-tech headquarter, branch offices, regional headquarters, world scale research institutes, customer support and training centers, laboratories and departments, research facilities in different regions in China and foreign countries, customer support and training centers and held many patents.

In addition, it followed closely with global cutting edge technology and focused resources on developed research and development powerhouse, developed Code-Division Multiple Access and wide-band Code-Division Multiple Access, Global Systems for Mobile Communications and had joint research and development laboratories with foreign companies.

Huawei also had high education level and abilities labors but the labour cost was low . It involved foreign experts in management level and different department, IBM staff to work with China Staff and engaged foreign experts into different departments. The subsidies and salaries for employees were good. Moreover, it dedicated many staff into research and development.

Lastly, Huawei gained funding from the stated owned bank and the official bank in China.

For intangible resources, Huawei ranked eighth in wireline-equipment suppliers in the world and fourth in service and support. Moreover, the founder Zhengfei's military background made him had relationship with Chinese government and thus Huawei culture had military background and staff received military style training. Furthermore, Huawei merged marketing staff into research and development department.

In addition, it had obtained the majority percent of the mobile network equipment market, organized campaigns and trade show to promote the brand image and offered a free service to customers within a period of time. Furthermore, it had joint venture with 3com.

Value chain2 and capabilities

The following part is value chain, first is the infrastructure. As mentioned above in second paragraph, the high-tech headquarter helped to facilitate the work of the staff and the environment like Silicon Valley gave staff a feeling that they were working at a very professional place and also gave them a motivation to make Huawei entering the Silicon Valley. Moreover, the branch offices, departments, laboratories etc located in different regions and countries could gain benefit from these places. For example the software department located in India because of the advanced technology development of India. Huawei could definitely gain from the competitive advantage of India. Furthermore, the customer support and training centers could help to enhance the communication between Huawei and the customers.

Second, the technology. As mentioned in the third paragraph, Huawei showed

that it had the sufficient resources and knowledge in developing research and center and follow the global advanced technology. Moreover, the success of the three systems Huawei had invested early showed that it had a great perception and was innovative toward the 3G mobile communication market and mobile network equipment market. In addition, the joint research and development laboratories allowed interaction with foreign experts so that to increase the innovation abilities.

Third, the human resources. From the fourth paragraph, Huawei motivated staff by offering high salaries and subsidies. The high education level of staff had the higher abilities and knowledge to handle the jobs. Moreover, they could learn working attitude and working practices from the IBM consultants and foreign experts and sometimes might motivate staff to do better in order to overtake the foreign experts. In addition, the military style training given to staff helped them to become aggressive to grasp every single chance and be very sensible to the changing environment. Merging the marketing people into research and development department allowed them to work together and communicate promptly and could have immediate actions. The low labor cost in China totally benefited the company in reducing the operation cost.

Last, the marketing and sales. From the seventh paragraph, all the trade shows and free services provided a chance