This overseas sales growth not only appears in the developing countries, but more in developed countries in Europe and America. The sales volume In European market was up to 3. 4 billion dollars in 2010, which was 17% higher than that of 2009. The high-tech product, such as mobile 3G has made its way into France, Germany, Span, Italy and Norway etc. It holds over 30% of the newly Increased market share. 4G products has also been developed and introduced to many international operators. Huawei (HW for short) has been Intruding Into the so-called Impenetrable European telecommunication market with unthinkable power.
There are lots of top international operators in Europe: German Telecommunication DT (TOP3), Spanish telecommunication Telefonica (TOPS), Vodafone OP6, French Telecommunication (TOP8, Italian Telecommunication TI (TOP9) etc. The European market is one of the best world high- techmarket. It is a highly- competitive market. Meanwhile, he world best telecommunication equipment suppliers are also In Europe: German Siemens. the inventor of the first telegraph; French Alcatel, which had held 90% share of the Chinese fixed-line telecom market.
Swedish Ericson, the No. l In telecommunication, Finnish Nokia, big terminal device supplier. .. all of them are the leading roles in telecommunication industry. To survive in this highly competitive market Is a miracle, but HW not only survives, It also thrives and becomes prosperous. How did HW make this happen is the focus of this paper. l. Theoretical and methodological basis 1. 1 The foundation of HW’s success in European market The foundation of HW’s success in European market: set up long-term strategic goals and invest in it persistently.
Back to 1995, even before HW entering the international market, the first principle in “Huawei Basic Law’ manifest its core value: The pursuit of HW Is to realize customers’ dreams In telecommunication, meanwhile, with bit by bit but persistent effort , HW is going to become a leading enterprise in the world market. ” We can see the persistence and dedication from the enterprise leader Ren Zheng Fei. With this persistence and dedication, HW began its tryout in Hongkong in 1995, and then roughly put its first step in overseas market by a 25- dollar contract In Russia.
However, with the market development In Asia, Africa and Latin America, HW started to Intrude into Europe market which is entrenched by any name-brand equipment supplier and later, HW knocked into American market and finally achieve its marketing globalization. However, when people were mesmerlzea Dy tne conslstent growtn on HW’s Tlnanclal repo tney 010 not notlce the costly investment in the overseas market (human resource, physical resource and financial resource) in the past 15 years,only from 1999 to 2006, HW invested billions of money in the European market but it barely saw any pay back until 2006. Enterprise cannot fght without any preparation. ” “Food and fodder should go before troops and horses” “You can not survive the harsh winter without eavy cotton-padded clothes. ” Instead of being only slogans, these mental and financial preparation help HW insist on its big investment in the European market despite of the huge deficit for many years. Financial support from other profitable market, instant response in technology and products, all of these keep encouraging HW stuff in Europe to dedicate them to work on the European market and finally fought its way into the European telecommunication market.
If HW looked for payback soon after its investment in European market, or if it reduced or even give up its investment only after two or three years of losing money, there is no way or HW to succeed in Europe. Moreover, If HW is not financially strong enough to survive in this long, costly battle, it is impossible to win either. HW might end up as a second-class device supplier in the current European market. 1. 2. Research Method This paper combines he first-hand investigation and the second-hand material. The writer first consults different resources to collect relevant materials.
Then, interview, observation has been adopted to get first-hand material so as to further study HW’s performance in Europe. All the materials systematically have been analyzed. Finally, the writer tries to make a conclusion about the HW’s marketing strategy in Europe to see whether it might benefit other Chinese international enterprises. II. HW marketing focuses during its initial period in European market. Hw in 2001, hough a success in Chinese market, could only be regarded as a student in European market then.
The European market was one level higher than the market possessed by HW, no matter on internet quality, operator business capacity or end user requirement. Furthermore, most of its competitors had already worked with the operators for decades or even more than a hundred years, they have deep understanding about these operators. With marketing 4p theory, we choose four factors to make analysis by radar map. These four factors are: price, technology, service (core component of HW’s products) and brand (the core component of promotion).
Most products in HW are industrial products, which are sold to the operators directly, so Just like the distribution channel of other device suppliers; this kind of distribution is flat and direct. Therefore, the strategy of channel construction is almost the same, so it is not necessary to study it here in detail. From figure 1, it is lear that the advantage of HW’s products lies on its price and service when HW first started its business in Europe. But the brand popularity and the technology fell behind its competitors.