The Study On International Competition Strategies Of Huawei

With the booming development of economic globalization, the division pattern of international products is undergoing a great reform. While more and more multinational companies are becoming the emerging power leading world economic development, Chinese companies are also exploring actively the international development strategy that suits us best. Running multinational business has become the new challenge and task for Chinese companies. However, as Chinese companies started internationalization process rather late, their efficiency is relatively low, which still can’t catch up with the multinational companies in developed countries. The gap is also reflected on the global chain, that is, companies in developed countries are situated in the link of value chain with higher value added, sharing the higher profit of global economic results; while Chinese companies often lie in the link with lower value added. The severe challenge for Chinese companies is to find an international development strategic path that is suitable for them.After summarizing existing studies, the thesis analyzes the critical factors that influence companies’ international development strategic path: technical capability and market expansion capability. Based on these two factors, the thesis builds a theoretical frame of companies’ international development strategy from the two-dimensional perspective of technology and market. In this theoretical frame, the thesis puts forward gradual and leap-forward international development strategic paths according to the level and order of value chain evolution. To be concrete, the strategic paths include gradual international development strategic path based on technical capability, gradual international development strategic path based on market expansion capability, and leap-forward international development strategic path. Then the thesis selects Huawei, a Chinese company with relatively high degree of internalization, as its study object, and analyzes its international development strategic path from the angle of value chain. After that, the thesis illustrates the relationship between Global Value Chain Theory and competitive strategy, and concludes that Huawei has transformed from low-cost and market differentiation strategy to overall-cost and product differentiation strategy in its international business management. At last, based on summarizing the process of Huawei’s international development, the thesis analyzes the implementation of Huawei’s international development strategy, that is, through market-niche strategy, market expansion strategy following countries’ diplomatic policy, actively participating in trade shows and building strategic alliances, Huawei finally established an international brand and achieved its strategy upgrading in global value chain.Through the analysis of Huawei’ international development strategic path, the thesis concludes some enlightenments for Chinese companies’ international development strategy. The success of Huawei’s internationalization just represents a typical international development strategic path, and there are diverse international development strategic paths worth exploring and studying. The study object of this thesis is a large enterprise, so the findings may be not suitable for international development strategic paths of small and medium enterprises. In international competition, companies should select an appropriate development strategy and blend in the global value chain system.