Research On The Evolution Of Huawei's Business Model

As a representative private communications company in China,Huawei Technologies Co.,Ltd.(referred to as "Huawei Company")has achieved a leading position in the global communications equipment manufacturing industry after only 30 years of development.Research on the evolution of Huawei's business model to the present day,and exploring the reasons for its success clearly have important implications.This article selects Huawei as case study company and takes the business model as object.Then focusing on Huawei's more than 30 years of development,it is divided into three stages: the start-up stage,the layout stage,and the leading stage.The Osterwalder business model canvas model is used.As a research tool,the specific content and phase evolution of Huawei's business model elements at each stage are studied.On the one hand,Du Pont analysis is used to analyze and compare Huawei and ZTE,to clarify Huawei's leading position in the industry;on the other hand,it uses a business model element model from value proposition,core resources,key business,cooperation and customer(including segmentation).Relationships,channel channels,cost structure,and source of income are nine business model elements.Huawei's three stages of each company's business model canvas model are drawn and the business model orientation of each stage is summarized,then summed up the conclusion of the evolution of Huawei's business model.The research found that:(1)The specific content of the business model components of Huawei at each stage is continuously enriched and expanded.When a certain number(≥4)of business model components have undergone qualitative changes,it will promote enterprises to enter a new stage and form new business.(2)The core elements of Huawei's various stages will evolve,and different core elements will support the business model of the enterprise.At the startup stage,Huawei 's core elements are value propositions to promote enterprise product upgrades;at the layout stage,core elements change to important cooperation and channels to assist market layout;at the leading stage,core elements evolve into core resources and key businesses to promote Enterprise industry upgrade;(3)The core elements of the enterprise determine the type of guidance of the business model at this stage.As the core elements of Huawei gradually evolve,its business model-oriented evolution path is as follows: product → market → industry,forming the core competitiveness of an enterprise that is difficult to replicate and surpass.