Dynamic Capabilities of Huawei

Document Type:Thesis

Subject Area:Business

Document 1

According to a concept by Teece(2007) agility in a cooperation is a fundamental aspect that is attributed to having a sense of understanding and shaping opportunities as well as threats, seizing the opportunities that present themselves, and maintaining a competitive position that is influenced by promoting combination, protection and enhancement of the tangible and intangible assets. By focusing on these aspects this research aims at analyzing the dynamic capabilities that have impacted Huawei Technologies rise in the technological market in China. Background In 1988 a former People’s Liberation Army officer and telecom engineer named Ren Zengfei founded Huawei Technologies. Its purpose was to manufacture cheaper telecommunication gear as a private corporation for the Chinese local market. The founder’s vision was to build a company that had innovative capabilities that would promote growth in the technology sector in the Chinese market.

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Through this need to satisfy its clientele the company has been able to make achievements in creating a growth that is solid in China’s technology market as well as in other foreign nations With the growth that is seen in the information and communication technology, the technological market is making trends that enable a platform that is able to serve the entire society. The company has made rapid growth in the market and industry as well, with smart phones that are innovative and satisfying to the customers, from this in 2017 it has annual revenues that are estimated to about 603. 64 billion yuan (Shephard, 2016). It has set strategies that are aimed at improving its revenues to about 100 billion dollars by the end of 2018.

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This will be made possible by the various strategies that are in place, the company has been able to shift with the trends in the industry and market and maintain a standing position that is fully competitive and innovative. According to the new ecosystem in the information and communication technology the industry should be open, which means that it needs to be ready to accept new entrants in the market. Therefore, from this Huawei has made strides that are focused on improving its ecosystem capability in the market, it is set on achieving this by not owning all the resources in the ecosystem but establishing a connection that is bound to last across the globe and persuading the external resources to support and promote the company in its endeavors within the cloud era.

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By doing, so not only is the company bound to benefit but the rest of the society as well. With this strategy, according to Ping (2016), the company will grow from big organization to a great organization in the world that will enable a global connection. Since the company was founded over three decades ago, it has always focused on connection the globe through their devices. Today, people store most of their important information on their phones, therefore, security of importance, for this reason the phone was featured with a biometric fingerprint scanner that made sure that only the phone’s owner could access it by using their fingerprints. It was featured with other technological improvements that made the P9 and P9 plus a major deal in the market.

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For a company to grow and maintain its position in the market, it needs to work with others in staying at a competitive vantage point, therefore, as part of the dynamic capabilities, Huawei worked with a Germany company that manufactured photography equipment such as lens, the P9 and the other smart phones trending in the market from Huawei, have an inscription on the camera’s lens “Leica”, the lens are manufactured by the German based photography company. Not only did not work with the German company, but also with google in the manufacture of the Google Nexus 6P, and also with Swarovski in the designing of a smartwatch intended for women (Shephard, 2016). While promoting a brand endorsements and sponsorships are important, it was for this reason that the company got endorsements from soccer stars such as Lionel Messi and Robert Lewandowsky, and sponsorships from Arsenal, Ac Milan, and Paris Saint German which are major league soccer clubs.

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