How can the Micro Environment Have an impact on Huawei?

Keywords: huawei micro environment. huawei macro environment


The assignment will have two parts. The first part will discuss a Chinese company called HUAWEI. The uncontrollable variables (Microenvironment and Macroenvironment) have afflicted the controllable parameters (Marketing Combination) in HUAWEI. A couple of two factors impact the potency of companies' marketing activities: an example may be the business cannot control, such as political, legal, economic, ethnical, geography and other environmental factors, known as uncontrollable factors, which is the external environment faced by the company; One is the company can control, such as product, price, place, special offers and other marketing factors, be known as controllable factors. The essence of markting activities is using interior controllable factors, so that exterior uncontrollable environment adjust to the controllable factors, also to meet the individual and the organization's goals. Kotler's said, "If the company produce the appropriate product, set a proper price, the utilization of appropriate place and supported by an enough promotion, then the the business will be successful "(Kotler, 2001).

The second part will discuss three main learning things of the Marketing Game.

Part 1

1. 1 About HUAWEI:

Huawei is a leading global telecommunications alternatives company with long-term partnerships with operators about the world. . Huawei's products and alternatives is about cellular products (LTE/HSPA/WCDMA/Advantage/GPRS/GSM, CDMA20001xEV-DO/CDMA2000 1X, TD-SCDMA and WiMAX), core network products ( IMS, Mobile Softswitch, NGN ), network products(FTTx, xDSL, Optical, Routers, LAN Turn), applications and software(IN, mobile data service, Employer), as well as terminals(UMTS/CDMA). Major products were created predicated on Huawei's ASIC chipset and utilize distributed websites to provide quality and cost-effective products. Huawei's products and solutions are deployed in over 100 countries and provide 36 of the world's top 50 operators.

Huawei's R&D centers is made in many countries, such as Silicon Valley and Dallas in USA, Stockholm in Sweden, Moscow in Russia, Bangalore in India, and Beijing, Shanghai, Nanjing, Shenzhen, Hangzhou, Guangzhou in china. (1)

1. 2 The Controllable Factors of Huawei

The controllable parameters in a business mean the Marketing Mix. In 1953, Neil - Borden in the North american Marketing Association's inaugural conversation created a term called "marketing blend" and its meaning is more or less in market demand, somewhat on by the so-called "marketing changing" or "market factor" the impact, in order to find a certain market response, companies desire to be an effective blend of the elements to meet up with the market demand, to acquire maximum profit. In fact there are dozens of marketing mix elements, Boden proposed marketing mix includes 12 elements, known as the 12-factor "marketing combination" strategy, specifically, "product plans, prices, brand, resource routes, personal offering, advertising, promotion, packaging, screen, support, physical distribution and general market trends. " This blend of ways of enable visitors to engage in marketing, businesses can become more clarity from the start in these areas, and opportunity of the study of marketing did a better described.

4Ps came along with the idea of "marketing blend". These elements were summed up as four categories: Product, Price, Place, Campaign, also known as the 4Ps. by the Teacher of the School of Michigan Jerome McCarthy in 1960 in his publication Basic Marketing».

In 1967, Philip Kotler in his best-selling publication "Marketing Management: Examination, Planning and Control" further proved by 4Ps of the marketing mixture as the main method. 4Ps online marketing strategy since its intro, on the idea and practice of marketing, experienced a great impact, was seen as a classic marketing concept by marketing managers. Almost all professionals when they plan theirs' marketing activities consciously and unconsciously consider from the 4Ps theory.

1. 2. 1 Product of Huawei

The company are required to follow the needs of customers, and design their products and services. The product has a large areas, it includes product features, quality, appearance, product packaging, brand, service, support.

Huawei supplies the most complete telecom product profile, covering mobile, broadband, center network, transmission network, data communication, value-added services, terminals and services. (3)

Huawei's corporate and business culture is a kind of wolf culture. The CEO of Huawei who called Zhengfei Ren has been promoting "the wolf culture" in the first years. "sharp, aggressive, selfless teamwork" are the true meaning of "the wolf culture". Zhengfei Ren ueses the militarization way to management companies such as powerful labor power, rigorous management system, and ruthless success of the fittest.

1. 2. 2 Price of Huawei

According to different market, companies develop different rates strategies, product rates is based on corporate and business brand strategy, focusing on the brand's platinum content. THE PURCHASE PRICE means products rates, discounts, funding, financial leasing, limited resource.

The cost good thing about Chinese language companies will continue to increase, because China has a whole lot of cheap labor. Under the premise of increasingly popular telecommunications products, the purchase price factor is now more and more important to the operators. Huawei has not been content with the low-price products earnings, and Huawei need to get high gains from its brand.

1. 2. 3 Host to Huawei

Company will not directly to consumers, and it focuses on the cultivation of vendors and sales networking, organization and consumers. In an accurate location and in a exact time, providing an accurate number of products and services. is vital to a company. Now the changing commercial environment also has an impact on the Place. The place includes location, logistics, market coverage, the Internet, mobile phones and so on.

Huawei's Place can be divided into two types. The first channel is the vendors' channels, such as in a number of target markets, create an office straight for revenue. The second route is a joint venture, such as joint venture with 3Com in China and Japan market, Huawei brand export products; as the Sino-Japanese beyond your market, through the 3Com brand and route marketing. Huawei uses joint venture to generate the brand channel.

1. 2. 4 Promotion of Huawei

Companies utilize offers to stimulate ingestion growth, or even to get other brands' consumers, or promotion of early consumption. All these marketing promotions are used to promote consumption growth. Advertising includes advertising, pr, news, marketing, marketing, budget.

Huawei's promotions likewise incorporate advertising. In the international market, Huawei has been employed a veteran United kingdom advertising company to steer its release strategy for advertising the various levels of development. Huawei energetic attend many exhibits, and it help Huawei be well-known. Cheap than the rival bet is also an important way of advertising,

1. 3 The uncontrollable factors of Huawei and effect

The marketing environment is uncontrollable, and it can be split into the microenvironment and the macroenvironment. All environments have good or bad results to a corporation.

1. 3. 1 The microenvironment of Huawei and its effect

Microenvironment is directly linked with the business itself, which include the inner environment, marketing channel firms, different kinds of marketplaces, customers, competition and publics.

The interior environment:

The inside environment comprises mainly of staff, funds, equipment, recycleables, market.

Most Huawei's high-quality employees are highly educated. They're very value to understand theirs' value. Because they're highly educated employees with professional knowledge and potential, they can simply understand the customer's actual ideas and know how to improve products. Through continuous improvement of products, companies can gain more customers and income.

The marketing route firms:

The marketing channel organizations contain suppliers, realtors, marketing services firms, banks.

Huawei's marketing channel firms are constructed with sales, service partner, training lovers and customers. It is a full system. This syndication system includes first-class high-level vendors, as well as the subordinate regional realtors, advanced authentication real estate agents, the industry integrators, a realtor, regional distributors, which are intended to provide customers with involved solutions. There is absolutely no overall affiliation among all the route firms, and everything the channel organizations enjoy the same preferential guidelines. All the agents are counting on the products with Huaweis' brand, performance, service, a equivalent degree of interest. Huawei in addition has announced the formal introduction of targeted agents sales staff "sunlight mileage team" identification program, this program with Huawei in the stations of advertising of the implementation of an incentive mechanism, Huawei released that all sales people can participate in the club and be a club member. The sales staff sales to undergo these to Huawei's statistical synopsis of reported purchases to score items. Based on the number of items, people may be from the basic member to sterling silver people, and even be precious metal membership. Huawei based on their performance perform a variety of different degrees of reward. Since execution of "2002 Sunlight business plan", Huawei partners received acceptance and support of sales stations, has made great progress and future market development. Through these ways, Huawei's products are well-known. They are good for Huawei's products and campaign.

The types of market:

Market is divided by the customer and the purchase of market segmentation purposes, including: consumer marketplaces, producers market, agents market, administration and international market segments.

Huawei's main purpose is in the international market. New products to enter in the international market, certainly, there are two types of methods: an example may be the first access to developed country marketplaces, the latter access to developing country market segments; the other is the first usage of developing marketplaces, then access to developed countries. Huawei is the adoption of the next way. Huawei first moved into the Hong Kong market, and then into Russia, and South American markets. Huawei actively participated in the actions of major infrastructure tasks, bidding because of its high-quality products, low prices to earn consecutive national large-scale Projects. The ongoing development and changes in the market prompted the carrying on reform of Huawei's products and technology.

The opponents:

Company marketing activities are often encircled by various competition, and constraints, therefore, companies must identify the variety of competition, and take different competitive reactions. The changes of competitor's marketing strategy and marketing activities the changes immediately affect the corporate marketing. The most evident is the competitor's product price, advertising, promotions, changes, and product development, sales and service.

Huawei's competitive environment is very cruel, and it makes Huawei continually improve its product. In addition, Huawei also pays attention to advertising, personal selling, sales promotion, public relations. The main ways are: meet with key customers, all-round contact with clients, to determine and develop with the number country's telecoms regulator contact, to find and develop a strong local agent or spouse, to participate in various exhibitions and telecommunications forum for professional, technological exchanges with customers

The publics:

The publics refer to the power of companies achieve their marketing goals with real or potential interest and influence of organizations or individuals. It is very important to a firm to do well with the public.

Huawei's execute a very good job with the public, set up a good brand

1. 3. 2 The macroenvironment and its effect

Macroenvironment effects microenvironment with great public forces. It includes political, economic, sociable and technological. In many books, it is named Infestation or STEP.

The politics environment and its effect:

Political environment is the condition of the external political situation and national guidelines and guidelines in an organization marketing activities.

Huawei's products are sold in more than 100 countries of the world. Different countries have different continental regulation, plus they include common legislations, the specific laws and regulations, especially regulations involved with international marketing fluctuate broadly. This makes Huawei to comprehend and adapt to different politics environment.

The politics and economic close link alongside one another, and more and more countries' competition has been mirrored in the economical competition. Huawei cannot develop the international market without just how of politics.

In the first period of internationalization, Huawei complies with an unwritten guideline: it is based on China's diplomacy course. Huawei setup offices of the basic principle that countries have diplomatic relationships with China. The CEO of Huawei called Ren Zhengfei explicitly described: "China's international policy is successful on the planet, it have more friends on earth. Huawei's marketing is following with China's diplomatic, I believe we are successful. . . . . . "

The monetary environment and its own effect:

Economic environment means socio-economic conditions, the functional status and fads of current economic climate in a company's marketing activities. Economical environment analyzes the changes in consumer income, consumer spending habits, consumer savings and credit conditions and other factors change.

The financial crisis in 2009 2009, under the pressure and thrust, whether European countries and the United States market's can be successful in this year is more important than sales of 30 billion U. S. us dollars. Huawei put their business concentrate on the Western and American markets, and it received great success. In the august of 2009, Huawei became one equipment dealer of the world's biggest WiMax operator Clearwire in US, and Huawei became the main supplier.

The social and cultural environment and its effect:

Different countries and different areas have different communal and cultural environment. So a fresh product get into a new market, the company must understand the customer's ethnical and pastimes.

Huawei's staff before they heading abroad must receive relevant training to comprehend the interpersonal and ethnical in working out sector, like the differences between ethnicities and related products and others. But another culture, ideals, religious beliefs and lifestyle is not suited to them. They meet many of the problems in another country. The first one is that local people do not know much of china. A huge different cultural distance between the country and china make the neighborhood people do not understand and trust Huawei's product. This lack of understanding between civilizations enables local coustomer even do not think that China has capable of producing marketing communications equipment. Through a variety of communication, international customers get rid of the misunderstanding of China. Likewise, respecting foreign ethnicities is also very important to gain local customers. Huawei's setup "Islamic prayer room" for Arab customer, and get esteem from Arab.

The technical environment and its effect:

Science and technology are primary productive forces. Each of the new technology would give some businesses to make new market opportunities, which will produce new sectors, and at the same time, it also makes old industries to be damaged or even be taken away.

Advanced technology is the most crucial basis in the marketing communications market. Huawei has spent seriously in technology and the benefit is apparent increased. Huawei pay a great deal money on researching and producing in the first period. Even in the difficult period, more than 10% of Huawei's sales income were used on the R & D investment. Huawei utilizes about 30, 000 worldwide, of which 48% of employees involved in R & D twelve-monthly patent applications, and its own rest through 1000, and be the most patents company of China. Because of the thousands of patents, Huawei have capacity to deal with the world's leading suppliers, and build laboratory to build up the most advanced products mutually. Huawei's complex strategy is trying their finest to meet up with the customers' needs. Through new technology, increasing R & D investment in new technology, Huawei can get more market show.

Part 2

2. 1 The guideline and intro of the marketing game

The marketing game can help us understand the market, our competitors. All of the students are split into 4 groupings. Each group is a software company. All the companies make the same product which is expression processing software. The potential customers can be divided into six main sections. The six segments will be the modern students, the house scribblers, the harried typists, the professional freelance writers, the high-tech managers and the concerned parents. Different sections have different requirements of the program. The market keeps growing every year, but some segments are growing faster than others. We also have to make advertising and make our product to meet customers' needs. .

Each company has a basic word control software, and the NO. of special is 8, the problem safeguard is 3, the Ease of learning is 3. We are able to pay money on modifying our product.

All the firms have two stations of distribution to attain customers. The middlemen in channel 1 serve customers with a limited line of personal computers and computer software. The middlemen in channel 2 offer more limited service and handle bigger assortments of products, they also offer lower prices.

All the firms have 3 ways to make campaign: Personal selling, advertising and sales campaigns. About advertising, there are five ways: pioneering- major demand, immediate competitive- own brand now, indirect competitive- own brand future, reminder-reinforces familiar brand and commercial.

Each company has 700, 000$ as its budget. The primary cost include: Product Adjustment, Unit Development Cost, SALES TEAM salary& severance, Advertising, Sales Promotion, Marketing Research Reports and Interest on Loan from Lender.

All the firms have four years to contend with each other. (6)

2. 2 The company of Fourstars

2. 2. 1 Our idea and brand

First, we ought to think about our marketplace, and which segment to sale our product. We think we need to try our better to meet increasingly more customers' needs. The other businesses may choose one marketplace, but we can develop one mixed product. We are able to have more market share.

The six sections can be divided into two main parts:

The first part is Learner, Home and parents. These three sections require the term processing software easier, and they don't need too many functions. The stations of the three segments are very similar. The benefit is we need not spend much money on changing our product, and the risk of our own product is leaner. The drawback is the price of these three sections is much lower. We cannot absolute to get much revenue.

The second part is Typists, Writers and managers. These three sections require the term handling software more professional. They need more functions. The stations of the three sections are also quite similar. The benefit to find yourself in these markets is the price of the product is very high, we may get more profit. The disadvantage is that we need to pay big money on modifying our product, we've risky.

Finally, we made a decision to design a easier product, and chose the first part. We also think many brands about our product, such as lucky superstars, stars and fourstars. We choose fourstars to be our brand, because we will be the fourth companies, and we want to be the sales star.

2. 2. 2 The four years of Fourstars

The first year:

We develop our new product, the new product have 10 special orders, 5 mistake protections and 8 functions in ease of learning. The retail price in channel 1 is $156. 40 and in channel is $129. 90. We also do marketing research and advertising. The route 2 is more important to our product. We pay less money on modifying our product. We imagine we will be successful.

All the associates of our firms are very thrilled. We all await the result. But we show up in the first 12 months. We make a major oversight, because we product too less product, we forget to ask the output. We also lose the marketing share. We've a cold winter, but we do not lose notion. The finally success is the real winner.

The second 12 months:

The first 12 months, we live loser. We should find the reason and the disadvantage of our product. First, we improve our product. We alter the special instructions to 11, and the function of mistake protecting to 4. We compare our product with other companies, and we find our product is actually very perfect. We assume that we can get more marketing share, and more profit this year. The price tag on our product in route 1 is $168. 50, and in route 2 is $147. 84.

When we get the result of the second, we still lose in the second calendar year, but we dropped very strange. The unit deal of our product is the highest of 4 organizations. We have the best sale in 3 segments. Why we lose? The professor say something to us, we have to get more benefit from our product. How to get more profit is the main thing we have to do in the next year.

The third time:

One year past, though we lose, we get the notion. We consider our product is perfect, and we do little or nothing about modifying. The thing we should do is how to get more income. We increase our price, and the price in channel 1 is $239. 67, and in channel 2 is $205. 65. We do not increase our price too much, because we fear so much burning off customers.

We have three years experience, and we are extremely comfortable. We've prefect product and highest marketing share. Obviously, we can achieve success. The effect is we lose again, but this year our company is profitable. The unit sales of our product continues to be the best, and we will be the largest company in 4 segments. Because one of the firm called Micro Two's product is suit for Students. Our customers are Home, Typists, Writer and parents. We have to make changes in our product. We still make a major problem: we give too much payment. We also need more middlemen

The fourth time:

This is the this past year, which is the previous chance. According to our customers, we create a new product. Our new product has 12 in special commands, 5 in error protection and 8 functions of easy of learning. We retain the services of more middlemen and we also increase the price in our new product. We aren't foolish again, we reduce the commissions. .

We think about every details. Finally, in the last time, we get the most profit of all the firms. All of the workers of our own firm fell very happy. We learn a whole lot from the marketing game. We realize ways to get income. Though we make many mistakes, I think we cannot make the error twice.

2. 3 The learning items of the marketing game

According to the marketing game, all the group customers learn a great deal. Listed below are 3 main learning factors of the marketing game.

2. 3. 1 Proper product to target market

Companies need to choose its aim for marketing and sets of consumers. Then they can produce the proper product. The product of an company is bound, but the customers' requirements are unrestricted. Therefore, companies only choose less market to be their target market. Monopolistic market can help company to get more earnings. The 3IZNESS' product is made for Managers, though the price of these product is very high, they don't have competition, they sale very well. The famous marketing grasp Philip Kotler said:" the prospective market is the part of the qualified available market (those with the interest, income, gain access to, and requirements for a particular offer) that the company decides to follow. "(5 by Philip Kotler)

Customers are the god to the firms. Companies should have the proper, in order to have their customers. We change our product for three times, the goal of these changes is to meet up with the customers' need. The prospective market is very important to a corporation. You have the mark, then you can produce proper product.

2. 3. 2 The need for Marketing research

Doing marketing research is very important to a business. Marketing research can help the company make right marketing decisions. Through general market trends, we will get a number of new market opportunities and could develop new products to meet customers' needs. We can get information about our product in the market share, we can also know much about our opponents. Each one of these information can help the business develop new product and change market stratagem.

During the marketing game, we all prosper in marketing research. In the 3rd time, our company discover that the Micro Two's product is quite similar with this product, and its price is leaner than us. Within the fourth time, we change our product immediately. That's one major reason we can get in the last year.

2. 3. 3 Revenue is the first

The aim of a business is get more profit from the market. A business is successful or not, the sole criterion is the revenue. In the marketing game, the first year and the next year, we don't get any profit in the market. It causes we have less budget in the next year. We cannot broaden more market. We also learn how to gain more profit from the marketing game. Income is an important factor for the development of the company.


Strategic marketing is the component which I studied in the school of warwick. Thank you for providing us great lectures and a interesting marketing game. I discovered a lot from this module. I still kept in mind that the teacher of Caroline Bitch ask us questions every morning. It help me to keep in mind what is marking, the marketing combine etc. All the teachers can make the tactical marketing more lively and easy to understand.


  1. http://www. huawei. com/corporate_information. do
  2. http://www. quickmba. com/marketing/mix/
  3. http://www. huawei. com/products_services. do
  4. http://wiki. mbalib. com/wiki/%E5%B8%82%E5%9C%BA%E8%90%A5%E9%94%80%E7%8E%AF%E5%A2%83
  5. by Philip Kotler
  6. The marketing game

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