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This is an excellent case study for understanding the challenges that MNCs from emerging markets face when operating in a developed economy. Imagine that you are Sean Yang. Prepare a 7-to-8 page white paper for the board of directors of Huawei Technologies Ltd. You will make recommendations for Huawei’s future strategy in the Canadian market following the actions of the US, Australian and Indian governments and the adverse publicity that has followed.
Your paper for this assignment will contain the key talking points which Sean Yang will use in his face to face meeting with the company’s board.
Theme of the White Paper
To analyze Huawei’s position and prospects in Canada within the overall Huawei corporate strategy.
White Paper Outline
1. – 1. What were the factors behind Huawei’s decision to enter the Canadian market? Use the PESTEL (political, economic, social, technological, environmental and legal) framework to analyze the external environment pertinent to Huawei’s entry into Canada in the year 2008.
2. 2. Given the rapid technological developments and expected future growth in Canada’s telecommunications industry, how has Huawei responded to competition during the first three years (2008 to 2011) of its operations? Here, you may consider using Michael Porter’s Five Forces Model for your analysis of the telecom sector in Canada. These five forces are the power of suppliers, power of customers, threat of new entrants, threat of substitutes, and competitive rivalry, i.e. intensity of competition. Describe how Huawei has been able to benefit from or defend against these forces, as the case may be, while implementing its growth strategy in Canada.
3. 3. Present at least two options to the board of directors for growing Huawei’s future operations in Canada. You should present the potential downside and upside of each option based on three criteria: strategic attractiveness, economic viability, and organizational feasibility.
4. 4. Conclusions and Recommendations: Finally, recommend one of the above options to Huawei’s board and explain your choice.
Required Reading: attached
DRS: Daniels, J. D., Radebaugh, L. H. & Sullivan, D. P. International business. (15th ed.) Chap. 17, “Marketing globally,” p. 655-695; Chap. 18, “Global manufacturing and supply- chain management,” pp. 695-728.
Celly, N., Han, M. & Lau, M. (2015). Huawei in Canada: Can It Become a Trusted Player?HK1061-PDF-ENG. Boston, MA: Harvard Business School Publishing.