Case analysis PEST
The paper will discuss on the case analysis PEST basing its argument on the primary concern that is whether Huawei China strategy smartphone can expand globally. The paper will narrow down on the parts of social-cultural and technological change in the PEST analysis.
PEST analysis is essential in examining changes that are caused by political, economic, social and technological factors or rather changes within the marketplace. In every business before making decisions or rather plans, it is of great significant to put into consideration the external environment, and this is only perfected through PEST analysis (Zhan, 2011).
For the case of the Huawei smartphone company in China under the PEST analysis narrowing down specifically on the social-cultural factors. Under the social-cultural factors, we get wealth distribution, education available, lifestyle trends, work attitudes, tastes, and preferences to affect the Chinese market (Zhang& Liang, 2007).example wealth distribution, it is of great concern that Chinese have a wider gap between the rich and the poor, Huawei therefore is concerned with the GDP growth rates which currently is averaging to 9.31%. Under education availability, we get to understand that approximately 90% of Chinese population is literate this will boost Huawei to some level in the competitive market (Zhang & Liang, 2007).
On the other hand, 424 million of the Chinese citizens can access the internet and do their work online, shopping, studying and this to greater extent will boost the Huawei industry since they will get to sell much of their products to the promising prospective customers. Lastly test and preference of the Chinese citizens with the highest number of literate citizens to some extent by expansion of the Huawei industry it will accrue much of income from the larger population which is approximately 1 billion (Peng &Nunes, 2007). All these factors become crucial in examining external factors for organizational growth. Huawei as an organization within the Chinese territory prides itself since China provides almost the social-cultural factors that are of necessity for their expansion globally (Peng&Nunes, 2007).
The other external factors that need to be examined in PEST analysis is the technological change. In this case, several factors characterize technology level of the organization these are such as level of technological investment in the organization, the rate of time taken in development, rates of innovation are very essential to be in consideration (Levy, 2015).
For the case of Huawei, its global growth has been influenced to a greater extent by the fast growing level of technology in China. The Chinese government has been on the race of advancing their degree of technology to a wider perspective. From the support of the government, Huawei has since enjoyed the surplus advances in technology hence high possibility of expanding globally (Levy, 2015).
Basing on the technological levels in technological investment we get to understand that Huawei has gone miles ahead in the field of technological advancement. Huawei which started its operations in the year 1987 and by last year its total revenue was approximately 185.2 billion with 65% of its revenue being from exports this has a clear indication of how Huawei has made steps in the field of technology (Abdullah& Aimin, 2015).
In the field of innovation, the innovation teams are at their toss with projects and ideas inventing new strategies that would meet the consumer’s needs. Recently Huawei has announced their new mate-s smartphone which is a unibody aluminum 5.5 –inches with force touch display and its version is coral pink. The new developments within Huawei industry to greater extent has led to its development which when they expand their wings in the Chinese market they will be at par with their competitors (Abdullah& Aimin, 2015).
PEST analysis is of great concern for every organization or rather business to come up with the most accurate and precise decision for the success of the company. Therefore, it is a recommendation for enterprises to take much consideration on the external factors these are political, economic, social and technological changes in the marketplace (Abdullah& Aimin, 2015).
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Zhan, W. (2011). Internationalization of Chinese MNEs and Italy market analysis: a case study of Huawei technologies corporation’s internationalization strategy.
Zhang, J., & Liang, X. J. (2007, August). 3G in China: Environment and prospect. In Management of Engineering and Technology, Portland International Center for (pp. 2988-2992). IEEE.