Investigation on the Business Strategy of Huawei in International Market

Abstract

More and more companies are becoming involved in international market and are showing behavior not previously seen prior to this. As the local market is proven to be inadequate for some companies, these companies pursue internationalization due to the economic scale as well as the opportunities being expected from it. In this regards, this proposed research study will investigate the business strategies of Huawei in international market. This proposed study will employ a mixed-method approach and will use survey questionnaire and semi-structured interview to arrive at the conclusion on this topic. The participants in this study will be 50 executives and managers from different companies operating in different industries.

 

 

 

 

 

 

 

 

 

 

Table of Contents

Abstract 2

Chapter 1. 3

Introduction. 3

Chapter 2. 6

Literature Review.. 6

Internationalization. 6

Entry Strategies. 7

Types of International Market Entry. 7

Chapter 3. 8

Methodology. 8

Research Design. 9

Sampling. 9

Data Collection. 10

Data Analysis. 10

Ethical Consideration. 10

Timeframe. 11

References. 12

 

 

 

Chapter 1

Introduction

The power of the Global-Trade-Wind resulted to a lot of opportunities as well as challenges. More and more companies are turning to be involved in international market and are showing behavior not previously seen prior to this. It is expected that the valuable lesson that can be learned from an in-depth investigation of internationalization, even from a historical viewpoint, knows methodological insufficiencies that can assist in the identification of new paradigm of enquiry in order to promote entry strategy of companies (Joshi, 2009). Though, the motivation for going beyond one’s border to do business is expected to differ from one company to another. As the local market is proven to be inadequate for some companies, these companies pursue internationalization due to the economic scale as well as the opportunities being expected from it. According to Shenkar and Lou (2008), there have been significant changes and adaptations in regards to responses to the demand of internationalization.

As a result, more countries are opening up trader boundaries, eliminating barriers, and joining WTO which can act as a booster to company’s internationalization process. Furthermore, the threat that companies are no longer safe and free of risk by merely staying put in their local market including the easy penetration of domestic market by a foreign company due to technological breakthrough and communication made it mandatory for most companies to venture internationally or at least make an expansion on their activities across their national borders. While some companies opted to export their product and make a consolidation of their local market, other companies prefer to apply a more aggressive strategy by forming alliances, making acquisition of other firms, going into joint venture or even finally establishing their own subsidiary.

In order to make an in-depth understanding and appreciate this phenomenon, this study will investigate the business strategy of Huawei in international market. This researcher hoped that by investigating this subject, the stakeholders as well as those who are interested in this concern can be benefited. It is also hoped that this study will contribute to the growing literature about internationalization of Huawei.

Purpose of the Study

The purpose of this study is to investigate the business strategy of Huawei in international market.

Research Objectives

The research objectives of this proposed research study are the following:

    1. Determine the theoretical models in regards to business strategies in international market.
    2. Determine the international business strategy of Huawei in the market.
    3. Determine the advantages and disadvantages of the business strategy of Huawei in the international market?
    4. Find out if the international business strategy of Huawei is effective in bringing about a positive result.

 

 

Research Questions

            The research questions for this proposed research study are the following:

    1. What are the theoretical models pertaining to business strategies in international market?
    2. What are the business strategies of Huawei in international market?
    3. What are the advantages and disadvantages of the business strategy of Huawei in the international market?
    4. Is the international business strategy of Huawei effective and bringing a positive result to the company?

Limitation of the Study

This researcher deemed that this proposed study has its own set of limitation as brought about limited timeframe of conducting the study and other resources. Due to these mentioned scarcity, this study then may not fully attain an in-depth and more expansive investigation of the subject being examined. Yet, this researcher also deemed that this limitation will not in any way cause any negative impact to this study in terms of arriving at a knowledgeable conclusion and recommendation. It is hoped that this study will contribute to the literature gap in the subject being investigated.

 

 

 

Chapter 2

Literature Review

            This section presents briefly the definition of internationalization given by different scholars. This section also discusses the many forms of market entry strategies a firm can perform in becoming an international company.

Internationalization

            There have been much studies and literature on the internalization process of a firm. According to Gupta (1989) the idea of internalization has changed over the past several decades. The scholar also defined internationalization as the process wherein a firm gradually increase its international involvement (Gupta, 1989). The scholar also made claim that internationalization is the outcome of series of increment decisions.

The scholar Welch and Luostarinen (1988) suggested that “internationalization” as a dynamic concept: wherein it is the process of increased involvement in international operations, both sides of outward and inward ought to be involved in a more expansive idea of internationalization. Meanwhile, Beamish (1990) suggested another comprehensive definition as “the process by which firms both increase their awareness of the indirect and direct influences of international transactions of their future as well as establish and perform transaction with other countries” (Coviello and Munro, 1997).

Entry Strategies

            Foreign market entry strategies vary in certain degree of risk they present, the commitment and control of resources they needed and lastly the return of investment as promised. There are essential two types of entry strategies, namely:

    • Non-equity mode that includes contractual agreements and export
    • Equity mode that includes wholly owned subsidiaries and joint ventures.

The market-entry strategy that provides the minimal level of risk and the lowest in terms of market control is import and export. On the other hand, the higher the risk yet also the highest market control as well expected return of investment are related to direct investments that can be done as an acquisition (Terpstra and Sarathy, 2001).

Types of International Market Entry

Exporting and Importing. This is the most typical strategy to become an international company. Exporting is the procedure of selling goods as well as services in one country to another (Terpstra and Sarathy, 2001).

Licensing. This is done when the international licensing firm provides the licensee a trademark rights, patent rights, copyrights or even the know-how in regards to products and processes. In return, the licensee would manufacture the licensor’s products, sell it and pay the licensor royalties in relation to sales volume (Terpstra and Sarathy, 2001).

Franchising. This is similar to licensing but the franchising enterprise appears to be more involved in the control and development of the marketing program. The franchising process can be given definition as “a system wherein semi-independent business owners pay royalties and fees to the parent company in return for the rights to be associated with its trademark” (Terpstra and Sarathy, 2001).

Joint Ventures.  Joint venture shares similarities with licensing but the main difference is that the international company enjoys an equity position as well as management voice in the foreign company. Generally, the partnership between the host and home country results to a third firm (Terpstra and Sarathy, 2001).

Strategic Alliances. This strategies is a terminology utilized to describe the variety of cooperative agreements happening between various firms like formal joint venture, shared research, or minority equity participation (Campbell and Reuer, 2001).

Direct Investments. In this strategy, the international company makes for a direct investment in a unit of production in the foreign market. It can be characterized as greatest commitment considering there is the possibility of complete ownership (Campbell and Reuer, 2001).

Chapter 3

Methodology

This section discusses the methodological approach that will be used in the proposed study. This section also will briefly explain the sampling strategy, data collection method, as well as the data analysis that will be applied on the study. Furthermore, ethical consideration in conducting this study will also be explained.

Research Design

This proposed research study will utilized a mixed-method approach, wherein both qualitative and quantitative methodology will be utilized in order to arrive at the conclusion regarding the subject being investigated. Yet, this study will mainly be qualitative in nature due to the reason that this researcher deemed this methodology can fully explain the phenomenon being investigated. Furthermore, qualitative research tend to be more of description and focus on the experiences of the participants. However, elements of quantitative research will also be employed, in particular regarding the frequency and percentage of participants demographics. According to Patton (2014), the combination of narrative with variable-driven data can result to what he termed as “hybrid vigor” analysis.

Sampling

There are many sampling techniques available in mixed-method approach, but for the purpose of this proposed research, this researcher will employ a purposive sampling strategy. According to Creswell (2013) purposive sampling is “used as a strategy when one wants to understand something about certain select cases without needing to generalize to all such cases”.

In this regards, this proposed study will employ the participation of 50 executives and managers from different companies in different industries that have operation in international market. It is the rationale of this researcher that the best resource people regarding the business strategies of Huawei in international market would be these managers and executives. Furthermore, this proposed study will also employ the participation of five (5) executives, selected primarily for the semi-structured interview.

Data Collection

This proposed research study will employ survey questionnaire as well as semi-structured interview as its main data collection methods. According to Burzan (2014) the survey questionnaire has long played an essential role in terms of research activities of scholars and researchers in data gathering. On the other hand, according to Duan et al. (2015), the interview is the best method for gathering background information.

Data Analysis

This proposed study will analyze the gathered data by transcribing the information collected in the semi-structured interview through the use of symbolic code. This study will encode and look for emerging theme in the gathered data from the interview and present them in a narrative form. On the other hand, the data collection from the survey questionnaire will be tabulated, measured for frequency and percentage and present them in a standard basic statistics through the use of tables and graphs.

Ethical Consideration

The proposed research study will observe some ethical considerations, in particular in regards to the participation of its respondents. This researcher will observe the protection and privacy of the identity of the participants in this study and they will be informed that they are encourage to leave no markings or in any form that can reveal their identity and personality. This researcher also will observe that the results of this proposed study will only be used for academic purposes and that it will not be sold or be used for any purposes outside of its original intention.

 

 

 

 

 

 

 

 

 

Timeframe

  April May June July August Sept Oct Nov Dec Jan Feb
Background Research                      
Submission of Proposal                      
Literature Review                      
Data collection (Interview, survey)                      
Check on improvement                      
Conceptualization of Conclusions                      
Additional Drafts                      
Final meeting                      
Final Draft                      

 

 

 

References

 

Beamish, P.W., 1990. The internationalization process for smaller Ontario firms: a research agenda, Research in Global Strategic Management-International Business Research for the Twentry -first Century: Canada’s New Research Agenda, JAI Press, Greenwich.

Burzan, N., 2014. Mixed methods: methodology, research designs, and methods of data analysis. Qualitative Research Methods,16 (1), 13-19.

Campbell E., Reuer J.J., 2001. International Alliance Negotiations: Legal Issues for General Managers, Indiana University Kelley School of Business, Business Horizons Copyright.

Coviello, N & Munro, H. 1997. ’Network Relationships and the Internationalization Process of Small Software Firms’, International Business Review, vol. 6 (4), pp. 361-86.

Creswell, J.W., 2013. Research design: qualitative, quantitative, and mixed methods approaches. New York: SAGE Publishing.

Duan, N., Bhaumik, D. and Palinkas, L., 2015. Optimal design and purposeful sampling: complementary methodologies for implementation research. Administration Policy for Mental Health,42, 524-532.

Gupta, U., 1989. Small firms aren.t waiting to grow up to go global. The Wall Street Journal, December 5, p. B2.

Joshi, R., 2009. International business. London: Oxford University Press.

Patton, M. Q., 2014. Qualitative research & evaluation methods: integrating theory and practice. New York: SAGE Publishing.

Shenkar, O. and Luo, Y., 2008. International business. New York: SAGE

Terpstra V., Sarathy R., 2001. International Marketing, 8th edn., Chicago Il, Dryden Press.

Welch, LS & Luostarinen, R., 1988. ’Internationalization: Evolution of a Concept’, Journal of general Management, vol. 14, no. 2, pp. 36-64.

 

 

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