Samsung Galaxy Note 3 is the latest addition to the Note Series. It is a Phablet, a combination of phone and tabletlaunched on 4th September 2013 by the Korean electronics giant Samsung. Note 3 is an Android light-weight smartphone with a larger HD screen and an elegant design unlike its predecessors. The Samsung Galaxy Note 3 includes Android 4.3 Jelly Bean system and quad-core processor, improved Wi-Fi with mobile calling facility, and improved pen-enabled features and pop-up applications. A longer battery life with up to 25 hours talk time and standby time up to 420 hours for 3G devices is advantageous.  Looks wise, it has a smooth plastic leather back cover with a faux metallic base. Samsung also improved the navigation system of Note 3 to add a more user-friendly interface. Note 3 has a  front facing 2-megapixel camera for taking self-portraits and for video chatting and 13-megapixel rear camera for taking great snaps(NDTV Gadgets n.d.).

 

1.1       Objectives of the Study

The aim of the study is to analyze the marketing and product strategies of Samsung Galaxy Note 3 vis-à-vis the competitors. The objectives of the study are:

  • Critical analysis of Samsung Galaxy Note 3 as an innovative product
  • Identifying its branding strategies and consumer delivered value vis-à-vis competitors.

1.1       Problem Statement

The global sales of tablet in 2013 witnessed a rise of 50.6 percent over last year with Apple retailing its market leadershipand Samsung chasing next (Agence France-Presse 2014). Though the phablet market is growing but developed consumer markets like US and UK are nearing consumer saturation. The growth is attributed to the emerging new markets which indicate slow yet consistent growth.Here is the preference is for low-end smaller screen Phablets running on the Android operating system. This offers tremendous growth opportunities for the “Note” series of Samsung. However, the ever changing consumer demands and preferences make it a challenge to produce an innovative product. The study intends to identify the reasons why Samsung is unable to outdo Apple and up to what extends it has adopted product innovation to deliver maximum customer value.

1.2       Methodology Adopted

The research methodology adopted for the research is that a qualitative study based on secondary data. The research approach is deductive in nature as deductions are made on the basis of general findings about the case product. The inferences drawn are primarily analytical in nature.

The following are the key sources of the secondary research:

-Newspaper Articles and Journals

-Published Marketing Journals and Institutional Reports

-Magazines and other information portals

-Weekly issues, Books of famous authors

-Analysis and Reports of consultation firms

 

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SMEs are the important part of economic systems. In fact, in last four decades, focus has been shifted towards SMEs due to their crucial role in the growth of industries and overall economic conditions of countries (Atik, 2012). However, SMEs do not strategically adopt planned approach of internationalization. Therefore, to analyze these approaches, this report will critically discuss different options available to SMEs. In addition, challenges of moving towards geographically or psychologically distant markets will be also evaluated. It will provide an overview about the advantages and disadvantages of using different strategic approaches by SMEs.

Strategic Approaches  :  SMEs have become an important part of emergent nations. It is so, as they are not observed as the miniature of large MNCs, but are referred as the small firms with their own identities. 

Economic Approach:

According to this approach of internationalization, SMEs can extend their international activities within the vertical integration (Laghzaoui, 2011).  Similarly, as per the transaction cost theory developed for advancing the economic approach of internationalization, organizations can also make selection between externalization and internationalization of their activities. Following are the advantage and disadvantages of this approach:

Advantages: The advantage of using economic approach is ownership advantage. By using this approach, SMEs can accumulate tangible assets including experience and technological capabilities (Ruzzier and Konečnik, 2006). For example, SMEs operating in the hotel industry of Slovenia dominated the country due to the domestic conditions and size of the country (Ruzzier and Konečnik, 2006). By moving towards a geographical location, SMEs can take location advantage due to productive and institutional factors. Internalization advantage can be taken by SMEs by managing or coordinating their business activities effectively. For example, Metsch Refractories has become UK leader, as it selected European market to pursue its internationalization process (Cui, Walsh and Gallion, 2011).

Disadvantages: The drawback of using economic approach is the difficulty or issue in extrapolating the theoretical contributions for SMEs due to their context. In addition, major role of social relations in transactions is also not considered in economic approach of internationalization. Furthermore, the lack of managerial competencies, financial, physical and technological resources can also restrict SMEs to go international. Hence, all these are disadvantages of employing the economic approach.

Success Strategy: By using technological competencies and experiences, SMEs can take ownership advantage. This ownership advantage can be used to attain success for the process of internationalization by the SMEs. Along with this, by moving towards geographical locations that have promising productive or institutional factors, success probability can be increased by SMEs. By managing and coordinating activities internally, it is possible for the SMEs to enhance their success chances to become international. With the help of productive resources, SMEs can also improve their access to market abroad. Utilization of critical resources can also assure success for SMEs in the future. Therefore, by following or adopting all these strategic moves, SMEs can attain their intended goals within timeline.

Opportunistic Portfolio Approach:

According to this approach, internationalization process is followed by using diversification strategy. In this approach or model, SMEs can reduce their risk by entering into several countries in a simultaneous manner. For example, B2B high technology firms operating in food industry, paper, petrochemical and pharmaceutical in Nordic attained success due to this approach (Smolarski and Wilner, 2005). Following are the advantage and disadvantages of using this strategic approach of internationalization:

Advantages: By using opportunistic portfolio model, SMEs can avoid or minimize risk of doing business internationally. Hence, this approach is best suitable for SME entrepreneurs who want to control risk while making business decisions.

Disadvantages: The drawback of using opportunistic portfolio model is associated with the behavior of entrepreneur. For example, if the entrepreneurs apply a speculative behavior, it becomes difficult to leverage opportunistic portfolio model. So, this model or approach of internationalization is only successful for investor behavior.  For example, FCX Systems was domestic, but it got chance to become international when it got a customer from China, but it did not pursue other countries for internationalization (Cui, Walsh and Gallion, 2011). So, it proved difficult for the company.

Success Strategy: By using opportunistic portfolio model, risk related to the resources, technological, economic or socio-cultural can be controlled. Hence, the SME entrepreneurs only want risk reduction in their business ventures. In this manner, success chances can be maximized. Along with this, by doing business in two or more countries that present equal risks, it is possible to control risk and take benefits of success simultaneously by the entrepreneurs. It is so, as if business is done in single country, it can leave the entrepreneurs in trouble due to higher risks.

Network Approach:

According to this approach, position of the organization in its network plays an important role in the process of internationalization. This approach is also based on Uppsala model, but now improved. For internationalization, there are three defined stages that are prolongation, penetration and integration. With the help of prolongation stage, network can be integrated. Penetration can be defined as the stage of developing the position and increasing its commitment and resources.

Furthermore, in the integration, the organizations are linked up to national networks. It helps to coordinate business activities for advanced internationalization. In addition, with network approach, SMEs can also become main actors once they acquire required experience and knowledge of foreign markets.

By using network, technical, financial and commercial relations are developed with other organizations. It further assists in becoming international at wider level for the SMEs. For example, by using customer contact and feedback, Metsch Refractories ventured into UK market for internationalization. It proved helpful for the company to expand its business (Cui, Walsh and Gallion, 2011).

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The global supermarket retailing is expected to grow at an increasing rate. It is projected that in between 2014 and 2020 this industry will grow at 6.1 % CAGR (Persistence Market Research 2014). The industry is projected that by the year 2020 the industry will reach the value of 8,541.9 billion USD (Persistence Market Research 2014). This lucrative business option is motivating companies from across the world to expand their business and thus reap benefits from same. One of the most interesting markets to tap is India. India is accredited from being one of the nations with fastest growing middle class with approximately 149 million being categorized as middle-class households (Persistence Market Research 2014).

In this paper the marketing plan for Tesco Plc (from UK) is developed to determine its marketing mix for entering Indian markets. In order to analyze the prospects of Indian markets, a detailed analysis of overall market is done using varied theoretical models. For current market scenario PESTLE analysis is adopted. Competitor’s analysis is done through Porter’s 5 forces model. Internal and external analysis specific to Tesco Plc using SWOT model is adopted. Based on findings from these models, the marketing mix is proposed for Tesco Plc in order to enter and operate successfully in India.

Company Profile: Tesco Plc

TESCO which is a public limited company was set up in the year 1919, in Cheshunt, UK (Tesco 2015a). The company was founded by Jack Cohen. The first store was set up in Burnt Oak in the year 1929 (Tesco 2015a). TESCO ranks as number one retailer in the UK retail market and is considered to be among top retailers in the global market. TESCO including its subsidiaries have stores which are more than 6200. The company has its global presence in 14 countries in Asia, Europe as well as North America. Some of the TESCO banners are TESCO Express, TESCO Extra superstores, TESCO Metro, One Stop Convenience stores, Homeplus hypermarket, virtual stores in South Korea, small express and Dobbies gardening stores in the Scotland, UK and Northern Ireland (Hoovers n.d.).  The company has human resource of 72000 employees to deal with TESCO’s retail business such as clothing, books, furniture, software, petrol, financial service assistance, telecom, music downloads and  DVD rentals (Tesco PLC 2015). The mission of the company is to generate value for its customers and to gain customer’s loyalty for long term. The company motive is to provide assistance to its employees and customers so as to retain and create strong relationships (Tesco PLC 2015).

Overall Market Analysis

The overall market analysis on Indian markets for Tesco can be undertaken through macro-environmental analysis that is PESTEL analysis. PESTEL analysis will aid in determining varied aspects and issues of Indian markets with special reference to political, environmental, socio- cultural, technological, legal and economic factors (Bowhill 2008).

Political Factors

Politically India is experiencing a complete makeover with new government drafting new policies for overall development of the country. The Indian government has been promoting retailing industry in India and lieu of the same it allowed 100% foreign investments into India enroute wholly owned single-brand in the year 2012 (Lok Sabha Secretariat 2014). Upto 51% FDI is allowed in multi-brand retailing but under specific circumstances thus limiting the scope of FDI investments in India (Lok Sabha Secretariat 2014). Though this seems to be a positive signal for companies like Tesco to enter into Indian markets but yet with launch and promotion of ‘Make in India’ they are likely to face huge political barricades (Irani 2015).

Environmental Factors

Environmental concerns among Indian consumers are rising which is evident in their augmented consciousness while taking spending decisions. They have been demanding eco-friendly products along with eco-labeling in accordance to national and international standards (World Wide Fund for Nature 2014). Overall the environmental concern in India is comparatively low as compared to global consumers.

Socio-Cultural Factors

With the emergence of youth population and rising middle-class in India, the socio-cultural factors affecting Indian shopping trends and attitude towards retailing is under a revolutionary change (Chandrasekhar et al. 2006) (Jeffrey 2010). A transition from kirana shops to organized retailing is been experienced which gives ray of hope to retailers like Tesco (Atulkar & Kesari 2014). The shopping behavior of Indian consumers is also changing owing to changes in their lifestyles and social status. This in turn affects their consumption patterns. Further India is a home for multiple cultures and sub-cultures which drive its consumption pattern (Sikri & Wadhwa 2012). Due to the presence of such huge cultural diversity marketers face difficulties in adopting a single model or strategy to cater Indian consumers.

Technological Factors

The major technological factor that considerably is responsible for success or failure of retail stores in any nation is supply chain management. The SCM in India is highly under-developed and is insufficient too to cater growing needs organized retailing in India (Sikri & Wadhwa 2012). Further unavailability of appropriate infrastructure and inadequate distribution mechanisms adversely affect organized retailing in India.

Legal Factors

Indian retail industry is under strict surveillance as it si guarded by a number of laws namely Shop and Establishment Act, Standards of Weights and Measures Act, Provisions of the Contract Labour (Regulations and Abolition) Act, The Income Tax Act, Customs Act and The Companies Act (DnB n.d.). Along with it, the retailers need to abide by rules and regulations prevalent at regional level which further complicates and confines development of organized retailing. Slow and cumbersome legal processes discourage retailers from entering into such a lucrative industry.

Economic Factors

The purchasing power of Indian consumers is expected to be 6 trillion USD by 2015 which is considered to be the 3rd leading following USA and China (Times of India 2011). The retail industry is considered to be of great importance for Indian economy as it contributes approximately 33%-35% towards GDP and is anticipated to mature by 25%-30% per annum (Sikri & Wadhwa 2012). Organized retailing in India only forms 5%-6% thus depicting huge scope for international companies like Tesco to cater Indian consumers (Sikri & Wadhwa 2012).

 

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Introduction

In context of the marketing practices implemented in the operation domain of airline businesses, this essay is making an insight into the role of sponsorship in case of the Emirates Airline (EA). The basic concentration of this paper is to understand the role of sponsorship in terms of operations in airlines as well as related airports. The idea is to explore and comprehend the factors of sponsorship that are responsible to paving the road of success for an organisation. The case of Emirates Airline (EA) has been selected for the critical analysis of the success attained by the selected company in aviation marketing.

 

The Case

The ownership of Emirates Airline (EA) is in the hands of the Corporate Investors working under the Government of Dubai, UAE. The official declaration of Emirates Airline (EA) in their Annual Report of 2015 declares that it has been recognised as the largest airline organisation in the entire Middle East, with an operating expansion of 3,300 flights/week from Dubai International Airport. These flights are to 78 nations spread all over the world (Emirates Airline, 2015). As reported by Frontier Economics (2015) since 2014, the flights of Emirates Airline (EA) are increased by 29 airports in selected 28 cities of EU28. This operation comprises of 700 flights operating per week in both the back and forth directions. The success story of Emirates Airline (EA) in Europe appears very important in terms of gaining developed route network, which is responsible for connecting many cities of the world through Emirates Airline hub in Dubai.

 

Background

In the words of the official declarations made by the The Emirates Group, the history of Emirates comprises ‘incredible development’ and is ‘fascinating. The Emirates (2015, a) refers the history of Emirates Airline (EA) back to 1980s. during the mid of this decade, the Gulf Air started cutting back most of its services to channelised to Dubai. It is at this position, that Emirates came into being in the month of March of 1985, that specifically was supported and backed up by the royal family of Dubai. The collaboration was initiated with Pakistan International Airlines offering a minimal of two airline aircrafts at wetlease. In order to gain independent operative hold, the government subsidies were considered along with $10 million as the capital investment. These developments were initiated by Ahmed bin Saeed Al Maktoum as the head and the current Chairperson of Emirates Airline (EA). Emirates (2015) states that it hardly took any time for Emirates Airline (EA) to expand its destinations and fleet. As such by October of the year 2008, Emirates made a huge shift of all its aviation operations to the Terminal 3 of Dubai International Airport. The plans for its rapid expansions and growth are still part of its success story and sustainability in the competitive sky seems like a simple strategy to it.

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The marketing development of Volkswagen Group in last 5 years has attained enormous attention in the automotive industry in a worldwide basis. The strategic approaches of the company are noteworthy in terms of accepting innovation, transformation, quality-oriented specifications, CSR based programs and the ultimate goal of sustainability in the international market.

This report makes an environmental scanning of marketing management of Volkswagen Group on an external and internal basis, to gain in-depth understanding of its marketing strategies for attaining success. Implementation of PESTEL analysis, investigates the Political, Economic, Social, Technological, Environmental and Legal factors of the company. Further analytical tools like SWOT and TOWS Matrix added to this audit report for the better knowledge about the marketing management of Volkswagen. In this approach the Strengths, Weaknesses, Opportunities and Threats related to the organisational set up of Volkswagen are examine in a balanced way.

The nest approach of this audit report is to gain empirical facts related to the process of managing consumer and stakeholder’s expectation and adding satisfaction to them. In this approach, the innovative ways of integrated technological support and management of financial dividend provisions are considered specifically. A comparative and competitive zeal of Volkswagen has been noted here, as against its competitors.  Lastly, with a conclusive note the report offers two very important recommendations to the company for gaining further growth in future.

Since 2013, Volkswagen Group emerged as a strong automobile company and was determined to be the leader in its sector. In 2014, in the Annual Report 2015, Volkswagen declared that the unit sale made +5% leap from 9.73 million to 10.22 million automobiles and made the company second best organisation in the international automobile market (Volkswagen, 2015). As declared by the Volkswagen (2015) Factbook; the company is noted for being ‘the most successful multibrand group’ in the international automotive industry with its 12 brands like, Volkswagen Passenger Cars, Volkswagen Commercial Vehicles, Audi, Lamborghini, Ducati, Porsche, etc. the company gained an expansion of 153 nation in last couple of years. Developments noted in a nutshell below –

 

Source: Volkswagen (2014)

 

In fact, the approaches are critical and this paper aims in offering a comprehensive understanding of the same. It will be accomplished by illustrations made through systematic analyses led by the implementation of PESTEL, SWOT and TOWS approaches. Moreover, apart from the in-depth environmental scanning an analytical pursuit will be offered regarding the management approaches of Volkswagen in handling its customers, competitors and the stakeholders.

 

Environmental Scan

This current marketing audit on Volkswagen, offers a balanced environmental scan, in order to understand the practical way of maintain right kind of management strategy by the company in the international market. The purpose of the environmental scan aims in reviewing all the latest and the anticipated concerns that lay serious impact over the respective organization. All these selected factors remain inclusive of investigative threads managed for understanding economic, political, demographic, legal, etc of the organisational operative approaches (Jeffs, 2008).

Following the declaration of Kotler (1982) about marketing audit being independent, systematic, and comprehensive, this research too leads the assessment threads of analysing environment scanning of Volkswagen in a very objective and resourceful manner. The external or macro environment of Volkswagen gets analysed through the application of PESTEL and the internal or micro environment gets assessed through the implementation of SWOTS & TOWS matrix analytical formulations.

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SEA FREIGHT
FCL/ LCL Freight Booking
Multimodal Transportation by Sea/Air/Road
Worldwide Consolidation Service
Handles hazards, live animal & much more.
Break-bulk shipments
Refrigerated Services for perishable products
Freight Insurance and packing options
Cargo Tracking System
Door to Door Service
Custom Bonded & domestic Warehousing

 

AIR FREIGHT
No limitations of size and weight
Cargo Tracking System
Door to Door Delivery
Customized solutions for transportation

 

4PL
Globally 75% of the Fortune 500 Companies have gone in for 4PL services. 4PLchanges the logistics equation completely for a company, bringing in with its

expertise & much needed cost cutting.

With our proven 4PL capabilities, our Supply Chain Solutions offers customers a fullservice portfolio, including global supply chain design and planning, logistics and

distribution, customs brokerage and international trade services, as well as freight

services via ocean, air or ground.

Through  4PL services we are able to bring the best links in the supply chainmanagement. Companies with multiple vendors or clients derive maximum benefit

from our 4PL service as we are able to provide pickup, transportation to distribution

and delivery, besides just freight forwarding on a professional level while bringing

cost efficiencies thru economies of scale.

With the rise of global commerce we are uniquely positioned to leverage our 4PLcapabilities, systems and global network to synchronize your global supply chain

from end to end – regionally, nationally and globally.

 

CUSTOM CLEARANCE
Import and export customs clearance (air and ocean)
Technical assistance in valuation procedures
Guidance and consultancy on pre and post shipment services
Documentation procedures i.e. preparation and handling of documents
Representation and liaison with the Customs
All post shipment formalities and endorsements
Filing and cancellation of bonds
Technical assistance for bonded warehousing and trucking
Refund claims

 

WAREHOUSING &DISTRUBUTION
A well equipped system and process of planned and controlled storage state thatcustomers have more control over their goods without worrying about the

warehousing services, minimizing the inventory costs and better concentration on

their core competencies all at the same time.

THE STRIKING FEATURES OF  WAREHOUSING LOGISTICSINCLUDE
Handling of all kinds of goods storage with efficiency.
Surety of safety and privacy.
Assistance for clients in reducing fixed overheads.
Increasing efficiency and cutting down valuable management time.
Quality control checks on entry and exit of goods.
24 hours security

 

 

 

 

 

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Investments and dealing initiations in the aircraft market is considerably a high profile business head. A latest report by Anderson (2015) for Gulf Business, notes the rapid increase in the activities of leasing aircrafts in the aviation market. The report refers to the an amount of more than $200 billion at Dubai Airshow, in the year 2013, whereby very few aircraft organisations paid any attention to the deals, rest moved into the sector of financing these deals through alternative means, like leasing of aircrafts. An interview with Safwan Kuzbari, an industry veteran, who is in this business since 1973 with his Novus Aviation Capital, states –

Operating leases some 10 years ago were only 20 per cent of the portfolio of the aircraft being operated…. “Today, we are over 35 per cent”.

Further confirmation collected from Deloitte & Touche LLP (2010) and Capital Aviation (2014) specifically noted that leasing of aircraft has been identified as one of the most convenient, efficient and popular form of long-term financial investment. The core reasons of its popularity are backed by its trend to remain extremely flexible with reduced status of value risk.

In consideration with the aforementioned increasing demands of aircraft leasing in the global market, the investors are still amidst the state of indecisiveness, in terms of choosing between the options of purchasing aircraft or leasing aircraft. This report is investigating the basic aspects that can assist in gaining the right decision in this matter.

 

Global Aircraft Market

The increasing demands and developments in the aircraft market remain a very significant matter of concern in the global aviation market. The research based report of BCC (2014) mentions that with an extensive amount exceeding $120 billion is demanded by the global aircraft market for all the deliveries to be made in the year 2015, which is the current year (see Appendix 1 for details). Scopes for tremendous financial benefits and opportunities are marked in the domain of participating the market of aircraft finance by the investors.

 

Past Aircraft Market

A very clear and steady growth of the trends involved in the aircraft leasing and purchase has been noted by BCC (2014) as following –

Figure 1 Environment of Aircraft Financing since 2007

 

Source: BCC (2014)

 

It can be clearly noted from Fig. 1 that since 2007, aircraft organisations are much involved in various concerns of maintaining their business, and the leasing appears to be one f the most satisfactory domain in past couple of years. The report confirms that amidst tighter regulatory norms in the global market, there last decade remained as the ground for increasing competition in aviation industry for new commercial modes of bank loans (1st-tier airlines), and boosting aircraft leasing (2nd-tier airlines). The growth of the leasing companies faced some fluctuation during global recession of 2008; otherwise, their hold over the aircraft market was strong in 2007. The developmental trends in leasing aircraft gets further noted since 2011 and the same is currently very strong in terms of initiating the business lead of aircraft industry on global frontier.

The reports of Deloitte & Touche LLP (2010) offered the insight into the aircraft market by stating that in past decade, i.e. 2004 – 2013, the orders received by Airbus is 8,933 with a delivery of 4,824 aircraft. In case of Boeing, it has a count of 8,428 with delivered record of 4,458 aircrafts. With intense increase in competition of the aviation industry, the organisations are more inclined in considering leasing of aircraft than buying the same.

 

Current Aircraft Market

The current demands of aircrafts, as noted by the report of Airbus (2015) are 32,500. The limitations are noted in terms of manufacturing units and thus the trend of purchasing new products is highly compensated through the aircraft leasing by various organisations all over the world. Further details are depicted in Fig. 2, below –

Figure 2 Current demands for new Aircraft

 

Source: Airbus (2015)

Declarations as made in Fig. 2, holds the fact that the trend of leasing aircraft undergoes the process of remarketing of the passenger fleet that eventually gets converted into freight fleet. The retirement of the new deliverables after remarketing, gets prolonged and the same is very much appreciated in offering finance based support to the respective aircraft leasing company and the airlines leasing the same. It is the act of conversion that renews the financial side of the airlines and offers huge profit margins that are counted from the negation to buy new Aircraft or Boeing.

Resources collected from Investec (2013) specifically note the increasing demands of aircraft leasing in last few years. The report of Investec confirms the activity of aircraft leasing as an asset as it assist in the creation of value with minimal exposure to risks. In the current aircraft market, the considerations and preferences of narrow body aircraft leasing is at high pick, as it supports in releasing the investment burdens and operational perspective remain comparatively cheap for the Airline organisation.

 

Projected Future Trend

The futuristic trends as forecasted by Airbus (2015), for the demands and deliverable rates of aircraft until 2034 gets serious backlog status. As per this report, the demands are large all over the world, but the deliveries are slow and unable to meet the demands of the growing airline business. a comparative declaration has been made by Airbus (2015) in order to gain the status that will appear by 2034

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Huawei is one of the international leader in ICT solutions. Huawei is keenin enhancing customer experiences and creating maximum value for telecom carriers, companies, and patrons as a result of incessantrevolution based on customer desires. Around 170 countries and regions use their telecom network equipment, IT products and solutions, and smart devices.In 2013, Huawei ranked 285th on the Global Fortune 500 with annual sales revenue of USD39.6 billion(Huawei 2015)

Huawei invests over 10% of its annual sales revenue into R&D and more than 45% of the 150,000 employees engage in R&D. In 2013, the company achieved stability and vigorous growth in carrier system, business, and consumer trades due to its well-balanced presence all over the world. The company saw an increment of 8.5% in the annual sale revenue in comparison to the previous year in which amounted to CNY239, 025 million.

The Smartphone market is always alive and booming, thanks to the excellent product innovations by the mobile companies. Due to its low-cost strategy targeted for the emerging markets, shipment volume and market share ofHuawei’s mobile devices have been increasing constantly since the second quarter of 2011.In itssmartphone business, Huawei had launched several Smartphones covering entry-level, mid-range, and high-endmodels in 2010 and 2011 to augment its product line, in an attempt to turn around the future global Smartphonemarket landscape.

Founded in 1987, Huawei has grown from a USD 5,680 small company to a global company with a sales volume of over USD 39 billion with business presence in over 170 countries and regions thanks to the tireless efforts of its staff and the company’s global mindset.

The core values of Huawei include the below:

In the high-end market, Apple has been able to sustain and strengthen its leading position in the industry and is unlikely to be surpassed in the short term. Huawei has become the new favorite in the Android mobile phone market and venerated by the public because of phones withadvanced technology and considerably low price.This report will cover a competitor analysis of Huawei with Apple UK and then proceed on to discussing the marketing mix and marketing strategy of Huawei mobile in detail.

2. COMPETITOR ANALYSIS

As far as market share is concerned, the market share of Huawei in smartphone market has been constantly rising. From 3.3% in the first quarter of 2012, it has risen to 6.9% in the last quarter of 2014 (Statista, 2015). Below chart shows the growth.

Figure 2: Growth of Huawei’s market share

Source: (Statista,2015)

However, with Apple as the competitor, Huawei sure lags behind in terms of numbers. But the growing market share presents a ray of hope that Huawei may catch up with Apple’s share very soon.

Talking about UK market, Apple currently has a market share of 42.5% whereas Huawei has a market share of 3% (Page, 2015). Huawei is doing better in the domestic markets as of now.

Smaller manufacturers are struggling for position within the profitable smartphone market and posing a tough competition for global brands.

Well-known brands are presentingresurgence and novices to the marketplace such as Huawei are posturing challenge to the reputable names. Huawei observed that thequantity of smartphones it sold jump 123% over the previous year(Hawker.com.bd 2014). Consumers are now finding cheap alternatives as they now understood the actual cost of handsets.

Below tables show Global smartphone shipments for last two years. Apple leads the chart with 15% while Huawei is at 5.8%.

Figure 3: Global mobile shipments

(Statista 2015)

Figure 4 Global mobile shipments

(Statista, 2015)

 

Now the competitor analysis will be performed by considering different parameters.

                                     HUAWEI APPLE UK
Company profile and overview Huawei is one of the international leader in ICT solutions. Huawei is keenin enhancing customer experiences and creating maximum value for telecom carriers, companies, and patrons as a result of incessant revolution based on customer desires. Around 170 countries and regions use their telecom network equipment, IT products and solutions, and smart devices.In 2013, Huawei ranked 285th on the Global Fortune 500 with annual sales revenue of USD39.6 billion. Apple, unified in 1977 and headquartered in Cupertino, California, schemes, assembles, and tradespersonal supercomputers, mobile communiqué and broadcastingapparatuses, and handy digital music players, and vendslinked software, facilities, peripherals, interactingresolutions, and third-party numerical content and applications. Macintosh notebook and desktop PCs, as well as the iPhone, iPad, and iPod franchises comprise top revenue-generating product lines. These devices are tradedprincipally through the company’s virtual and merchandizing stores, and through third-party mobile network haulers around the sphere. Applications and other digital materials are also accessiblethrough the iTunes and App Stores.
Competitive Advantage Low-cost Android devices in China and mature markets offer growth opportunities. Great R & D focus. Pioneering products, customer loyalty and enormousshare in marketplace.
Target Market China, US and UK. Price conscious consumers. International.Superior customers, brand loyal admirers.
Market Share 3% 42.5%
Marketing Strategies Cost leadership: Huaweipenetrated thetelecommunications industry by delivering equipment at considerably lower coststhan competition. This helpedit to gain early market traction and to internationalizeits operations beyond China. Highly cost-sensitive clienteles in developing markets were particularlyfascinated to the firm’s competitive pricing strategy.

Technology: Huaweihas struggled a lot to get rid of their image of a low-cost producer of telecommunications apparatus. In recent years, Green credentials of its apparatus has also been improved by Huawei. This was achieved by the company by leveraging itswidespread and highly talentedR&D staff.The company is gaining advantage because of its increasing customer base, as well as opponents, for its expertisecapability.

Customer service: One area of strength noted by many Huawei customers is that the companyapproaches them with a sense of modesty and willingness to delight. This has led to strongcustomer relations, especiallyin terms of after sales support,and consequently improved market footing. This has served the company well in its effort to gain market grip outside of its home market of China.The huge assurance of the Apple brand offers Apple with animmensetask to live up to. The inventive, elegantly-designed, extremely ergonomic, and hi tech products which Apple supplies are not only fabricatedto balancethe brand assurance, but are central to keeping it.Products & ServicesTelecom network apparatus, IT merchandises and solutions, and smartgadgets.personal supercomputers, mobile communiqué and broadcastingapparatuses, and handy digital music players, and vends linked software, facilities, peripherals, interacting resolutions, and third-party numerical content and applications.PricingLow cost, in line with features, value for money.PremiumDistribution channelsE-commerce, digital dissemination, vendors and operatives.Elite and organized. Retailers, ecommerce and operatives.StrengthsHuawei has fundamental strengths of avigorous and substantialprotected marketand its capacity to supplyapparatus at low cost. It has home base in China and the company has achieved a foremostfootmark in asubstantial and vigorous telecommunicationsmarketplace. With the help of its base, it has achieved economies of scale and gainedvitalstrength—distributingapparatus at very low costs. Better economies of scale obviouslyenhance the economicedifice of an organization. A highly potential R&D staff has also been a great strength. Thestore base is widespread and low cost. The R&D staff is largely based in China.This R&D base empowers theyet another area of strength—knowledge and expertise. Huawei has been rapid to progress and acclimategoods to customer desires.Innovation: Apple, with the visionary leadership of Steve Jobs achieved success and enjoy the lead in fast moving technological advancements. This was predominantlyevidentwhen the company propelled its first iPhone (June, 2007) and iPad (April, 2010) mobile Internet devices. Pioneeringmerchandises will continue asdistinctivecapability of Apple.

Strong Finances: Since the launch of its First iphone, the company has been a cash cow.The company can easily invest in copyrights, modernizations and strategic acquirements as it has rich cash reserves.

Brand: Apple is one of the most well-known and vigorous IT brands in the world, and has an extremely devoted set of passionate customers that promote the brand. Such ainfluentialfaithfulnesssignifies that Apple not only acquires new customer base, it holdsthem, and the corporation also has the prospect to spread new merchandises to them.WeaknessesLike Apple, Huawei does not enjoy any kind of background or heritage in telecommunications industry. Weakness endures in North America from a geographical point of view.The province, though established, remains substantialand is significantheadlock for Huawei’stopmostcompetitors.Premium Pricing: Apple’s work outappliancesare typically among the costlier ones on the market, even though the company did try to multiply into the great value section when it propelled its scaled-down iPhone 5C smartphone in September of 2013. This extravagancestanding has made it problematic for Apple to make big inroads in a foreign country, in nations where the stresses on regular consumers are substantial. It also cause to bethe vulnerability of the company to price rivalry, not only from South Korea’s Samsung but also from up-and-coming OEMs, like China’s Huawei.OpportunitiesThe enduringbang in mobile informationcirculationsignifiesthe basicprospect for telecommunicationsapparatussellers. The requirement for network infrastructurethat delivers greater capacity and bandwidth, at the lowest possible cost per bit, will drive investments in the next-generation technologies and products offered by vendors such as Huawei.Their prospects do not onlyexist inarrangement ofinnovativesystemsbut also in the alteration of bequest systemstoward a communications infrastructure demarcated by IP and mobility.

Internationalization effort made by Huawei has generatedsturdybonuses in the crucialdevelopingprovinces of Asia, the Americas, Africa,and the Middle East. Unlike the more established markets of North America and Western Europe,these zones are composed to endure to nurture in the near future.Smartphones demand has been increasing day by day and Apple can effortlesslyexploit it. It is becoming very easy for Apple to make a smooth incorporation with the Macsas iPhones and iPads arehighly used in corporate environments. Furthermore, iCloud incorporationproposes fantasticprospects and can enhance the plea for other Apple instruments.ThreatsA recent alliance of its competition is a key threatfaced byHuawei intherecent years. Nortel’s CDMA was acquired by Erricson and achieved a considerable market standing in doing so in North America. Nokia Siemens is following an alikeapproachin theprocurement of Motorola’s wireless portfolio.They can muddleHuawei’s struggle to formfootmark in the North American marketplace. The mounting service provider–allied operations of old-style IT merchants such as HP and IBMis yet another componentposing competitive stress on Huawei. These establishmentsperceivemomentousprospects in the telecommunications sector and,in particular,withinthe zonesof managed services.To end with, there is the ongoingdanger that withintheprogressivelytieduniversaleconomy corporations mustfunction in,issues related to geopolitics willascend andunavoidablymuddle the commercialexpansionprocedure.

Another area of threat is the insight of Chinese corporations as being of low quality.Almost all the tech companies face competition which is inevitable treat to all the companies who are struggling in hi tech market serving an extremely aware customer. Apple is exclusivelysusceptible to price overlooking by low-cost competitors from China and in another place. Cannibalization is a concern for all the companiesongoing to increase its standin mobile Internet devices.

Gross Margin Compressionscould ascend from cumulativerivalry, product scarcities, or mountingelementcosts.

 

 

 

3. HUAWEI’S MARKETING STRATEGY

Marketing strategy helps the company to decide where it will be in a term of 3 or 5 years (Lambin et al., 1993). After years of low-profile development,Huawei Technologies Co., renowned as a supplier of telecoms network apparatus and know-how solutions, is relishingnoteworthyoutcomes in its mobile handset trade. With its continuous rise in expansion of mobile phones and liaison with the overseas telecom operators, the sales of Huawei’s handsets also mounted.About 170 countries has seen the sales of Huawei devices.Initially, its handsets were primarilyvended with agreements or as part of special deals, but the phones were deficient invibrant branding. Such transactionsprogressivelyerected customers across many nations.

The structure of the global telecom market was changed withthe intensification of 3G wireless service .Its liaison with worldwide telecom operators has been an advantage to Huawei.

The year 2010 was crucial to Huawei’s

mobile phone trade. The company allied its business policy to encounteremerging domestic requirementfor economy smart phones. Since then, it has put more focus on mobile phone development and marketing. Lower end segment was long back ignored byInternationaltitanssuch as Samsung, Apple and Nokia.In the meantime, many of China’s inland phone manufacturers lack innovativeknow-how. This proved to be the boon to Huawei.

C8500 was its first 3G mobile which was designed for China Telecom. In its initial 100 days, it sold about 1 million handsets. In partnership with China Telecom, Huawei sold around 20 million 3G phones.

Very Soon, Huawei acquired this domestic approachinternationally and wonsubstantial market share midst smart phone users of lower classparticularly in Africa and Latin America.

While reinforcing its market share in the low-end market,Huawei could start evolving higher-end products.In the meantime, the corporation, which largelyhinge on on telecom operators for phone sales, also required to contemplate onerecting its own trades and supply systems. Moreover, Huawei has also displayedconcern in evolving its own functioningorganism because it started using Android (Min, 2013).

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