Table of Contents 1.0
Introduction ................................ ................................................. .................................. .................................. ................................... ....................2
1.1
Company Background ................................. .................................................. ................................... ................................. ...............2
1.2
Latest Product Product ................................ ................................................. .................................. .................................. .............................. .............4
2.0
Newness of The New Product ................................. .................................................. .................................. ........................ .......6
3.0
Innovation of The New Product Product ................................. .................................................. .................................. ..................... ....8
3.1
Problem Addressed Addressed................................. .................................................. .................................. ................................. ..................... .....8
3.2 Opportunity..................................................................................................10 3.3
Benefit or Impact Created ................................. .................................................. .................................. .........................12 ........12
3.4
Uniqueness ................................. .................................................. .................................. .................................. ...............................13 ..............13
3.5
Commercial Commercial Viability Viability (Market Demand & Revenue Model) .....................14 .....................14
4.0
Application of Levitt’s Idea in Product Development ................................. ...................................15 ..15
4.1
Core Level .................................. ................................................... .................................. .................................. ...............................15 ..............15
4.2
Actual Level .................................. ................................................... .................................. .................................. ............................15 ...........15
4.3
Augmented Level ................................ ................................................. .................................. .................................. ......................15 .....15
5.0
Platform Option Used to Develop Develop New New Product Product .................................. ............................................16 ..........16
6.0
Competitive Strategy of New Product................................ ................................................. ............................17 ...........17
6.1
Differentiation Differentiation & Positioning.................................. ................................................... .................................. ...................18 ..18
7.0 New Product Growth Growth Strategy Using Using Ansoff’s Ansoff’s Growth Matrix Matrix................ .....................19 .....19 8.0
Conclusion .................................. ................................................... .................................. .................................. ..................................22 .................22
Reference....................... Reference......................................... ................................... .................................. .................................. .................................. ......................23 .....23
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1.0
Introduction
1.1
Company Background
Figure 1: Huawei Organisation’s Logo (Huawei, 2018).
Huawei is a leading global provider of information and communications technology (ICT) infrastructure and smart devices found in 1987 (Huawei, 2018). Huawei has more than 180,000 employees and operates more than 170 countries and regions in the world. Moreover, Huawei is also a private organisation fully owned by its employees (Huawei, 2018). Huawei create the l asting value for the customers through open collaboration with ecosystem partners to empower the market.
Huawei commits to bring the digital concept to public and organisations for a fully integrated and connected world with intelligent solutions across 4 key domains which are Information Technology, smart devices, telecommunication networks and also cloud services. Huawei focuses on the innovation for customer needs. Huawei invest in basic research heavily, focusing on the technological breakthroughs that drive the information techno logy market forward (Huawei, 2018).
According to the study of Huawei’s background, Huawei has built more than 1500 networks together with the telecommunication carriers to connect over one-third of the population popu lation 2|Page
in the world (Huawei, 2018). Other than that, Huawei also serve the government, public utilities and enterprise customers with their partnerships in many sectors such as transportation, manufacturing, finance and so on. In advance, Huawei provides the open, stable, reliable and secure and flexible ICT infrastructure platforms and cloud services that could promote greater synergy between devices, cloud and networks to organisations, industries and enterprises (Huawei, 2018).
Figure 2: Overview of Corporate Governance (Huawei, 2018)
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1.2
Latest Product
Huawei Mate 20 Series
Figure 3: Huawei’s latest product of Mate 20 series (Huawei, 2018).
Huawei Consumer Business Group (BG) first introduces the Huawei latest Mate 20 series in London, United Kingdom on 16th October 2018 which is one of the most highly anticipated smartphone series of the year. However, to represent a momentous milestone in the history of the Huawei Mate Series, the Huawei Mate 20 Series embodies the pinnacle of innovation. It is designed with the industry’s most powerful and sophisticated process technology, the latest Huawei flagship devices set a new bar by which all 2018 smartphones will be measured. It is available in 6.53-inch, 6.39-inch and 7.2-inch sizes, the Huawei Mate 20 Series encompasses four devices: Huawei Mate 20, Huawei Mate 20 Pro, Huawei Mate 20 X and Porsche design Huawei Mate 20 RS (Huawei, 2018).
The Huawei Mate 20 Series is powered by Huawei’s densest and highest performing system on chip (SoC) to date — the Kirin 980. It is manufactured with the advanced 7nm process 4|Page
incorporating the powerful Cortex-A76-based CPU and Mali-G76 GPU, the SoC offers improved performance and an unprecedented smooth user experience (Huawei, 2018). Moreover, the new 40W Huawei super charge, 15W Huawei Wireless Quick Charge and large batteries work in tandem to provide users with the best battery life. The Matrix Camera System includes Leica ultraWide-angle lens that lets users not only see wider, but also closer with its new macro distance capability (Huawei, 2018). The Hyper Optical Pattern on the glass back plays with light and shadows, producing an iridescent optical effect that is immediately captivating. The Matrix Camera System adopts the iconic Four-Point Design that exudes personality, giving the device a unique visual identity that is recognizable even at a distance. The Huawei Mate 20 Series is shipped with the highly customized Android P-based EMUI 9 operating system, on which consumers can enjoy all productivity and entertainment features easily and conveniently with a few simple taps and swipes (Huawei, 2018).
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2.0
Newness of The New Product The new smart phone for Huawei comes with 3 new features. The new features include
advanced full screen of cover, all-time intelligent fingerprint on screen and anti-lost and anti-thief program.
Advanced Full Screen of Intelligent Cover Every smart phone come with different vibrant colours such as blue, rose gold, black and so on. But the new features will allow user to set their own image for the cover of the smart phone. It means that user no longer need to consider choosing what colour they prefer for their smart phone as the cover of the device can be changed whatever and whenever the user wants to. This is because user have the authority and freedom to decide what colour, image even GIF they want to set for their cover to make each device unique. Therefore, the colour of cover will no longer to be limited within the “colours”. With the new feature, the choice of the cover will be infinity which depends on the user’s preference. User will no need to purchase other external cover with unique pattern or design picture for the devices.
All-Time Intelligent Fingerprint Recognition on Screen Nowadays, most of the smart phone will come with the fingerprint sensor for authorised user to log into their own devices for security purpose. The problem occurs after the login section. This is because after user has logged into the device, unauthorised user may have chance to access to the user’s smart phone without user’s awareness. For example, after user has logged into the device, user may forget and leave their device at the public area with the screen on. Unauthorised user may take a chance to access to the device physically. Therefore, the new feature of the intelligent fingerprint is come with full screen sensor which not only for login purpose, it is for all time. It means that user may set the fingerprint for only who may access and able to scroll on the screen all-time even after the login section. The full screen of the smart phone will detach the fingerprint of the user. When scrolling through the device, if the user’s fingerprint is not match with the authorised fingerprint in the settings. Screen will not response to the user’s action, it
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means that the unauthorised user may not access and use the smart phone. This new feature is to prevent authorised user of using the smart phone and to prevent data loss as well.
Anti-lost and Anti-Thief Program With an integrated band or smart watch, the band or smart watch may notify user the location of the integrated smart phone. For instances, user may set the distance between the integrated smart watch or band and smart phone. Assuming user is wearing the smart watch or band with them, if the distance between the smart phone and the smart watch or band that user wearing is exceed the set limit, the smart watch or band will notify user their phone is exceed the limit set and notify user how many meters their smart phone is away from them. Therefore, as someone is trying to take the smart phone away from user, this feature could notify user of their phone is away from the user on the spot. Moreover, it could notify user as user forgets to bring the smart phone with them.
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3.0
Innovation of The New Product
3.1
Problem Addressed Since 1997, Huawei has been manufacturing mobile phones worldwide. In recent years,
the Chinese networking and telecommunications equipment maker released some of its very best smart phones in the market, making it an incredibly successful time for the company. Huawei, which stifled the iPhone’s momentum in China to become the world’s third largest smartphone maker last year, has set its sights on competing with Apple and Samsung for the attention of wealthy shoppers in Europe and the U.S. Ranked as the third largest maker of smart phones in the world, Huawei not only produces high quality phones but also adds remarkable features that can even rival that of Apple and Samsung (Wang, 2017). It certainly has established itself as one of the best smart phone makers in the market today. But like its competitors, Huawei's products also encounter glitches and flaws from time to time.
Recently, Huawei is working on improving the touch screen with the fingerprint sensor. For the previous device, the fingerprint sensor is used to unlock the screen, access the Safe and App Lock and authorize the payments in third-party applications (Wang, 2017). Now, with the new feature of all-time intelligent fingerprint sensor, the security of accessing the data can be enhanced. One of the key challenges with fingerprint technology in smartphone is to implement a powerful algorithm solution that quickly and secu rely processes, analyses and matches images of fingerprints. Smart devices use small fingerprint sensors that only capture some features of the fingerprint, which makes it even more difficult to match a person’s identity (Precise Biometrics, 2018). Moreover, for added security and to ensure that user can still access to the data if their smart phone fails to recognize their fingerprint, user will need to set a backup password when configuring fingerprint unlock.
Huawei has an integrated product which is Huawei Fit. It is a smart watch which can track monitor the heart rate continuously, monitor sleep and daily activity tracking in real-time (Huawei, 2018). It is connected to the smartphone so that the notification can be sent through to notify user their lifestyle. But, the Huawei Fit seems to suit for work out and it lacks functionalities. Hence, 8|Page
the features for integrated devices need to be enhanced to further facilitate user’s daily life. For example, the features of alarm, text notification and also the feature of anti-lost and anti-thief program as mentioned before can be added for the improvement to meet user’s expectation.
Nowadays, choosing the colour of smart phone has become one of the most important factor of purchasing a smart phone. User may purchase a smart phone depends on the design of the smart phone case and cover. In general, the smart phone case and cover will come with several colours to attract user’s attention. For example, for the latest product from Huawei, the Mate 20 series, it comes with the colour of twilight, midnight blue and phantom silver (Huawei, 2018). It also comes with the 7.2-inch OLED screen which was designed for a truly immersive experience (Huawei, 2018). Moreover, Huawei has announced the new series of Huawei Mate 20 Porsche design which has an elegant design and advanced functions. Therefore, to further increase the sale in the market, Huawei will work with the full screen design for larger screen to fulfil user’s satisfaction level.
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3.2
Opportunity At the Digital Transformation Forum held today, Huawei outlined its role as an all-round
strategic partner to countries looking to advance economic and social development. Huawei is committed to creating value for communities by collaborating with operators to help them maximize network assets, deploy home broadband and indoor digitalization, and drive connectivity to enhance the user experience, while promoting economic and social growth (Huawei, 2017).
Huawei’s philosophy is to provide cutting-edge features at the best value in the market. Beside the existing features that Huawei has in the latest product such as Mate Pro series, a two high-end German Leica lenses on a 20-megapixel monochrome and 12-megapixel colour resulting in amazing picture taken and 4k video, a fast processor and a huge 4000mAh battery, a supercharger that can drive the battery capacity up to 80% in just 20 minutes and the 7.2-inch crystal clear bright OLED screen (Harris, 2018). Next, the sector of Artificial Intelligence is believing to promote the civilisation of the digital world with AI technologies.
In 2017, Huawei has unveiled its first AI chip called the Kirin 970 and followed that up with the Kirin 980 earlier this year (Kharpal, 2018). The Kirin 980 will be in Huawei's Mate 20 flagship handset. But Huawei is now pushing into AI chips for enterprise as well as consumer applications (Kharpal, 2018). Huawei declared it will sell whole packages based on the chips to third parties, rather than just the chips themselves. Moreover, Huawei has a network business, cloud and consumer devices. It's aiming to create an ecosystem around artificial intelligence applications (Kharpal, 2018).
In 2018, Huawei unveils two new artificial intelligence chips called Ascend 910 and Ascend 310 (Kharpal, 2018). These two chips are aimed at uses in data centres and internetconnected consumer devices, Rotating Chairman Eric Xu says at the Huawei Connect conference in Shanghai (Kharpal, 2018). Huawei's Ascend 910 is aimed at data centres. Companies using AI applications require huge amounts of data to train smart algorithms, which can take several days
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or weeks. Huawei claims that its chip can process more data in a faster amount of time than its competitors and help train networks in a matter of minutes (Kharpal, 2018).
Furthermore, The Ascend 310, meanwhile, is aimed at internet-connected devices like smartphones, smartwatches and other gadgets tied to the so-called Internet of Things (Kharpal, 2018). Both chipsets will pit Huawei against major players such as Intel, Qualcomm, Nvidia and Samsung. It's a big switch in strategy for Huawei, which has so far designed and made chips for its own smartphones (Kharpal, 2018). Therefore, with th ose AI technologies, the improvement on the features can be implemented into the upcoming and future product of Huawei.
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3.3
Benefit or Impact Created
By implementing the Artificial Intelligence in new features, the application or smart devices can have the ability to display intelligent behaviour, learn, demonstrate, explain and provide users with the best advices with problem-solving machine. For instances, the new features provide some additional benefits and impact to user:
1. Advanced Full Screen of Intelligent Cover
For user to create their own unique cover on the case or cover.
To make the design of smart phone more attractive.
2. All-Time Intelligent Fingerprint Recognition on Screen
To prevent authorised user to access.
To improve security and data protection.
3. Anti-lost and Anti-Thief Program
To locate the smartphone by smart watch or band.
To prevent loss of smart phone.
To prevent unauthorised user to access to the smart phone.
As a result, the new features could bring significant impact to the application of Artificial Intelligence technologies in mobile devices in future and embed to user’s daily life.
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3.4
Uniqueness
In 16 October 2018, Huawei, the world’s second-biggest phone maker behind Samsung, unveiled the Mate 20 and Mate 20 Pro to take on Apple’s iPhone XS and Google’s Pixel 3 at an event in London, United Kingdom (Ghosh, 2018). Huawei is hoping that major performance improvements to the Mate series – including on-screen fingerprint recognition, a triple-lens camera system with artificial-intelligence software, and phone-to-phone charging (Ghosh, 2018). The devices are bigger successors to last year’s Mate 10 and Mate 10 Pro. The Mate 20 comes with a 6.53-inch full HD display, while the Pro model comes with a 6.39-inch curved OLED display (Ghosh, 2018).
Other than the latest features from Huawei’s product, the n ew features are believed to bring a significant impact to public with its uniqueness. This is because Huawei is going to embed the AI software into the integrated smart watch or band. The functionalities of smart watch or band no longer limit to track monitor heartbeat or sleep, it is also to locate the smart phone and notify user as the distance between the user and their smartphone has exceeded the set limit of distance. This will prevent the loss of smart phone or reduce the case of pickpocketing in public.
Furthermore, Huawei will be the first company to publish the new feature of advanced full screen of intelligent cover. This is because there is only the full touch screen but not the full screen of cover. This design allows user to create and customize the uniqueness of each smart phone based on user’s preference. Additionally, recently Huawei has launches Mate 20 Pro with the inscreen fingerprint sensor which is also the feature-packed Android phone first widely available with scanner embedded in screen alongside 3D face unlocking. To implement the existing features with the all-time intelligent fingerprint recognition sensor, it believes the security of the upcoming smart devices will emerge as the star feature in the market. As a result, with the unique designs and features, Huawei has cemented its position ahead of Apple and Samsung.
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3.5
Commercial Viability (Market Demand & Revenue Model)
In the first quarter of 2017, IDC reports Huawei shipped 3.6 million phones in Europe and had a respectable 11.4 percent share of the market (Savov, 2018). That number has been on a steady upward climb and is now nearly double, sitting at 6.7 million for the second quarter of 2018. Huawei’s growth, combined with the seasonality of Apple’s releases, has earned the Chinese company an impressive 24.8 percent European market share, rising above Apple (Savov, 2018). According to the research, it shows that the market demand for Huawei is increased gradually.
Nowadays, Huawei has capitalised on the unique opportunity presented by China’s booming economy over recent years to see real success in its domestic market, meeting the demand for highly personalized smartphones amongst a growing consumer-base (Xiang, 2018). Meanwhile, Huawei has established its global brand through strategic marketing, infusing it with greater personality and moving away from the image of a pure technology brand (Xiang, 2018). For instances, In the flagship P and Mate series, Huawei collaborated with international brands such as Leica and Porsche Design, building on and amplifying the Huawei brand concept while expanding its appeal through association with other leaders in their fields (Huawei. 2018).
Besides, the high performance and low cost, with innovative features and a fashionable appearance are the main secrets to success for Huawei. With significant investment in technological research and development, Huawei are marching towards medium and high-end models while maintaining reasonable prices, to become a favourite in the European market (People’s Daily Online, 2018).
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4.0
Application of Levitt’s Idea in Product Development New Product Development (NPD) will take in to account theuser’s preference for benefits
over features by considering research into their needs. NPD aims to satisfy and anticipate needs. NPD delivers products which offer benefits at the core, actual and augmented levels.
4.1
Core Level The product in core level is not a tangible physical product. It is the first and most basic
which brings benefit of the product that makes the product valuable to user. For instances,
4.2
Call function
Text messaging
Internet connection
Storage for image and information
Actual Level The product in actual level is tangible physical product. This involves developing product
features, design, a quality level, a brand name and even a packaging. For instances,
4.3
Design of smart phone
Accessories of smart phone
Packaging of smart phone
Smartphone’s functionalities
Augmented Level The product in actual level is non-physical part of the product. It usually co nsists of
added value for user’s choice. The augmented product rounds of the three levels of product, being built around the core value and the actual product. It simply offers additional consumer services and benefits. For example,
Warranty
After-sale service
Trade-in program
Customer service support
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5.0
Platform Option Used to Develop New Product
Name
Huawei UNIQUE
Huawei UNIQUE Max
Display Type
AMOLED capacitive touchscreen
AMOLED capacitive touchscreen
with 16M colours
with 20M colours
Size
6.39 inches
7.2 inches
Weight
178 g
189 g
Resolution
1080 x 2244 pixels
1440 x 3120 pixels
Operating System
Android 9.0 (Pie)
Android 9.0 (Pie)
Chipset
HiSilicon Kirin 980 (7 nm)
HiSilicon Kirin 980 (7 nm)
CPU
Octa-core
Octa-core
Display Protection
Corning Gorilla Glass
Corning Gorilla Glass
GPU
Mali-G76 MP10
Mali-G76 MP10
Internal Memory
128 GB, 6 GB RAM
256 GB, 8 GB RAM
Feature Sensors
Face ID, Fingerprint (rear-
Face ID, all-time fingerprint (under
mounted), accelerometer, gyro,
display), accelerometer, gyro,
proximity, barometer, compass
proximity, barometer, compass
Other
Fast battery charging 30.5W
Fast battery charging 40W
Support Audio &
mp3, mp4, 3gp, ogg, amr, aac,
mp3, mp4, 3gp, ogg, amr, aac, flac,
Video format
flac, wav, midi, 3gp, mp4
wav, midi, 3gp, mp4
Battery
Non-removable Li-Po 4200 mAh
Non-removable Li-Po 4200 mAh
battery
battery
Matte black frame, Glossy blue
Galaxy frame
Colours
frame Handset, charger, type-C cable,
Handset, charger, type-C cable,
quick start guide, protective case,
quick start guide, protective case,
warranty card, earphone
warranty card, earphone
Additional
Additional USD 100 with
Additional USD 100 with wireless
Accessories
wireless charger
charger
Price
USD 888
USD 1088
Package Included
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6.0
Competitive Strategy of New Product Competitive strategy of new the new products is categorised in long term which can help
Huawei to gain competitive advantage in the global market. Huawei competes with telecom companies, consumer electronics and network infrastructure companies in various products categories (Bhasin, 2018). Some of the competitors of Huawei in consumer electronics are General Electric, Hitachi, Samsung, LG etc.; in the telecom business, it competes with companies like Airtel, Vodafone Essar, China mobile, AT & T etc (Bhasin, 2018).
Huawei has launched the new series of product which are P2 0 and P20 Pro. The new series is all-glass phones with an aluminium frame. It comes with five colours options: pink gold, midnight blue, emerald green, twilight and black which are different from the previous series Mate 10 and Mate 10 Pro (Huawei, 2018). Huawei is also introducing a new texture to two of the models which is “hyper -optical display pattern” and it is only found on the emerald green and midnight blue models (Huawei, 2018). This pattern helps make the phones more grippy and more resistant to fingerprints. The Mate series has always been about high-end specs, and the Mate 20 is no different. The standard Mate 20 comes with a 6.53-inch LCD display with an 18:7:9 aspect ratio, while the Mate 20 Pro has a 6.39-inch curved OLED display with a 19.5:9 ratio (Huawei, 2018). The Mate 20 Pro’s display has been bumped up to Quad HD+, while the Mate 20’s is only Full HD+ (Huawei, 2018). The differentiation and improvement in the design is expected to attract different user who comes from different level, group, category and age. The different in colours will also provide user more choices on choosing the design and colour for the smart phone based on their preference. Recently, Huawei wishes to capture the sales in the USA and European markets to seek new customer segments and traditional customer base to purchase the new smartphone. The product development could be radical by using a few techniques such as marketing, development, and testing to improve the production of the smartphone.
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6.1
Differentiation & Positioning
Nowadays, some leading global smartphone brands such as Samsung and Apple offer distinguished hardware and interface design as well as strong features. On the other h and, Huawei mostly concentrate on building durable and high customisation phones. They are targeted toward the mass consumers and power users while foreign brands mostly target fashion-forward youngsters. At the same time, other brands such as OPPO is competing in the same category (Kharpal, 2018). The only point to differential Huawei with other brand is the Kirin 980 artificial intelligence chip used by Huawei in the latest product of Mate 20 (Kharpal, 2018). It is aimed at the dominance of chipmakers such as Qualcomm and other competitors such as like Apple and Samsung that make their own silicon (Kharpal, 2018). Moreover, Samsung and Qualcomm are also developing seven-nanometer processors in future for the next product (Kharpal, 2018). Huawei has gained the competitive advantages by implementing this technology in advance.
On the other hand, as Huawei focusing on the customisation feature, the new features of advanced full screen of intelligent cover and all-time intelligent fingerprint recognition on screen are added to next product by using the Artificial Intelligence Technologies. By implementing the new features, it helps Huawei to further enhance the competitive advantages among the competitors. From other point of view, this unique positioning is achieved by Huawei which is the products are developed to better suit human’s habits and handle multiple tasks. As general, Huawei smart phones are equipped with excellent specifications to ensure the system performs smoothly. Additionally, new features of anti-lost and anti-thief program which integrate the smart watch or band with Huawei smart phone to further improve the quality of life for human. As human tends to be forgettable, user may lose their phone at somewhere, the smart watch or band will notify user their phone is exceed the limit set and notify user how many meters their smart phone is away from them. Hence, user can easily locate their device. In addition, the smart watch or band may retain the existing function to monitor user’s lifestyle such as track user’s heartbeat while jogging, swimming and so on. By doing this, Huawei takes the first step in reducing the case of robbery and pickpocketing.
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7.0
New Product Growth Strategy Using Ansoff’s Growth Matrix Development of new products is one of the many options available that provides an
opportunity for growing the business. One of the clearest ways to identify is by using Ansoff directional policy matrix. It combines two variables that enable a market to grow and increase market opportunities and product opportunities. The Ansoff Matrix was developed by H. Igor Ansoff and first published in the Harvard Business Review in 1957 , in an article titled "Strategies for Diversification." (MindTools, 2018) The Ansoff Matrix is used in the strategy stage of the marketing planning process. It is used to identify which overarching strategy the business should use and then informs which tactics should be used in the marketing activity. Sometimes an organisation will adopt two strategies to reach different markets (MindTools, 2018).
Market Penetration With this approach, the existing product is sold in the existing market. This is the lowest risk strategy within the Ansoff’s matrix (Ansoff, 1965). The opportunities within a business’s existing markets by increasing volume of sales. It increases the market share through exploiting full range of marketing mix activities (Ansoff, 1965). Therefore, marketing strategy is developed to increase the sale and encourage more people to choose the existing product. For example, Huawei introduces the loyalty program or schema. Due to the official announcement of the Huawei Nova 3 and Nova 3i, Huawei Malaysia is introducing a line-up of partner brands that will be participating in the reward system through the Huawei AppGallery app (Abel, 2018). All in all, there will be rewards worth up to RM1000 for new Nova customers upon each purchase of either one of the Nova duos (Abel, 2018). In addition to that, new customers can purchase the Nova 3i with a 6 or 12-month easy payment with a fixed instalment price monthly. This applies to all Citibank, HSBC Bank, Public Bank, Maybank, CIMB Bank Am Bank and Hong Leong Bank credit card users. There's also a promo sale for the first 1000 customers at IOI City Mall in Putrajaya on 28 July 2018 getting freebies (Abel, 2018).
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Market Development With this approach, the existing product is targeted to new market (Ansoff, 1965). Company maintains the security of its existing products but at the same time to enter the new markets as well. This is also considered to be risker than market penetration as it can be difficult to understand the complexities of new markets (Ansoff, 1965). For instances, As the largest market for the information industry, Europe is of strategic importance to Huawei. Its European operations have been going from strength to strength since it expanded its business to Europe in 2 000 (Daxue Consulting, 2015). Huawei runs 17 research and development sites (Belgium, Finland, France, Germany, Ireland, Italy, Sweden and UK) covering wireless, fixed, optical, future network, standard and chipset design technologies (Daxue Consulting, 2015). It also operates numerous joint innovation centers in partnership with telecom and ICT partners. It is cooperating with operators from all over Europe as well. The strategy of Huawei in Europe can be summarized in two aspects. In a market of a specific country, Huawei entered from low-end market, gradually to middle and high-end markets (Daxue Consulting, 2015). From the point of the whole European market, according to the intensity of European telecom market competition, Huawei also choose from low-end to high-end entry: first to enter the market in Eastern Europe, and then gradually to Central Europe, Southern Europe, Western Europe and Northern Eu rope (Daxue Consulting, 2015).
Product Development The strategy of product development is to develop new products for existing markets. With this approach, companies will try to ensure that the products are able to compete with competitors by regular improvement and update of the existing products (Ansoff, 1965). The success of this strategy is dependent on the organisation being able to effectively conduct research and insight into their customer and market needs as well as their own internal capabilities and competencies for driving innovation (Ansoff, 1965). For example, Huawei has launched the latest Mate 20 series on 16 Oct 2018 (Mark, 2018). The most obvious change from the norm is the placement of the camera lenses on the back of the phone. While the use of three lenses is becoming more commonplace, having been introduced in Huawei’s own P20 Pro, and continued in the LG V40 ThinQ, it’s the positioning of the lenses that is now more interesting than the number (Mark, 2018). Rather than a horizontal or vertical line, the Huawei Mate 20 series’ three lenses are formed into a 2-by-2 box along with the camera’s flash unit as the fourth member, forming a distinctive square 20 | P a g e
(Mark, 2018). In a world where flagship phones are looking startlingly similar, this simple change makes the Mate 20 range stand out from the crowd (Mark, 2018). Besides, Huawei has incorporated fingerprint scanning tech into that phone’s OLED display. This is the mobile world’s next major advance, and it’s the first time we’ve seen Huawei put it into one of its mainstream phones (Mark, 2018).
Diversification The final strategy in the Ansoff Matrix is ‘Diversification’, which is developing new products for new markets. This is seen as the riskiest strategy of all four, as the organisation is moving into an unfamiliar market (Ansoff, 1965). However, this risk can be mitigated by undertaking ‘related’ diversification and it could have the potential to gain the highest returns. For example, Huawei had launched the Huawei TalkBand B5 on July 2018 (Miller, 2016). Huawei had launched TalkBand B3 smartband in 2016. It included an in-ear Bluetooth headset that featured a monochrome screen (Miller, 2016). The TalkBand B5 which also features an in-ear Bluetooth headset is arriving as the successor of TalkBand B3. Other than smartphone, the introduction of TalkBand series is able to automatically detect and track your various activities, including running, walking, cycling, climbing, and sleep (Miller, 2016).
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8.0
Conclusion Huawei was founded in 1987 as a sales agent for a Hong Kong compan y that manufactures
switches. Since the 1990s, the company has been investing heavily in R&D, expanding geographically as well as into different industries such as telecommunications infrastructure and devices. In 2012, Huawei overtook Swedish network infrastructure provider Ericsson to become the world’s largest telecommunications vendor in terms of revenue.
In conclusion, Huawei market positioning and brand strategy is to position in the smartphone market and delivers the Intelligent World to consumer. Currently, it can observe that Huawei is growing in smartphone market and ready to take over first places from Apple and Samsung by emphasizing the differences and uniqueness of their smartphone product. In addition to that, the recently launch of Mate 20 series filled with subtle marketing tactics that can influence the consumer buy Huawei product instead of iPhone Xs and Samsung Note 9. Furthermore, an analysis of the internal and external factors that Huawei sales has growth more than 140% from 2016. From the Ansoff Matrix have discover that Hu awei in product development have a played important role at emerging market.
Besides branding issues and security concerns, Huawei is facing a number of other problems. As Huawei is transforming from being a network and business solution supplier to a consumer mobile device provider, its growth in ma rket share in the smartphone sector has not yet translated into profitability. Its aggressive low-price strategy has received criticism and many believe it to be one of the causes of an industry-wide declining profit margin
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