The Huawei Company is one of the biggest telecommunication companies in the world. It has over 200,000 employees and serves over one billion customers in almost every country in the world. It was founded in 1987 by a man named Ren Zhengfei. Here we will see about Huawei Pestle Analysis
The world’s third-largest telecommunications equipment maker, Huawei has operations in over 190 countries and regions and is the largest telecommunications equipment manufacturer in the world. The company is also the largest provider of fixed-line, cellular, and internet services in China and the largest data center operator in the world, serving over 1.3 billion subscribers and accounting for more than half of the world’s population.
What is PESTLE analysis?
As we all know, today’s world is social-media-dominated, and after the pandemic, we got to know even better how crucial the internet and social media networks are for us to help us out in a situation when we could not even go out of our home.
Small start-ups, shops, and small businesses suffered a lot, but they tried their level best to leverage customers using different tools. Even reputed brands and organizations try to attract customers using different strategies and marketing tools.
Competition has grown so much that even a small decision can result in dynamic changes that can be positive or negative.
Companies that are well-aware of this fact use a tool known as: – PESTLE analysis.
PESTLE stands for Political, Economic, Social, Technological, Legal, and Environmental. These six factors make up a PESTLE analysis and are done by analyzing the political, economic, social, political, and technological environment of an industry.
This is especially important in the tech business, as the growth of new technologies in the next few years will alter the way that people buy products and interact with businesses. It is also important in the tech business to realize that the same trends that are happening in the current market are also occurring in other countries, both big and small. Because of this, businesses need to know how other companies are dealing with these trends and how to best position themselves to succeed in this future.
Huawei PESTLE analysis:-
The PESTLE analysis of Huawei is a six-factor analysis that uses a framework to determine the potential for and the nature of competition in the telecom equipment market.
- The six dimensions of the model are:-
Political factors in the Huawei PESTLE analysis:-
The political factors affecting Huawei are a wide range of issues, including geopolitics, international relations, foreign policy, and military strategy. The Chinese government has tried to exert control over the company, which has resulted in a range of responses from other countries. For their part, many countries have made attempts to influence the direction of Huawei.
The political factors are where much of the debate is focused. The Chinese government has expressed its support for Huawei, while U.S. politicians have expressed their concerns about the security issues of Huawei equipment.
Economic factors in the Huawei PESTLE analysis:-
Though Huawei is a multinational company, its major market is China and Europe, so any economic instability in these two regions would directly or indirectly affect the economy of the brand too.
Social factors in the Huawei PESTLE analysis:-
Many social factors affect the sales of the brand like the priority of the target audience, their preference, their likes, demographics of the area, dividing the target audience according to age or population.
The technological factors in Huawei PESTLE analysis:-
Huawei is the largest telecommunications equipment manufacturer in the world, and its products are used by more than two-thirds of the world’s mobile carriers. To date, it remains the only company to have been awarded a five-year, US$10 billion contract for the development of 5G radiofrequency.
The legal factors in Huawei PESTLE analysis:-
Huawei is a multinational company with a significant presence in many countries with which the United States has important security interests. However, this does not necessarily imply that Huawei can conduct undetected espionage on behalf of the Chinese government, especially in light of the company’s recent legal troubles in western nations. In February 2020, the U.S. Department of Justice indicted Huawei of violating the International Emergency Economic Powers Act (IEEPA) by evading the United States export controls and falsifying the records of a subsidiary to conceal Huawei’s activities.
The environmental factors in Huawei PESTLE analysis:-
Being the technological giant that Huawei is, the brand needs to focus on the investment in the achievement of sustainable goals. Huawei has successfully raised its energy efficiency by 20% by diminishing the waste materials and by utilizing sustainable raw materials.
As a whole, the PESTLE analysis shows Huawei to be a very stable company, with a significant presence in many countries with which the United States has important security interests. With the company’s current market share, it is unlikely that the Chinese government would seek to supplant Huawei as the worldwide provider of network equipment.