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(R&D) and marketing alliances with US,
European, and Japanese telecommunication giants.
Huawei’s internationalisation has been achieved through a
two pronged strategic approach emphasising price
competitiveness and value-added technology products. The
company is now the world’s second largest-supplier of
advanced digital subscriber lines, the primary conduit for
the world’s broadband connections. U-SYS, Huawei’s end to
end Next Generation Network (NGN) solution is currently
the leading option for carriers around the world, and was
ranked No. 1 in the global market in 2004 by Dittberner, a
research and consulting firm. It remains a leading global
player in switching and optical network products, and is
aggressively pursuing growth in datacom and wireless
network.
By all accounts, Huawei’s growth and progress has
confounded its critics. Huawei is now a potential global
telecommunications player to be reckoned with. In keeping
abreast with international benchmarks, the company is
transforming its management by actively cooperating with
world-class management and consultancy companies such as
IBM, Hay Group, KPMG and PwC (see www.huawei.cn).
Collectively, these developments have contributed to
Huawei’s increasing global market profile. “Making the
World Listen” is how one journalist (Dolven, 2004) writing
in the Far Eastern Economic Review, captures Huawei’s

transition from an unknown local, indigenous Chinese
telecommunications company to a potential, global
telecommunication giant.
Despite this impressive growth, global market, institutional
and technical challenges are likely to confront Huawei over
the next five to ten years. China’s World Trade Organization
(WTO) agreement would lead to greater liberalisation of the
Chinese telecommunications market, making it increasingly
difficult for China’s central government to limit market access
of international competitors. Local carriers and primarily
state-owned enterprises such as China Telecom, China
Mobile, China Unicom and China Netcom are also coming
under increasing pressure from the global financial
community for greater transparency and accountability.
Local preferences for Huawei’s products and services may
not last. State procurement contracts for these state-owned
carriers may not continue, and their position will also be
weakened by telecommunications reforms and China’s WTO
commitments, which is likely to lead to a stronger presence
for global carriers.
While the Chinese telecommunications market is growing,
it is still smaller than the markets of the trading blocs in which
global telecommunications giants like Motorola, Nortel,
Siemens and Alcatel are located. While Huawei sales figures
look impressive, they are well short of the sales of these
organisations (see Table II). Further, while Huawei has made
great strides in research and development, investments in
R&D represent only a small fraction of its total sales revenue
compared to global telecommunication giants like Motorola,
Nokia and Alcatel (see Table II). For instance, Huawei’s R&D
spending in 2004 amounted to US$480 million, compared to
US$5 billion and US$3.1 billion for Nokia and Motorola
respectively. In a sector where future growth and expansion is
heavily dependent on R&D, this c本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。