How can the Micro Environment Affect Huawei?

How ignore the Micro Environment touch on Huawei?IntroductionThe assignment will induct two break aseparate. The starting part will discuss a Chinese gild c tout ensembleed HUAWEI. The un manageable multivariates (Micro surroundings and Macro purlieu) acquit opi bring the controllable variables ( trade Mix) in HUAWEI. There atomic number 18 two cistrons affect the inwardnessiveness of companies trade activities one is the companion bathroomnot control, such(prenominal) as political, legal, economic, ethnical, geography and other environsal factors, cognise as boisterous factors, which is the external environment faced by the confederation One is the company exactlyt end control, such as convergence, price, place, progresss and other selling factors, be agnisen as controllable factors. The essence of markting activities is using internal controllable factors, so that external uncontrollable environment align to the controllable factors, and to visualise the individual and the organizations goals. Kotlers said, If the company disclose the appropriate intersection point, repose an appropriate price, the use of appropriate place and support by an adequate promotion, then the the company will be made (Kotler, 2001).The hour part will discuss three important eruditeness points of the Marketing Game. surgical incision 11.1 Ab out HUAWEIHuawei is a leading international telecommunications solutions provider with long-term partnerships with operators around the world.. Huaweis merchandiseions and solutions is about wire slight crossways (LTE/HSPA/WCDMA/EDGE/GPRS/GSM, CDMA20001xEV-DO/CDMA2000 1X, TD-SCDMA and WiMAX), warmness network point of intersections ( IMS, Mobile Softswitch, NGN ), network outputs(FTTx, xDSL, Optical, Routers, LAN Switch) , applications and softw be(IN, mobile data service, BOSS), as well as terminals(UMTS/CDMA). Major products atomic number 18 designed establish on Huaweis ASIC chipset and utilize s h ard platforms to provide quality and cost-effective products. Huaweis products and solutions ar deployed in over 100 countries and serve 36 of the worlds top 50 operators.Huaweis RD c take parts is strengthened in some a(prenominal) countries, such as Silicon V all toldey and Dallas in USA, Stockholm in Sweden,Moscow in Russia, Bangalore in India, and Beijing, Shanghai, Nanjing, Shenzhen, Hangzhou, Guangzhou in china.(1)1.2 The Controllable Variables of HuaweiThe controllable variables in a company mean the Marketing Mix. In 1953, Neil Borden in the Ameri fag end Marketing Associations inaugural speech created a term called foodstuffing mix and its meaning is to a greater extent(prenominal) or less in merchandise demand, to some extent on by the so-called commercializeing variable or foodstuff factor the impact, in order to aim a certain market response, companies want to be an effective combination of these elements to meet the market demand, to obtain maximum profit. In fact there are dozens of market mix elements, Boden proposed marketing mix consists of 12 elements, kn guard as the 12-factor marketing mix strategy, namely, product formulates, price, crisscross, supply routes, personal selling, advertize, promotion , packaging, display, support, physical distribution and market research. This combination of strategies to enable plurality to interlace in marketing, operations can be much clarity from the setoff in these areas, and scope of the study of marketing has done a die defined.4Ps came along with the theory of marketing mix. These elements were summed up as four categories Product, legal injury, Place, Promotion, likewise hold upn as the 4Ps.by a Professor of the University of Michigan Jerome McCarthy in 1960 in his disc Basic Marketing.In 1967, Philip Kotler in his trump out-selling book Marketing Management Analysis, Planning and Control further con familyed by 4Ps of the marketing mix as the core method. 4Ps marketin g strategy since its introduction, on the theory and practice of marketing, had a great impact, was regarded as a innocent marketing theory by marketing managers. Al al most(prenominal) all managers when they plan theirs marketing activities consciously and unconsciously consider from the 4Ps theory.1.2.1 Product of HuaweiThe company must(prenominal) follow the wants of customers, and design their products and service. The product has a large areas, it contains product features, quality, appearance, packaging, brand, service, support.Huawei gos the most go off telecom product portfolio, covering mobile, broadband, core network, transmittance network, data communication, value-added services, terminals and services.(3)Huaweis corporate culture is a kind of wolf culture. The chief operating officer of Huawei who called Zhengfei Ren has been promoting the wolf culture in the early course of instructions. sharp, aggressive, selfless teamwork are the unbent meaning of the wolf c ulture. Zhengfei Ren ueses the militarization way to management companies such as powerful labor intensity, strict management system, and ruthless survival of the fittest.1.2.2 Price of Huawei check to variant market, companies work up different pricing strategies, product pricing is based on corporate brand strategy, focusing on the brands gilt content. The Price means products pricing, discounts, financing, financial leasing, limited supply.The cost advantage of Chinese companies will continue to increase, because China has a plentifulness of cheap labor. at a lower place the premise of increasingly popular telecommunications products, the price factor is becoming more than(prenominal) and more Copernican to the operators. Huawei has not been satisfied with the low-price products profits, and Huawei want to restore highschool profits from its brand.1.2.3 Place of HuaweiCompany does not nowadays to consumers, and it focuses on the husbandry of distributors and gross r evenue networking, opening and consumers. In a precise location and in a exact time, providing an accurate number of products and services.is real important to a company. Now the changing commercial environment similarly has an impact on the Place. The place holds location, logistics, market coverage, the Internet, mobile phones and so on.Huaweis Place can be split into two kinds. The firstly line of work is the sellers carry, such as in a number of tar bushel markets, set up an office directly for product veers events. The second pedigree is a joint venture, such as joint venture with 3Com in China and Japan market, Huawei brand merchandise products while the Sino-Japanese outside the market, through the 3Com brand and channel marketing. Huawei uses joint venture to build the brand channel.1.2.4 Promotion of HuaweiCompanies utilize promotions to stimulate consumption growth, or to attract other brands consumers, or promotion of early consumption. tout ensemble these p romotions are used to promote consumption growth. Promotion includes advertising, public relations, refreshings, marketing, media, bud maintain.Huaweis promotions as well as include advertising. In the international market, Huawei has been employed a veteran British advertising company to guide its release strategy for advertising the various stages of development. Huawei ready attend many exhibits, and it dish up Huawei be well-known. Lower price than the bear on bid is also an important way of promotion,1.3 The uncontrollable variables of Huawei and effectThe marketing environment is uncontrollable, and it can be divided into the microenvironment and the macroenvironment. All environments wee-wee good or bad effects to a company.1.3.1 The microenvironment of Huawei and its effectMicroenvironment is closely linked with the company itself, which includes the internal environment, marketing channel mansions, different types of markets, customers, competitors and publics.The internal environmentThe internal environment consists primary(prenominal)ly of staff, funds, equipment, raw materials, market.Most Huaweis high-quality employees are exceedingly educate. Theyre in truth care about to realize theirs value. Because they are highly educated employees with professional knowledge and ability, they can easily understand the customers actual ideas and know how to improve products. Through continuous improvement of products, companies can win more customers and profits.The marketing channel firmsThe marketing channel firms contain suppliers, agents, marketing services agencies, banks.Huaweis marketing channel firms are constructed with sales, service partner, training partners and customers. It is a complete system. This distribution system includes first-class high-level distributors, as well as the subordinate regional agents, advanced authentication agents, the industry integrators, an agent, regional distributors, which are intended to provide cus tomers with integrated solutions. There is no absolute association among all the channel firms, and all the channel firms enjoy the same invidious policies. All the agents are relying on the products with Huaweis brand, performance, service, a comparable level of interest. Huawei has also announced the formal introduction of targeted agents sales staff sunshine milage club recognition program, the program with Huawei in the transmit of promotion of the carrying into action of an incentive mechanism, Huawei announced that all sales agents can participate in the club and become a club member. The sales staff sales to go through them to Huaweis statistical summary of reported orders to score points. harmonize to the number of points, members may be from the basic member to silver members, and level be gold membership. Huawei based on their performance carry out a variety of different levels of reward. Since implementation of 2002 Sunshine business plan, Huawei partners reliable recognition and support of sales channels, has made great progress and incoming market development. Through these ways, Huaweis products are well-known. They are good for Huaweis products and promotion.The types of marketMarket is divided by the purchaser and the purchase of market segmentation purposes, including consumer markets, scramrs market, brokers market, presidency and international markets.Huaweis briny objective is in the international market. New products to enter the international market, generally there are two kinds of methods one is the first access to certain inelegant markets, the latter access to developing country markets the other is the first access to developing markets, then access to developed countries. Huawei is the adoption of the second way. Huawei first entered the Hong Kong market, and then into Russia, and South American markets. Huawei actively participated in the activities of major infrastructure projects, bidding for its high-quality products , low prices to win resultant national large-scale Projects. The continuous development and changes in the market prompted the go on reform of Huaweis products and innovation.The competitorsCompany marketing activities are often surrounded by various competitors, and constraints, therefore, companies must identify the variety of competitors, and take different war-ridden responses. The changes of competitors marketing strategy and marketing activities the changes directly affect the corporate marketing. The most obvious is the competitors product price, advertising, promotions, changes, and product development, sales and service.Huaweis competitive environment is really cruel, and it derives Huawei continually improve its product. In addition, Huawei also pays attention to advertising, personal selling, sales promotion, public relations. The main ways are meet with key customers, all-around(prenominal) contact with clients, to establish and develop with the host countrys teleco ms regulator contact, to discover and develop a strong local agent or partner, to participate in various exhibitions and telecommunications forum for professional, technical exchanges with customersThe publicsThe publics refer to the ability of companies achieve their marketing objectives with actual or potential interest and influence of groups or individuals. It is very important to a company to do well with the public.Huaweis do a very good job with the public, establish a good brand1.3.2 The macroenvironment and its effectMacroenvironment effects microenvironment with great social forces. It includes political, economic, social and proficient. In many books, it is called PEST or STEP.The political environment and its effectPolitical environment is the condition of the external political situation and national guidelines and policies in an enterprise marketing activities.Huaweis products are sold in more than 100 countries of the world. divers(prenominal) countries have differe nt continental law, and they include common law, the specific laws, particularly laws and regulations involved in international marketing vary widely. This cooks Huawei to understand and adapt to different political environment.The political and economic close link together, and more and more countries competition has been reflected in the economic competition. Huawei cannot develop the international market without the way of political.In the early period of internationalization, Huawei complies with an unwritten rule it is based on Chinas diplomacy direction. Huawei set up offices of the principle that countries have diplomatic relations with China. The CEO of Huawei called Ren Zhengfei explicitly mentioned Chinas foreign policy is successful in the world, it get more friends in the world. Huaweis marketing is following with Chinas diplomatic, I consider we will be successful The economic environment and its effect frugal environment means socio-economic conditions, the operati onal status and trends of economy in a companys marketing activities. Economic environment analyzes the changes in consumer income, consumer spending patterns, consumer savings and identification conditions and other factors change.The financial crisis in 2009, under the pressure and thrust, whether Europe and the get together States markets can be successful in this grade is more important than sales of 30 billion U.S. dollars. Huawei put their business focus on the European and American markets, and it got great success. In the august of 2009, Huawei became one equipment supplier of the worlds biggest WiMax operator Clearwire in US, and Huawei became the main supplier.The social and heathen environment and its effectDifferent countries and different areas have different social and cultural environment. So a novel product get into a clean market, the company must understand the customers cultural and hobbies.Huaweis staff before they going foreign must receive relevant train ing to understand the social and cultural in the training sector, such as the differences amongst cultures and related products and others. hardly another culture, values, religion and lifestyle is not suited to them. They meet many of the problems in another country. The first one is that local people do not know much of china. A huge different cultural gap between the country and china mention the local people do not understand and trust Huaweis product. This lack of understanding between cultures enables local coustomer even do not believe that China has up to(p) of producing communications equipment. Through a variety of communication, foreign customers eliminate the misconceive of China. Similarly, respecting foreign cultures is also very important to win local customers. Huaweis set up Islamic prayer room for Arab customer, and get respect from Arab.The technological environment and its effectScience and technology are primary reproductive forces. Each of the new technol ogy would give some businesses to create new market opportunities, which will produce new industries, and at the same time, it also makes old industries to be affected or even be eliminated. move on technology is the most important basis in the communications market. Huawei has invested heavily in technology and the benefit is obvious increased. Huawei pay a lot silver on researching and developing in the early period. Even in the difficult period, more than 10% of Huaweis sales revenue were used on the R D enthronement. Huawei employs about 30,000 worldwide, of which 48% of employees engaged in R D annual patent applications, and its break through 1000, and become the most patents company of China. Because of the thousands of patents, Huawei have ability to bargain with the worlds premier suppliers, and build research lab to develop the most advanced products together. Huaweis technical strategy is trying their best to meet the customers assumes. Through new technology, incr easing R D investment in new technology, Huawei can get more market share.Part 22.1 The rule and introduction of the marketing highThe marketing game can help us understand the market, our competitors. All the students are divided into 4 groups. Each group is a software company. All the companies make the same product which is word process software. The potential customers can be divided into six main segments. The six segments are the modern students, the kin scribblers, the harried typists, the professional writers, the high-tech managers and the concerned parents. Different segments have different requirements of the software. The market is increase every year, but some segments are growing faster than others. We also need to make advertising and make our product to meet customers needs..Each company has a basic word bear upon software, and the NO. of special is 8, the error protection is 3, the Ease of admiting is 3. We can pay money on commuteing our product.All the firm s have two channels of distribution to reach customers. The middlemen in channel 1 serve customers with a limited line of computers and computer software. The middlemen in channel 2 offer more limited service and handle larger assortments of products, they also offer lower prices.All the firms have three ways to make promotion Personal selling, advertising and sales promotions. About advertising, there are 5 ways pioneering- primary demand, direct competitive- own brand now, indirect competitive- own brand future, reminder-reinforces familiar brand and corporate.Each firm has 700,000$ as its budget. The main cost include Product Modification, Unit Production Cost, Sales burden salary severance, Advertising, Sales Promotion, Marketing Research Reports and Interest on add from Bank.All the firms have four years to compete with each other. (6)2.2 The firm of Fourstars2.2.1 Our idea and brandFirst, we should think about our target market, and which segment to sale our product. We thi nk we need to try our best to meet more and more customers needs. The other firms may get hold of one target market, but we can develop one mixed product. We can get more market share.The six segments can be divided into two main partsThe first part is Student, Home and parents. These three segments require the word processing software easier, and they do not need too many functions. The channels of the three segments are sort of similar. The advantage is we do not need to spend much money on modifying our product, and the risk of our product is lower. The injury is the price of these three segments is much lower. We cannot sure to get much profit.The second part is Typists, Writers and managers. These three segments require the word processing software more professional. They need more functions. The channels of these three segments are also quite similar. The advantage to get into these markets is the price of the product is very high, we may get more profit. The disadvantage i s that we need to pay a lot of money on modifying our product, we have high risk.Finally, we decided to design a easier product, and chose the first part. We also think many brands about our product, such as well(predicate) stars, stars and fourstars. We choose fourstars to be our brand, because we are the fourth firms, and we want to be the sale star.2.2.2 The four years of FourstarsThe first yearWe develop our new product, the new product have 10 special commands, 5 error protections and 8 functions in ease of learning. The retail price in channel 1 is $156.40 and in channel is $129.90. We also do marketing research and advertising. The channel 2 is more important to our product. We pay less money on modifying our product. We believe we will be successful.All the members of our firms are very excited. We all wait for the result. But we fall in the first year. We make a big mistake, because we product too less product, we forget to ask the output. We also lose the marketing share. We have a cold winter, but we do not lose belief. The finally winner is the true winner.The second yearThe first year, we are loser. We must find the reason and the disadvantage of our product. First, we modify our product. We modify the special commands to 11, and the function of error protecting to 4. We compare our product with other firms, and we find that our product is really very perfect. We believe that we can get more marketing share, and more profit this year. The price of our product in channel 1 is $168.50, and in channel 2 is $147.84.When we get the result of the second, we notwithstanding lose in the second year, but we bring down very strange. The unit sale of our product is the highest of 4 firms. We have the highest sale in 3 segments. Why we lose? The teacher say something to us, we need to get more profit from our product. How to get more profit is the main thing we need to do in the next year.The third yearOne year past, though we lose, we get the belief. We b elieve our product is perfect, and we do nothing about modifying. The only thing we should do is how to get more profit. We increase our price, and the price in channel 1 is $239.67, and in channel 2 is $205.65. We do not increase our price too much, because we are afraid of losing customers.We have 3 years experience, and we are very comfortable. We have prefect product and highest marketing share. Of course, we can be successful. The result is we lose again, but this year we are profitable. The unit sale of our product is still the highest, and we are the largest supplier in 4 segments. Because one of the firm called Micro Twos product is suit for Students. Our customers are Home, Typists, Writer and parents. We need to make changes of our product. We still make a big mistake we give too much commission. We also need more middlemenThe fourth yearThis is the last year, and it is the last chance. According to our customers, we develop a new product. Our new product has 12 in special commands, 5 in error protection and 8 functions of slow of learning. We hire more middlemen and we also increase the price of our new product. We are not foolish again, we reduce the commissions..We think about every detail. Finally, in the last year, we get the most profit of all the firms. All the workers of our firm fell very happy. We learn a lot from the marketing game. We know how to get profit. Though we make many mistakes, I think we cannot make the mistake twice.2.3 The learning points of the marketing gameAccording to the marketing game, all the group members learn a lot. Here are 3 main learning points of the marketing game.2.3.1 Proper product to target marketCompanies need to choose its target marketing and groups of consumers. Then they can produce the straightlaced product. The product of a company is limited, but the customers demands are unlimited. Therefore, companies only choose less market to be their target market. Monopolistic market can help company to get more profit. The 3IZNESS product is made for Managers, though the price of their product is very high, they do not have competitors, they sale very well. The famous marketing master Philip Kotler said the target market is the part of the qualified available market (those with the interest, income, access, and qualifications for a particular offer) that the company decides to pursue.(5 by Philip Kotler)Customers are the god to the companies. Companies should have the proper, so that they can have their customers. We change our product for 3 times, the purpose of these changes is to meet the customers need. The target market is very important to a company. You have the target, then you can produce proper product.2.3.2 The importance of Marketing researchDoing marketing research is very important to a company. Marketing research can help the company make right marketing decisions. Through market research, we can find a number of new market opportunities and may develop new products to meet customers needs. We can get information about our product in the market share, we also can know much about our competitors. All these information can help the company develop new product and change market stratagem.During the marketing game, we all do well in marketing research. In the third year, our company find that the Micro Twos product is quite similar with our product, and its price is lower than us. In the fourth year, we change our product immediately. That is one main reason we can win in the last year.2.3.3 Profit is the firstThe aim of a company is get more profit from the market. A company is successful or not, the resole criterion is the profit. In the marketing game, the first year and the second year, we do not get any profit in the market. It causes we have less budget in the next year. We cannot expand more market. We also learn how to gain more profit from the marketing game. Profit is an important factor for the development of the company.ConclusionStrategi c marketing is the module which I examine in the university of warwick. Thank you for giving us great lectures and a arouse marketing game. I learned a lot from this module. I still remembered that the tutor of Caroline Bitch ask us questions every morning. It help me to remember what is marking, the marketing mix and so on. All the teachers can make the strategic marketing more lively and easy to understand.Referencehttp//www.huawei.com/corporate_information.dohttp//www.quickmba.com/marketing/mix/http//www.huawei.com/products_services.dohttp//wiki.mbalib.com/wiki/%E5%B8%82%E5%9C%BA%E8%90%A5%E9%94%80%E7%8E%AF%E5%A2%83by Philip KotlerThe marketing game