This is a an excellent case study for understanding the challenges that MNCs from emerging markets face when operating in a developed economy. Imagine that you are Sean Yang. Prepare a 7-to-8 page White Paper for the board of directors of Huawei Technologies Ltd. You will make recommendations for Huaweis future strategy in the Canadian market following the actions of the US, Australian and Indian governments and the adverse publicity that has followed.
Your paper for this assignment will contain the key talking points which Sean Yang will use in his face to face meeting with the companys board.
Theme of the White Paper
To analyze Huaweis position and prospects in Canada within the overall Huawei corporate strategy.
White Paper Outline
What were the factors behind Huaweis decision to enter the Canadian market? Use the PESTEL (political, economic, social, technological, environmental and legal) framework to analyze the external environment pertinent to Huaweis entry into Canada in the year 2008.
Given the rapid technological developments and expected future growth in Canadas telecommunications industry, how has Huawei responded to competition during the first three years (2008 to 2011) of its operations? Here, you may consider using Michael Porters Five Forces Model for your analysis of the telecom sector in Canada. These five forces are the power of suppliers, power of customers, threat of new entrants, threat of substitutes, and competitive rivalry, i.e. intensity of competition. Describe how Huawei has been able to benefit from or defend against these forces, as the case may be, while implementing its growth strategy in Canada.
Present at least two options to the board of directors for growing Huaweis future operations in Canada. You should present the potential downside and upside of each option based on three criteria: strategic attractiveness, economic viability, and organizational feasibility.
Conclusions and Recommendations: Finally, recommend one of the above options to Huaweis board and explain your choice.