PORTER'S FIVE FORCES - HUAWEI IN UK

Threat of New Entry

The threat entry for the Chinese owned telco company is not too high, in a market with big companies in the UK. Some of the competitors include Apple Inc. and Samsung. Their products are of the latest technology and are very reputable in the world market. Huawei has the upper hand against other big companies because it has a huge market of its own in china. 

Huawei has done a lot of assuage about any doubts the UK government had, to be transparent in its UK operations. And it also had to deal with trust issue head on, as concerns were raised of its credibility in cyber security.

Supplier Power

Huawei is a manufacturer of technologies and have large research and development facilities based in china that develop their own products.  The company largely depends on raw materials. As such the supplier power is low.

Buyer Power

According to Xu and Girling (2004) Huawei had similar issues venturing into Russia. Looking at the buyer power we can conclude that when Huawei entered a foreign country the buyer power was high. However, Huawei does not depend on big buyers and so buyer power does not matter much.

Threat of Substitution

Substitute products play a big part in Huawei. In order for the company to prevent outdated products and technology they invest 10% of their revenue to research and development.

Intensity Rivalry

The intensity rivalry is extremely high however, Huawei has set up joint ventures to resist competitors. According to Xu and Girling (2004) they call it a win-win strategy.