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Stb Manage Tool Huawei4/17/2021
Refresh Contents Political Economic Sociocultural Technological Legal Environmental PESTLE Analysis of Huawei: Final Thoughts Huawei is one of Chinas leading smartphone manufacturers.Like everyone, Huawei is subject to forces from all six of the PESTLE categories: Political, Economic, Sociocultural, Technological, Legal, and Environmental.Identifying the individual factors that affect Huaweis success can help us understand why Huawei is performing at its current level, and what could be done to change that.Thats why today were diving into a PESTLE analysis of Huawei to see exactly what opportunities and threats its facing Political Huawei itself is operated out of China, where most of its manufacturing also takes places.
In particular, their smartphones are extremely popular in the European Union (relatively speaking). As a result, Huawei is subject to political forces from across the globe, especially those relating to China and the European Union. Currently, trade policies are widespread and facilitate the export of good from China to the European Union. If the European Union were, for example, to place trade sanctions on China (for example, due to lack of regard for environmental concerns), this would have a huge effect on Huawei. In particular, Huaweis economic success is a function of both the Chinese economy and the economy of its target market mostly the European Union. The relationship between these economic factors and Huaweis success is very simple. If Huaweis target markets perform well economically, Huawei is likely to sell more phones in that target market. Right now, the European economy is relatively stable, which gives Huawei a consistent amount of business regardless of economic conditions in other areas of the world. Huawei doesnt just export their smartphones they also sell them to local consumers. As such, Chinas rapidly growing economy has paved the way for growing numbers of smartphone sales including sales of Huawei smartphones. The Chinese economic landscape affects Huawei in a multitude of ways, beyond the growing number of smartphone purchases. Notably, labor costs in the country are quickly increasing, which is causing Huaweis overhead (in terms of production costs) to rise proportionally. This will eventually force the company to increase the end cost of its goods, or to absorb the additional costs itself and suffer from reduced net profit. This means that Huawei shouldnt struggle should it need more funds to support it. Sociocultural As touched on above, there is a growing demand for smartphones across the world, including China. This is mostly a sociocultural phenomenon, although its effects are economic. However, this growing need for smartphones is affecting the entire market, not just Huawei. One unfortunate sociocultural factor affecting Huawei is the widespread association Chinese products have with poor quality.
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