Value Chain Analysis of Huawei

Huawei is a technology, digital communication, and consumer electronics Chinese multinational conglomerate. Ren Zhengfei founded the tech company in 1987. Today, we’ll discuss the value chain analysis of Huawei supply chain analysis; primary and supporting activities in the process of value chain analysis Example Company. They are inbound and outbound logistics, operations, marketing, and customer service; infrastructure, HRM, technology, and procurement as an application of the value chain analysis process.

  • Suppliers and Vendors of Huawei
  • Booy Technology
  • Shenzhen Eparts Technology
  • Jolly Industries
  • Dongguan Soonleader Electronics
  • Guangzhou Taoyuan Electronics Technology
  • Jolly Industries
  • Quanzhou Maxtop

The Value chain analysis of Huawei supply chain analysis would analyze the primary and supporting activities in the process of value chain analysis. They’re inbound and outbound logistics, operations, marketing, and services; infrastructure, HRM, technology, and procurement. Here’s supply chain analysis of Huawei value chain analysis company example as follows;

Value Chain Analysis of Huawei

Let’s discuss the primary and supporting activities involved in the process of value chain analysis of Huawei supply chain analysis. It is an application of value chain analysis based on Porter’s model; some of the key elements and components of value chain analysis are as follows;

Primary Activities of Huawei

Some of the five main primary activities in the value chain analysis of Huawei supply chain analysis are as follows;

Inbound Logistics of Huawei

I-Large Supplier Network

Huawei has established a very large suppliers network comprising of over 2000 suppliers in various countries across the globe. The parts and components they supply to the tech company are as follows;

  • 30% of the chipmakers (Intel, Broadcom, Qualcomm)
  • 28% of the consumer electronics parts

Suppliers from different countries and their concentration are as follows;

  • 70% of the suppliers are from China, Hong Kong, and Taiwan
  • 33 US suppliers
  • 11 Japan Suppliers
  • 4 German Suppliers
  • 2 Suppliers from South Korea and Switzerland each
  • 1 Supplier from Singapore, France, and the Netherlands

II-Suppliers Code of Conduct

Huawei has developed a strict code of conduct for suppliers to ensure compliance with human rights standards to avoid human trafficking and exploitation of exploitation of workers. It comprises of following elements;

  • Free employment request without any pressure
  • No forced and child labor
  • Standard working hours with no excess over 60 hours
  • Paying minimum wages to the customers along with benefits
  • Fair treatment of workers complying with human rights standards
  • Treating all the employees the same without any discrimination

III-Corporate Social Responsibility

Huawei is very well aware of the impact of the supply chain processes on the environment and the community. The tech company closely collaborates with various suppliers to ensure its commitment to corporate social responsibility. However, the company makes sure that the suppliers comply with international standards, industry regulations, and laws of the country.

Outbound Logistics of Huawei

I-Large Distribution

Huawei has established a distribution network in over 170 countries across the world. The tech company partners with various distributors, vendors, and 3rd party logistics providers for the distribution of its tech devices to the required destination. However, the company doesn’t sell its products directly to the end consumers; rather it employs retailers, resellers, and distributors.

Operations of Huawei

I-Manufacturing & Production

Huawei manufactures its tech and digital devices in China, India, and other low-cost countries; but they’re mostly from China. The tech company employs robotics technology, cloud computing, information and communication technology, and AI in its production and manufacturing facilities; it allows the company to achieve efficiency in its production and manufacturing operations.

I-Distribution Centers & Warehousing

Huawei has transformed its make-to-order model to a supply-from-stock model with the assistance of automatic production scheduling; along with the company’s commitment to order fulfillment. However, clean order management improves the distribution center capabilities of the company; by allowing the shipment of orders from the assembly.

Marketing & Sales of Huawei

I-Multiple Media Channels

Huawei employs multiple media channels like TV, radio, print media, billboards, digital, and social media for running advertisements. For the promotion of its tech devices, products, and digital services; the tech brand offers discounts and coupons to attract the attention of customers.

II-Sponsorships and Endorsement

Along with traditional and digital media advertisement; Huawei hires various media celebrities for the promotion of its products and brand. Along with celebrity brand endorsement, the technology brand also sponsors various mega sporting events like the Norwegian Ski Federation, La Liga, and others to increase brand exposure and target new segments of the customer market.

Services of Huawei

Huawei offers a wide range of services to customers to increase customer satisfaction levels and improve their brand loyalty. Some of them are as follows;

  • Member Center of Huawei
  • Themes of Huawei
  • Book of Huawei
  • Music and Videos of Huawei
  • Game Center of Huawei
  • Application Gallery of Huawei

Supporting Activities of Huawei

Some of the main supporting activities in the value chain analysis of Huawei supply chain analysis are as follows;

Infrastructure of Huawei

Huawei has established a very large infrastructure of production and manufacturing facilities, research facilities, distribution centers, warehouses, supply chains, and distribution networks. The world’s infrastructure helps the company to smoothly perform its various operations and manufacture tech products without any disruption.

HRM of Huawei

Huawei has employed 207272 employees to manage its global operation. The human resource management department of the company plays a key role in building a healthy professional working environment; providing equal opportunities for all, and no exploitation of workers by treating them fairly. It allows the company to establish a healthy and positive brand image of the company in the global market.

Technological Development of Huawei

Huawei invests approximately 10% of its sales in research and development for technological innovation. The company is operating its business in the tech industry; it is highly significant for the brand to develop new and efficient technology in order to gain a competitive edge in the market.

Procurement of Huawei

Huawei is highly careful about ethical and sustainable procurement of raw materials, components, and suppliers. In order to ensure ethical methods and processes of suppliers; the tech brand has set up a clear code of conduct and regulations for suppliers to regulate their performance.

Conclusion: Huawei Value Chain Analysis Example Company | Application of Value Chain Analysis Process 

After an in-depth study of the value chain analysis of Huawei; we have realized that Huawei is the world’s leading tech multinational corporation. If you are learning about the Huawei value chain analysis example company; then you should keep in mind the abovementioned primary and supporting activities. They’re inbound and outbound logistics; operations, marketing and sales, and services; infrastructure, procurement, HRM, and technological development as an application of the value chain analysis process.

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