Topic Huawei E-commerce Strategy Analysis Essay
Rene claimed in the internal meeting during 2008. The uncertainty of E-commerce was Rent’s concerns. He doesn’t want to expand Hawaii Device business enters into the area he never touched before. But market development is exceeded Hawaii CB expectation especial in China market. China market is the most important mobile phone business region for Hawaii CB. The shipment of Hawaii smart phone market share in China region was ore than 45% of total Hawaii CB. Hawaii reached 9. 9% market share and to be No.
4 position. (firm), the performance looked very well. But E-commerce Just changed the existing market situation.
In 2012, Axiom, one pure China E-commerce smart phone player, sold more than 12 million units phone. In the end of June 2013, Axiom have sold more than 7 million units smart phone in China market. All sales are online. Axiom rapidly became the favorite by investors. Axiom market valuation was more than 10 billion USED in June, 2013. Axiom’s success in China motivated Hawaii CB to expand the channel.
After all, traditional channel cost is higher than by Hawaii CB. Hawaii have strong R and experience on production. Hawaii can do more on E-commerce. But the strategy still needs Mr.. Rent’s approval.
Rene Zingier reviewed his opinion on E-commerce and changed his mind. In 2013, Hawaii CB had internal meeting in Shanghai to discuss the sales strategy. Rene Ghent fee attend this meeting and encouraged Hawaii CB to enter into E- commerce. Mr. Rene claimed: “When E-commerce is ready, we can sell everything, not only mobile phone. We can sell win, the beef we bought from Argentina. Our goods laity is guaranteed, Jingling and Taboo can’t control their goods quality. We have enough sources of goods, we have more than 140 countries sales network, and we can sell any country high quality goods by E-commerce.
Our mobile phone and other devices accessory can be sold in E-commerce in the future”. This claim was named “June Declaration” in internal. Based on Rent’s claim, Hawaii CB had several meeting to discussed and made E-commerce strategy. I will expound the strategy in the consequent parts. Firm: China smartened market share 2012 Apart Hawaii E-commerce strategy and implementation 2. 1 Hawaii E-commerce strategy Hawaii E-commerce strategy is different than pure E-commerce players. Hawaii still have traditional sales channel and partner. E-commerce is only one channel and important supplementary channel to reach business strategy.
So the E-commerce strategy is to develop and enhance internet sales by local market conditions and make different strategic plan for local market. In the end of 2018, Hawaii CB wants to reach 40% revenue of total sale by E-commerce. Currently, the figure was 2%. Under this strategy, Hawaii CB gave the further explanation and requirement: 2. 11 Hawaii CB established E-commerce Department and empowered it operation is avoidable in China market. In the end of July, Hawaii CB finished Hawaii V-mall. In the end of August, Hawaii E-commerce operated the first mobile phone launch in Hawaii V-mall. . 12 Hawaii will establish oversea V-mall in Indonesia and Russia in the end of 2013. In these two countries, Hawaii CB business development is excellent. Brand awareness and business environment can support Hawaii to build V-mall. 2. 13 In European market, Hawaii CB will enhance the cooperation with main E-commerce and improve the marker share on inline sales. Amazon will be the first priority to be strategic partner. In developed market, Hawaii CB has sharp challenge for information security; the market investment is higher than developing market. V-mall is not the best way.
Mature business environment ask Hawaii CB to respect the local business rule. Hussein’s reputation can’t support directly E- commerce business model in European market. Cooperation is smart way to develop Hawaii CB E-commerce business. In the end of August, Hawaii CB Germany smart phone sales in Amazon entered into Top. This is millstone in European market. WEEK region is important for Hawaii CB to improve the performance on E-commerce. In he end of 2012, from SGF report, five big countries in WEEK average smart phone online sales market share was 17%. Form) Hawaii CB wants to be Top Online Firm: Online smart phone market share in WE-IS 2. 14 In other region, Hawaii CB will select flexible business model to develop E- commerce business. When the market environment is mature, Hawaii CB will establish won V-mall. It is clear, Hawaii CB Just look at E-commerce as a huge opportunity to develop business. On one hand, E-commerce channel cost is low than traditional channel. On the other hand, E-commerce also has its specific requirement. I will analysis the challenge and difficult for Hawaii CB to deploy the E-commerce business strategy. 2. Hawaii CB challenge and difficult on E-commerce implementation. For any new business model, the implementation is critical. Market insight lead to correct strategy, but the final result is to depend on implementation. Hawaii CB inherited TIC DNA from Hawaii Group. E-commerce is total new business model. Capacity of internet knowledge and process, resource and execution are key factors for success. Summarize to say, Hawaii CB have three main challenge and difficult to reach its E- commerce strategy. . 21 Digital capabilities. E-commerce is digital marketing. Everything is connecting to digital.
Hawaii CB is lack of professional digital expert. But this is not the biggest challenge. Talent can be recruited. Digital marketing is internet thinking; Hawaii CB is new BBC enterprise. The digital thinking didn’t deploy into Hawaii management team. Firm showed the gap between Hawaii CB and competitors on Backbone fans. Firm: Hawaii FEB. fans comparison than main competitors 2. 22 Product &Price management capability E-commerce price is aggressive than retail store price. That’s why E-commerce is emerging. Compare than traditional channel, transaction cost is reduced by online sales.
But the price and product management request is high. Especial when the traditional channel and E-commerce are coexist. Product differentiation is the first solution to manage price. Hawaii is new player on E-commerce platform. The product & price management is a sharp challenge. 2. 23 Security risk This is not the current challenge. But when Hawaii CB starts to expand own V-mall to developed country in the future, security will be the biggest challenge. Hawaii brand reputation is not good in developed market. How to eliminate consumer and overspent concern on E-commerce security is critical for Hawaii CB.