Positioning of marketing strategy is a everchanging process. Scholar EJ McCarthy (2015) states that marketing strategy refers to determination of the target market and formulating corresponding marketing mix. The positioning of marketing strategy is essentially a process of planning, formulating the purpose and goals of enterprise development, adapting the resources and capabilities of enterprises to the changing market situation. This positioning is to develop a long-term directional,important-in-overall and dynamic developmental plan of corporate marketing. Looking back at the development of Huawei, it grew from a domesticallynamed small business with only 6 employees and a registered capital of 20,000 yuan to an internationally renowned company that can now compete with international giants such as Cisco and Ericsson (Haveman & et. al, 2016). It is clear thatstrategic thinking and timely strategic positioning is very important to Huawei.
Positioning of Huawei in the competitive market華為在競爭市場中的定位
At different times, Huawei's strategic positioning was different. At the beginning of Huawei's growth, Huawei insisted on a professional strategy. At that time, Huawei insisted on only developinginformation technologyequipment and neglectedportable terminals (the likes of PHS, CDMA and etc.). With the intention of focusing on the majorprofession of the firm, Huawei correspondingly outsources part of itsless crucial businesses (such as infrastructureset-up, repairing of tools, maintenance, datarescue and other tasks of lower technological level). It is precisely for the reason that Huawei has adhered to its usual line in strategyof specialized production, so that the enterprise canaccumulate experiences with projects big and small, go forward and grow along the way, and focus as much as possible on people, finances, and materials to specialize in the communication market, thus achieving technological breakthroughs and defeating competitors (Li , 2009).Prior to 1990, over88% of China's telecom equipment market was dominated by overseas firms. At that point, Huawei was soberly aware that to persistamidst fierce competition, it is essentialfor the company to create its identifiable brand. This entailsthe company’s own competitivestrength in technological advancement. Therefore, Huawei believesinnovations in technology and insists on self-directedR&D. Simultaneously, Huawei is mindful of the existingstate of the transnational and local markets. The well-established countries clearlyrecognizecutting-edge technologies from Europe and the US. As a company from a developing country, there are a lot of hurdles for Huawei to go into the transnational market of stronger countries.
First, Huawei took advantage of the low price advantage to aggressively enter the large developing countries, which allowed Huawei to evade the high entry barriers of developed countries and restrictions, and it is difficult for large foreign telecommunications companies to contend with Huawei in low prices in developing countries. Huawei first paved the pathway to some rising-starnationsin the Asia-Pacific region, Africa, and Latin America.Huawei has been very independent in research and development, and has investedquite a lot in high-tech research and development. Even though it is likely that it will fail, Huawei still took the challenge in face of the possibility ofjeopardy. For example, the development of Huawei's integrated chip (A-SIC) is an ostensibly classiccase. Close to 2000, Huawei sought to develop WCDMA and ASIC. This is a rather uncharted areafordevelopment of technical solution, except for a foreign company that has announced it in the industry. They will officially launch ASICs in 2002, and no other company has industrialized this technology in their products. At that moment, some companies wanted to purchase the expertise of thatforeign company directly in an attempt toevade the risk involved in independent development. Huawei does not think so (Haveman & et. al, 2016). Huawei still insists on its own ASIC R&D. Huawei have confidence that the key to increasing the competitiveness of WCDMA in the global market is core technology that must not be subjected to other people. It turns out that Huawei’s insistence is right. When Huawei had a huge step forward in ASIC know-how, thisforeign company still had not released the product of their development of the chip, and finally the company chose to completely give up the development of the chip. Reality hasshown that Huawei's determination is right. The accomplishment of ASIC research and development has had a remarkablebearing on Huawei's latterprogress.
In the periodsafter 1999, Huawei developed markets acrosscountries of Southeast Asia like Thailand and Malaysia. At the threshold of the new epoch, Huawei started to concentrate on the European regions. Since 2001, Huawei has entered the German market with 10GSDH optical network products. Then, Huawei's goods have efficaciouslygone into Germany, France, Spain, UK and farthertechnologically advancednations and areas. In December 2003, the cooperation agreement with Siemens has helped the company to establish its own branch in Europe in 2004. In 2006, it joined hands with Vodafone witha strategic cooperation agreement (3G)and became Ericsson's chief competitor. In July 2006, with Huawei's president forming alliance with eMobile to set up a 3G network in Japan, it became promising for Huawei to attract the Japanese high-end consumers(Simmons, 2008). After understanding the positioning of Huawei's enterprises, products and rivalry, Huawei's market positioning is very distinct. From a product perspective, Huawei's global market positioning at the time was played as a challenger. Although Huawei has obvious advantages in China as it is the market front-runner, it is a different case in the North American market. Huawei has been repelled by other societalfactors and the local market protection policies againsttransnational competitors.
Consolidation of the market with value-basedsegmentation and demand-basedsegmentation
With the development of the company, Huawei's products have occupied a favorable position in both the rural market and the first-tier cities. Huawei's technology level has steadilybettered itself and reached a certain height in the business field. At the moment, Huawei's segmentation market is based on the market segmentation of differences in customer’s standard and differences in demand to further consolidate its own market position (Perreault & et. al, 2015). For instance, Huawei's technology in 3G, 4G, cloud computing, high-end routers and etc.are at the forefrontin itshome country and areas out of the country; forthesegoods, Huawei uses differences in customers’ standard as basis of market segmentation. It is because in these technical fields, Huawei’s Chinese competitors have no technical skills to attract end users. In general, when Huawei faces foreign competitors, it usually adopts the market segmentation based on demand of customers. For example, Cisco, Ericsson, etc., Huawei may be competitors technically, but Huawei chooses to start with service. It is the advantage of Huawei to respond very quickly to the customer's needs and achieve customer satisfaction. This is also the disadvantage of these foreign companies (Li-Hua & et. al, 2013). Since some foreign companies do not have technical service personnel in the local area, when customers have problems, they cannot send technicians to the site in time, which makes it easy for customers to cause losses. Huawei is applying this advantage to quickly consolidate the market.
Developed countries are the mainstay of Huawei's marketing. Whether it is in concern of the objective market demand or about establishing the international brand image of the company, these countries are of substantialimportance to the company. Huawei should capitalize on high-end products and provide excellent servicesalongside theirgreat products. With the wide range of markets in the developing countries, the demand for products is large, and the threshold requirement formarket entry is low (Li & et. al, 2015). Simultaneously, Huawei's low-cost productiveness is in line with the requirements of developing nations, and it is the preferred springboard for Huawei to further develop its status as an international corporation. It is reasonable forHuawei to develop its own market in developing countries. For the marketof third-worldcountries, even though there are objective demand for the products, but the buying power is poor, or there is probably very low objective demand for those goods, so it is essential to adopt flexible approachesin maintaining understanding and evaluationof the change in market demand in these places.