Competitive strategies adopted by Huawei technologies limited in Kenya to cope with competition in provision of telecommunication solutions

Abstract

External changes in the Kenyan economy have contributed to the intense competition faced by telecommunication solution providing firms in the country. With the onset of liberalization and the emergence of highly demanding and knowledgeable customers, competition is inevitable for businesses. All industry players are faced with rapid increase of global competition. The solution providing firms therefore are posed with a challenge of coping with this fast development. Huawei Technologies Limited, a multinational firm is finding itself competing with other multinational telecommunication solution providing firms in the country. This research project was a study of competitive strategies adopted by Huawei Technologies Limited in Kenya to cope with competition in provision of telecommunication solutions. The two objectives of the study were; to establish the challenges faced by Huawei Technologies Limited from increased competition and to determine the competitive strategies adopted by Huawei Technologies Limited to cope with increased competition in the industry. The study established that the changing competitive situation within firms providing telecommunication solutions has posed challenges to Huawei Technologies. The challenges arise from economic liberalization, globalization and more knowledgeable customers, current global financial crisis. Changes have been made more difficult by the presence of the forces that influence competition in an industry. For Huawei Technologies, the most severe forces are rivalry among competitors, bargaining power of buyers and availability of substitute products. Other challenges are is price cutting by competitors, mud smearing poaching of highly skilled staff by competitors and communication barrier between some Huawei employees and the customers.