A SWOT analysis is a vital strategic planning tool that can help Huawei managers to perform a situational analysis of the organization. For example, they can develop four types of strategies such as strengths-opportunities (SO); weaknesses-opportunities (WO); strengths-threats (ST); and weaknesses-threats (WT). The organization has strengths in that it has a highly skilled workforce through successful training and learning programs to equip its employees with the necessary knowledge (Hakkarainen et al. 216). It enjoys strong dealer community whereby it has built an excellent culture among distributors and dealers. It has a successful track record of developing new products. Another strength is that it has a strong distribution network as well as strong free cash flow.
The organization also experiences some weaknesses such as high attrition rate in the workforce; challenges brought by other competitors hence not able to sell a large volume of goods as it used to; and their products have faced low demand after other manufacturing companies like Nokia, Samsung and Infinix entered in the market. Despite the weaknesses, Huawei has numerous opportunities for redeeming itself because it has a stable free cash flow that helps it to make more investments in the market (Gereffi et al. 329). The opportunity of market development helps the company to compete favorably with its rivals. Advancement in technology is an opportunity to Huawei since it will ensure a differentiated pricing strategy in the new market. It can manage economic uptick as well as increasing customer spending.
Huawei faces threats from other manufacturing companies since it has no regular supply of innovative products. It has also faced lawsuits in various markets which negatively affects its sales volume thus incurring loses. Trade wars from multiple states have adversely affected the Huawei Company. It has incurred heavy fines and tariffs which reduce its profit thus overstretching the income of the company.