Essay Sample on Factors Affecting Huawei Company

Huawei is an international company; therefore, its business is affected by factors like political, macroeconomics, social, cultural, and regulatory.

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Similarities and dissimilarities between China and India

Political factors

Similarities

In both countries, there are rapidly growing labor forces. Thus the issue of employment is the primary political importance. This makes it difficult for the population of both countries to shut down financially weak firms. These difficulties are strengthened by the absence of widespread labor-restrained schemes (Troisi & Marine, 2019). In both countries, the socialist has the responsibility to maintain employment and provide equal wage payments. This helps the population to purchase Huawei smartphones across the globe.

Dissimilarities

In China, the demand for economic reform can undermine the existing political system. This political threat may limit communist party leaders' desire to support economic change in the days to come (li & Cheong, 2017). In India, the demand for economic reforms can strengthen the democratic political systems since various leaders compete for public political support by presenting strong economic reform programs.

Macroeconomic factors

Similarities

In both countries, the purchasing power is high due to the healthy economic environment. This leads to the growth of Huawei products.

Dissimilarities

China sells their products at a lower cost while India does not. The Chinese government has used a competitive strategy to conquer the effects of economic variation internationally, while India does not.

Socio-cultural factors

Similarities

In both countries region demands and consumers taste has been affected by the socio-cultural factors. In both countries, traders have integrated socio-cultural factors into their marketing strategies to understand and have a better connection to their customers.

Dissimilarities

Population in India believes that smartphone connects young people to their peer groups while in china, the community uses a smartphone as a learning tool, and everyone can own a smartphone.

Regulatory factors

Similarities

In both countries makes sure they abide by the rules and regulations for them to have a smooth business performance for the companies to have an easy time with the governments. Both countries fail to adhere to the rules, which can lead to expensive fines, business closure, or sanctions.

Dissimilarities

In China, Huawei company is facing a criminal record of stealing trade secrets in the US while in India, there is no criminal record. This has proved to have a significant loss for Huawei Company.

References

Li, R., & Cheong, K. C. (2017). Huawei and ZTE in Malaysia: The localization of Chinese transnational enterprises. Journal of Contemporary Asia, 47(5), 752-773.

Troisi, O., Grimaldi, M., Loia, F., & Maione, G. (2019, April). The Climb to Success: A Big Data Analysis to Find Out Why Huawei Has Conquered the Market. The International Research & Innovation Forum (pp. 495-513). Springer, Cham.