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HUAWEI E583X-S WIRELESS MODEM Abstract The aim of the report is to have a SWOT analysis of Huawei E5 in the market of Beijing. In the report, I will show the backgouund and development of Huawei. Moreover, I will show the economic environment of Beijing. Then I will introduce the new product-E5. And give an intimate analysis from strength, weakness, opportunity and threat. From the analysis, I will study whether Beijing is a good place for Huawei E5. Finally I will give an recommendation about it. Text: Company: Huawei has been a leading end-to-end IP network and service solution provider with complete self-proprietary intellectual property rights. Huawei is also providing many kinds of products for enterprises and industries. Huawei offers the most complete telecom product portfolio, covering mobile, broadband, core network, transmission network, data communication, value-added services, terminals and services. Featuring high quality, excellent service, low operating costs and high customer priority, it have established comprehensive strengths and continuously provide competitive products and services for customers. Product: Huawei E583X-S wireless modem is a new product. People usually call it E5 for short. It was on display in GSMA congress for the first time. After that,more than 30 companies sign a contract to Huawei on E5 and more than 70 companies were interested in it. It started to be sold in China on December 2009. The price is 1500RMB now in China. HUAWEI E583X-S Wireless Modem (hereinafter referred to as the E5) is a high-speed packet access (HSPA) universal serial bus (USB) modem. It is a multi-mode wireless terminal for SOHO (Small Office and Home Office) and business professionals.You can connect the E583X-S with the USB interface of a computer, or connect the E583X-S with the WiFi. In the service area of the HSPA/UMTS/EDGE/GPRS/GSM network, you can surf the Internet and send/receive messages/emails cordlessly. The E583X-S is fast, reliable, and easy to operate. Thus, mobile users can experience many new features and services with the E583X-S. These features and services will enable a large number of users to use the E583X-S and the average revenue per user (ARPU) of operators will increase substantially. Environmental analysis: Macro environment: Beijing is the capital city of China and the political and cultural center of China. It is in the north of China. Beijing has a population of more than 16 million. About half people who live in Beijing use network. Beijing held Olympic Games in the year of 2008. However, there are also some problems in Beijing. The rich-poor gap is exist in Beijing. Beijing grow so fast so it attract the rich people to come here but there still have the poor people here. That cause the hign price of the house in Beijing. So many people live in Beijing and it is too crowded in the center of the city. Another problem is air pollution. There are some indusral factories here some years ago. Now the air in Beijing is better than that in the 1990s. Micro environment: These years, the government put forward the concept of “caputal economy”. That means Beijing is the city that connect China and the world. It shows China to the whole world. The scale of the third industry in Beijing rank the first among the cities in China. At the year of 2008, the GDP of Beijing is 1.0488 trillion, increased by 9%. At the year of 2009, the GDP of Beijing is 1.1866 trillion, increased by 10.1%. The GDP of per person is 10298.3 dollars. It rank the second in China. The first one is Shanghai. The Engel coefficient of Beijing is 31.8% at the year of 1005. That mean Beijing became the rich society in 2005. SWOT ANALYSIS Strengths: Technological: Wirelss: E5 is the first wireless modem in the world. It is a real wireless connectivity. So it is easy to take. It size just like a credit card. It can be put into the pocket. It has so many functions. The three mianly functions are USB Modem, Wireless router and short messaging service. Functions: USB Modem The E583X-S supports the PS domain data service based on HSPA/UMTS /EDGE/GPRS. After you connect the E583X-S to a PC with a USB interface, the E583X-S driver is installed on the PC automatically and the shortcut of the WEB page is displayed on the PC desktops. You can configure APN on the E583X-S WEB page (or directly use the default settings) and set up a network connection. Then you can send or receive E-mail, access the network through wireless connection, and download files through wireless data channels. Wireless Router The E583X-S can be used as a wireless router when the WiFi is enabled. You can access the Internet service through setting up the wireless network connection with the E583X-S. A maximum of five wireless users can access the E583X-S at the same time. You can set up the WLAN with the access point (AP) function. SMS The E583X-S supports message writing/sending/receiving and group sending (up to 10 contacts at a time). You can manage messages through the WEB page, such as inbox, outbox, draft. You can also sort the messages by telephone number or time. It can help 21 products connect net such as TV, DPF,NAS,MP3 player,Media player,Portable Game Console,IP cell phone,MID,Netbook,Notebook,PND,DVD plater,DVD recorder,BD set-tops,Set-top Box,DVR,DMA,Game Console,Audio System,Desktop PCs. E5 can serve 5 products to connect net at the same time. Cost: Huawei headquarter in Shenzhen and the factory is in Dongguan. The two cities are not far away. So the human resource cost can turn lower. Besides, Chineses labour is much cheaper than many western countries, so the labour cost can be lower. For example, Huawei paid Chinese staff only one third to one fourth compare with the staff who can do the same thing in Europe. But the staff have to do 50% more work than Europen staff. With the same money, Huawei can can get about 10 times effort in research than the Europe companies or American companies. That is a big advantage for Huawei company. Manufactural: Huawei is one of the best telcom company in the world. It rank the third in the world. The first is Ericsson and the second is Nokia. It has a lot of products and get into many countries in different continents. About25% of the bussiness are in China while 75% of the bussiness are overseas. So it has advantage of scale effect. Huawei use more than 10% profit each year into researching new product. It set up the research departments in India, America, Swedon and Beijing, Shanghai, Nanjing in China. They have 80thousand staff. About 43% of them in research department. Huawei have more than 30000 patent till now, the most patent among Chinese companies. Marking: Huawei is a Chinese company so it has advantage in selling product. Lower tax should be paid compared with foreign companies. Chinese is the biggest market on Internet. And some Chinese white collars and young people woukd like to use new product. Weaknesses Price The price of E5 is about 1500RMB. It is a little more expensive for a home user. When a man at home, he use a separate modem and a srparate rounter to connect the net. In this way, people can save money. Usualy Chinese people get on the net only by computer so they do not need a product which can make five cletronic product connect net at the same time. Not many people want to replace the product they use now. So it is not a good choice for a home user. Supply Chain Supply chain is a big problem of Huawei. The efficiency is only about 20%. Thats a problem of many Chinese companies. And there are also conme problem about the cost. That cause the problem of supply chain. For example, Ericsson can accomplish the purchase order in 10 days while Huawei have to use 25 days in accomplishing it. Financial ability: Huawei is not a listed company. So it can not finance in the market. Huawei built in 1988. It do not have a long history. It do not have so many capitals. It is not such a famous company like Ericssion. In China, many people do not know Huawei exactly. Opportunities: Potential consumers: More and more people would like to use wireless modem. Here shows the forcasting of wireless modem in global market.(see table1) Table 1 : the graph of wireless modem global market forecasting Wireless Modem Global Market ForecastingNetbookNotebook 1000)Desktop PCs900tinU800Digital Camera M(700Portable MP3 Player:600tnuPortable Mediao500Playerma400Portable Games seConsolel300asIP Cell Phone la200unMobile Internetn100Device (MID)A0Portable Nav Device2005200620072008200920102011201220132014(PND) (this table was the restricted information of Huawei) The telecom industry growing fast these years and it will grow fast in the following years. From the graph, we can see that the wireless modem in global market will double up from 2010 to 2014. That is a big market of wireless modem. rdThe 3 generation rdThe 3 generation is coming. Some young people would like to choice the 3G nd mobile phones. It is a new net that take place the 2 generation. In the future, 3G will be used by everybody. So it is a good chance for Huawei E5. The world will become a net world. The net is growing so fast. In the past, most people would like to get on the net at home, at net bar or at the office. Now, some young people like to get on the net by mobile phones. In the future, people would get on the net more convinent. The 3G will help people to have a better feeling when get on the net. People will do more things through the net, such as shopping, ordering food, doing job and so on. Huawei E5 can help people connect the electric devices with the net instead of the wire. Not only the computer but also other electric devices can connect with the line so that the life would be better. Wifi: Wi-Fi is a trademark of the Wi-Fi Alliance that manufacturers may use to brand certified products that belong to a class of wireless local area network (WLAN) devices based on the IEEE 802.11 standards. Because of the close relationship with its underlying standard, the term Wi-Fi is often used as a synonym for IEEE 802.11 technology。 In addition to private use in homes and offices, Wi-Fi can provide public access at Wi-Fi hotspots provided either free-of-charge or to subscribers to various commercial services. As of 2010 Wi-Fi technology has spread widely within business and industrial sites. In business environments, just like other environments, increasing the number of Wi-Fi access-points provides network redundancy, support for fast roaming and increased overall network-capacity by using more channels or by defining smaller cells. Threats; Competitors Some company also try to produce the similar modem or the product which have similar functions. Zhongxing is another Chinese telecom company and it is the biggest competitor of Huawei. Zhongxing has prepare to make out some new product against Huawei E5. Zhongxing A380 is going to sell in the near future. Exchange rate: Since 2005, the chinese RMB is rise in value by 15%. It is no a good new for Huawei. In one hand, Huawei earned less in overseas market. In another hand, the foreign company such as Ericsson and Simense release price disadvantage in Chinese market. Huawei have to take this challenge. Summary Strengths weakness Technological(wireless, USB modem, Price rounter, SMS) Supply chain Cost Financial ability Manufactral Marketing opportunities threats Potencial consumers Competitors rdThe 3 generation Exchange rate Wifi Analysis SO: 1. Become one of the the world-class telecommunications manufacturers. Under the rapid development of the global telecommunications industry and the domestic cost advantage, Huawei should be one of the world-class manufacturing companies 2. promote E5 in Beijing Make the advertisement in television or on newspaper. Let more people in Beijing know the newest product. Attrack pontential customers to E5. 3. Let young people know it Show E5 to the young people. Make them have intereste on it. especially in campus or the place where you

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