Huawei in Canada

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Company Analysis - Huawei

Huawei's product offerings are segmented into carrier, enterprise, and consumer businesses. The company markets its products under the "Huawei" brand name and models its business on providing "ICT infrastructure and smart devices to every person, home, and organization for a fully connected, intelligent world."

Value Proposition

Business model

  • Huawei's business model is focused on providing "ICT infrastructure and smart devices to every person, home, and organization for a fully connected, intelligent world."
  • The company achieves this by creating value for its customers, ensuring secure and stable network operations, promoting industrial development, and driving economic growth.

Brands

  • Huawei Technologies Co., Ltd market its brands generally as "Huawei". However, different segments of its products have specific product names.
  • Some examples of Huawei's brands are the HUAWEI P20 Series, HUAWEI nova Series, HUAWEI Mate 20 Series, and HUAWEI Mate 10 Series for smartphones.
  • For PC, it has the HUAWEI MateBook Series, HUAWEI WATCH GT for wearable, and HUAWEI MediaPad Series for its tablet line.

Product offerings

Huawei's product offerings are segmented into:
  • Wireless network
  • Fixed network
  • Cloud core network
  • Carrier software
  • IT infrastructure
  • Network energy
  • Professional services
  • Network rollout services
  • Cloud computing
  • Software-defined networking
  • Big data
  • Internet of Things
  • Smartphones
  • Tablets
  • Wearable devices
  • Converged home devices
  • Applications
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Regulatory Space - Huawei

Companies in the Canadian radio network vendor market are to comply with the Canadian government regulations on consumer data privacy and protection under the Canadian Human Rights Act and Privacy Act. The Canadian Radio-television and Telecommunications Commission (CRTC) is the governing body for companies in this sector.

Canadian Human Rights Act

  • The Protection of Personal Information Regulations was made under the Canadian Human Rights Act.
  • Under this regulation, Huawei and similar companies are required to protect every data or information about its customers that could be used to "identify a natural person or make him/her identifiable."
  • Huawei Canada has a statement on its website that elaborates how the company complies with this regulation.
  • However, the company clarified that the statement is only applicable to its "personal and home products, including feature phones, smartphones, laptops, tablets, wearable devices, mobile broadband devices, smart household appliances, accessories, computer applications, mobile services, software, toolkits, websites, and services that display or mention this statement."

Privacy Act

  • The privacy regulation was coined from the Privacy Act.
  • Under this regulation, Huawei and similar companies are required to be "open and transparent to regulators, customers, and consumers in terms of personal data processing and end-to-end privacy protection methods."
  • The use of customers' data and information should be transparent.
  • Customers should be able to determine how their data is used.
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Competitors to Huawei

There are a few competitors for Huawei in Canada other than the biggest two; Ericsson and Nokia. These are ZTE, Cisco, and Ciena. Ciena is benefited from the ban on Huawei, Cisco is a global industry leader that is continuing to grow and expand in Canada, and ZTE is an established network supplier in Canada.

ZTE

  • ZTE Corporation
  • ZTE website link
  • In Canada, ZTE is a network supplier to Public Mobile’s network and has been involved in lawsuits with Huawei in the past
  • ZTE award-winning D90 has won favor from both the Canadian carrier Telus
  • ZTE TE is ranked among the top five in the smartphone market in Canada

Cisco

Ciena

  • Ciena Canada
  • Ciena website link
  • Ciena is one of the technology infrastructure companies that have benefited from the US restrictions on Huawei which resulted in Canada’s arrest of Huawei's company’s chief financial officer.
  • In 2018, Ottawa, Ontario, and Quebec announced 5G investments, including a $400-million project involving Ericsson, Ciena Canada, etc.

Research Strategy

The results of this research were produced by first performing a company analysis on Huawei to find additional competitors and product offerings, brands, and Canadian strategy, This research revealed a range of their offerings from smartphones to network equipment. Huawei's annual reports and publications were analyzed, as well as their published reports and industry news. From there a list of industry leaders was further researched to identify why these companies are competition to Huawei and how dominant they are in Canada.
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Canadian Perception of Huawei

An analysis of the perception of Canadians on Huawei shows that despite calls for Huawei to be barred from the 5G network development in Canada, the general perception of the company has remained unchanged.

PERCEPTION OF THE HUAWEI BRAND

  • As a result of the political tension between Canada and China, and the U.S. accusing Huawei of "being tied to China’s government", there have been calls by Canadians for Huawei to be banned from the 5G roll-out in the country.
  • A survey report by Research Co revealed that 68% of respondents (Canadians) want Huawei to be banned from Canada’s 5G development, with 17% saying that Huawei should participate.
  • Some prominent persons in the country, including Philip Lind — V.P at Rogers Communications Inc., Richard Fadden — former national security adviser to the Prime Minister, and Stephen Harper — former Canadian prime minister have also urged Canada to ban Huawei from its 5G development.
  • However, National Bank Financial reports that the calls for the ban of Huawei from the 5G network in Canada would not affect the existing 4G or previous systems of Huawei in Canada.
  • Despite calls for Huawei to be barred from Canada's 5G development, Telus — one of the country's biggest telecom companies — has expressed its support for the company. In an internal memo signed by a Telus executive, Telus stated that Huawei is viable and reliable.
  • In January 2019, Justin Trudeau — the Prime Minister of Canada — voiced his concern about China blending politics with business interests. This further shows that the perception of Huawei, as a brand in Canada, has not changed.

PERCEPTION OF HUAWEI PRODUCTS

  • Despite calls by Canadians to ban Huawei from taking part in the 5G roll-out in Canada, the demand for their products remains unchanged. In February, CNN reported that the company is still making progress in the Canadian market.
  • They added that Huawei is growing its presence in Canada with the addition of "200 new research and development jobs in Canada, a 20% increase."
  • On Twitter, Canadians have expressed their anticipation of the new HUAWEI Mate Pro product which is yet to be announced.
  • Comments on posts made by Huawei Canada on Twitter shows that despite the political tension between China and Canada, the perception of Huawei products has remained unchanged.
  • On the other hand, an ad by Huawei titled "Keep your friends and family close" in July has received negative comments from Canadians. However, these comments were related to the political tension between China and Canada with no direct relation to the company's product.

PERCEPTION OF THE HUAWEI ORGANIZATION

  • An analysis of reviews by past and current employees of Huawei Canada shows a mixed perception of the company by Canadians. It has an average rating of 3.3 out of 5 on Glassdoor.
  • A quick scan of comments by employees pointed at the unavailability of work-life balance in the company.
  • Canadians are not particularly displeased with the Huawei's policies and compensation, however, complaints about the pressure, tight schedule and culture were the most recurrent "cons" of working with the company.
Sources
Sources