International Trade & Institutions Essay Example | Topics and Well Written Essays - 3000 words

International Trade & Institutions - Essay ExampleDespite the massive reducing of global investment, China and the United Kingdom (UK) remained to be amongst the expected countries that would continue to deliver step-up in their FDI investment (Ernst & Young, 2008). Huawei Technologies Co. Ltd, a Chinese-based telephoner is one the successful foreign companies that entered the UK commercialize. In fact, some of the leading telecommunication suppliers in UK has been exceeded by Hauwei in terms of market share and revenue growth, which made the go with the crouching tiger in the UK market (Blackman, 2010). The main purpose of this paper is to study a certain firm that is involve in FDI and developed an international business opportunity encompassing business opportunity analysis, environmental analysis, agonistic analysis, and strategic analysis. Huawei Technologies (UK) Co., Ltd. Huawei Co. Ltd. is one of the leading telecommunication suppliers since 1988 founded by Ren Zhengfe i. Huawei, a private company is currently suffice 45 out of 50 leading telecoms operators worldwide and has operations in North America, South America, Europe, Asia, Africa, and Australia. The company offers wide range of products and services such as radio access mesh topology, application and software, net solutions, wideband services, transport network facilities, storage and network security services, professional and traditional services, and devices (MarketLine, 2010a). Hauwei is in the special bowl of research and phylogenesis (R&D) and they are highly dependent on their overseas markets that contributed 65% of their revenue growth (Griffin, 2007). Every category, the company allocated at least 10% of their annual sale in R&D for this bestowed them a competitive advantage. Huawei also took the no. 2 position in the global diligent network gear market in the third quarter, almost doubling its market share from a year ago and surpassing Nokia Siemens (Virki, 2009). In th e global setting, the companys success is very all important(p) considering that the competition is severe however, they still manage to transcend other telecom providers in areas of optical network (rank 4), DSL (rank 2), next generation network (NGN) (rank 2), and switching network (rank 1) (Wu & Zhao, 2007, p.188). The international market has been attractive to Huawei considering that their municipal sales have been surpassed by their overseas sales. Currently, the companys revenue is 149,059 million (33%) with an operating wampum of 21,052 million (33%), and 21,741 (40%) for cash flow from operating activities (see figure 1). Business Opportunity Analysis A. Advantages underlying the opportunity. accord to Lim Chee Siong, Huawei South-Pacific Region Chief Marketing Officer (n.d.), We foresee broad market development opportunities in mobile and home broadband networks, fixed mobile convergence, business operation support systems, and smart devices (cited in Huawei, 2010). Th e development of broadband in UK for 2010 is a big opportunity for the company in order to expand its market share and revenue by collaborating and cooperating with UKs fastest growing operators for broadband access. Based on the companys SWOT analysis (see figure 2), the growing demand and adoption of broadband (mobile and home) in UK is among the new-fashioned international business venture that Huawei could undertake. Aside from the