Question 3

Huawei is the number one telecom equipment maker and the third-largest smartphone maker in the world. In the first quarter (Q1) of 2020 the company actually announced that it saw a 1.4% increase in Q1 growth. Huawei said its business is continuing as usual and its overall business results in 2020 are in line with expectations.

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Required:

Based on the figures illustrated in the table and the supporting text, how would you classify Huawei using the BCG Matrix. What resource allocations decisions would you advise for Huawei managers.

Q3 2018 market share Annual growth Q3 2018 shipments (million) 71.3 +11% 20.4% 14.9% 51.9 +29% Worldwide smartphone sh Canalys Smartphone Market Pulse: Q3 2019 Vendor Q3 2019 Q3 2019 shipments market share (million) Samsung 78.9 22.4% Huawei 66.8 19.0% Apple 43.5 12.3% Xiaomi 32.5 9.296 Oppo 32.0 9.1% Others 98.8 28.0% Total 352.4 100.0% 46.9 13.4% -7% 33.4 9.6% -3% 30.2 8.6% +6% 115.2 33.0% -14% 348.9 100.0% +1% te: percentages may not add up to 100% due to rounding arce: Canalys Smartphone Analysis (sell-in shipments), October 2019 is the number one telecom equipment maker and the third-largest smartphone maker in the world in the first quarter of 2000 canalys