HOME TASK

Name Amir Yaqoob

Roll no 13

Topic implication of BCG matrix

 Product lists of Huawei

Phones Network Equipment Enterprise business Huawei Cloud

unit products Services
1. Mate 30 11. Huawei 18. Artificial 20. Fusion
5G OptiX OSN intelligence Sphere C
500 products loud Ope
rating
System.
2. Mate 30 12. Huawei 19. IoT 21. Fusion
pro SmartAX products, Storage
EA5800-X17 like smat Distribute
watches, d Storag
smart e System
chips,
smart tv
etc.
3. Mate 30 13. Huawei 20. Date 22. Manage
Porsche AR1220C centers One Data
router Center
Manage
ment.

4. P 30 14. firewall
USG6330-
AC
5. Mate 20 X 15. USG6320-
AC

6. Mate X 16. USG6350-

AC firewall
7. Mate 20 17. Huawei
Pro S3700

8. P20
9. Nova 5T
10. Nova 3
Sale Value & revenue of Huawei Phones
Mobile devices are comes under the consumer business units of Huawei. Huawei consumer
business unit is the largest source of earning revenue for Huawei. In 2018 Huawei sold 200
million mobile devices and generate 33701 million dollar revenue which is the largest amount
ever.

Sale Value & revenue of Huawei Network

Equipment
Several devices e.g Huawei OptiX, Huawei SmartAX & different type of routers comes
under the Segments of network equipment of Huawei. Huawei called it a Carrier
business unit. Network equipment is a source of earning a lot of revenue for Huawei.
Huawei earn 42306 million dollar from network equipment in 2018 which is 49% of its
total revenue.

Sale Value & revenue of enterprise business

unit of Huawei
Very wonderful things comes under the enterprise business unit segment of Huawei.
Artificial devices, 5G chips, Data centers smart televisions, smart home appliances and
different others internet of things products. The revenue of enterprise business unit of
Huawei is 7805 million US dollar which contribute only 9% of total revenue of Huawei.

Sale Value & revenue of Huawei Cloud Services

The growth and revenue of Huawei cloud service is unpredictable. Even though Huawei
has invested heavily in the unit to enable its growth, the cloud services SBU has failed
to return significant revenue.

Market Growth & Market Share of Huawei

Products Market Growth Market Share
phone high 15.3 %
Network equipment low 25%
Enterprise business unit medium 13 %
Huawei cloud service Very low 4%

Implication in BCG Matrix

 Star products
The stars product usually refer to those product which have high market share with high
market growth according Boston Consultancy group. The mobile phone segment which
is also called consumer strategic business unit is the stars product for Huawei which have
high market share with high market growth. Huawei need to invest more in the star
product to developing into cash cow & it is only possible if Huawei enable to capture US
market.

 Cash Cow

The Boston consultancy group explained cash cow as the product which have high
market share with low market growth. Huawei’s Carriers, a strategic business unit that
sells network equipment to mobile carriers has been operating as a cash cow for Huawei
for several years since it is highly profitable and has achieved consistently high revenues.
  Question mark??
Huawei’s enterprise business unit can be categorized as a question mark for the Chinese
group because of its uncertain growth. Huawei enterprise group which can be
subcategorize in to 5G technology and artificial technology will change the word of
technology in coming decades. It is an expectations that this market will grow by 30% in
2022. So Huawei should invest more in this segment although currently the growth rate
of this market is a bit low but in coming years this will be very high so it is an opportunity
of Huawei to invest more in this segment of BCG matrix.

 Dog product
Huawei cloud service is dog product for Huawei as per BCG matrix because after
investing a lot of money in this segment the growth an market share of this segment is
still unpredictable.

Decision
Star products: Huawei need to invest more in stars product to develop into cash cow.

Cash cow: the growth rate of cash cow products is very low so I don’t think so that Huawei
need to invest more in this segment. Huawei need to get money from cash cow and invest
it in star and question mark products.

Question mark: Huawei should invest more in question marked product because in
future there will be a rapid growth in demanding of 5G and artificial intelligence
technology. This market expected to grow from 170 billion dollar to 526 billion dollar in
2022 so that is why Huawei should need to invest more and more in question mark
products.

Dog Products: Huawei should change or divest the business of Huawei cloud service
because till there is no growth or market share after investing lot of money in this sector.