Business Studies Essay Paper on The Nature of Business to Business Deals of Huawei in the Middle East

The Nature of Business to Business Deals of Huawei in the Middle East

Introduction

            Business to business or B2B is a commercial transaction that takes place between two or more business organizations (Miller 212). These could include transactions between a manufacturer and a wholesaler or a wholesaler and a retailer (Pan 20). Many firms around the world conform to the B2B method of business to get their products and service to the right consumers. They work together with other firms and brands to expand their commercial boundaries with the aim of making several commercial relationships that are profitable to their company. A company such as Huawei has made several business to business relationships with other organizations in the Smartphone industry. It has expanded its horizons to countries such as the USA, Canada, Europe, and Africa (Zedtwitz, Gassmann, & Boutelier, 513). Much has been said about the continued B2B relationships that Huawei has with other geographical location but not enough about their commercial relationships in the Middle East. This paper is an analysis of the nature of B2B deals of this firm in the Middle East.

Objectives of the study

            The main objective of this study is to find out the nature of B2B relationship that Huawei has in the Middle East. The study will do this by researching the types of business organizations that Huawei transacts with within the selected region  to improve its commercial activities.

Literature review

            The sector of Smartphone has experienced tremendous changes since the development of android phones. The nature of competition in this industry has also increased significantly since the advent of the new communication gadgets. Many firms ruling profits and sales in this industry include Samsung, Apple, Nokia, and now Huawei. Research shows that Huawei is one firm that has been known, as have strong B2B ties with many companies in the Middle East (Pan 10). This report further indicates that the firm has an overall lead of the market after well known brands such as Erickson phones. A market research of the Middle East shows that Huawei has partnered with firm such as Yemen mobile (Lead). These two firms work together to support free communication by providing free wireless internet for use by clients in the region (Gong 123). The firm has made it possible for Huawei to distribute its merchandise such as Smartphone to a wide range of clients in the region. They also sell their products through Yemen mobiles at a cheaper price that the clients can afford without incurring huge amounts of money.

            Huawei has also entered a business-to-business partnership deal with Saba Fon, another active mobile phone company in the UAE. Saba Fon has made it possible for Huawei to distribute it phones to locations such as Kuwait and the United Arab Emirates without any hindrance (Marinov 63). The partnership between these two firms made it possible for Huawei to increase its presence in the region by distributing its product to other small-scale businesses that operate with the firm. The collaboration between these two firms has enabled Huawei to increase the sales of their products in the Middle East making the company more popular and it products even more available for use in the Middle East (Groogaard & Gooderham 380).

            Another popular B2B relationship that Huawei has in the Middle East is with the Y Companies. This commercial relationship has also made it possible for Huawei to reach out to many other smaller firms and ensure that its products reach to a wider audience in the Middle East. The director of Huawei, Mr. Kevin Ho states that the business relation that his firm has with other businesses in the Middle East has made their products more popular and ensured continued profits from loyal customers in the region (Huawei.com). The firm has continued to sell most of its product in the region. Another important part of the relationship with the firms in the Middle easier is that the company is able to get relaxed legal applications in the region.

Huawei has supplied electronic solution devise to the Middle East for a long time, however, it just recently entered the Smartphone market by unveiling its first product known as the Ascend P1 (Arab Trade Zone.com). This product has become popular in the Middle East market making the firm a well-known company. The success of the product was promoted by the collaboration between Huawei and the Amani Hotel at the Burj Khalifa tower. A report given by Huawei.com shows that the company has others firms such as Huawei Device Middle East, which has also flourished and continued to improve the business ties between the parent company and other business organizations in the area. This company is also known to hold various important commercial relationships with major telecommunication companies in the Middle East (Pan 12). In general, the B2B relationship that Huawei has in the region has continued to grow and brought significant success for the firm in terms of increased sales of its products.

Research methods

The best research method to apply for this study is the quantitative research method. Quantitative research methods such as surveys, case study, and questionnaires will be use. These methods make it possible for the researcher to have a personal relationship with the selected sample (Miller, 20). To find out the level to which Huawei has expanded its business operations in the Middle East, and to examine the firms that the organization has collaborated with, the research carried out survey. The researched involved the use of focused surveys, which mainly targeted managers of the respective firms as well as those of Huawei. The study will use five managers from five companies dealing with Huawei for the survey (Clark & Adler 12). The smaller the number of people surveyed will insure accurate and reliable results.

Questionnaires were used in cases where surveys were not possible due to some managers being absent or time constrains (Plooy 122). The study will also involve interviews using questionnaires, which will target managers of the firms in the Middle East that conduct business with Huawei. They will be used to confirm the collected survey results to examine whether they are reliable or not. Interviews will also help in structuring the survey questions in a much better way. Finally, questionnaires serves the purpose  providing more reliable background information about the firm, their style and business operations as well as how they think the relationships have impacted the success of the company. The final method of collecting data will be with case studies. This is because case studies will make it possible and easy for the researcher to define the actual topic or objective of the study. Similarly, interviews provide a rich background nature of the b business to bus commercial activities between Huawei and the firms in the selected region.

Methods of Data Analysis

The researcher will critically evaluate the results collected. The higher the number of firms doing business with Huawei will indicate the strong nature of B2B of the firm in the Middle East. The researcher will look at issues such as the demand for products from Huawei to other local telecommunication and other mobile firms (Taylor 240). It will also look at the number of shops selling Huawei products as some of their main brands. This will indicate a strong presence of the company in the Middle East. The rate at which clients demand these products will also signify the awareness of people about Huawei products.

Data sources

The sources of data for these questions originate mainly form primary and secondary data. Primary data refers to the information collected by the researcher while secondary data refers to the type of information obtained from print media such as journals, books, magazines, and business periodicals (Goodwin & Goodwin 130). Primary data is important because it guarantees reliability of the results. The researcher aims to participate fully in the collection of data, he is able to ask direct questions to the people being interviewed and this can ensure through examination of the problem at hand. It will also ensure that people give the right information without fear or favor. Secondary data will further supplement the amount of information collected about the topic (Varanian, 15). It works to instill more validity and prove the reliability of the primary data. Both secondary and primary source of information were important to the researcher they served to gather more information about the company by showing how its expansion in the Middle East lead to successful b2b methods.

The tables below shows some of the countries and firms that have b2b ties with Huawei

Countries Firms
Kuwait Batelco
Pakistan Etisalat
Saudi Arabia Saudi Telecom Corporation
Yemen Y Mobile, Saba Fons,  and Yemen Mobile
Dubai, Qatar and UAE Qtel and Vodafone
Oman Zain
Bahrain Vodafone  and Mobily

Results of the study

The research study showed that Huawei collaborated with many firms in the Middle East. Initially all the secondary and primary data pointed a strong presence of the firm in the region (Peng 451). It first participated in the geographical location as a firm that was distributing equipment for solving communication issues. It then followed by the increased distribution of its mobile phones. However, the company took a while before it could consider partnering with other firms. Huawei just entered the Middle Eastern market with the unveiling of Ascend P1. This is Smartphone that people can use to do virtually anything, that involves the use of technology and any form of communication (Lagon 187). The firm has a strong b2b connection with countries such as Dubai, Qatar, Saudi Arabia, Bahrain, Kuwait, Oman, and Pakistan. The firm, has partnered with many other businesses in the region successfully and this has made it more profitable over the years (Insights). Many companies in the Middle East prefer doing business with Huawei because they consider it a successful business and an excellent brand. These two qualities make it important for any business to want to collaborate with Huawei as they consider it one that can draw more customers to their stores.

Data analysis

The collected results showed that Huawei has conducted various businesses in the Middle East for a long time. The main areas that the firm worked in were Dubai, Qatar, Saudi Arabia, Bahrain, Kuwait, Oman, Pakistan, and the greater United Arab Emirates (DEStech Publications.Inc 316). During an operation in this place, Huawei started out as a firm that only provided electronics and other products that offered solutions to electrical problems. However, in the recent past, the firms had started working together with other businesses to strengthen it business-to-business ties in the region, on the same note, it has worked with companies dealing with mobile phones and communicational electronics such as Y mobile, Saba Fones and Yemen mobile. Its collaboration with these firms has made Huawei to become successful in the Middle East without being superseded by other (Steenkamp 12). In fact, results shows that from the point the firm decided to consider a b2b relationship in the region, it has gain more popularity and surpassed the mobile companies that ruled the region. This is because products from Huawei are more recognized by clients who feel that they offer more solutions to their communication problem (SAMENA Daily News).

Another notable relationship that Huawei has in the Middle East is with other non mobile phone selling companies such as Amani hotel. Thus, partnership has made it possible for the firm to easily launch many of its products that are not yet in the region successfully (Palacios 206). For example, the firm used this hotel as the venue for launching its popular product known as Ascend P1 in the region with a lot of success (Gulf Business). Since this function was done at this famous hotel, it attracted many businesses that also managed to sign deals and entered negotiations with Huawei for future business to business operations.

The importance of having a business to business tie in the Middle East for Huawei is that it is able to sell more of it merchandise to this business instead of struggling to sell directly to the customers. The firm does not have to carry out an extensive market research or bother following legal procedures and other requirements for entering an international market (Wireless federation). This is because, by collaborating with other firms, they are able to ensure that these companies are selling their products on their behalf. The collaboration has made it easy for the firm to do away with the need of going through the protocol of entering a new market in order to sell its products. This has also made the sale of the Huawei products in the region more successful that it would have been if they entered the market on their own (Chen & Su 74).

This firm also business relationships with other companies such as Saudi Telecom Corporation, du, Etisalat, Zain, Batelco, Qtel, Mobily, and Vodafone among others (Coonan).

Conclusion

Business to business or B2B is a commercial relationship between two business organizations. It is different from business to consumer in that the later deals with direct sales to the clients (itp.net). B2B is an important factor to consider especially if the firm has many useful products but do not wants to go through the hustles of entering a new market. Huawei is a successful b2b company in the Middle East and has partnered with many firms in the region. The collaboration has been able to promote the products offered by the firm to the regions customers. This has also made it possible for the firm to gain popularity and sell most of its products with ease Entering the Middle East made Huawei to expand from selling mobile communication solution to selling its smart phones and other products in the region with a lot of success. This has also increased their profits and their popularity in the Middle East (Simon). The Firms Company has reported major success in their sales and business ties since they decided to operate as a business to business relationship in the region. They state major success in launching their products

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