For China supporting Huawei is brilliant business strategy

It is not secret at all; China supports Huawei to the hilt: money, political clout and diplomatic push are all offered over the plate. “Go for the jugular vein” was the commandment given to tech giants Huawei and ZTE. What this brilliant strategy brought out? Read more for the answer:

Huawei fiasco brought out an evident fact: US is dethroned in the Techno Empire. When 4G race was won by America few years ago it brought millions of new jobs and a huge bag of money to the Gross Domestic Product, estimated to be around US$ 100 Billion. More than that, 4G technology enabled US to carry out effective surveillance over the people both in US and elsewhere, not to mention industrial espionage.

Huawei went much further and unveiled 5G along with excellent technology infrastructure that enables and enhances inter-connectivity & inter-communicability at the highest order. The game changer 5G technology has both civil and military applications. As 5G gets rolled out connectivity apart it can bring speed and accuracy to the maximum level. The revenue stream in selling 5G telecom and other equipment is colossal:

America gets bowled out on three aspects that are so vital for her to survive as number one in today’s competitive and somewhat threatening environment:

1. If US cannot come out with a competing product it won’t be able to provide new jobs estimated to be 2 Million

2. The revenue stream loss would be in the region of US$ 450 Billion

3. American capability in information gathering, access to data regarding movement, habits, lifestyle, conviction and buying patterns are affected along with high level of mounting surveillance and info-warfare.

Now the question is whether US can out-beat Huawei. Lot of efforts are being made by corralling Microsoft and Dell to bring forth a viable competitive product for domestic market and abroad. America is also urging Nokia and Ericsson to join hands in developing mobile technology that can beat Huawei at best or be on par at the worst.

For the interregnum America resorts to blocking the sale and use of Huawei products and urging her allies to come on board. Will this Business strategy succeed?

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist