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5G-Digital Marketing Strategy of Global Company in The Field of Telecommunication

The article discusses the development of a 5G marketing strategy for Huawei, a leading telecommunications company, emphasizing the need for innovative approaches in the digital economy. It analyzes Huawei's competitive advantages, marketing strategies, and compares them with competitors like Samsung and Apple, while also providing practical recommendations for strengthening Huawei's market presence in Ukraine. The study highlights the impact of digitalization on marketing methodologies and the importance of adapting strategies to meet evolving market demands.

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0% found this document useful (0 votes)
35 views15 pages

5G-Digital Marketing Strategy of Global Company in The Field of Telecommunication

The article discusses the development of a 5G marketing strategy for Huawei, a leading telecommunications company, emphasizing the need for innovative approaches in the digital economy. It analyzes Huawei's competitive advantages, marketing strategies, and compares them with competitors like Samsung and Apple, while also providing practical recommendations for strengthening Huawei's market presence in Ukraine. The study highlights the impact of digitalization on marketing methodologies and the importance of adapting strategies to meet evolving market demands.

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onyinye cynthia
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© © All Rights Reserved
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DOI 10.31489/2023Ec3/44-57
JEL М31
UDC 338:659
О.P. Chukurna1*, O.V. Stanislavyk2, V.A. Zamlynsky3, L.A. Korchevska4, L.V. Pankovets5
1,2,3,5
State University of Intelligent Technologies and Telecommunications, Odessa, Ukraine;
4
Kherson National Technical University, Kherson, Ukraine
1
[email protected], [email protected], [email protected], [email protected],
5
[email protected]
1
http://orcid.org/0000-0001-9285-7068, 2http://orcid.org/0000-0003-2481-9961, 3http://orcid.org/0000-0001-7642-
2443, 4http://orcid.org/0000-0002-0720-9929, 5http://orcid.org/0000-0001-5578-9385
1
Scopus Author ID: 57201261600, 3Scopus Author ID: 57202300245, 4Scopus Author ID: 36080755500,
2
Scopus Author ID: 57216453847
Researcher ID: 1DTH-8795-2022, 4Р-8325-2018,
5G-Digital marketing strategy of global company in the field of telecommunication
Abstract
Object: The purpose of the study is to form the methodological foundations of the 5G marketing strategy of the
leading enterprises in the field of telecommunications on the example of the global company Huawei. Justification of
the methodology for determining the competitive advantages of using the 5G marketing strategy. The object of the
study is the marketing activity of global companies in the telecommunications market in conditions of digitalization.
Methods: System-structural method, diagnostic method, logical-comparative, comparative analysis, statistical
analysis, factor analysis, methods of grouping and classification.
Findings: The theoretical and methodological foundations of the Huawei company's development of marketing
strategy are summarized.
Strategies for standardization and adaptation are considered, including innovative smartphones and 5G devices
based on strategic partnerships in developed countries, as well as examples of successful adaptation to legal, technolog-
ical and political issues. The conducted analysis determined the advantages of implementing the marketing strategy of
Huawei 5G promotion in Ukraine, standardization of 5G technologies and solutions, the study made it possible to de-
velop proposals for the development of the company's brand and promotion strategy within the framework of the study
of the process of developing the company's marketing strategy. Conducted SWOT analysis of Huawei's activities in
Ukraine. The article analyses and conducts a comparative analysis of the marketing strategies of Huawei's main com-
petitors (Samsung, Apple), and proposes priority strategic growth vectors.
Conclusions: The article substantiates and systematizes the theoretical and methodological approaches to re-
searching the process of developing the company's marketing strategy, defines the main means, methods and technolo-
gies for the formation and justification of Huawei's marketing strategy; practical recommendations were developed to
strengthen the company's marketing strategy in the field of telecommunications technologies in Ukraine.
Keywords: marketing strategy, Huawei management system, brand, analysis, opportunity, 5 g, communication
market in Ukraine, sustainable development strategy, cloud engineering management structure, environmental efforts.
Introduction.
In the conditions of the development of the digital economy and the general trend of digitalization of
society, a gradual change in the paradigm of the concept of marketing and the methodology of forming mar-
keting strategies is being carried out. The rapid development of information and communication technologies
and the digitalization of society, which is taking place against the background of “Industry 4.0” technologies,
contributed to the transformation of traditional approaches to the formation of marketing strategies. This
trend is especially reflected in the activities of global companies, which are market leaders and funders of the
introduction of innovations. In the context of the identified issues, the field of mobile communication is the
most dynamic in terms of the implementation of innovative technologies in all areas of enterprise activity,
including in the formation of marketing strategies. In addition, the global market has clearly identified global
market-leading companies that are pioneers in the implementation and dissemination of innovations based on
the achievements of “Industry 4.0”. Which, of course, activates a change in the methodological techniques of
marketing strategies that are developed and implemented in the market. The actualization of the issue of the
formation of a marketing strategy on the global market in the field of mobile communications is justified by

* Corresponding author. E-mail address: [email protected]

44 Вестник Карагандинского университета


5G-Digital marketing strategy of…

the influence of digital technologies on the transformation of traditional methodological approaches in the
formation of marketing strategies of global companies.
Literature Review
Many scientific works of famous scientists in the field of marketing management are devoted to the
substantiation of traditional approaches to the conceptual foundations of marketing, including Porter M.
(Porter, 1985), Doyle P. (Doyle, 2003), Kotler F. (Kotler, Keller, 2018), Lamben J.J. (Lamben, 2011),
McDonald M. (McDonald, 2011), Oklander M. (Oklander et al., 2018), Chukurna О. (Chukurna, Zamlyn-
skyi, 2023) and others.
Michael Porter works contains a practical implementation of marketing strategies, building strategic
planning matrices. Porter proposed the first known typology of competitive strategies (basic competition
strategies). Porter developed a well-known methodology for analyzing competitiveness to detuning the com-
pany's strategy based on the study of competitors’ actions and the market as a whole (Porter, 1985).
Doyle P. explores such issues as the formation and implementation of business strategies; strategic mar-
ket planning, segmentation, positioning, and the marketing mix; market drivers and competitive strategies. R.
Doyle has gained worldwide fame through teaching and research in the field of marketing and business strat-
egies. P. Doyle advised the most famous international companies, including Coca-Cola, Shell, IBM, Nestle,
Hewlett-Packard, British Airways, and many others (Doyle P., 2003).
Digital transformation contributed to a change in the marketing paradigm and the formation of a new
worldview in the field of application of marketing tools in conditions of digitalization.
A critical review of the evolution and periodization of the development of marketing theory is widely il-
luminated in the scientific works of M. A. Oklander (Oklander et al., 2017; Oklander et al, 2018). Ok-
lander M.A. provides several definitions of digital marketing and considers it as a form of marketing of mass
customization, a marketing model of the 21st century. He proves that digital marketing is “a type of market-
ing activity that, using digital channels and digital methods, allows targeted interaction with target market
segments in virtual and real environments” (Oklander et al., 2017). Determining that the main strategic direc-
tion of digital marketing is a personalized relationship with users, and the promotion channels are: the Inter-
net, local networks, computers, mobile phones, digital television, advertising displays, interactive screens,
POS terminals. It substantiates the concept of digital marketing, as a result of the evolution of Internet mar-
keting development (Oklander et al., 2017). In the context of this campaign, digital marketing is considered
as individualization diagnosed with consumers, which is accompanied by the active use of digital promotion
tools.
The term “Digital marketing” (digital or interactive marketing) refers to the use of various types of digi-
tal channels for the promotion of goods on the market for target consumers and businesses. Another defini-
tion provided by Danko T. P. interprets digital marketing as marketing that provides interaction with custom-
ers and business partners using digital information and communication technologies and electronic devices,
in a broader sense it is... the implementation of marketing activities using digital information and communi-
cation technologies (Danko, Skorobogatyh, 2005).
Karpishenko O.O. digital marketing means the use of all possible forms of digital channels for the
promotion of a company and its products. Television, radio, Internet, social media are all digital marketing
tools (Karpishenko, Lginova, 2015).
Striy L., Chukurna О., Tanashchuk E. consider the problems of the peculiarities of the marketing con-
cept in the field of development of trends in the telecommunications market (Striy et al., 2022).
Given the global nature of changes taking place against the background of digitalization, the methodol-
ogy of forming marketing strategies has undergone significant changes. The peculiarity of activity in the
field of mobile communications is that it is global companies that become leaders of digital innovations, in-
troducing new technologies, contributing to a change in the marketing paradigm. Since the innovative tech-
nologies that are introduced affect the development of other spheres and sectors of the international econo-
my. Thus, stimulating the development of information and communication technologies in related sectors of
the economy. This is the unique feature of mobile communication, as a basic information and communica-
tion technology, which is used as one of the marketing channels for the promotion of information, simulta-
neously performing the technological function of accumulating and storing information. This creates techno-
logical opportunities for the development of digital marketing.
Taking into account the significant contribution to the theory and practice of the development of the
concept of digital marketing by outstanding scientists of our time, it should be noted that digital technologies

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О.P. Chukurna, O. А. Nazarenko et al

are spreading not only in the marketing activities of enterprises, but also in other areas. The development and
spread of information and communication tools contributed to the emergence of new channels for the promo-
tion of information, goods, ideas and services and the accumulation of large amounts of information that can
be used throughout the life of the company and its brands. These trends affect the models and methods of
forming marketing strategies in the digital economy. Including, reflecting on the activities of global mobile
communication companies. In this context, the question of researching the problems of forming marketing
strategies of global companies in the mobile communication markets becomes relevant. The object of the
research was the global company Huawei, which is a mobile communications operator and successfully im-
plements innovative solutions in the field of telecommunications services and the development and promo-
tion of mobile phones.
Methods
The following methods were used in this study. The System-structural method is used in the study of
theoretical and methodological aspects of the formation of the company's marketing strategy. The Diagnostic
method is used to diagnose Huawei's marketing strategy in the global smartphone markets and the Ukrainian
market. The Logical-comparative method for conducting a comparative analysis of marketing strategies of
Huawei's main competitors (Samsung, Apple). Statistical analysis methods for assessing the global
smartphone market, identifying the main trends and trends in the smartphone market in Ukraine. Factor anal-
ysis is used to analyse factors that affect the development of the smartphone market
Methods of grouping and classification for analyzing the types of the marketing strategy of the compa-
ny, as well as for systematizing the factors of the internal and external environment that affect the develop-
ment of the company's telecommunications industry. Forecasting method for predicting the main financial
indicators of Huawei as a result of implementing a marketing strategy to promote the company in Ukraine by
using the competitive technological advantages of 5G.
Results
The development of information society and digital economy, its dynamic changes affect the foundation
of marketing methodology. In the theory of strategic marketing, there are two approaches to the methodology
of forming a marketing strategy: traditional; economic-mathematical and statistical models. The traditional
approach to the methodology of forming a marketing strategy involves the use of matrix models. Recently,
more and more attention among scientists was paid to economic and mathematical methods and models in
the analysis of marketing activities of the enterprise and the formation of strategies. The use of economic and
mathematical models allows you to get the best quality and reliable results than matrix ones. The emergence
and further improvement of application programs simplify the use of mathematical methods and speed up the
process of making marketing decisions when developing strategies. This aspect is particularly relevant in the
context of informatization and digitization of society since it provides an opportunity to respond flexibly to
changes in the external marketing environment and promptly adjust marketing information. Therefore, there
is a need to systematize and improve the classification of methods and models used in the information of the
company's marketing strategy.
The methodology of forming a marketing strategy in the conditions of the digital economy and the de-
velopment of “Industry 4.0” technologies was studied using the example of the global company Huawei.
Huawei is a mobile operator operating in the market of mobile equipment and signal transmission and a
developer of mobile phones. Thus, the company works on the B2B and B2C market, simultaneously cover-
ing different areas of activity in the same field of activity. Such a strategic approach provides opportunities
to cover the global market while remaining in a certain business area. In order to form an adequate marketing
strategy of the company in two types of markets, an assessment of its competitiveness was carried out specif-
ically in the mobile phone market, noting the main competitors.
Analysis of Huawei company competitiveness. Competition in the smartphone market moved to a new
level in 2019. On the one hand, the market itself is no longer growing, on the other-the onslaught of Chinese
manufacturers has dramatically increased, forcing other companies to act much more actively than before.
The rating is based not on personal preferences, but on the popularity of devices. It is based on statistics from
the European analytical company StatCounter. It calculates the success of manufacturers based on how much
traffic their devices generate in the global network. We will look at the main positions of the rating in detail,
clearly demonstrating how the share of manufacturers has changed over the past six years. The key points
were brand indicators for the first month of each year starting in 2014 and ending in January of 2020. Table 1
shows the change in top smartphone brands over the past six years to the beginning of 2020.

46 Вестник Карагандинского университета


5G-Digital marketing strategy of…

Table 1. Changes in Top smartphone brands in Ukraine over the past six years to the beginning of 2020, %

2014 2015 2016 2017 2018 2019 2020


Samsung 22,69 27,85 28,92 29,32 33,71 31,81 31,82
Apple 25,86 23,52 22,75 19,58 19,73 19,64 22,85
Xiaomi 0,05 0,07 0,52 0,72 2,16 4,85 7,88
Huawei 0,85 0,95 1,57 2,59 3,78 5,26 7,87
Oppo 0,47 1,9 3,45 4,49
LG 2,79 2,99 4,01 4,28 3,87 3,48 2,78
Motorola 1,81 0,89 2,28 2,18 2,12 2,64 2,72
Mobility
Lenovo 0,14 0,36 0,93 2 2,92 2,87 1,77
Nokia 22,15 18,42 11,24 7,43 3,41 2,04 1,16
Note - calculated by the author based on (Rating of smartphone manufacturers 2021)

Based on analytical data, it can be seen that the main market leaders are the following brands: Huawei,
Samsung, Apple, Xiaomi. It is these brands in the market of mobile phones and smartphones that are global
leaders that have advantages in areas of innovation, marketing channels and technological advantages. How-
ever, the functions of the communication operator are performed only by the Huawei company, retaining the
leadership in the introduction of new smartphone models that are focused on the new 5G communication
standards. In the Ukrainian market, the distribution of shares of brand-companies that are manufacturers of
smartphones shows the significant popularity among consumers of two brands — Samsung and Apple.
The distribution of the market share of smartphone manufacturers globally for the period 2019-2022 is
presented in Fig. 1.

Figure 1. The balance of power among the key manufacturers of smartphones in 2019-2021
Note - calculated by the author based on (Rating of Smartphone manufacturers 2021)

The competitive distribution of the market among smartphone manufacturers in the world and in
Ukraine is presented in Table 2, based on which it can be seen that the trends in the development of the
Ukrainian market are in line with global trends. Comparative characteristics of the balance of power among
the key smartphone manufacturers in the world and Ukrainian rankings, in 2019.
Table 2. Comparative characteristics of the balance of power among the key smartphone manufacturers in the world and
Ukrainian rankings, in 2019-2021

The largest manufacturers of Part of the smartphone market, %


smartphones Ukrainian rank, % Chinese rank, % World rank, %
Samsung 31,82 5,7 20,8
Apple 22,85 6,6 14,9
Xiaomi 7,88 H,7 8,7
Huawei 7,87 37 14,7
Note - calculated by the author based on (Rating of Smartphone manufacturers 2021)

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О.P. Chukurna, O. А. Nazarenko et al

The balance of power among the key smartphone manufacturers in Ukraine and China is somewhat dif-
ferent. Ukrainian consumers prefer Samsung and Apple manufacturers. Chinese consumers prefer Xiaomi
and Huawei. The leader of the Chinese smartphone market is Huawei. For 2019, it was able to increase sales
from 28.5 million units to 36.3 million units, or 27%. As a result, its market share increased from 27.4% to
37.0%.
Thus, Huawei's main competitors are Samsung, Apple, and Xiaomi.
In order to carry out a strategic competitive analysis, which is the basis for the formation of a marketing
strategy, brand perception maps of the main smartphone manufacturers were developed. The logical presen-
tation of which is presented in Tables 3-6. Next, draw up maps of strategic groups of Huawei's competitors.
Five experts on information and communication technologies and marketing activities of the IBI-
Rating Agency were engaged to draw up maps of strategic groups of Huawei's competitors. The experts were
asked to evaluate the level of consumer awareness, the range of smartphones, the brand update, the effec-
tiveness of the marketing strategy and the improvement of smartphone manufacturing technology on a 10-
point scale (1 — low level, 10 — high level). The consumer awareness score was calculated as the average
score of 5 experts in information and communication technologies and marketing activities. The map of
groups of strategic competitors of Huawei based on the ratio of indicators of smartphone market share and
level of consumer awareness is presented in Table 3.
Table 3. Map of Huawei company's strategic competitor groups (The share of smartphone market / the level of consum-
er awareness)
Smartphone manufacturer's brand The level of consumer awareness (KI) Smartphone market share, %
(K2)
1. Samsung 10 31,82
2. Apple 10 22,85
3. Xiaomi 9 7,88
4. Huawei 9 7,87
Note - calculated by the author based on (Official website of Huawei in Ukraine; Rating of Smartphone manufacturers 2021)

A map of groups of Huawei's strategic competitors in terms of smartphone market share and consumer awareness is shown in
Figure 2.

Figure 2. Map of Huawei's strategic competitor groups


(Share of the smartphone market / the level of consumer awareness)
Note - calculated by the author based on (Official website of Huawei in Ukraine; Rating of Smartphone manufacturers 2021)
Analyzing the share of the smartphone market and the level of consumer awareness, we can conclude
that the largest competitor of Huawei in the Ukrainian market is Samsung. As evidenced by the data in Ta-
ble 4.
Table 4. Map of Huawei's strategic competitor groups (the structure of the assortment / updatability brand)
Smartphone manufacturer's Range of smartphones (K3) Brand updatability (K4)
brand
1. Samsung 10 10
2. Apple 9 9
3. Xiaomi 8 9
4. Huawei 9 9
Note - calculated by the author based on (Official website of Huawei in Ukraine)

48 Вестник Карагандинского университета


5G-Digital marketing strategy of…

Based on the selected catena for the product range structure and brand updatability, we can conclude
that the largest competitor of Huawei in the Ukrainian smartphone market is Samsung.

Figure 3. Map of Huawei's strategic competitor groups (the structure of the assortment/updatability brand)
Note - calculated by the author based on (Official website of Huawei in Ukraine; Rating of Smartphone manufacturers 2021)

Table 5 Map of Huawei’s competitor groups (part of the smartphone market/effectiveness of the marketing strategy)
Smartphone manufacturer's brand Efficiency of using a marketing strate- Smartphone market share, % (K2)
gy (K5)
1. Samsung 10 31,82
2. Apple 9 22,85
3. Xiaomi 9 7,88
4. Huawei 10 7,87
Note - calculated by the author based on (Official website of Huawei in Ukraine)

The analysis of the smartphone market share indicators and the effectiveness of the marketing strategy
demonstrates the fact that the largest competitor of Huawei in the Ukrainian smartphone market is Samsung.

Figure 4. Map of Huawei's strategic competitor groups


(part of the smartphone market/effectiveness of the marketing strategy)
Note - calculated by the author based on (Official website of Huawei in Ukraine; Rating of Smartphone manufacturers 2021)

Data for constructing a map of groups of Huawei’s strategic competitors in terms of parts of the smartphone
market and the improvement of smartphone production technology are presented in Table 6.

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О.P. Chukurna, O. А. Nazarenko et al

Table 6. Map of Huawei's strategic competitor groups (part of the smartphone market/improving smartphone manufac-
turing technology)
Smartphone manufacturer's Improving smartphone manufacturing tech- Smartphone market share, %
brand nology (K6) (K2)
1. Samsung 10 31,82
2. Apple 9 22,85
3. Xiaomi 9 7,88
4. Huawei 10 7,87
Note - compiled by the author

Figure 5. Map of Huawei's strategic competitor groups (part of the smartphone market/improving smartphone man-
ufacturing technology)
Note - calculated by the author based on (Official website of Huawei in Ukraine; Rating of Smartphone manufacturers 2021)

So, the maps of strategic groups show that the largest competitor of Huawei in the Ukrainian
smartphone market in terms of smartphone market share, consumer awareness, range of smartphones, brand
updatability, effectiveness of marketing strategy, and improvement of smartphone manufacturing technolo-
gies is Samsung. Evaluation of Huawei's competitive advantages showed that the main competitors in the
Ukrainian smartphone market are Samsung and Apple (Fig. 6).
Development of a marketing strategy Huawei in Ukraine through the use of technological advantages of
5G. The assessment was conducted in a circle of experts with some experience in the smartphone industry.
Using strategic analysis tools, such as SWOT analysis, we can get a clear picture of the current state and fu-
ture potential of the company. We will identify strengths, weaknesses, opportunities, and threats that affect
Huawei.
Strength.
Competitive pricing. One of Huawei's greatest strengths is its competitive price. For several years, the
smartphone market was dominated by luxury brands such as Samsung and Apple, and there were no cheaper
alternatives to compete. However, the popularity of smartphones has soared over the past 10 years, which
has led to a huge demand for inexpensive devices. Huawei is not the cheapest smartphone manufacturer on
the market, but it is significantly cheaper than the luxury competitors we mentioned above.
High level of smartphone quality. Despite extremely competitive prices, Huawei smartphones are high-
quality smartphones. Although their devices may not compete with brands like Samsung and Apple, but in
terms of quality, they have a high level of quality compared to other cost-effective smartphone brands. Many
of Huawei smartphones have a four-star rating (out of five possible) or higher on major retail sites such as
Amazon, which is a true confirmation of their quality.

50 Вестник Карагандинского университета


5G-Digital marketing strategy of…

The price of the smartphone


Financial stability of the… 10 Smartphone quality
Number of awards 8 Product range

Sales policy 6 The improvement of…


4
Share of the smartphone… Experience in the…
2
Marketing system 0 The uniqueness of the…

Effectiveness of advertising… Consumer satisfaction

Motivation of the… Functional characteristic of…

Qualification of the… Ergonomic characteristic of…


Security Aesthetic characteristic of…
Screen resolution

Samsung Apple Xiaomi Huawei

Figure 6. Polygon of competitive advantages of Huawei and its main competitors Samsung,
Apple and Xiaomi in the smartphone market of Ukraine
Note - calculated by the author based on (Official website of Huawei in Ukraine)

Weakness
Lack of capital. Huawei has an insufficient level of capital. Compared to Apple, the world's largest
company by market capitalization (almost a trillion dollars), Huawei share of capitalization is quite small.
This means that the company must be extremely accurate in planning its financial flows. The insufficient
level of capitalization does not allow for large-scale investment in marketing or branding, which would be an
important next step for Huawei to become a top-class brand in the eyes of smartphone consumers.
A weak brand positions. Perhaps due to the insufficient level of capitalization, Huawei has a weak
brand. While demand for budget smartphone manufacturers like Huawei, is really growing, they have long
been considered clearly the worst choice. In the case of Huawei, this is not helped by the lack of marketing
efforts. It should be recognized that in some countries, the Huawei brand is stronger than in others: for ex-
ample, in the European Union, it is much stronger than in the United States. It’s also worth mentioning that
Huawei's weak brand is partly due to a prominent Western belief that Chinese products are inferior in some
way; this conviction is especially noticeable in the United States.
Opportunities
5G technology. 5G is the next-generation mobile communication technology. As it turned out, Huawei
quickly innovated, developing and releasing mobile modems that are compatible with 5G, even before the
advent of major chipset manufacturers such as Intel. If Huawei implements a 5G marketing strategy, they
can anchor themselves as a luxury brand, offering technologies that are not available even for top brands like
Apple and Samsung. Huawei has even offered to sell its 5G modems to Apple, which could bring them huge
profits. Naturally, this will be associated with all the compromises in the sale of technologies by the main
competitor.
India and US markets. Often, weaknesses can be opportunities. We mentioned above that in the Unit-
ed States, Huawei has a poor perception of the Huawei brand. Huawei has little penetration in the US market.
The same can be said for the Indian market. This means that both India and the US are untapped sources of
income. If Huawei could develop a powerful strategy to enter these two markets, they could see a huge in-
crease in overall revenue, given the number of potential smartphone consumers.
Low-budget design of official stores. The low-budget design of the official stores of the Huawei brand
is one of the reasons that brands such as Samsung and Apple are in the first place among others. The luxury
and comfort of official Samsung or Apple stores not only gives potential customers another opportunity to
buy their smartphones, but also improves the perception of the brand on a subconscious level. By investing
in the design of its stores, Huawei can simultaneously improve its marketing and sales performance.

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Threats.
High competition. One of Huawei's biggest threats is the smartphone market itself. The telecommuni-
cations industry is fiercely competitive across the Board, and this is especially true for the smartphone mar-
ket. Huawei not only faces competition from major brands such as Samsung and Apple (which have a signif-
icant level of capitalization), but also the threat of new players in the smartphone market in Ukraine. Even if
top-level brands don’t develop their own low-cost devices, a new competitor can enter the market at any time
and take a portion of Huawei's market share with just one technological advance.
Increase in labor and material costs. A less serious threat to Huawei is rising labor and material costs.
Smartphone manufacturing is relatively labor-intensive (although some parts of the process are automated),
so the slow but steady growth in labor costs in China is gradually increasing Huawei's overhead. The same
applies to materials that are becoming more expensive simply because of growing demand. All of these fac-
tors will force Huawei to raise smartphone prices or lower its profit margins.
Thanks to low-cost and high-quality products, Huawei has managed to enter one of the most difficult
markets: the smartphone market. Moreover, Huawei has a significant opportunity to grow its business by
entering and dominating new markets (including technological ones such as 5G, and geographical ones such
as India or the USA, and Ukraine), and improving the perception of its brand, perhaps through the use of of-
ficial representative offices.
Huawei needs to closely monitor competition in the smartphone market and provide plans to manage
rising labor and material costs.
SWOT analysis of Huawei company in Ukraine (Table 7). SWOT analysis is a kind of form that does
not contain a final one information for making management decisions, but it enables order the process of
considering all the available information using one's own thoughts and assessments. In order to economically
justify the implementation of Huawei's marketing promotion strategy in Ukraine, we will compile a matrix of
the company's strengths and weaknesses in the Ukrainian smartphone market.
Thus, the study showed that Huawei has a significant opportunity to develop its business by entering
new markets and dominating them (including technological ones, such as 5G, and geographical ones, such as
Ukraine). Huawei quickly innovated, developing and releasing mobile modems that are compatible with 5G,
even before the advent of major chipset manufacturers such as Intel. If Huawei implements a 5G marketing
strategy, they can anchor themselves as a luxury brand, offering technologies that are not available even for
top brands like Apple and Samsung.
The main advantage of Huawei's marketing strategy in the Ukrainian smartphone market is that it is
aimed at creating the image of a premium brand, and therefore the company uses a multi-brand strategy —
two brands for different market segments. Letters and numbers and explanatory words are also used within
each brand. “Huawei + Honor's” multi-brand strategy is focused on meeting the needs of different segments
of the smartphone market. Expanding the range of smartphones, Huawei has followed the path of Samsung,
highlighting a series of products within each brand.

Table 7. Huawei SWOT analysis in Ukraine

Positive influence Negative influence


Strengths Weaknesses
1. The decline in the competitive position
2. Weak brand due to lack of capital investment, weak
1. It belongs to the group of the largest brand policy
smartphone manufacturers
Internal environment

3. Non-effective marketing strategy for entering new


2. High quality smartphones foreign markets
3. Extensive experience in the smartphone market 4. Low market capitalization compared to other
and good reputation among customers competitors
4. Upgrading and updating of equipment 5. Insufficient cost of capital investments
5. Availability of innovative features 6. No Ukrainian version of the official website
6. Competitive pricing policy;
7. Providing warranty service;
8. Own new developments and technical solu-
tions (mobile modems and other technical solu-
tions compatible with 5G)

52 Вестник Карагандинского университета


5G-Digital marketing strategy of…

Opportunities Threats
1. Long-term political instability in Ukraine;
2. Sharp changes in exchange rates and devaluation of
External environment

1. Entering new international markets (USA,


the national currency;
India, Europe (Ukraine)) and segments
3. A sharp decline in the creditworthiness of the con-
2. Introduction of 5G technology
sumer;
3. Expansion of production lines;
4. Interest fluctuations on Bank loans;
4. Expanding the assortment policy of
5. Crisis phenomena in the domestic and foreign policy
smartphones;
of Ukraine, Europe and the World.
5. Opening its own representative offices around
6. High competition in the smartphone market
the world, including in Ukraine, as a result of
7. Increase in labor and material costs. Smartphone
which Huawei will be able to simultaneously im-
manufacturing is relatively labor-intensive so the slow
prove its marketing and sales indicators.
but steady growth in labor costs in China is gradually
increasing Huawei's overhead.
Note - calculated by the author based on (Huawei SWOT Analysis; SWOT Analysis of Huawei: Tackling Competition in
Smartphone Market)

Huawei company's weaknesses in Ukraine are: reduced competitive position; weak brand due to lack
of capital investments; ineffective marketing strategy for entering new foreign markets; low market capitali-
zation compared to other competitors; insufficient cost of capital investments; lack of the Ukrainian version
of the official website. Research on marketing strategy in Ukraine has shown that Huawei has a significant
opportunity to develop its business by entering and dominating new markets (including technological ones
such as 5G and geographical ones such as Ukraine). Huawei quickly innovated, developing and releasing
mobile modems that are compatible with 5G, even before the advent of major chipset manufacturers such as
Intel. If Huawei implements a 5G marketing strategy, they can anchor themselves as a luxury brand, offering
technologies that are not available even for top brands like Apple and Samsung.
We propose a marketing strategy for promoting Huawei in Ukraine by using the technological ad-
vantages of 5G. The methodological tools and practical recommendations for developing Huawei's market-
ing strategy can be used in the strategic planning of similar companies working in the field of telecommuni-
cations technologies. The fifth generation of mobile communications promises to be the Foundation of the
21st century economy. Only South Korea has achieved national success so far.
Now every chip manufacturer and gadget manufacturer is trying to gain dominance in the 5G sphere
— a revolutionary achievement of cellular communication, promising to become the basis of the economy of
the 21st century.
Let's briefly discuss the technological advantages of implementing a 5G marketing strategy. The “fifth
generation” communication networks, the so-called 5G, together with big data analysis and the Internet of
things (IoT) are designed to become one of the foundations of the digital economy, the main driving force of
which should be artificial intelligence (Al). Over the past 40 years, four generations of mobile communica-
tion networks have changed. If the first-generation 1G cellular networks have long disappeared, then 2G, 3G
and 4G networks still continue to be used. Moreover, some of the legacy 3G and 4G infrastructure will be
integrated into the fifth-generation 5G mobile networks.
Advantages of implementing a marketing strategy to promote Huawei 5G technologies in Ukraine. As
of 2019, the cost of passing growing traffic through the networks of Telecom operators is not covered by
revenue from traditional services. Search for new services, so-called “killer application” of traditional tele-
communications platforms usually does not give the expected results
Meanwhile, the main growth in traffic and revenue is not in the people's devices sector, but in the Inter-
net of things devices sector, which is one of the basic goals of the 5G functionality.
At 2020 is the approximate start of the introduction of 5G technology in Ukraine. Thus, Ukraine can
catch up with the most technologically advanced countries in the world, which also plan to start foil com-
mercial use of the fifth generation this year. According to the state enterprise “Ukrainian state center of radio
frequencies” in Ukraine, work is continuing on the release of 700 MHz radio frequency bands, identified by
the EU countries as priority for the introduction of mobile networks of the fifth generation (5G).
Specialists of the state enterprise “Ukrainian state radio frequency center” take part in the preparation
of documents for the organization of the European conference of posts and telecommunications, which are
aimed at regulating the technical and regulatory aspects of the introduction of 5G technology in Europe (in-
cluding Ukraine). Currently, certain measures are underway in Ukraine to release the 800 MHz and

Серия «Экономика». № 3(111)/2023 53


О.P. Chukurna, O. А. Nazarenko et al

700 MHz radio frequency bands from the REF (radio electronic facilities) of digital terrestrial television
broadcasting (DTTB) for the further development of MFCN (mobile/fixed communication networks) in it.
In a separate roadmap for 5G, the EU countries identified the bands of 700 MHz, 3.6 GHz, and 26 GHz
as priority for implementing 5G in Europe.
Based on the positive results of the completion of the procedures of the state enterprise “Ukrainian
state radio frequency center” during the first half of 2020, the necessary materials will be prepared for the
National Council to carry out further measures for transferring the Central TV station REF(DTTB) to the
470-694 MHz frequency band. The growth in the number of devices connected to the network is presented in
Table 8.
Table 8. Growth in the number of devices connected to the network
Types of devices Connected devices (billion) CAGR
15 billion 28 billion 2015-2021
Cellular 0,4 1,5 27%
Non-Cellular 4,2 14,2 22%
1,7 1,8 1%
Laptops, tablets
Smartphones 7,1 8,6 3%
landline (phone) 1,3 1,4 0%
Note - calculated by the author based on (Rating of Smartphone manufacturers 2021)

Impact of the 5G marketing strategy on the Ukrainian economy. According to experts on information
and communication technologies, the introduction of a marketing strategy, the introduction of the 5G net-
work will lead to GDP growth of 2.5%. According to a number of international experts, the introduction of
5G technologies around the world will lead to an extraordinary economic development. With the latest tech-
nology, you can significantly automate and improve your workflow. The biggest benefit from 5G will be
self-driving cars, since the signal delay at high speeds of the car itself will be eliminated. Also, the fifth gen-
eration will allow you to manage agricultural machinery in real time and monitor the soil and planted crops,
unify infrastructure and create “smart” factories or even entire cities, improve communication networks, in-
cluding transport. In medicine, 5G technology will allow doctors to perform remote operations using auto-
mated systems.
In General, 5G will contribute to the development of artificial intelligence, which will significantly im-
prove and speed up the provision of services, as well as the production of goods around the world.
Discussion
Methodological approaches to the formation of a 5G digital marketing strategy should be based on the
application of strategic and competitive analysis, taking into account the technological component of its im-
plementation in practice. 5G digital marketing strategy based on 5G technology is the basis for the introduc-
tion and dissemination of innovation.
Conclusion
Huawei's digital marketing strategy should be based on countering threats, primarily fierce competi-
tion from its direct competitors and multinational corporations such as Apple, Samsung and Amazon, as well
as Chinese companies Xiaomi, Vivo, OPPO.
The disadvantages of these companies (e.g. Apple) which include high selling price, incompatibility
with other third party software, limited promotional marketing strategy must be countered by their rapid in-
novation strategies, including entering high-risk markets.
Ukraine, thanks to a good level of education, is becoming a major player in the global technological
arena. The IT talent pool in Ukraine is approaching 200,000 software developers, tech start-ups are booming,
investment is on the rise, and the number of companies partnering with Ukrainian software development ser-
vice providers is on the rise of historically strong engineering skills to realize their potential. In a world con-
sumed by technological innovation, at a time when information and data have become a vital resource,
Ukraine can offer an invaluable asset — an unrivalled pool of IT professionals.
Research on marketing strategy in Ukraine has shown that Huawei has a significant opportunity to de-
velop its business by entering and dominating new markets (including technological ones such as 5G and
geographical ones such as Ukraine). Huawei is quickly innovated by developing and releasing mobile mo-
54 Вестник Карагандинского университета
5G-Digital marketing strategy of…

dems that are compatible with 5G, even before the advent of major chipset manufacturers such as Intel. We
propose a marketing strategy to promote Huawei in Ukraine by using the technological advantages of 5G. 5G
networks significantly expand the limited functionality of mobile networks of previous generations. The
main functional features of 5G networks are the following: enhanced mobile broadband access eMBB (en-
hanced MBB); ultra-reliable communications with low latency ULLRC (Ultra Low Latency Reliable Com-
munication); massive inter-machine communications Massive I0T/II0T, MMTS (massive Machine Type
Communication). All the variety of services and capabilities of IMT2020 (5G) networks is built on the basis
of these three generalized types of functionalities.
If Huawei implements a 5G marketing strategy, they can establish themselves as a luxury brand, offer-
ing technologies that are not available even for top brands like Apple and Samsung. This is because 40 oper-
ators from 20 countries have already launched 5g networks for commercial use, and 2/3 of these projects are
implemented together with Huawei. Leading operators are actively working on creating pre-commercial 5g
test zones and demonstrate real cases of using technologies of this communication standard. The implemen-
tation of Huawei's marketing strategy in Ukraine using the competitive technological advantages of 5G will
increase the company's revenues by 20-30%, bring the Ukrainian economy to a high-level market, and sub-
sequently make it possible to create a world-class national digital brand. Innovation and the creation of a uni-
fied system will accelerate the process of commercial launch of 5G.
As specific practical recommendations, we suggest that other companies that work in the field of
communication technologies use methodological tools and practical recommendations for developing a mar-
keting strategy for the implementation of the 5G network in the Ukrainian market in strategic planning. This
is due to the fact that 5G networks significantly expand the limited functionality of mobile networks of pre-
vious generations. In fact, 5G plays the role of a platform for the development mode of new DevOps services
and applications, when new features are created by developers (Development) in close coordination with the
teams that are responsible for their implementation and operation. Implementation of the marketing strategy
implementation of the 5G network will lead to GDP growth of 2.5%. The introduction of 5G technologies
around the world will lead to an extraordinary development of the economy. With the latest technology, you
can significantly automate and improve your workflow. In General, 5G will contribute to the development of
artificial intelligence, which will significantly improve and speed up the provision of services, as well as the
production of goods around the world.

References
Chukurna, О., Zamlynskyi, V. Modern trends in digital transformation of marketing & management: monograph.
Košice: Vysoká škola bezpečnostného manažérstva v Košiciach. — 2023. — 604.
https://doi.org/10.5281/zenodo.7633350
Cifrovyj marketing – model marketing ХХІ storicha: monografia / Edited by Oklander M. Odesa: Astroprint, 2017. —
327.
Doyle, P. Marketing management and strategy: under editorship of Yu. N. Capturesthe. Petersburg, 544 p.
Huawei SWOT Analysis [R/OL]. [Electronic resource]. — 2003. — Access mode:
https://notesmatic.com/20121/05/huawei-swot-analysis/
Karpishenko, O. O., Lginova, Y. E. Cifrovyj marketing jak innovacijnyj instrument kommunikacij [Electronic resource]
/ O. O. Karpishenko, Y. E. Lginova. — 2015. — Access mode: http://essuir.sumdu.edu.ua
Kotler, F., Keller, K. Marketing Management. — Petersburg, 2018. — 816 p.
Official website of Huawei in Ukraine [R/OL]. — [Electronic resource]. — Access mode: https://www.huawei.com/ua/
Oklander, M. Analysis of technological innovations in digital marketing / M. Oklander, T. Oklander, I. Pedko,
O. Yashkina, M. Chaikovska // Eastern-European Journal of Eenterprise Technologies. — 2018. — 5/3 (95). —
P. 80-91.
Porter, M. Competitive Advantage: Creating and Sustaining Superior Performance. — N.Y.: The Free Press, 1985. —
274 p.
Rating of smartphone manufacturers 2021 [R/OL]. — [Electronic resource]. — Access mode:
https://www.itrew.ru/sniartphone/reytmg-proizvoditeley-smartfbnov-2021.html
Striy, L. Dynamics of development of cash-flows and trends in the market of telecommunications services in Ukraine /
L. Striy, О. Chukurna, E. Tanashchuk // VUZF Review. VUZF University. — 2022. — 7 (2). — P. 97-106.
DOI: https://doi.org/10.38188/2534-9228.22.2.10
SWOT Analysis of Huawei: Tackling Competition in Smartphone Market[R/OL]. — [Electronic resource]. — Access
mode: https://pestleanalysis.com/swot-analysis-of-huawei/
Данько Т.Р. Количественные методы анализа в маркетинге: моногр. [Текст] / Т.Р. Данько, И.И. Скоробогатых.
― СПб.: Питер, 2005. — 384 с.

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О.P. Chukurna, O. А. Nazarenko et al

Ламбен Ж.Ж. Стратегический маркетинг. Европейская перспектива [Текст] / Ж.Ж. Ламбен. ― М.: Наука, 2011.
— 590 с.
МакДональд М. Стратегическое планирование в маркетинге / М. МакДональд. ― СПб.: Питер, 272 с.

Е.П. Чукурна, В.А. Замлинский, О.В. Станиславик, Л.А. Корчевская, Л.В. Панковец
5G-телекоммуникация саласындағы жаһандық компанияның
цифрлық маркетингтік стратегиясы
Аңдатпа:
Мақсаты: Зерттеудің мақсаты Huawei жаһандық компаниясының мысалында телекоммуникация сала-
сындағы жетекші кәсіпорындардың 5G маркетингтік стратегиясының әдіснамалық негіздерін қалыптастыру. 5G
маркетингтік стратегиясын қалыптастыру кезеңі ретінде бәсекелестік артықшылықтарды анықтау әдістемесін
негіздеу. Зерттеу нысаны цифрландыру жағдайында телекоммуникация нарығындағы жаһандық компаниялар-
дың маркетингтік қызметі.
Әдісі: Жүйелік-құрылымдық әдіс, диагностикалық, логикалық-салыстырмалы, салыстырмалы талдау, ста-
тистикалық талдау, факторлық талдау, топтау және жіктеу әдістері.
Қорытынды: Huawei компаниясының маркетингтік стратегиясын әзірлеудің теориялық және әдіснамалық
негіздері жинақталған. Стандарттау және бейімдеу стратегиялары, оның ішінде дамыған елдердегі стратегия-
лық серіктестік негізінде 5G инновациялық смартфондары мен құрылғыларына, сондай-ақ құқықтық, техноло-
гиялық және саяси мәселелерге сәтті бейімделу мысалдары қарастырылды. Жүргізілген талдауда Украинада
Huawei-ді ілгерілетудің 5G маркетингтік стратегиясын іске асырудың артықшылықтарын анықтауға, 5G форма-
тындағы технологиялық шешімдерді анықтауға мүмкіндік болды. Зерттеу компанияның маркетингтік
стратегиясын әзірлеу процесін зерттеу аясында компанияның брендін және жылжыту стратегиясын дамыту
бойынша ұсыныстар жасауға мүмкіндік берді. Украинадағы Huawei қызметіне SWOT-талдау жүргізілді. Мақа-
лада Huawei (Samsung, Apple) негізгі бәсекелестерінің маркетингтік стратегияларының салыстырмалы артық-
шылықтары талданды, сонымен қатар өсудің басым стратегиялық векторлары жасалды.
Тұжырымдама: Мақалада жаһандық компанияның маркетингтік стратегиясын әзірлеу процесін зерттеу-
дің теориялық және әдіснамалық тәсілдері негізделген және жүйеленген. Huawei мысалында маркетингтік
стратегияны қалыптастыру мен негіздеудің негізгі құралдары, әдістері мен технологиялары анықталды; компа-
нияның Украинадағы телекоммуникациялық технологиялар саласындағы маркетингтік стратегиясын күшейту
бойынша практикалық ұсыныстар әзірленді.
Кілт сөздер: маркетинг стратегиясы, Huawei басқару жүйесі, бренд, талдау, мүмкіндіктер, 5G, Украинада-
ғы байланыс нарығы, тұрақты даму стратегиясы, бұлтты инженерияны басқару құрылымы, қоршаған ортаны
қорғау әрекеттері.

О.П. Чукурна, О.В. Станиславик, В.А. Замлинский, Л.А. Корчевская, Л.В. Панковец
5G–Цифровая маркетинговая стратегия глобальной компании в сфере телекоммуникаций
Аннотация:
Цель: Целью исследования является формирование методологических основ маркетинговой стратегии 5G
ведущих предприятий сферы телекоммуникаций на примере глобальной компании Huawei. Обоснование мето-
дики определения конкурентных преимуществ как этапа формирования маркетинговой стратегии 5G. Объектом
исследования является маркетинговая деятельность глобальных компаний на рынке телекоммуникаций в усло-
виях цифровизации.
Методы: Системно-структурный метод, диагностический, логико-сравнительный, сравнительный анализ,
статистический анализ, факторный анализ, методы группировки и классификации.
Результаты: Обобщены теоретические и методологические основы разработки маркетинговой стратегии
компании Huawei. Рассмотрены стратегии стандартизации и адаптации, в том числе на инновационные смарт-
фоны и устройства 5G на основе стратегического партнерства в развитых странах, а также примеры успешной
адаптации к юридическим, технологическим и политическим вопросам. Проведенный анализ позволил выявить
преимущества реализации 5G маркетинговой стратегии продвижения Huawei в Украине, определить техноло-
гические решения в формате 5G. Исследование позволило разработать предложения по развитию бренда ком-
пании и стратегии продвижения в рамках изучения процесса разработки маркетинговой стратегии компании.
Проведен SWOT-анализ деятельности Huawei в Украине. В статье проанализированы сравнительные преиму-
щества маркетинговых стратегий основных конкурентов Huawei (Samsung, Apple), а также разработаны прио-
ритетные стратегические векторы роста.
Выводы: В статье обоснованы и систематизированы теоретико-методологические подходы к исследова-
нию процесса разработки маркетинговой стратегии глобальной компании, определены основные средства, ме-
тоды и технологии формирования и обоснования маркетинговой стратегии на примере Huawei; разработаны

56 Вестник Карагандинского университета


5G-Digital marketing strategy of…

практические рекомендации по усилению маркетинговой стратегии компании в сфере телекоммуникационных


технологий в Украине.
Ключевые слова: маркетинговая стратегия, система управления Huawei, бренд, анализ, возможность, 5G,
рынок связи в Украине, стратегия устойчивого развития, структура управления облачной инженерией, экологи-
ческие усилия.

References
Chukurna, О., & Zamlynskyi, V. (2023) Modern trends in digital transformation of marketing & management: mono-
graph. Košice: Vysoká škola bezpečnostného manažérstva v Košiciach, 604.
https://doi.org/10.5281/zenodo.7633350
Danko, T.P., & Skorobogatykh, I.I. (2005). Kolichestvennye metody analiza v marketinge: monografiia [Quantitative
methods of analysis in marketing: monograph]. Saint Petersburg: Piter,384 [in Russian].
Doyle, P. (2003). Marketing management and strategy. Yu. N. Capturesthe (Ed.). Petersburg, 544 p.
Huawei SWOT Analysis [R/OL]. Retrieved from https://notesmatic.com/20121/05/huawei-swot-analysis/
Karpishenko, O. O., & Lginova, Y. E. (2015). Cifrovyj marketing jak innovacijnyj instrument kommunikacij [Digital
marketing as an innovative communication tool]. Retrieved from http://essuir.sumdu.edu.ua [in Ukraine].
Kotler, F., & Keller, K. (2018). Marketing Management. Petersburg, 816 p.
Lamben, Zh.Zh. (2011). Strategicheskii marketing. Evropeiskaia perspektiva [Strategic marketing. European perspec-
tive]. Moscow: Nauka, 590 [in Russian].
McDonald, M. (2011). Strategicheskoe planirovanie v marketing [Strategic planning of marketing]. Petersburg [in Rus-
sian].
Official website of Huawei in Ukraine [R/OL]. Retrieved from https://www.huawei.com/ua/
Oklander, M. Odesa (Ed.). (2017). Cifrovyj marketing – model marketing ХХІ storicha: monografia [Digital Marketing
– The Marketing Model of the 21st Century: monograph: Astroprint, 327 [in Ukraine].
Oklander, M., Oklander, T., Pedko, I., Yashkina, O., & Chaikovska, M. (2018). Analysis of technological innovations
in digital marketing. Eastern-European Journal of Eenterprise Technologies, 5/3 (95), 80-91.
Porter, M. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. N.Y.: The Free Press, 274 p.
Rating of smartphone manufacturers 2021 [R/OL]. Retrieved from https://www.itrew.ru/sniartphone/reytmg-
proizvoditeley-smartfbnov-2021.html
Striy, L., Chukurna, О., & Tanashchuk, E. (2022). Dynamics of development of cash-flows and trends in the market of
telecommunications services in Ukraine. VUZF Review. VUZF University, 7 (2), 97-106.
DOI: https://doi.org/10.38188/2534-9228.22.2.10
SWOT Analysis of Huawei: Tackling Competition in Smartphone Market[R/OL]. Retrieved from
https://pestleanalysis.com/swot-analysis-of-huawei/

Серия «Экономика». № 3(111)/2023 57

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