An examination of internationalisation and entry strategies of emerging market enterprises in the telecommunication industry: the case of Huawei
Abstract
Numerous theories have been proposed that has made immense contribution to the firm internationalization as well as entry strategy. On the other hand, no acceptable conclusion has been proposed on how companies internationalized and what is factors impacted companies choose their approach. This development demands more study on the company’s internationalization as well as entry strategy. As a result the research was explorative in nature and inductive approach was widely implemented in the interview.
In addition, the companies have been employing various strategies in penetrating their target market. A few prefer to strengthen their position at home as well as focused their efforts on exporting, whereas others took aggressive measures and invested directly in the overseas market. As a result, the study explored the entry approach of firms, as well as the factors that influence the selection. This was aimed to achieve comprehensive insight on how companies penetrate the target market. From the findings, it was discovered that, Huawei had implemented partnership, setting up of owned subsidiaries as well as develop high technology assistance in the globe, plus the corporation resorted to joint venture and strategic alliance after the China economy reformed till now. In addition, it was revealed the choice of entry approach was mainly influenced by firm vision, business offering, resources as well as capacity, whilst market conditions functioned as exogenous aspects.
Table of contents TOC o “1-3” h z u
HYPERLINK l “_Toc376773262” Chapter 1 Introduction PAGEREF _Toc376773262 h 5
HYPERLINK l “_Toc376773263” 1.1 Study Aim and objectives PAGEREF _Toc376773263 h 5
HYPERLINK l “_Toc376773264” 1.2 Dissertation structure PAGEREF _Toc376773264 h 5
HYPERLINK l “_Toc376773265” 1.3 Research background PAGEREF _Toc376773265 h 5
HYPERLINK l “_Toc376773266” 1.4 Study rationale PAGEREF _Toc376773266 h 8
HYPERLINK l “_Toc376773267” Chapter 2 Literature Review PAGEREF _Toc376773267 h 9
HYPERLINK l “_Toc376773268” 2.1 Introduction PAGEREF _Toc376773268 h 9
HYPERLINK l “_Toc376773269” 2.2. Internationalisation PAGEREF _Toc376773269 h 9
HYPERLINK l “_Toc376773270” 2.3. The determinants of entry mode Choices PAGEREF _Toc376773270 h 14
HYPERLINK l “_Toc376773271” 2.4. Entry modes into mobile phone market by Chinese firms PAGEREF _Toc376773271 h 18
HYPERLINK l “_Toc376773272” 2.5. Summary PAGEREF _Toc376773272 h 20
HYPERLINK l “_Toc376773273” Chapter 3 Methodology PAGEREF _Toc376773273 h 22
HYPERLINK l “_Toc376773274” 3.1. Introduction PAGEREF _Toc376773274 h 22
HYPERLINK l “_Toc376773275” 3.2. Research Philosophy PAGEREF _Toc376773275 h 22
HYPERLINK l “_Toc376773276” 3.3. Research Approach PAGEREF _Toc376773276 h 23
HYPERLINK l “_Toc376773277” 3.4. Research Design PAGEREF _Toc376773277 h 24
HYPERLINK l “_Toc376773278” 3.5. Instrument Choices PAGEREF _Toc376773278 h 24
HYPERLINK l “_Toc376773279” 3.6. Sampling PAGEREF _Toc376773279 h 26
HYPERLINK l “_Toc376773280” 3.7. Data Collection PAGEREF _Toc376773280 h 26
HYPERLINK l “_Toc376773281” 3.7. Data Analysis PAGEREF _Toc376773281 h 27
HYPERLINK l “_Toc376773282” 3.8. Ethical Considerations PAGEREF _Toc376773282 h 27
HYPERLINK l “_Toc376773283” 3.9. Summary PAGEREF _Toc376773283 h 28
HYPERLINK l “_Toc376773284” Chapter 4 data analysis and discussion PAGEREF _Toc376773284 h 29
HYPERLINK l “_Toc376773285” 4.1 Introduction PAGEREF _Toc376773285 h 29
HYPERLINK l “_Toc376773286” 4.2 Background of Huawei Ltd PAGEREF _Toc376773286 h 29
HYPERLINK l “_Toc376773287” 4.3 Internationalisation process used by Huawei and its reasons PAGEREF _Toc376773287 h 30
HYPERLINK l “_Toc376773288” 4.4 entry strategies into the foreign mobile phone market by Huawei PAGEREF _Toc376773288 h 36
HYPERLINK l “_Toc376773289” 4.5 Influence factors of the choice of entry strategy in the overseas mobile phone PAGEREF _Toc376773289 h 39
HYPERLINK l “_Toc376773290” 4.6 Discussion PAGEREF _Toc376773290 h 41
HYPERLINK l “_Toc376773291” Chapter 5 Conclusion PAGEREF _Toc376773291 h 44
HYPERLINK l “_Toc376773292” 5.1. Introduction PAGEREF _Toc376773292 h 44
HYPERLINK l “_Toc376773293” 5.2 Conclusion PAGEREF _Toc376773293 h 44
HYPERLINK l “_Toc376773294” 5.3 Recommendation PAGEREF _Toc376773294 h 47
HYPERLINK l “_Toc376773295” 5.4. Research limitations PAGEREF _Toc376773295 h 48
HYPERLINK l “_Toc376773296” References PAGEREF _Toc376773296 h 51
Appendix HYPERLINK l “_Toc376773297” Interview protocol PAGEREF _Toc376773297 h 57
Chapter 1 Introduction
Study Aim and objectives
The purpose of this research is to stimulate discussion in the study area instead of giving definitive general assumptions. The study examines the internationalisation and entry strategies of enterprises in Chinese mobile phone market through using Huawei as the reference company. With regard to the aim of the study, the study objectives are:
To explore internationalisation process used by Huawei and its reasons;
To explore entry strategies into the foreign mobile phone market by Huawei;
To analyse what influences the choice of entry strategy in the overseas mobile phone market.

1.2 Dissertation structure
With regard to the study structure, the introductory chapter identifies the purpose and objectives of the research. This chapter furthermore gives a brief description concerning the background of the subject as well as the rationale behind the selected subject of research. The second chapter is the literature review section. It entails review of relevant theories and literatures on internationalisation and entry strategies. In addition, it presents an overview of entry modes into mobile phone market by Chinese firms. The third chapter revolves around the justification of selecting the research methods, i.e. research philosophy, research approach, study design, sampling size, data collection and data analysis procedures and steps. In general, the research methodology chapter highlights on the different techniques and methods employed in the study. The fourth chapter analyses collected data. Lastly, the fifth chapter gives the conclusions on the research data analysis and findings; clarifies research limitations, and provides recommendations for future similar researches.

Research background
The globalisation of business corporations from emerging economies all over the world has turned out to be a progressively significant subject for academic study as well as media interests (Tung and Luo, 2007). Recently, the United Nations Conference on Trade and Development delivered in-depth empirical evidence showing the fast development of transnational companies from emerging and transnational economies all over the world. In 2012, more than 20,000 transnational companies and transnational developing economies invested a sum of foreign direct investment (FDI) stock at 1.6 trillion US dollars which was equivalent to 13-percent of the world total (UNCTAD, 2012). More notably, the most share of this FDI by transnational companies and transnational developing economies was channelled to other emerging and transition economies, a long term occurrence referred to as South-South foreign direct investment (Lipsey and Sjöholm, 2011). Actually, UN (2011) additionally projected that this annual flow of South-South FDI increased drastically from 2 billion dollars to 70 billion US dollars in between 1995 and 2010 (UN, 2011). Whilst this yearly flow may not be as detectable as compared to developed nations for instance 40 US billion dollars of outward FDI from the United Kingdom as well as 272 billion US dollars from inward FDI into the United Kingdom just in 2010, it does hold an extremely substantial source of technology, capital, and opportunities of employment for the receiving economies in the South (UNCTAD, 2011). 
This emerging prevalence of outward FDI from such emergent economies as Singapore, Hong Kong, in addition to transition economies as China and Russia ought not to be entirely shocking. With respect to mainland China, the past thirty years have seen its fast economic growth as well as revolutions that as a result permit a lot of Chinese corporations to accrue adequate location and firm specific benefits before they venture in foreign nations. So far, China has become part of the newly industrialised economies of Latin America and Asia to produce numerous competitive transnational corporations (UNCTAD, 2012). As established by Wu (2007) the latest high-profile global acquisitions, as well as buyout bids by Chinese corporations have radically diverted the attention of media from highlighting Chi…