Abstract
Companies always face the dilemma as to the strategic choice between diversification and single-focus. Do companies need to adopt diversification strategies? If so, at what time and phase should such strategies be implemented? This case takes Huawei as an example and approaches this issue from the perspectives of corporate finance and accounting. During its growth as a communication device supplier, Huawei had several chances to enter the mobile phones industry. It faced a major decision at the end of 2010. While it had become a global leader in communication devices, its terminal business unit, which mainly tailor-made mobile phones for carriers, was mired in the doldrums. How should the mobile phones business pursue development in the future? From 2011, Huawei, which had focused on communication devices, began diversifying. After identifying the major strategic importance for both consumer and corporate businesses, both units thrived.
Translated title of the contribution | Diversification with Calibration: An Illustration Based on Huawei's Experience |
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Original language | Chinese (Simplified) |
Number of pages | 11 |
Publication status | Published - 30 Jun 2021 |
Case number
FIN-21-745Case normative number
FIN-21-745-CCCase type
Field CaseUpdate date
25/10/2022Supplement
For more details, please visit www.chinacases.orgPublished by
China Europe International Business SchoolKeywords
- Diversification strategy
- Boston Matrix
- internal capital market
- effects of scope economies
- valuation of private diversified companies
Case studies discipline
- Finance
- Strategy
Case studies industry
- Information, Media & Telecommunications