Brand Building and Loyalty in Emerging Economics for Multinational Companies: Case Study, Huawei Technologies (Nigeria) Limited

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Acknowledgement

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

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Abstract

Brand building and loyalty is one of the key challenge in increasingly competitive markets. Many marketing researchers as well as practitioners focus the critical role of the interpersonal interaction between the customer and the salesperson in leveraging customer satisfaction, developing favourable brand attitudes and strengthening the bond between the customers and the brand. Today the newly emerging Chinese Multinational Enterprises (MNEs) have increasingly been involved in the internationalization activities, but they have not attracted ample attention in terms of internationalization studies. The research in this paper will be based on Dunning's Eclectic (OLI) Paradigm as theoretical foundation and establish the method of case study to analyze the internationalization strategy of the Chinese high-technology MNE i.e. Huawei Technology Corporation. This study proposes to answer 3 questions: 1) What are the key components of Huawei's internationalization strategy? 2) How much will Dunning's eclectic paradigm of international production be directed to interpret Chinese MNE - Huawei's internationalization? 3) What are the special characteristics of the Huawei's internationalization process, which might be the supplements to the existing Dunning's eclectic paradigm? The case of Huawei furthermore proposes that the Dunning's eclectic paradigm should take account of the potential exogenous institutional factors of home country and endogenous inducements of enterprise, especially the role of government and entrepreneurship in the context of transition economy.

Table of Contents

CHAPTER 1: INTRODUCTION7

Background8

Problem Definition11

Research Questions13

CHAPTER 2: LITERATURE REVIEW14

Theoretical Framework14

CHAPTER 3: METHODOLOGY21

Research Design21

Literature Research21

Huawei Overview22

Huawei Internationalization Process27

1)1996-1999 Tentative Stage29

2)1999-2001 Take-off Stage31

3)2001-Now Mature Stage32

CHAPTER 4: CRITICAL DISCUSSION35

Ownership Advantages38

Inborn Advantages39

a)Cost and Efficiency39

b)Differentiation42

Acquired Advantages44

a)Technology44

b)Reputation and Brand47

c)Management Expertise49

Location Advantages50

Internalization Advantages51

CHAPTER 5: ETHICAL ISSUES54

REFERENCES56

APPENDIX64

Chapter 1: Introduction

Brand building and loyalty in multinational companies can be defined as a consumer behavior whereby the consumer prefers to continually purchase the same product over time rather than purchase competing products. This behavior usually occurs when the customer believes the brand he or she is purchasing offers a better product or experience than those offered by competitors. This belief then becomes the basis for future purchases. Brand building and loyalty is usually attributed to a single product, rather than to the organization; hence, a customer's loyalty to a brand does not automatically imply loyalty to the company's other products.

Multinational enterprises (MNEs) are the enterprises which engage in foreign direct investment (FDI) and own or control value-adding activities in more than one country. Today, MNE's have become the most significant force in international economic activities, which are shaping the development of global economy. MNE's FDI and internationalization activities are the key promise ...