Resource and Capabilities of Huawei Essay Example | Topics and Well Written Essays - 2000 words

Resource and Capabilities of Huawei - Essay Example Global telecom market has gone through systematic changes wherein from a fragmented industry, it becomes more like a centralized industry with the focus on developing core competencies through the centralization of manufacturing and production facilities. With the changes in the technology, however, there occurred a systematic shift in the way organizations in the industry attempted to dominate the market. Â  However, there still remains a big question mark as to whether the firm will be able to climb the technology ladder and start offering high-end technology products in the international market. It is also critical to note whether the firm will be able to challenge CISCO-one of the leading providers of networking and communication equipment in the international market. If it can what resources and capabilities it may require to successfully challenging the CISCO. Â  The resource-based view of the strategic management indicates as to how firms can develop their internal resources and capabilities in order to perform better than their competitors. Resource-based view also indicates that a firm must deploy its resources in most efficient and optimal level so as to maximize the returns for shareholders. Development of strategic capabilities is, therefore, one of the most critical aspects of strategic management which a firm needs to perform. The acquisition of various resources and competencies, therefore, offer a firm a great opportunity to develop its competitive advantage and successfully meet the competitive challenges. (Cromb,2006). Â  The resource capabilities can either be specific to the organization as well as generic capabilities that allow firms to focus on their customer needs and requirements to deliver value. Various studies indicate that the high performing firms which focus on delivering value to a greater extent basically distinguish such firms from the low performing firms.(O’Regan & Ghobadian, 2004).