Firstly, we make sure that this brand audit
aims to Chinese enterprise network market.
Secondly, we
introduce the concept of PEST analysis, which refers to a method when analyses
the background of an enterprise or a group, according to the perspectives of political,
economic and technical analysis, and then it will comprehensively hold the
macro-environment and evaluates the influences made by these factors to
enterprise during deciding the strategic aims.
According to the current Chinese enterprise
network market, it makes the following PEST analysis for Huawei and Cisco:
Political
Circumstance
1. Domestic political
stability in China
2. In the Eleven
Five-year Plan, it explicitly emphasizes on increasing the development strength
of information industry, and in the Twelve Five-year Plan, the factors such as
next generation network establishment, strong investment in government
informatization and rural education, and full-scale medical informatization
upgrade will become the main impulsion to the needs of network market. In
addition, according to the State Council’s encouragement to software
enterprises, application of new informatization, some new technologies and
applications such as cloud calculation, Internet of things, mobile 3G, and the
Three Network Integration will the major development direction for software
enterprises;
3. The Third Plenary
Session of the 18th Central Committee of the Communist Party of China was
successfully held that made the world pay much attention to China.
The plenary pointed
out that the reform of economic system is the key point of comprehensively
deepening reform, and the core problem is to handle well with the relationship
between government and market that on one hand market will play a determined
role in resource allocation, on the other hand the government functions better.
Establishing integrated, open-up and orderly competitive market systems which
can prompt the economic development to a more effective, equal and sustainable
direction are the basis that ensure the market plays a determined role in
resource allocation. A modern market system in terms of independent management
and equal competition of enterprises, free choice and consumption by consumers
and free flow and equal exchange of commodity and element must be accelerated
as soon as possible. The moral construction of socialist market economy shall
be constantly completed by means of taking great efforts to abolish market
barriers, improving the efficiency and equality of resource allocation.
4. The close diplomatic
relationship between China and other countries.
5. Since China joined
WTO, it met less and less limitations in export and import.
6. The changes of taxes,
maybe the preferential part of taxes will be cancelled gradually.
7. Patent Laws are
stable in domestic.
Economic circumstance
1. After the financial
crisis, the global economy appears to ease gradually.
2. Chinese CNP keeps a continuous, stable and
high speed growth.
3. In China, there is a stable employment ratio,
and constant growth of the lowest salary level. The level of residential dispensable
salary increases at a stable and higher speed.
4. The threshold of labor and capital export is
changed lower which enhanced the mobility.
5. The price of product continues to decline and
life cycle of product changes shorter.
6. Getting loan from banks becomes more
difficult and domestic and foreign stock markets stay in downturn stage.
Social and cultural environment
1. With the social
development, every large enterprise has a growing demand in enterprise network
product in business, and focuses on the information security when the
enterprise buys it.
2. Consumer group
continuously expands and their values in buying the information product
trending to be mature. Meanwhile, people become more and more rational when
they buy the product that they like to pay much attention to cost-effective product
and the brand and quality of the product.
3. Product designing and
package trend to be downsizing, and people trend to emphasize on the high effective
and environment friendly product.
4. People have an
increasing demand on after-sales services.
Technological circumstance
1.
Drastic
competition in technological enterprises
2.
The
development of technology decreases the cost of product and services, but
increases the quality of product
3.
With
the fast development of global technology, explicitly the life cycle of product
is shortened and the cost of independent research is very expensive, however,
if it becomes successful, much profit will get.
4.
Global
technological industries are gradually monopolized by several major enterprises,
and the subjective rank of each enterprise in technology is important that
stands for the comprehensive strength of an enterprise.
Sources:
1. Establish fair and transparent market rules, XINHUA, Nov 15, 2013
2. PEST Analysis about Huawei, Baidu Wenku, Nov, 2013
SUN Jiawei
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