Answered Essay: 1vEV | Publishing W17065 HUAWEL LEICAALLIANCE: REINVENTING SMARTPHONE

1vEV | Publishing W17065 HUAWEL LEICAALLIANCE: REINVENTING SMARTPHONE PHOTOGRAPHY OR BUILDING BRAND IMAGE? 8 and Froody mend to mustr and aner ioetg comstio A Mason wmote Mws case sololy to provide matorial for class discussion Tho authors do not elther efrective or meffecove handing of a managerial swuation The authors may have disguised certain names gnked or omese reprodtuced in any form or Dy any means itnour the righis orgarzwbut. Te beder copies dr request periissioniesroce mater ios, curnlact tvey Pubisting Ney Business School, Western 19.661 320 (e) casos @ivey.ca:www.vejcases.comm In 2016. Chinese telecommunications (telecom) equipment compa ny Huawei Technologies Co. Ltd. Huawei) aspired to be the worlds top smartphone manufacturer. The company had identified Germar camera company Leica Camera AG (Leica) as a long-term partner to reinvent Huaweis smartphone photography to beat an influx of domestic rivals and the market leaders. Apple Inc. (Apple) and Samsun Electronics Lid. (Samsung. Leica s chief executive offcer (CEO), Oliver Kaltner, said. IThis nateshin oes ucica an sxcellent opportunity to introduce its proven optical expertise into hulo

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1vEV | Publishing W17065 HUAWEL LEICAALLIANCE: REINVENTING SMARTPHONE PHOTOGRAPHY OR BUILDING BRAND IMAGE? 8 and Froody mend to mustr and aner ioetg comstio A Mason wmote Mws case sololy to provide matorial for class discussion Tho authors do not elther efrective or meffecove handing of a managerial swuation The authors may have disguised certain names gnked or omese reprodtuced in any form or Dy any means itnour the righis orgarzwbut. Te beder copies dr request periissioniesroce mater ios, curnlact tvey Pubisting Ney Business School, Western 19.661 320 (e) casos @ivey.ca:www.vejcases.comm In 2016. Chinese telecommunications (telecom) equipment compa ny Huawei Technologies Co. Ltd. Huawei) aspired to be the world’s top smartphone manufacturer. The company had identified Germar camera company Leica Camera AG (Leica) as a long-term partner to reinvent Huawei’s smartphone photography to beat an influx of domestic rivals and the market leaders. Apple Inc. (Apple) and Samsun Electronics Lid. (Samsung. Leica ‘s chief executive offcer (CEO), Oliver Kaltner, said. IThis nateshin oes ucica an sxcellent opportunity to introduce its proven optical expertise into hulo

Expert Answer

Answer

1) Huawei engaged in a strategic alliance with Leica in order to create a powerhouse in the reinvention of smartphone photography. In 2012, HUAWEI became the world’s third-largest smartphone manufacturer and was the first Chinese company to sell more than 100 million mobile phones in one year in 2015.

HUAWEI wants to build its success with Leica Camera for a mutually beneficial collaboration with the most iconic name in the photographic world in order to bring joint superior excellence to consumers.

Strengths of the alliance –

  1. Both have expertise in their respective fields. Hence Huawei’s association should bring new avenues smart phone technology.
  2. It combines the innovation and design and enhances the user experience.
  3. Commitment to uncompromising quality
  4. Huawei offers Leica Camera an excellent opportunity to introduce its proven optical expertise into a new product segment

Weakness of alliance :

  1. Both have two different backgrounds and technologies. Individually they performed well, but together they may lag.
  2. Both the companies have two different cultural backgrounds which may not match
  3. Chinese company has different way of working and German has different work culture. When they work together, it may result in conflicts.

2) Leica Camera AG is an internationally operating, premium-segment manufacturer of cameras and sport optics products. The legendary status of the Leica brand is founded on a long tradition of excellence in the construction of lenses. Leica products continue to guarantee better pictures in all situations in the world of visualisation and perception. The legendary status of the Leica brand is founded on a long tradition of innovation, highest precision and craftsmanship.

The traditional German medium-sized company Leica Camera has certain values and comprehensive expertise in optical engineering. Its long-term partnership with Huawei will result in achieving the best possible imaging results in the field of smartphone photography.

Strengths –

  1. The Leica’s association with Huaiwei will improve the photo quality of the Huaiwei smart phones.
  2. Leica Camera offers Huawei an excellent opportunity to introduce its proven expertise in smartphone avenue an uncompromising quality
  3. It provides an exceptional premium imaging quality to Huawei phones with this association

Weakness :

  1. Leica’s lenses may take time to match to the smartphone technology.
  2. Since Leica has high precesion and craftsmanship, the cost of the smartphones will gradually increase
  3. Leica’s work culture may not match with Chinese work culture.

3) Yes of course, they are complementary partners. Huawei needs a strong backup from Leica for imaging solutions for its smartphones, and Leica needs a new consumer segment apart from its high precesion lenses. So, for Leice, foraying into a Smart phone segment is very important to increase its product base. And for Huawei, it needs Leica’s association for a better competitive advantage. This association shall bring complementary advantages to both the companies to their respective fields. So, in my opinion, Huawei-Leica strategic alliance will be successful.

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