Framing and Sensemaking Has Been Research Paper
- Length: 8 pages
- Subject: Business - Advertising
- Type: Research Paper
- Paper: #43583633
Excerpt from Research Paper :
Just as Weick pointed out, Huawei took sensemaking as an ongoing process. As emerging markets began to play a bigger and bigger role in the wake of globalization. Huawei realized that although its strong position within emerging markets was making the organization highly profitable, it was a limiting strategy in the long run. By late 2004, Huawei used its domestic contacts to change its organization's framing into a wholly different perspective. Huawei began framing itself as an industry leader, using the social dialogue that was occurring in emerging nations to be the infrastructure of support for its expansion into developed markets. Since Huawei could provide the same level of service and next generation telecommunication technology for much cheaper, just as its model towards emerging markets worked in their favor, the same occurred within developed markets. In effect, Huawei combined what it had learned as a bit-player, to operate in a cost effective manner and to strongly push its R&D in radical new direction, it merged its former frame with a combination of a dominant strategy to take over the developed markets. At an organizational level, Huawei intuitively understood the globalization movement without having a clear picture of the exacting implications. They understood that brand loyalty and domestic protectionism was quickly disappearing on the international stage, and was being replaced by cost-effective and technology driven innovation. Consumers in different developed markets no longer saw industry protection as a positive factor, and thus the competition was now-based much more on quality and cost rather than brand and national loyalty. This intuitive understanding of how the framing of globalization affected their own organization applies the final rule of sensemaking.
Huawei expanded its market share slowly but decisively. It captured the entirety of the African emerging market, concluding a total of 442 million dollars worth of African telecommunication development in 2006 alone. It consistently redefined itself through changes in how they framed themselves as their market share increased. From Africa, they moved on to dominate India and Pakistan, becoming the leading next generation telecommunications provider for these two powerful emerging markets. Finally, Huawei used its leverage to strongly penetrate the Russian and U.S. domestic markets by using price and technology factors to win over clients who were loyal to domestic U.S. name brand companies such as Qualcomm. From a year to year basis, Huawei expanded its international scope by an astounding 33% per year. It was only able to accomplish this feat by carefully using the properties of sensemaking to consistently develop a new frame for which to understand their role within the world stage and how it relates to the governing dynamics of the global market.
The understanding of Huawei's meteoric rise within the world sphere cannot be underestimated. Their model for development has become the historical context of how all domestic organizations transform themselves into a strong multinational. Huawei went from using other historical context to frame itself and understand what it must do to become an international power-house, to being the historical context used by others. The sensemaking process used by Huawei allowed it to transform itself completely through multiple stages, because the organization was constantly engaged in dialogue with both its own government as well as its clients to understand what the needs of the global market was and how to adjust its frame to accomplish these visions. Huawei aptly demonstrates how Weick's principles of sensemaking can be used to create strong organizations and develop the framework necessary for organizations to adapt and succeed.
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