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‘s competitive advantage? In certain domains, we need to establish alliances with Cisco. For these important components, Huawei make huge investment to develop by themselves. Business Policy (MGMT 490) Academic year. In 2001, Huawei made its first two major sales in Europe –the Netherlands and Germany. It can be divided into product and process technological development activities. Course. Rather than simply focusing on cut-price, undifferentiated offerings, Huawei deployed their cost advantages in delivering advanced technology and customisation at minimal price premiums. The primary task of its financial management department is to support and oversee business departments in creating value. They need to prepare reasonable customer-facing budgets based on the baselines set by the company and the actual needs of business development. It may include- intellectual capital, assets, skills or distribution network. Hence, the first step of adapting the Porter Value Chain framework is to identify the importance of activities according to their role in product/service delivery process.The support activities play an important role in coordinating and facilitating the primary value chain activities. The sales agents and marketers play an important role here.Outbound logistics include the activities that deliver the product to the customer by passing through different intermediaries. Huawei views this concept as a vivid illustration of its business model, and believes that it is also applicable to Huawei if the company wants to survive and thrive in the long run. Even Huawei is so successful today, Huawei still only concentrate on how to provide best class network infrastructures for customers, how to rich people communication and lives. The company must analyse its support activities to avoid damaging brand reputation, and instead use it as a tool to spread positive word of mouth due to quick, timely and efficient support services.Dekker, H. C. (2003). If customer-facing budgets are expected to exceed the quarterly or annual budgets granted, and if the performance KPIs and expense rates are expected to remain acceptable over the coming period (e.g., 6–12 months), the departments whose budgets are to be overrun can apply to borrow the budgets from the subsequent quarters or to increase their annual budgets.The above key points form the general strategy that guides Huawei’s business and financial operations. This chapter elaborates further on these key points.First, Huawei looks at business from an investment perspective and views opportunities strategically. Global leader in networking equipment: Globally No.1 in terms of sales of networking equipment. Only when Huawei helps its customers create value can it find its position in the value chain.Xu Zhijun was the Rotating CEO of Huawei at the time.The images or other third party material in this chapter are included in the chapter's Creative Commons license, unless indicated otherwise in a credit line to the material.