Motivation of Strategic Alliance between Huawei and Accenture

The motivation of the strategic alliance between Huawei and Accenture is to expand complementary markets, improve product differentiation and establish market entry barriers.

1. Expand complementary markets. Strategic alliance can provide convenience for partner enterprises to enter advantageous markets and reduce market entry costs. For Accenture and Huawei, the alliance agreement will initially focus on China, Southeast Asia and other emerging markets, namely Huawei's dominant market. Accenture can use Huawei's advantages to enter with low threshold and low cost. Similarly, the plan to selectively focus on opportunities in developed markets in the agreement also gives Huawei the opportunity to enter developed countries.

2. Improve product differentiation and establish market entry barriers. The strong alliance of the three companies has the ability to help customers achieve the goal of lower cost and higher efficiency. For example, the deployment time of private cloud solution for Guandong Dongsheng Radio and Television Network Co., Ltd. was shortened from several weeks to several hours, which not only established market entry barriers, but also promoted other customers to transfer and alliances to gain monopoly advantages. In addition, the strong combination of the three also has unique advantages in research and development, which reduces the probability of market loss caused by technological progress for a long time.