Mode of Latecomer Firms' Outflanking Catching-up: Case Study of Huawei

When the traditional "OEM/ODM/OBM" paths are confronted with the "pseudo-upgrade" and "captured" predicament, enterprises such as Huawei are still succeeding in achieving catch-up. These enterprises seek to follow and exceed through learning technology and business mode from the leading enterprises in the low-end market, which is different from market catching up behavior in the general competitive situation. This study focuses on the process of learning during catching up, capacity accumulation, and pursuing a competitive advantage so as to observe the Outflanking catching-up path through choosing low-end market with a typical case, Huawei. By analyzing its choice of developing ability in the low-end market, this paper puts forward a kind of Outflanking Catching-up Mode, which is meaningful to the emerging economies like China, and competitive strategies of enterprises in developing countries within international context.