Huawei’s “Five Looks and Three Sets” Strategic Planning Methodology

Huawei’s “Five Looks and Three Sets” methodology is a systematic strategic planning tool that uses the “Five Looks” (market, customer, competition, industry, and self) to deeply analyze macro environment, customer needs, competitor status, industry trends, and the company’s own capabilities, identifying opportunities and threats.

Based on this insight, the “Three Sets” (defining strategic control points, setting goals, and formulating strategies) clarify strategic direction, establish concrete action plans, and ensure effective implementation of corporate objectives.

1. Importance of Strategic Management

Strategy provides a clear direction and goals, helps identify competitive advantages, optimizes resource allocation, manages risks, improves efficiency, fosters innovation, supports sustainable development, and enhances investor confidence.

2. Understanding Strategic Planning

2.1 Process Architecture : Strategic planning is a core link in the enterprise process architecture, connecting vision, mission, and core values, and translating long‑term goals into executable action plans.

2.2 Time Arrangement : It involves long‑term (3‑5 years or more) planning, annual planning that breaks down long‑term goals, continuous review and adjustment, and gap analysis between current and desired states.

2.3 Methodology and Tools : Utilizes SWOT, PEST, Porter’s Five Forces, value‑chain analysis, SPAN diagrams, strategic maps, balanced scorecards, and blue‑print planning to gain strategic insight.

3. Huawei’s Market Insight – Five Looks

Look at Industry/Trends : Use PEST analysis and technology hype curves to assess macro‑environment impact.

Look at Market/Customers : Study market segmentation, purchasing behavior, and customer demands.

Look at Competition : Apply Porter’s Five Forces and SWOT to evaluate competitors.

Look at Self : Conduct self‑assessment with business model canvas and SWOT.

Look at Opportunities : Identify strategic opportunities using SPAN diagrams.

3.1 SPAN Diagram – Opportunities and Threats

The SPAN diagram visualizes strategic opportunities on two dimensions: market attractiveness (size, growth, profit potential) and company competitive position (share, control points, advantages), categorizing opportunities as Stars, Question Marks, Cash Cows, or Dogs.

3.2 Three Sets – Defining Strategic Control Points, Goals, and Strategies

Define strategic control points: key competitive factors such as technology leadership, brand, customer relationships, cost control.

Set SMART goals based on identified opportunities and control points.

Formulate concrete strategies and action plans covering market entry, product development, marketing, sales, and supply‑chain.

By applying the “Five Looks” for insight and the “Three Sets” for concrete planning, enterprises can translate strategic analysis into executable plans, improving the success rate of strategy implementation.

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