TECNO Mobile’s Growth Strategies in Africa
Details
BSTR548
18
2018
YES
600
Transsion Holdings
Home Appliances & Consumer Products
China
Market Entry ,New Product Development, Market Segmentation
Abstract
The case discusses Chinese smartphone maker TECNO Mobile’s growth strategies in Africa. TECNO emerged as the undisputed leader in Africa’s mobile industry by offering innovative and high-quality products at an affordable price. Little known in China, TECNO entered the mobile phone market in Africa in 2007 and over a decade, expanded to more than 35 countries while dominating major markets such as Nigeria, Tanzania, Kenya, Cameroon, and Ghana. TECNO understood the uniqueness of the African mobile market and developed smartphones best suited to the African people and cultures. TECNO stayed true to the maxim “think globally, act locally” in the continent, thereby achieving great success in translating advanced technology into superior localized products. Its success highlights how a small company was able to win the African market by leveraging its accurate brand positioning, sophisticated innovative features of its products, and localized manufacturing capacity. After its success in Africa, TECNO expanded its business to more than 48 countries around the world, across the Middle East, South East Asia, and South America as of 2017. Despite its phenomenal success in Africa, TECNO had several challenges ahead. These included protecting the brand from counterfeit products, fierce competition, and a slowing African economy. Going forward, can TECNO remain the smartphone of choice for every African? Can the company sustain its position as the de facto representative of Chinese smartphone companies in Africa? Can the Chinese mobile phone maker replicate its African success in other global emerging markets?
Learning Objectives
The case is structured to achieve the following Learning Objectives:
- Evaluate TECNO’s entry and expansion strategy in Africa
- Understand the importance of the African market to TECNO’s growth
- Examine TECNO’S growth strategies in Africa
- Understand the issues and challenges faced by TECNO in its key growth market Africa
- Chalk out a future growth strategy for TECNO
Keywords
Growth Strategy; International Management; International Marketing ; Expansion Strategy; Adaptation; Globalization