OnePlus: The Chinese Smartphone Start-up Targets India
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Case Code: BSTR508 Case Length: 14 Pages Period: 2014-2016 Pub Date: 2017 Teaching Note: Available |
Price: Rs.600 Organization : OnePlus Industry :Smartphone Industry Countries : India Themes: Business Strategy/ International Management/ International Marketing |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
OnePlus Enters India
India, with its population of 1.2 billion as of 2014, was the world’s fastest-growing smartphone market. A growing middle class with an increased disposable income and a surge in the population using the internet had turned India into a lucrative market for Chinese players who offered cheaper alternatives to high-end iPhones or Samsung devices. Initially, OnePlus did not intend to enter the Indian market. However, it noticed that thousands of OnePlus devices were being shipped from China and the US to India. Moreover, when the company organized a fan gathering in India in August 2014, it was surprised to find that around 70% of the attendees already owned OnePlus devices. Sensing the demand for its product in the country, the company launched its first flagship device, the OnePlus One, in India in December 2014. Priced at Rs. 21,999 (US$328), OnePlus One boasted of an industry leading design, superior build quality, and top of the line specifications at a disruptive price....
Teething Troubles
OnePlus initially faced some operational challenges in India. On December 16, 2014, the Delhi High Court ordered OnePlus to stop the shipping and sales of OnePlus One smartphones in India, acting on a complaint from Micromax Informatics Ltd (Micromax), which claimed that OnePlus had infringed on its exclusive right to use the Cyanogen OS software and trademark in the country......
‘Make in India’ Strategy
To tackle supply chain issues, cut production costs, and cater to the fast growing demand for its products in India, OnePlus decided to manufacture its devices locally in India...
Experiential Marketing
OnePlus’s marketing tactic was to sell its phones to customers exclusively through invites that were handed out through various promotions and contests on social media networks, while OnePlus owners could also share invites with their family and friends....
A Hit in India
In 2014, India was OnePlus’s fourth-largest market, outside of China, the US, and Europe. More than 60% of the company’s sales in 2014 were outside China including 32% in Europe (Austria, Belgium, Denmark, Finland, France, Germany, Italy,....
Challenges
In February 2016, India surpassed the US to become the second largest smartphone market after China in terms of active unique smartphone users with the total base crossing 220 million users....
The Road Ahead
According to a study by leading technology company Cisco Systems Inc,, India was expected to have a smartphone user base of over 650 million by 2019. Going forward, .....
Exhibits
Exhibit I: OnePlus Global shipments (2014)
Exhibit II: Smartphone Users in India
Exhibit III: Smartphone Shipments in India
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