Abstract

This case is about the meteoric rise of OnePlus, a Shenzen-based technology startup gained attention globally for its high-end budget smartphones sold directly to consumers online through an innovative invite system. Founded in 2013 by former OPPO executives Pete Lau and Carl Pei, OnePlus was one of the fastest growing Chinese startups that made a mark globally in a very little time with its sleek devices, killer price tags and by-invite exclusivity. The company positioned itself between low-cost smartphone companies like Xiaomi and high-end makers like Apple and Samsung and significantly undercut them on price, despite closely matching them on features. Right from the outset OnePlus promoted itself as a global company with a global mindset. The challenge before founders Pete Lau and Carl Pei were how to sustain lower prices, make profits and achieve international success going forward.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Evaluate the business model of OnePlus and understand the factors that contributed to the success of OnePlus.
• Examine the global first strategy of OnePlus.
• Identify the challenges faced by OnePlus in the intensely competitive Chinese as well as global smartphone market and explore strategies that the company might adopt to sustain itself in these markets.

Keywords

Entrepreneurship, Start-up phase, Scalable start-ups, Business model, The business model canvas, Four box framework, Business Model, Innovation, Competition, Hypercompetition, Competitive strategy, Hybrid Strategy, International management, Globalization strategy