the
SMART
PHONE
INDUSTRY
- COLLATORS
THE FIRST SMARTPHONE
●
●
Simon Personal
Communicator (1992) – by
IBM.
Nokia 9000 Communicator
(1996) – by Nokia.
FIRST COMMERCIAL
SUCCESS
●
iPhone 2G (2007)
●
HTC Dream / T-Mobile
G1 (2008)
●
●
●
●
●
IBM
NOKIA
NEW GENERATION,
NEW INNOVATION
iPHONE
HTC
There's way more memory
Devices are far faster and more
powerful
Cameras are HD
Music and video streaming is easy,
as well as online gaming
Battery lasts for days instead of
minutes or a couple hours
XIAOMI
iPhone XR
FACTORS AFFECTING
SMARTPHONE
INDUSTRY
STRATE
GY
MARKETI
NG
STRATEGY
ADVERTISE
MENT
DIRECT
MARKETIN
G
PUBLIC
RELATIO
OPERATI
NG
SYSTEMS
INNOVATI
ON
RESEARCH
&
DEVELOP
MENT
Andro
id
Apple
IOS
DESIGN
FEATURES
SPECIFICATIO
N
BATTERY
CAME
RA
SWOT
ANALYSIS
OF XIAOMI
Strength
One of the Largest Smartphone maker
Huge China and Asia market available
Weakness
Penetrative Pricing
Offline Distribution
Good Quality products
Advertising and Marketing spends
Manufacturing Advantage
Brand Image and Equity
Rising Brand Awareness
Low Skimming price
E-commerce advantage
Specifications of the smartphones produced
Research and Development
Opportunities
Expansion
Distribution
Threats
Brand Building
Imitation of the counterfeit and low-quality
product
Product Portfolio
Competition
Product innovations & Differentiation
Service
Penetration of Smartphones
Brand Differentiation is absent
The dying need for expensive smartphones
Threat of new entrants: Low
• Smartphone industry very saturated
• Very strong brand image required
• Customers loyal to their brand
• Economies of scale major entry barrier
Industry Rivalry: High
Threat
of
New
Entry
•
Smartphone industry very competitive
•
Competing on different factors: price,
quality, consumer needs & brand loyalty
•
Different competitors at national and
international level
• Requires formidable capital investments
• Difficult access to distribution channel
Supplier Power
Competitive
Rivalry
Buyer Power
Porter's 5 Forces
of Xiaomi
Bargaining power of
suppliers: Medium
• Mostly suppliers loyal to their old clients.
• Taiwan based loyal suppliers
• Strong supply chain
Threat of new substitutes: Low
• Substitutes available can not replace smartphone
• Added multi-functionality, services, and apps that smartphones and
mobile phones have over single featured technology products very high.
Threat
of
Substit
ution
Bargaining power of buyers: Medium
•
Consumers can easily switch between many available brands
•
Countries with low purchasing power are target market
•
Practice open innovation and build community of users, enforce loyalty
in buyers
Smartphone
Industry – A
Comparative
Analysis
(500 million
smartphone users in
India as of 2018.)
EXPECTED GROWTH IN FUTURE
Contributors to growth
• Trailblazing technology like
Artificial Intelligence & 5 G services
• Shift from feature phones to smartphones
• Government led initiatives
& Mobile initiated payments
• Ease of buying : Increasing online & offline channels
As per Cisco estimates, India’s smartphone
users are expected to double by 2022,
constituting 829 million.
• More flagship products in mid-tier range
• Large & growing millennial population