[go: up one dir, main page]

100% found this document useful (1 vote)
378 views45 pages

Minor Project On Oppo

The document provides an overview of the telecommunications industry in India. It discusses that India has the second largest telecommunications market in the world with over 1.2 billion subscribers. The mobile economy in India is growing rapidly and contributing significantly to GDP. Key factors driving growth include rising smartphone penetration, declining data costs, and increasing internet usage. The industry has seen large investments and is continuing to expand coverage. Strengths of telecommunications companies include technology leadership while weaknesses can include infrastructure issues. Opportunities lie in new technologies while threats include increased regulations and competition.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
100% found this document useful (1 vote)
378 views45 pages

Minor Project On Oppo

The document provides an overview of the telecommunications industry in India. It discusses that India has the second largest telecommunications market in the world with over 1.2 billion subscribers. The mobile economy in India is growing rapidly and contributing significantly to GDP. Key factors driving growth include rising smartphone penetration, declining data costs, and increasing internet usage. The industry has seen large investments and is continuing to expand coverage. Strengths of telecommunications companies include technology leadership while weaknesses can include infrastructure issues. Opportunities lie in new technologies while threats include increased regulations and competition.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 45

G.

L BAJAJ INSTITUTE OF MANAGEMENT & RESEARCH


GREATER NOIDA

MINOR PROJECT REPORT (PG34)


ON
OPPO MOBILE

Term-II
BATCH 2019-21

Submitted by Submitted to
Swetanshu Bhargav Dr. Parul Yadav
PGDM (2019-21) (Assistant Professor)
GM19221

`1 | P a g e
G.L BAJAJ INSTITUTE OF MANAGEMENT & RESEARCH
GREATER NOIDA

CERTIFICATE

This is to certify that Mr. Swetanshu Bhargav (GM19221) PGDM 2019-21.


Term-II, work exemplified in minor project report(PG34) on OPPO Mobile
under my mentorship on GL Bajaj Institute of Management and Research
(GLBIMR), Greater Noida (U.P).

Mentor Section in Charge Faculty in Charge


Dr. Parul Yadav Dr. Arvind Bhatt Dr. Dileep Singh
(Assistant Professor) (Assistant Professor) (Professor)

`2 | P a g e
CONTENTS

SL.NO PARTICULAR PAGE NO

1. INDUSTRY ANALYSIS 5-8

2. COMPETITOR ANALAYSIS 9-11

3. DETAILS OF ONE MAJOR COMPETITOR 12-20

4. MARKETING ANALYSIS OF OPPO 21-25

5. MARKETING ANALYSIS OF XIAOMI 26-29

6. OPERATION MANAGEMENT OF OPPO 30-34

7. OPERATION MANAGEMENT OF XIAOMI 35-39

8. FINDINGS 40-41

9. RECOMMENDATIONS 42-43

10. REFERENCES 44-45

`3 | P a g e
LIST OF FIGURES
SL.NO PARTICULARS PAGE NO

4.1 PRODUCT OF OPPO 24

5.1 PRODUCT OF XIAOMI 26

5.2 DISTRIBUTION CHANNEL OF XIAOMI 27

5.3 MARKET SHARE OF XIAOMI 28

6.1 SUPPLY CHAIN MANAGEMENT OF OPPO 31

6.2 DISTRIBUTION CHANNEL OF OPPO 33

7.1 SUPPLY MANAGEMENT OF XIAOMI 36

7.2 INVENTORY MANAGEMENT OF XIAOMI 37

`4 | P a g e
CHAPTER: - 1

INDUSTRY ANALYSIS

`5 | P a g e
ABOUT INDUSTRY

The telecommunication sector is made up of companies that make communication possible on a global scale,
whether it is through the phone or the Internet, through airwaves or cables, through wires or wirelessly. These
companies created the infrastructure that allows data in words, voice, audio or video to be sent anywhere in the
world. The largest companies in the sector are telephone (both wired and wireless) operators, satellite companies,
cable companies, and internet service providers.

Not long ago, the telecommunications sector consisted of a club of big national and regional operators. Since the
early 2000s, the industry has been swept up in rapid deregulation and innovation. In many countries around the
world, government monopolies are now privatized and they face a plethora of new competitors. Traditional markets
have been turned upside down, as the growth in mobile services outpaces the fixed line and the internet starts to
replace voice as the staple business.

Telecommunication is the transmission of signs, signals, messages, words, writings, images and sounds or
information of any nature by wire, radio, optical or other electromagnetic systems. Telecommunication occurs
when the exchange of information between communication participants includes the use of technology. It is
transmitted through a transmission media, such as over physical media, for example, over electrical cable, or
via electromagnetic radiation through space such as radio or light. Such transmission paths are often divided
into communication channels which afford the advantages of multiplexing. Since the Latin term communication is
considered the social process of information exchange, the term telecommunications is often used in its plural form
because it involves many different technologies.

Early means of communicating over a distance included visual signals, such as beacons, smoke signals, semaphore
telegraphs, signal flags and optical heliographs. Other examples of pre-modern long-distance communication
included audio messages such as coded drumbeats, lung-blown horns, and loud whistles. 20th- and 21st-century
technologies for long-distance communication usually involve electrical and electromagnetic technologies, such
as telegraph, telephone,and teleprinter, networks, radio, microwave transmission, fiber optics, and communications
satellites.

A revolution in wireless communication began in the first decade of the 20th century with the pioneering
developments in radio communications by Guglielmo Marconi, who won the Nobel Prize in Physics in 1909, and
other notable pioneering inventors and developers in the field of electrical and electronic telecommunications. These
included Charles Wheatstone and Samuel Morse (inventors of the telegraph), Alexander Graham Bell (inventor of
the telephone), Edwin Armstrong and Lee de Forest (inventors of radio), as well as Vladimir K. Zworykin, John
Logie Baird and Philo Farnsworth (some of the inventors of television).

The telecommunications industry began in the 1830s, with the invention of the telegraph, the first mechanical
communications device. It shortened communication from days to hours—much as modern mobile technology has
shortened the time span of sending large amounts of data from hours to seconds. The industry broadened with each
new invention: telephone, radio, television, computer, mobile device. These technological advances changed how
people live and do business.

`6 | P a g e
INDUSTRY SCENARIO

India is currently the world’s second-largest telecommunications market with a subscriber base of 1.20 billion and
has registered strong growth in the past decade and half. The Indian mobile economy is growing rapidly and will
contribute substantially to India’s Gross Domestic Product (GDP), according to report prepared by GSM
Association (GSMA) in collaboration with the Boston Consulting Group (BCG). As of January 2019, India has
witnessed a 165 per cent growth in app downloads in the past two years.

With 604.21 million internet subscribers, as of December 2018, India ranks as the world’s second largest market in
terms of total internet users. Further, India is also the world’s second largest telecommunications market, with total
subscriber base of 1,183.51 million at the end of March 2019. Moreover, in 2017, India surpassed USA to become
the second largest market in terms of number of app downloads. The country remained as the world’s fastest growing
market for Google Play downloads in the second and third quarter of 2018. Over the next five years, rise in mobile-
phone penetration and decline in data costs will add 500 million new internet users in India, creating opportunities
for new businesses.

With daily increasing subscriber base, there have been a lot of investments and developments in the sector. FDI
inflows into the telecom sector during April 2000 – March 2019 totaled to US$ 32.82 billion, according to the data
released by Department for Promotion of Industry and Internal Trade (DPIIT). During the first quarter of 2018,
India became the world’s fastest-growing market for mobile applications. The country remained as the world’s
fastest growing market for Google Play downloads in the second and third quarter of 2018. Bharti Airtel is planning
to launch 6,000 new sites and 2,000 km of optical fiber in Gujarat in 2018-19. The number of mobile wallet
transaction increased 5 per cent month-on-month to 325.28 million in July 2018.

SWOT Analysis of a Telecommunication Company


Strengths

Cutting-edge fiber-optics technology, high-performing cable equipment, a respected brand name, excellent
customer service and a strong sales team are just a few strengths that boost the resource capabilities of a
telecommunication company. These strengths are attributes that enhance the company's competitive advantage.

Weakness

Corroded cable lines, slow service and lackluster sales are three weaknesses that can hurt a telecommunications
company. Company weaknesses are competitive deficiencies that place the company at a disadvantage in the
marketplace. If corroded cable lines aren't replaced and slow service continues, for example, angry customers will
switch to a rival telecommunications company that offers better services

`7 | P a g e
Opportunities

New technologies, increasing consumer interest and a decrease in competition are just a few external opportunities
that can really help a telecommunications company in the long run. Opportunities are beneficial, outside events that
a company can use to boost its existing strengths. A telecommunication company keen on rapidly adopting new
technologies, for example, would highly benefit from immediately investing in new fiber optics the moment they're
introduced in the marketplace, especially if they speed up service.

Threats

A sluggish economy, increasing competition and increased government regulations against the telecommunications
industry are just a few external threats that can limit a telecommunications company's future success. Threats are
outside events or influences that create future hurdles for a company. New rivals that offer customers fast service
and cutting-edge technology, for example, may lure an older telecommunications company's existing customers
away, especially if the older company can't offer the same new features.

INTRODUCTION ABOUT THE COMPANY

Guangdong OPPO Mobile Telecommunications Corp., Ltd, commonly referred to as OPPO, is a Chinese
consumer electronics and mobile communications company headquartered in Dongguan, Guangdong, in China, and
known for its smartphones, Blu-ray players and other electronic devices. A leading manufacturer of smartphones,
OPPO was the top smartphone brand in China in 2019 and was ranked No. 5 worldwide. It is a subsidiary of BBK
Electronics. It is a part of BBK Electronics Corporation along with Vivo, Realme and OnePlus.

OPPO is a global electronics and technology service provider. It delivers the latest and the most delicate mobile
electronic devices for their user. OPPO is here for those that expect more from their smartphone than a run-of-the-
mill experience.

OPPO is relentless in the pursuit of the latest technology and the highest standards of hardware quality. OPPO is try
to deliver the best experience to user as possible. The beautiful products-inside and out, everything is considered
just created for the user. From the tactile qualities to the aesthetic aspects of each device – every angle, every
color, every piece is meticulously crafted product for their user.

OPPO Electronics Corp. a Chinese electronics manufacturer, was globally registered in 2001 and founded in 2004
and is based in Guangdong province, China. Its major product lines include smartphones, MP3 players, portable
media players, LCD-TVs, and DVD/Blu-ray players. OPPO entered the MP3 market in 2005, Mp4 market in 2006
and mobile phone market in 2008. It has its presence in over 20 countries, including the United States, China,
Australia and many countries throughout Europe, Southeast Asia, South Asia, the Middle East and Africa. OPPO is
dedicated to delivering customers with the most extraordinary mobile experience through meticulous designs and
smart technology.

`8 | P a g e
CHAPTER: - 2

COMPETITOR ANALYSIS

`9 | P a g e
ABOUT THE COMPETITOR

Oppo's top competitors include Xiaomi, Huawei, Samsung Electronics and Apple. Oppo is a consumer electronics
and mobile communication company. Xiaomi is a company providing hardware, software and internet services.

Xiaomi
Xiaomi Corporation is a Chinese electronics company founded by Lei Jun in 2010 and headquartered in Beijing.
Xiaomi makes and invests in smartphones, mobile apps, laptops, bags, trimmers, earphones, MI Television, Shoes,
fitness bands, and many other products. Ranked 468th, Xiaomi is the youngest company on Fortune Global 500 List
for 2019. Xiaomi released its first smartphone in August 2011 and rapidly gained market share in China to become
the country's largest smartphone company in 2014.Xiaomi has 15,000 employees in China, India,
Malaysia, Singapore and is expanding to other countries including Indonesia, the Philippines, and South Africa.
According to Forbes magazine, Lei Jun, the founder and CEO, has an estimated net worth of US$12.5 billion. He is
China's 11th richest person and 118th in the world. Xiaomi is the world's 4th most valuable technology start-up after
receiving US$1.1 billion funding from investors, making Xiaomi's valuation more than US$46 billion.

SAMSUNG
Samsung is a South Korean multinational conglomerate headquartered in Samsung Town, Seoul. It comprises
numerous affiliated businesses, most of them united under the Samsung brand, and is the largest South
Korean chaebol (business conglomerate). Samsung was founded by Lee Byung-chul in 1938 as a trading company.
Over the next three decades, the group diversified into areas including food processing, textiles, insurance,
securities, and retail. Samsung entered the electronics industry in the late 1960s and the construction and
shipbuilding industries in the mid-1970s; these areas would drive its subsequent growth. Following Lee's death in
1987, Samsung was separated into four business groups – Samsung Group, Shinsegae Group, CJ
Group and Hansol Group. Since 1990, Samsung has increasingly globalized its activities and electronics; in
particular, its mobile phones and semiconductors have become its most important source of income. As of 2017,
Samsung has the 6th highest global brand value.

`10 | P a g e
APPLE
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs,
develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big
Four tech companies along with Amazon, Google, and Facebook. Apple was founded by Steve Jobs, Steve
Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though
Wayne sold his share back within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and sales
of its computers, including the Apple II, grew quickly. Within a few years, Jobs and Wozniak had hired a staff of
computer designers and had a production line. Apple went public in 1980 to instant financial success. Over the next
few years, Apple shipped new computers featuring innovative graphical user interfaces, such as the original
Macintosh in 1984, and Apple's marketing advertisements for its products received widespread critical acclaim.
However, the high price of its products and limited application library caused problems, as did power struggles
between executives. In 1985, Wozniak departed Apple amicably and remained an honorary employee, while Jobs
and others resigned to found NeXT.

HUAWEI
Huawei Technologies Co., Ltd. is a Chinese multinational technology company that provides telecommunications
equipment and sells consumer electronics, including smartphones and is headquartered in Shenzhen, Guangdong.
The company was founded in 1987 by Ren Zhengfei. Initially focused on manufacturing phone switches, Huawei
has expanded its business to include building telecommunications networks, providing operational and consulting
services and equipment to enterprises inside and outside of China, and manufacturing communications devices for
the consumer market. Huawei had over 188,000 employees as of September 2018, around 76,000 of them engaged
in Research & Development (R&D). It has 21 R&D institutes around the world, and in April 2019, opened the
dedicated Ox Horn Campus in Dongguan. As of 2017, the company invested US$13.8 billion in R&D.

`11 | P a g e
CHAPTER-3

Detail of the One Major Competitor

`12 | P a g e
ABOUT THE XIAOMI

Xiaomi Corporation is a Chinese electronics company founded by Lei Jun in 2010 and headquartered in Beijing.
Xiaomi makes and invests in smartphones, mobile apps, laptops, bags, trimmers, earphones, MI Television, Shoes,
fitness bands, and many other products. Ranked 468th, Xiaomi is the youngest company on Fortune Global 500 List
for 2019. Xiaomi released its first smartphone in August 2011 and rapidly gained market share in China to become
the country's largest smartphone company in 2014.Xiaomi has 15,000 employees in China, India,
Malaysia, Singapore and is expanding to other countries including Indonesia, the Philippines, and South Africa.
According to Forbes magazine, Lei Jun, the founder and CEO, has an estimated net worth of US$12.5 billion. He is
China's 11th richest person and 118th in the world. Xiaomi is the world's 4th most valuable technology start-up after
receiving US$1.1 billion funding from investors, making Xiaomi's valuation more than US$46 billion.

MISSION

 To Customer: Provide superior service experience.


 To Employee: Inspire and unleash the potential of staff.
 To Partner: Be a reliable business partner.
 Make Quality Technology accessible to everyone
 Engaging Users or Fans helping them to develop their new products.
 To lay more focus on After-Sales Service.

VISION

 Market-Image will become the undisputed worldwide leader for product identification solutions by being
customers' most trusted business partner.
 Creating an Internet Ecosystem through their innovation in Technology.
 To achieve the top spots in Smartphone Industry.

VALUES

 Collaborative entrepreneurial spirit: -


We operate as entrepreneurs while working together to leverage our scale and resources as a global company.

 Winning through customers: -


It’s being passionate about our customers’ success, because we know that when they win, we win.

 High ethical standards, openness and trust: -


It’s about trusting and respecting one another, being honest and genuine.

 Respect and value people: -


We recognize people as individuals deserving respect, motivation and inspiration.

`13 | P a g e
TAG LINE

 Accelerate your life.


 Rise to power.
 Fast as light.
 Power at least.
 Power has a new look.

LOGO

`14 | P a g e
SWOT ANALYSIS

Strengths in the SWOT analysis of Xiaomi

One of the Largest Smartphone maker – Xiaomi is one of the largest smartphone makers in the world. It is said
to be the 5th largest smartphone manufacturer as of 2017. Originating from China, the Smartphones are
manufactured in huge quantities and have wide acceptance across the world.

Highest selling Smartphone – The REDMI Note 4 became the highest selling smartphone in India and China and
practically in 50% of the Asian market. This shows that Xiaomi is strongly rising in the smartphone market and has
already beaten several giants.

Huge China and Asia market available – Another benefit to Xiaomi is that the whole Asian market is their
playground. As China lies within Asia and as Chinese mobile brands are highly penetrated in the Asian markets,
Xiaomi still has a lot of ground to explore.

Penetrative Pricing – Xiaomi has the strongest penetrative pricing advantage because it generally uses direct
marketing techniques and avoids dealer and distributor margins.

Good Quality products – Even at such low prices, no one can doubt the quality of Xiaomi phones. The smartphones
are regularly rated high on all E-commerce portals – a further proof that Xiaomi does not compromise on quality
even if lowers the price regularly.

Manufacturing Advantage – China has a huge manufacturing advantage because the country in itself is known for
manufacturing and exporting the products. China is also one of the largest consumers in the Asian market.

Rising Brand Awareness – Xiaomi’s brand awareness is rising and more and more people are getting to know
about the brand thereby resulting in higher sales across the globe.

Growing year on year – The company which started manufacturing in 2011 has grown by leaps and bounds and is
regularly growing year on year.

E-commerce advantage – The Flash sale model is a very popular model which has worked wonders for Xiaomi.
In this model, the product is made available only in limited quantities and sold at a very low price. This model made
the consumers crazy and each Xiaomi looked like a price which was hard earned.

Specifications of the smartphones produced – Xiaomi smartphones are technologically advanced as well and they
give higher tech specs at lower price. Xiaomi phones are especially renowned for their camera which is said to be
very high resolution and gives excellent photos.

`15 | P a g e
Weaknesses in the SWOT analysis of Xiaomi

Offline Distribution – Xiaomi mainly sold through the flash sale but at times, it was difficult for customers to get
their hands on a REDMI or MI model phone. This is because their offline distribution is not upto mark and Xiaomi
phones sell mainly via E-commerce.

Advertising and Marketing spends – The advertising and marketing spends of the brand is very low. The brand
launches ATL campaigns only when coming up with a new product. However, the advertising is erratic at best and
is never consistent.

Brand Image and Equity – Because the advertising and marketing efforts are poor, the brand image is not so good
as Samsung or Apple or other such competitors. The product portfolio of Xiaomi is also limited which further
effects the brand image. Service centers too are limited and all these factors contribute to the low brand equity and
reputation.

Low Skimming price – While other smartphone manufacturers survive on skimming price, Xiaomi launches its
own phones at low prices in the flash sales. As a result, it cannot take advantage of the skimming price or the
advantage is not as profitable as it would be for Samsung or Apple or other such high end brands.

Opportunities in the SWOT analysis of Xiaomi

Expansion – Covering the developing countries and the emerging markets should be the priority for Xiaomi. As it
mainly follows online sales model, which is becoming popular in many countries, it should expand to countries
where E-commerce mode of purchase is well established or in the process of establishment.

Distribution – Besides online distribution, Xiaomi also needs to concentrate on offline distribution if it ever wants
to be consistent like some of its top competitors. Offline distribution would also mean higher expenses and therefore
a rise in price. But it will help the brand to create a long term image and equity.

Brand Building – Brand building methods such as Sales promotions, Trade promotions, ATL campaigns and BTL
campaigns should be launched as regularly as possible to build a better brand image. Xiaomi is far behind Oppo and
Vivo where BTL Campaigns are concerned.

Product Portfolio – Product portfolio of Xiaomi is limited and it has 2 major series which actually contribute to
the complete revenue of the brand. Expanding the product portfolio will help the brand in brand building as well as
in getting higher revenues.

`16 | P a g e
Product innovations & Differentiation – Being a market follower is tough and Xiaomi needs to get a step ahead
by introducing highly differentiated phones which have innovative touches to it. More over, it needs to advertise
these advantages to get more and more customers to buy their products.

Penetration of Smartphones – Across the world, the smartphone as a product is being adopted and people are
using more and more smartphones with combination of Internet. This market penetration of Smartphones is for the
benefit of Xiaomi. The better phones they manufacture, the more they will be able to capture market share.

The dying need for expensive smartphones – People are tired of spending money every year on a Samsung S8 or
the latest Apple Iphone. People want cheaper alternatives so that they can change their phone every alternate year.
As a result, most potential customers who have the potential to buy high end smartphones are also buying chinese
smartphones for their lower prices. This is why majorly all rising smartphone brands are from China – Xiaomi being
one of them. This shift in consumer preference is to the benefit of Xiaomi

Threats in the SWOT analysis of Xiaomi

Competition – Oppo and Vivo are 2 of the biggest competitor for Xiaomi because they are themselves from China
and have the same manufacturing advantages like Xiaomi. Besides this, Oppo and Vivo have a strong offline
presence and have huge distribution network. Thus, they are a huge threat to Xiaomi.

Service – The lack of service centers equivalent to the number of sales by the brand is a worrying statistic. Xiaomi
needs to increase its sales and service centers both if it wants to retain its customers.

Brand Differentiation is absent – The smartphone segment has become such that brand differentiation is becoming
very difficult. Each brand is coming up with products which are almost similar, thereby making it difficult for the
customer to choose one brand over other. This will become especially difficult when more and more brands come
from China.

PESTLE ANALYSIS

Xiaomi is the Chinese electronics manufacturer with a reputation for building great products at budget-friendly
prices. Following recent investment, Xiaomi is valued as the fourth largest tech company in the world, so they’re
clearly doing a lot of things right. In today’s article, we’re going to use PESTLE analysis to uncover the Political,
Economic, Sociocultural, Technological, Legal, and Environmental affecting this tech giant. Then, we’ll be able to
see where Xiaomi should focus its future efforts for optimal results.

`17 | P a g e
Political Factors that Impact Xiaomi

The political factors that may impact the profitability or chances of survival of the company are quite diverse. The
political risks vary from sudden changes in existing political regimes to civil unrest to major decisions taken by the
government. In cases of possible multinationals, one may also include political factors that take place/ affect not
only the host country but also all countries that contain business operations, or that may engage in trade with Xiaomi
To properly appraise the extent of the overall systematic political risk that Xiaomi may be exposed to, the following
factors should be considered before taking part in any investments:

 The level of political stability that the country has in recent years.
 The integrity of the politicians and their likelihood to take part in acts of corruption, as the resulting
repercussions may lead to possible impeachments or resignations of high level government employees.
 The laws that the country enforces, especially with regards to business, such as contract law, as they dictate
what Xiaomi is and is not allowed to do. Some countries, for example, prohibit alcohol or have certain
conditions that must be fulfilled, while some government systems have inefficient amounts of red tape that
discourage business.
 Whether or not a company’s intellectual property (IP) is protected. For example, a country that has no
policies for IP protection would mean that entrepreneurs may find it too risky to invest in Xiaomi
 The trade barriers that the host country has would protect Xiaomi; however, trade barriers that countries
with potential trade partners would harm companies by preventing potential exports.
 A high level of taxation would demotivate companies like Xiaomi from maximizing their profits.
 The risk of military invasion by hostile countries may cause divestment from ventures.
 A low minimum wage would mean higher profits and, thus, higher chances of survival for Xiaomi

Economic Factors that Impact Xiaomi


Economic factors are all those that pertain to the economy of the country that Xiaomi, such as changes in the
inflation rate, the foreign exchange rate, the interest rate, the gross domestic product, and the current stage of the
economic cycle. These factors, and their resulting impact on aggregate demand, aggregate investment and the
business climate, in general, have the potential to make a company highly profitable, or extremely likely to incur a
loss. The economic factors in the PESTEL analysis are macroeconomic.
The economic factors that Xiaomi may be sensitive to, and in turn should consider before investing may include the
following:

 The economic system that is currently operational in the sector in question- whether it is a monopoly, an
oligopoly, or something similar to a perfect competition economic system.
 The rate of GDP growth in the country will affect how fast Xiaomi is expected to grow in the near future.
 The interest rates in the country would affect how much individuals are willing to borrow and invest. Higher
rates would result in greater investments that would mean more growth for Xiaomi
 However efficiently the financial markets operate also impact how well Xiaomi can raise capital at a fair
price, keeping in mind the demand and supply.
 The exchange rate of the country Xiaomi operates in would impact the profitability of Xiaomi, particularly
if Xiaomi engages in international trade. The stability of the currency is also important- an unstable currency
discourages international investors.
 A high level of unemployment in the country would mean there is a greater supply of jobs than demand,
meaning people would be willing to work for a lower wage, which would lower the costs of Xiaomi

`18 | P a g e
Social Factors that Impact Xiaomi
The social factors that impact Xiaomi are a direct reflection of the society that Xiaomi operates in, and encompasses
culture, belief, attitudes and values that the majority of the population may hold as a community. The impact of
social factors is not only important for the operational aspect of Xiaomi, but also on the marketing aspect of the
organization. A thorough understanding of the customers, their lifestyle, level of education and beliefs in a society,
or segment of society, would help design both the products and marketing messages that would lead to a venture
becoming a success.
The social factors that affect Xiaomi and should be included in the social aspect of the PESTEL analysis include
the following:

 The demographics of the population, meaning their respective ages and genders, vastly impact whether or
not a certain product may be marketed to them. Makeup is mostly catered to women, so targeting a majority
male population would be less population than targeting a population that is mostly female.
 The class distribution among the population is of paramount importance: Xiaomi would be unable to promote
a premium product to the general public if the majority of the population was a lower class; rather, they
would have to rely on very niche marketing.
 To some extent, the differences in educational background between the marketers and the target market may
make it difficult to relate to and draw in the target market effectively. Xiaomi should be very careful not to
lose the connection to the target market's interests and priorities.
 Xiaomi needs to be fully aware of what level of health standards, reactions to harassment claims and
importance of environmental protection prevail in the industry as a whole, and thus are expected from any
company as they are seen as the norm.

Technological Factors that Impact Xiaomi


Technology can rapidly dismantle the price structure and competitive landscape of an industry in a very short
amount of time. It thus becomes extremely important to constantly and consistently innovate, not only for the sake
of maximizing possible profits and becoming a market leader, but also to prevent obsolescence in the near future.
There are multiple instances of innovative products completely redesigning the norm for an entire industry: Uber
and Lyft dominate the taxi cab industry; smartphones have left other phones an unviable option for most et cetera.
The technological factors that may influence Xiaomi may include the following:

 The recent technological developments and breakthroughs made by competitors, as mentioned above. If
Xiaomi encounters a new technology that is gaining popularity in the industry in question, it is important to
monitor the level of popularity and how quickly it is growing and disrupting its competitors’ revenues. This
would translate to the level of urgency required to adequately respond to the innovation, either by matching
the technology or finding an innovative alternative.
 How easy, and thus quickly, will the technology be diffused to other firms in the industry, leading to other
firms copying the technological processes/ features of Xiaomi
 How much an improvement of technology would improve/ transform what the product initially offers. If this
improvement is drastic, then other firms in the industry suffer more heavily.
 The impact of the technology on the costs that most companies in the industry are subject to have the
potential to increase or reduce the resulting profits greatly. If these profits are great in number, they may be
reinvested into the research and development department, where future technological innovations would
further raise the level of profits, and so on, ensuring sustainable profits over a long period of time.

`19 | P a g e
Environmental Factors that Impact Xiaomi
Different industries hold different standards of environmental protection in their head as the norm. This norm then
dictates what every company should aim for, in the least, to prevent becoming the target of pressure groups and
boycotts due to a lack of environmental conscientiousness. A company in the textile industry, for example, is not
expected to incur the same level of pollution and environmental degradation as an oil company. The new consumer,
armed with the interest and the knowledge it carries, prefers to give its business to companies it views as more
ethical, particularly about the environment in the wake of global warming.
The environmental factors that may significantly impact Xiaomi include:

 The current weather conditions may significantly impact the ability of Xiaomi to manage the transportation
of both the resources and the finished product. This, in turn, would affect the delivery dates of the final
product in the case of, say, an unexpected monsoon.
 Climate change would also render some products useless. For example, in the case of textiles, in countries
where the winter has become very mild due to Global Warming, warm winter clothes have much less of a
market.
 Those companies that produce extremely large amounts of waste may be required by law to manage their
environmental habits. This may include pollution fines and quotas, which may place a financial strain on
Xiaomi
 If Xiaomi should (knowingly or unknowingly) contribute to the further endangerment of an already
endangered species may face not only the consequences from the law but also face a backlash from the
general public who may then boycott Xiaomi in retaliation.
 While relying, in any percentage, on renewable energy may be expensive, it often receives support not only
from the government but also from its customer base, who may be willing to pay a premium price for the
products that Xiaomi may produce.

Legal Factors that Impact Xiaomi


The government institutions and frameworks in a country, while technically also political and thus subject to
whichever political party holds the majority in a government body, are also legal and thus should be considered in
a PESTEL analysis. Often Xiaomi policies on their own are not enough to efficiently protect Xiaomi and its workers,
making Xiaomi appear an undesirable place of employment that may repel skilled, talented workers.
The legal factors that deserve consideration include the following:

 Intellectual property laws and other data protection laws are, as mentioned earlier, in place to protect the
ideas and patents of companies who are only profiting because of that information. If there is a likelihood
that the data is stolen, then Xiaomi will lose its competitive edge and have a high chance of failure.
 Discrimination laws are placed by the government to protect the employees and ensure that everyone in
Xiaomi is treated fairly and given the same opportunities, regardless of gender, age, disability, ethnicity,
religion or sexual orientation.
 Health and safety laws were created after witnessing the horrible conditions that employees were forced to
work in during and directly after the industrial revolution. Implementing the proper regulations may be
expensive, but Xiaomi has to engage in it, not only due to the law but also out of Xiaomi's personal feeling
of ethical and social responsibility to other human beings.
 Laws are also placed to ensure a certain level of quality or reasonable price for certain products to keep the
customer safe and prevent them for being provided. The industries this applies to find often their costs
elevated.
`20 | P a g e
CHAPTER-4

`21 | P a g e
MARKETING ANALYSIS
OPPO

4.1 product and services offered by OPPO

PRODUCT OFFERED

`22 | P a g e
`23 | P a g e
Fig: -4.1 Product of OPPO

`24 | P a g e
4.2 PRICING STRATEGIES

OPPO has carved a distinct name for itself in such a short time span and faces stiff competition from existing and
new players. It has been able to hold its own because of smart technology, meticulous designs and
its pricing policies. OPPO is striving to capture and impress younger generation, who are on a look-out for
trendsetters that offers unique user experience. The company has targeted high-end market for its smartphones by
offering attractive models that bring value to customers and revenues to the company. OPPO has adopted a mid-
premium pricing policy and kept its product prices on the higher side compared to similar products of its rival
brands. It has successfully assured its customers of value-based pricing and created a niche market for itself.

Oppo products are present to cater to various customer requirements from high end to low end segments. Even
though it is charging medium to high price for its products it is still keeping the prices of its smartphone products
lower as compared to its competitors such as Samsung, LG, Apple etc to attract the consumers towards its products
by offering good quality products differentiated in terms of camera quality at an affordable price. Thus, in reality,
it is using a penetration pricing strategy in its marketing mix for its products to get a larger market share. On the
other hand, Oppo digital products are marketed as premium products to gain market share in the North America
with their headphones costing $399. Further the price of the products charged are different in North America and
Europe with products costlier in Europe than in North America. Thus, the Oppo Global which is the smartphones
division serves the middle to low-end segments while the Oppo Digital serves the high-end segment with its
products.

4.3 Distribution strategy in the Marketing strategy of Oppo-

The brand has been distributing its products through various channels such as Retailers, distributors, wholesalers, e-
commerce websites and brick & motors stores like single-brand Retail outlets which recently the company has got
the license in India.

The brand has opened more than 200 stores in India and is planning to open more exclusive stores globally.
Additionally, it has been distributing its offerings through the exclusive tie-up with e-commerce giants Amazon
and Flipkart.

`25 | P a g e
CHAPTER-5
MARKETING ANALYSIS
XIAOMI
PRODUCT OFFERED

Fig 5.1: - Product of XIAOMI

`26 | P a g e
PRICE OF THE PRODUCT AND SERVICES

Xiaomi sells at low price and offers high quality products. According to the founder, chairman and CEO their main
aim is to sell the products at the price the product is produced without making any profit. So, the strategy being
followed by Xiaomi is sell at a low price today and gain later strategy. Their profit generation focus is on the
accessories, apps, and services that are to be used with their products. This is a unique pricing strategy in its
marketing mix, mostly aimed at gaining a substantial market share. The pricing strategy of Xiaomi has enabled the
brand to penetrate into a global market and have a substantial market share. Initially, they started with low end
feature phones to enter the market. Now, gradually, Xiaomi has also established itself as a leading smartphone
player across the world.
Most of the money spent on Xiaomi products are strictly spent on design and production. The company tries to save
as much as it can, thus offering products to the market at an affordable rate. In other words, on average, Xiaomi
products are lowly priced. The company mainly employs marketing strategies that don’t cost a lot. In addition, most
of the products are sold online thus reducing the cost that would have been spent to set up offline stores.

The company employs a pricing strategy that will help them get profits in the future. It is a sell-low-today but gains
later strategy. They, therefore, sell their devices at the exact cost that only covers production costs. Their profit
generation focus is on the accessories, apps, and services that are to be used with their phones and computers etc.
Xiaomi has proven that cheap pricing doesn’t always mean cheap products.

DISTRIBUTION CHANNEL OF XIAOMI

Fig 5.2: - Distribution channel


`27 | P a g e
WEB PAGE OF THE OPPO MOBILE

https://www.mi.com/global/about

MARKET SHARE

Fig 5.3: - Market Share

`28 | P a g e
COMPETITIVE ADVANTAGE

Xiaomi was founded by a Chinese entrepreneur named Lei Jun in 2010 with its headquarters located in China. The
idea behind it was to provide innovative solutions for everyone. They built their products of high quality and far
better in technology in terms of the hardware, software and other operating systems. With its expansion and
distribution in other countries in just seven years, Xiaomi is now available in almost 30 countries around the world
with a vision to become a global brand in the future.

With the kind of success that Xiaomi have had in just a few years, it is clear that it has been successful in its industry
and there are many reasons for why Xiaomi stands out in such a competitive technology world. It is often called as
the ‘Apple of China’.

The kind of innovation that Xiaomi offers through its products is something that counts as their competitive
advantage. Xiaomi has always kept its focus on providing something unique to the customers so that the customers
keep on upgrading their Xiaomi phones. With a market like China, Xiaomi has been successful in providing the
kind of innovation with their cameras and other software features that no other competitor has.

Most importantly, they take their innovation ideas by the latest trends and make sure that they are the first ones to
deliver in terms of that. For instance, they noticed the selfie fever rising all around the world and cashed on that by
improving their selfie camera and marketed it.

Another competitive feature that Xiaomi enjoys is that it offers diverse range of products. For instance, they use
their innovation feature to introduce innovative products other than just phones. This just keeps their product
portfolio increasing and their customers constantly involved in following up with the latest products that they offer.

Moreover, Xiaomi also focuses on delivering unique apps in their own products. Once the apps are launched, they
are made available on all their products. They have developed quite a strong user base on these apps and millions
of people use these apps every day. Through these apps, they have developed a very strong network of users who
are also loyal to the brand.

With this new technologically advanced generation and most of the users being active on social media platforms,
Xiaomi reaches out its customers following the trend. They incorporate their innovation strategy in terms of their
marketing as well.

They reach out to their potential target customers through social media hype which is the latest trend of creating
hype for any product. Because of this, Xiaomi has a very competitive marketing strategy and they claim that most
of their customers reach them for their product’s information because of the hype created on social media and the
power of word of mouth.

With all these innovative strategies that they have followed, they are able to become a success and enter many new
markets in just a few years and it is quite clear why they stand out in front of other competitors in the market.
`29 | P a g e
CHAPTER 6
OPERATIONAL ANALYSIS
OPPO
6.1 SUPPLY CHAIN MANAGEMENT

In this industry note, we explore recent changes in the smartphone market in China, which accounted for roughly
one-third of worldwide mobile sales in 2016. International smartphone brands such as Apple and Samsung
dominated China’s smartphone market in its early stages. Then, Xiaomi and Huawei, two Chinese brands, changed
the story. In 2015, Xiaomi and Huawei were ranked No. 1 and No. 2, leaving Apple in third position and even
squeezing Samsung out of the top 5. Just one year later, OPPO and VIVO (OV), two unfamiliar brands that had
nevertheless been cultivating the market for years, overturned the ranking again. OV occupied the No. 1 and No. 3
positions in 2016, pushing Apple to fourth place. Samsung’s market share shrank even further. With the variety of
players came a range of supply chain integration strategies and distribution channel models that raised interesting
questions about the inherent risks and rewards and how they would affect this changing market going forward.

A mobile phone has an extremely complex supply chain that is basically made up of three areas:

 raw material extraction,


 component manufacture,
 assembly.

Extracting raw materials

At the bottom of the supply chain is the raw materials extraction, such as metals and metal ores. The raw materials
are used to make the basic components of a phone. Often the raw materials are from mines with poor environmental
records, whose profits are sometimes linked to armed conflicts and that have little or no protection of workers'
rights.

China is one of the world’s largest suppliers of raw materials for electronic products. However, lax environmental
and social regulations have led to its mining industry being heavily associated with environmental degradation and
poor working conditions.

Manufacturing of components

The next few steps in the supply chain require manufacturers to transform the raw material into a usable material or
component. The end product is made up of many different components each with its own supply chain.

`30 | P a g e
A basic smartphone is comprised of the following components:

 a circuit board containing the brains of the phone;


 an antenna;
 a liquid crystal display (LCD);
 a microphone;
 a speaker;
 a battery and
 a camera.

Component suppliers are numerous and will often specialize in particular parts which may be used by many different
brands.

Assembly

Once the components have been sourced from manufacturers they are taken to a factory for assembly. In China the
largest company to assemble components for electronic companies is Foxconn. The iPhone is famously made at its
Zhengzhou facilities in China. According to the New York Times, it takes 94 production lines and about 400 steps
to assemble the iPhone.

The company has been linked to workers' rights abuses which in 2010 led to numerous workers committing suicide
due to the harsh working conditions. Since 2010 Foxconn, and brands which it supplies, have been working together
to improve conditions inside its factories. But, a 2015 report by campaign group SACOM reported that conditions
were still far from being satisfactory.

It found:

 Wages were increased but benefits were cut unilaterally


 Workers were forced to work overtime because of a low basic wage
 Harsh management style
 The Trade Union was not effective, where collective bargaining became a mere formality

Fig: -6.1 Supply chain management of OPPO

`31 | P a g e
6.2 Inventory Management Techniques

Effective inventory management is essential for ensuring a business has enough stock on hand to meet customer
demand. If inventory management is not handled properly it can result in a business either losing money on potential
sales that can’t be filled, or wasting money by stocking too much inventory. An inventory management system can
also help you prevent a number of other mistakes:

Barcode scanning: Easily identify and track your products; inventory management software integrates with
barcode scanners for instant product identification and labeling.

Inventory optimization: Maintain just the right amount of inventory for each product, without over- or under-
stocking any item. It’s especially useful if you deal in products that experience a seasonal rise and fall in demand.

Stock notifications: Receive alerts and notifications when there’s over- or under-stocking beyond a defined
threshold. This helps you to place orders or offer promotional discounts to clear out extra stock.

Report generation: View sales history in the form of a list of your most popular products. This feature also enables
you to manage items in your inventory that have not reached the sales levels you expected, for example, by offering
discounts on them.

Multilocation management: Manage multiple warehouses and points-of-sale (POS). All locations can be
integrated within a single inventory management system.

Stock returns handling: Manage returns more effectively by reducing time-to-return through automation of the
entire process.

Material grouping: Group inventory into predefined categories and ensure you’re always updated about quantities
of components and specifications that make up your product stock, and manage their reordering schedules as
required.

Purchase order records: Create a single view of purchase order records. You can easily identify which products
are in demand, both perpetually and seasonally, and prepare to meet your customers’ needs.

`32 | P a g e
6.3 Distribution Management

The brand has been distributing its products through various channels such as Retailers, distributors, wholesalers, e-
commerce websites and brick & motors stores like single-brand Retail outlets which recently the company has got
the license in India.

The brand has opened more than 200 stores in India and is planning to open more exclusive stores globally.
Additionally, it has been distributing its offerings through the exclusive tie-up with e-commerce giants Amazon
and Flipkart.

The Chinese brand is promoted and marketed by BBK Electronics, the parent company of the brand. The company
has been aggressively promoting the brand as selfie expert in order to capture the aspiration and imaginative space
in the mind of the consumers.

The brand along with its sister concern Vivo is committed to the Indian & Asian market, the biggest market for the
duo. Oppo has been leveraging the two crazy attractions of the Indian market i.e. Cricket and Bollywood to engage
with the vibes of the young generation.

Fig: -6.2 Distribution channel of OPPO


`33 | P a g e
6.4 Capacity Management

Chinese phone maker Oppo on Friday said it is expanding smartphone manufacturing unit to double production

capacity by 2020 in India, and use it as export base for South Asia, Midddle East and African countries. The

company also has plans to further scale the manufacturing capacity to produce 100 million smartphones annually at

its Greater Noida facility, the smartphone maker added.

"Currently, we are producing 4 million smartphones a month and by the end of 2020, we will double our existing

capacity. With the increased production and future export plans, we aim to achieve our dream of making India a

global export hub for smartphone phones," Oppo India vice president for product and marketing Sumit Walia said

in a statement.

According to Counterpoint Research, Oppo brand smartphones at present are estimated to have around 8% market

share in India. Oppo plans to export to South Asia, Middle East and Africa markets from the Greater Noida facility,

spread across 110 acres, the statement said. "To ensure quality, the campus has over 10,000 strong workforce

engaged across manufacturing line, quality assurance and product testing. The manpower capacity is expected to

cross 15,000 by 2020.

Chinese device maker Oppo having capacity of manufacturing 15 million products in a year in India, will be setting

up a new facility in Greater Noida which would be able to produce 50 million devices in a year, the company said.

The current facility in Greater Noida houses nearly four thousand Indian employees. The new factory is expected

to become operational next year, according to Jason, Oppo’s Quality in charge at the current factory.

`34 | P a g e
CHAPTER 7
OPERATIONAL ANALYSIS
XIAOMI

7.1 SUPPLY CHAIN MANAGEMENT

On April 6, 2015, the Guinness World Record for the most smartphones sold in 24 hours was broken. Setting the
record at 2.1 million units was Xiaomi—the world’s third highest valued startup (following Uber and Didi
Chuxiang, Uber’s Chinese equivalent).

Currently valued at $46 billion with $1.4 billion in funding, Xiaomi took the Chinese smartphone market by storm
in 2010 when it was founded by Chinese entrepreneur Lei Jun. From 2013 to 2014, the number of units Xiaomi
shipped in China grew 186 percent, while its total worldwide shipments grew 224 percent. At the end of 2014,
Xiaomi edged out Samsung for the title of most popular smartphone in China—shipping 12.5 percent of all
smartphones in the country.

But shortly after tasting success, Xiaomi experienced ups and downs as it competed against major brands like Apple
and Huawei in an increasingly saturated Chinese market. After a slump in 2015 followed by a rebound the next
year, Lei admitted that the firm had grown too fast, leaving room for nimbler players to outmaneuver it. Last year
the company had a revenue target of $15 billion, which it reached ahead of time thanks to aggressive investment in
Asia and India (where it’s now one of the highest-selling smartphones). Now, Xiaomi's CEO is looking to expand
to the "final frontier"—the U.S. market

From the outset of the venture, founder Lei Jun was focused on establishing and maintaining a high quality supply
chain, and not without reason. Even among domestic consumers, there was a widespread perception that smartphone
companies in China were only good for making knockoff Apple products. To gain any traction in the heavily
saturated Chinese smartphone market, Xiaomi had to ensure that its products far exceeded those expectations.

To do so, Lei Jun went on an aggressive campaign to woo and cater to the highest quality suppliers in East Asia,
averaging over 10 supplier meetings a day for the first five months of Xiaomi’s existence. In the end, his diligence
paid off—Xiaomi now partners with the world’s most highly touted hardware manufacturers including Sharp,
Foxconn, and Wintek. Some suppliers, including Qualcomm, were so impressed with Mr. Lei’s vision and diligence
that they invested in the company itself, lending further credibility to the company’s supply chain and guaranteeing
a continued supply of high-quality components.

`35 | P a g e
Fig: -7.1 Supply chain management of XIAOMI
`36 | P a g e
7.2 Inventory Management Techniques

Xiaomi, the Chinese electronics and software company, does not have big, secret warehouses in India where it is
dumping unsold inventory and is actually selling smartphones faster than any other brand in the country, Xiaomi
India Managing Director and Global Vice President Manu Kumar Jain has emphasized.
The exponential growth of Xiaomi in India, especially in the last two quarters, when it dethroned Samsung from the
top spot, has alarmed the South Korean giant – a market leader for years – which registered 27 percent growth in its
mobile business revenue for the financial year 2016-17, touching a mammoth Rs 34,300 crores.
Reacting to a question that its arch rival believes that “shipments are important but they don’t tell the final market
share”, Jain said Xiaomi has the leanest distribution system network in place and whatever is being produced locally
or being imported into the country is fast going off the shelves.
“Whatever is being produced locally or shipped into India from us is actually being sold faster than any other brand,
unless I am building big, secret warehouses and accumulating the unsold handsets there,” Jain told IANS.
“We don’t have even a week’s inventory anywhere in our system, unlike other brands who at times have two-three
months of inventory. We are selling stocks coming in the second week of January right in the third week,” Jain
mentioned.

Fig: -7.2 Inventory Management of XIAOMI

`37 | P a g e
7.3 Distribution Management

Technology company Xiaomi has put in place a strategy that includes a stronger push to sell through its own Mi

online store and has made changes to its distribution model, as it seeks to continue growth in markets outside China.

Lei Jun, Founder of Xiaomi, is not yet a Jack Ma (founder of Alibaba) but the aspirations of both have a common

theme — to revolutionize and disrupt the existing lines of business that they are in. While Ma has a head start on

this journey (with Alibaba being the world largest IPO), Jun has started off strong but not yet quite in that league.

To get into that league, Xiaomi is looking at the world’s second largest cellphone market and whose Internet

penetration is set to be number two, after China. Since the release of its first smartphone in August 2011, Xiaomi

has gained market share in mainland China, grabbed significant market share from Apple and expanded into

developing a wider range of consumer electronics, such as TVs.

Now, Xiaomi is looking to recreate that magic in India. “Last year was interesting and our numbers show that,”

Manu Jain, India head of Xiaomi, told Business Line.

He substantiates saying that in the third quarter last year, Xiaomi crossed sales of 1 million units and repeated this

feat in the fourth quarter, fuelled by the uptake of its Mi range of smartphones and tablets. “What is heartening is

that this is our first full operational year in India,” says Jain. The company, however, did not disclose its total sales

last year.

So, what led to that growth? The company launched an India-focused phone, at a time when most others either bring

their phones to India or just stamp their brand names on them. Xiaomi, which started selling only through Flipkart,

has started selling through other channels such as Amazon, Aitel stores and even brick and mortar distributors like

Redington.

`38 | P a g e
7.4 Capacity Management

As it crossed the $1-billion turnover mark in India, Chinese smartphone maker Xiaomi is planning to increase its

manufacturing capacity in India. The company, which outsourced its manufacturing to Foxconn, is presently

meeting 75 per cent of its demand from production in India.

“We are planning to increase this further. Sourcing locally has helped us in reducing the time-to-delivery. This has

also helped in forecasting demand and getting prepared accordingly,” Manu Jain, India Head of Xiaomi,

told BusinessLine.

The two-year-old firm, which started with a few employees, now employs 175. “These are on our payrolls. But

indirectly, we employ 3,500 jobs. They work at warehouses, call centre and at the manufacturing facilities,” he said.

The firm runs two call centres in Bengaluru and Indore, with a combined base of 600 employees.

The firm, which used to sell its phones only on online channels, has started offline sales last year.

From under 2,000 outlets in January last year, the number of offline sites went up to 8,500 now. “We would expect

the contribution from the offline channel to go up from 25-30 per cent next year from the 10 per cent now,” he said.

Jain was here in connection with the launch of Redmi Note 4 that comes with Qualcomm’s Snapdragon 625

processor and 4,100 mAh battery, which is 25 per cent more than the one in its predecessor Redmi Note 3. The

phone in three variants, sold on Mi.com and Flipkart, is priced at ₹9,999, ₹10,999 and ₹12,999.

He said the firm would continue to stick to its policy of launching a few phones in a year unlike its competitors that

launch a host of models.

“We believe in launching a small number and doing a great job of giving a good product and good service rather

than launching many doing an average job with the products,” he said.

`39 | P a g e
CHAPTER 8

FINDINGS

`40 | P a g e
Findings

 Increasing number of consumers using more than one handset at a time increases sales
possibility.

 Growing trend among mobile phone users to frequently purchase new handsets to
replace old models.
 Consumer base becoming more and more feature variety oriented.
 Increasing goodwill with local distributors/retailers.
 The new systematic pricing policy allows it to cut into all price segments of the target
market.
 Increasing consumer interest in high tech mobile phone accessories such as
USB-Bluetooth Device. Consumer base becoming more and more feature variety oriented

`41 | P a g e
CHAPTER-9

RECOMMENDATION

`42 | P a g e
Recommendation

Xiaomi have been improving their customer engagement and social media a lot. There are many fans who like Apple
fans. Xiaomi want to keep expending to other market and looking for more market share, so there are also many
things they need to keep improving. There are some recommendations for xiaomi to improve, in order to make a
stronger relationship with the customers.

Firstly, Xiaomi can do more for the fans festival, the special offer for their mobile phone and parts is necessary.
There are also many other elements can be noticed for the fans festival, make the distance between the company
and customer smaller in this day can be a good idea. There should be activities on this day, the staffs and customer
can sit together for a further communication than just talk online, the endorsers can also do some activities with the
fans.

Secondly, Xiaomi can put out more information of their customer experience instead of the foundation of their
products. Customers always want to look for somebody with a similar experience, new stories always attract more
people, share with others with their stories can make the environment of users relaxing.

Millions of consumers are so particular about the camera capabilities of the smartphone they buy. This is why
manufacturers take it into consideration when designing their newest models. Having just the right size is crucial in
attracting consumers to buy a certain smartphone model. There is no standard size that can be used to determine
whether or not a phone has the right dimensions. It generally depends on the preference of the consumers.

Oppo allows for more expansion of memory, which is practical for users who really like taking and storing photos
and videos. In order to make recommendation about developing brand strategy for OPPO Communication
Equipment Co. Ltd. toward the business community, the first thing must be done is to identify problems that OPPO
brand is currently facing. Base on the analysis and survey valuable information and insights are extracted to point
out weaknesses in the way OPPO manages its brand.

`43 | P a g e
CHAPTER-10

REFERENCES

`44 | P a g e
References

1. https://www.tutor2u.net/business/reference/sales-promotion

2. https://www.smartinsights.com/marketing-planning/marketing-models/pestle-analysis-model/

3. https://www.marketing91.com/marketing-strategy-of-oppo/

4. https://goodyfeed.com/10-facts-about-oppo-you-probably-didnt-know-about/

5. https://economictimes.indiatimes.com/tech/hardware/oppo-to-double-smartphone-production-in-india-by- 2020-
use-it-as-export-hub/articleshow/70604410.cms?from=mdr

6. http://www.assignmentpoint.com/business/internship-report-on-marketing-strategies

7. https://telecom.economictimes.indiatimes.com/news/oppos-new-facility-with-50-mn-production-capacity-to-become-
operational-in-2019/64160076

8. https://spark.adobe.com/page/f9r2J/

9. https://qz.com/india/1675443/xiaomi-oppo-vivo-realme-indias-favourite-smartphone-brands/

10. https://www.forbes.com/sites/panosmourdoukoutas/2019/10/19/xiaomi-huawei-oppo-and-vivo-pushed-samsung-out-of-
the-chinese-marketis-apple-next/#7232c7420b10

11. https://www.thehindubusinessline.com/companies/xiaomi-plans-to-raise-capacity-offline-sales/article9522862.ece

12. https://www.elementum.com/chain-reaction/xiaomi-smartphone-startup-supply-chain

13. https://economictimes.indiatimes.com/

14. https://www.mbaskool.com/marketing-mix/products/17336-oppo.html

15. https://mobile.mi.com/in/index.html

`45 | P a g e

You might also like