Shanzhai

In the 1980s, Motorola was the major supplier in consumer market cellular telephone and pager systems. In the 1990s, Motorola was the number one of mobile sales. Today, “Motorola is a major player in a fierce electronic revolution of global dimension.” (Entrepreneur Media, 2011, p.1 ) .

Shan Yu is a cunning strategist with a high level of intelligence. The warlord managed to infiltrate the Imperial palace and kidnap the Emperor of China with only five of the remaining members in his army. In combat, Shan Yu is a ruthless brawler, using his strength to overwhelm his opponents, employing a series of grapples, head-butts, and strangle holds, choking enemies into submission. As a warrior, Shan Yu brandished a Chinese version of the Moro sword, a  single hand double edge sword with a silver guard, medium length hilt, and a flamberge style blade. With his blade, the warlord  hasn't shown any particular skill, relying on brute force accompanied by heavy cleaves to butcher his enemies.

Born in an unknown village, Shan Yu was a ruthless killer and leader of the Hun army. During his quest for power, the warlord managed to infiltrate the walls of China and began to wreak havoc on the populace. After destroying a small village, Shan Yu discovers a pair of spies hiding in the mountains. As a result, the warlord orders his men to capture the agents and subsequently forces them to deliver a message to the emperor. Before  long, Shan Yu orders his archer to murder one of the scouts. As the warlord traveled to the imperial city,  Shan Yu learns that General Li planned to ambush him and his troops. However, Shan Yu rushes into the trap and manages to defeat his adversaries. After eliminating members of the imperial army, the warlord

Less lead time:- Shanzai took only 45 days for mass production which was considerably less than time taken by the traditional manufacturer. So they can provide maximum variety of mobile phones in minimum amount of time.

Technology is a huge impact on society. It shapes the way people talk, work, and study. They can also change our perspective on life. However, the most influential change that came across the world is cell phones. They are one of the most valuable electronic devices that made it easier for people to communicate with another person. BlackBerry is the prime example of expanding the cellular universal. It changes the way people are using cell phones due to its high quality features. However, the BlackBerry company did not always have a perfect way of being managed and market internationally. They have had to deal with issues that affected them. Furthermore, there has been a case study about BlackBerry’s business aspects. It is called “BlackBerry

Apple lost valuable market share to Chinese manufacturers Huawei and Oppo, which saw promising increases in their shares year over year (9to5Mac, 2017). Currently, the iPhone market share is decreasing in China, the world 's second-largest economy after the U.S., which can be attributed to new manufacturers and iPhone users delaying upgrades (9to5Mac, 2017). While all products go through a product life cycle, Apple has already been through this cycle with at least two products (Forbes, 2016). Currently, Apple has no backup to replace its vanguard iPhone product. Adding to injury, the competing Huawei P9 phone compares well against the iPhone 7 and cost 30 percent cheaper than the iPhone (9to5Mac, 2017). In addition, cheaper android phones that offer everything the iPhone does and sometimes more at fraction of the price are also gaining market share rapidly (9to5Mac, 2017).

Through data analysis, we found that most of the designing and brands countries of mobile phones, computers, earphones and smart speakers are located in Europe and the United States, but most of the manufacturing places are located in developing countries such as China. In the international division of labor system, barriers to entry are high in the so-called capital-intensive industries such as automobiles, aircraft, computers, semiconductors and heavy machinery. (Xu Jia. 2008) Oligarchic manufacturers are at the high end of the value chain to coordinate production networks. They not only control the suppliers of raw materials and parts, but also are in close contact with distribution and retail process, with a control of the entire industry value chain. For example, in the automobile industry, large vehicle companies have a global market share of 60%, the top 16 auto parts companies occupy 40% sales in the global market share. A global automotive industry system is under the direct control of these brand manufacturers, moving forward in accordance with their wishes. (Yue Chenyan，John C, Beghin, Helen H. & Jensen Tarif. 2005)

Smartphone producers often attempt to get an edge over their competitors by using tactics that involve bending the law and attacking the reputation of rivals. The advancement of the development of new technologies during the past decade is a result of fierce competition between many companies in the mobile industry. While some of a company 's efforts are focused on the development of new features or upgrades to existing technology, many of them are focused on taking down competition by any means necessary. These companies gain a following by attempting to sabotage the reputation of their competitors while maintaining a positive reputation themselves. Such competition has evolved into a sense of consumer favoritism with many consumers

Many components are required and involved in the assembly or in the making of a smartphone. Looking at Samsung competitor, Apple, in an effort to determine the high end of how much it costs to produce a product, renowned for its quality, the Apple 7, for example, costs $224.80 in bill of material costs to manufacture (Buetow, 2016). Presumably, each new product release and launch, including the new and higher price, would be based on the consumer anticipation of higher quality functions and inputs or capabilities. For example, the Apple 7 offers increased storage density, larger battery, waterproof microphone, water resistance, all with a new look (Buetow, 2016).

China is the world’s largest mobile phone market. Due to the large size of the Chinese cell phone market and its potential for long-term continual growth, competition for access to China’s consumer markets is intense. For the first ten years after entering China, Motorola had no competition but now competitive threats from other multinational companies like Nokia, Siemens, Samsung, and local producers like TCL are a cause for concern within Motorola.

Since the emergence of the mobile communication, mobile phone changed people 's life greatly. Especially the advent of the era of mobile Internet, the communication industry and mobile phone industry develop at top speed and become the new growth point of national economy. In a functional diversity and smartphones as mobile Internet terminal as the theme of today 's mobile phone market, the domestic mobile phone have, developed its own brand smartphone, Xiaomi mobile phone as a rookie, domestic handset has attracted the attention of more and more mobile phone enthusiasts, that also for the mobile phone market in China has brought new hope and expectation. Some people say that the success of the Xiaomi owe to it’s low price, and don 't think this success will go too far. But I think the low price is an aspect of success, but not the whole. Xiaomi’s unique business model and management strategy determines its success.

Samsung also has a strong customer loyalty to its brand which can be a strong barrier to the new entrant. According to the (Anonymous, 2009) Mikah Martin Cruz,marketing director of Samsung Electronics UK claims that nurturing the customers brand loyalty to samsung is the main pillars of marketing direction. The threat of substitute for Samsung may be due to the similar phones with more advanced feature that are usually of competitor brands like the Apple iphone,Huawei etc.Price also may play a role in chances of substitution when a competitor brand provides the same feature with a relatively low price. Due to the rapid growth in technology the smart phones are likely to be substituted more advanced technologies. (Boult, 2015) claims that smart phones may not exist in another five years as consumers are getting interested in Virtual Reality VR.The power of consumers is high as there are varieties of smart phones available in the market. In case of Samsung too consumer has the power to bargain and have choices of different varieties of phone with same features and relatively low prices. The Power of supplier is low for Samsung because Samsung has its own supplier for most of the components. Samsung supplies its own raw material and also manufactures its own processor and its components.

“How can I build a company in China that can last over 100 years?” Lei Jun, a back then 40-year-old investor and serial entrepreneur, always asked himself when he was thinking about founding a company to prove that high-end hardware can be made in China, despite the country’s reputation for manufacturing low-cost, low-quality goods. At that time, two very well-known and successful Chinese companies inspired him. One of them is Tong Ren Tang, a 340-year-old traditional Chinese medicine company. It taught Lei that a company should never produce lower-quality products for the sake of cost. The other company is Hai Di Lao, a hot pot chain, which demonstrates how successful a restaurant can be by putting extremely strict emphasis on the superior customer service for over ten years. These two core values, high-quality product and service, eventually became the foundation and guidance of Lei’s new venture – Xiaomi Corporation, a smartphone company.

Xiaomi was growing rapidly in the last five years in which it has become the world’s third largest smartphone company. Xiaomi has a great understanding of its customers and the market; therefore, it was able to attract many customers and create high quality products. One of the major factors that contributed to Xiaomi’s success was the mobile internet and e-commerce strategies. Xiaomi grew into a mobile internet and e-commerce company that contract-manufactures smartphones and compatible devices designed to offer a complete customer experience. The second major factor was Xiaomi’s world-class team. Xiaomi contained a world-class team of Chinese executives and one prominent western executive, with collective experience at top foreign IT firms like Google, Microsoft, Motorola, and Yahoo. Its executive team complemented Lei Jun, Xiaomi’s driven founder and CEO, and brought attributed that Lei Jun lacked. Furthermore, the last major factor was Xiaomi’s manufacturing model, which is based on customer demand. In other words, when Xiaomi’s customers place their orders

Xiao Mi came up with a very well thought plan of a vast wide array of suppliers and market channels. China was a retail-dominated mobile device market. Any mobile phone manufacturer could choose whether or not to get a space in retail store and sell phones to the public. Xiaomi had decided to use online selling as their primary means of distibution on the purpose of lowering sales costs and its products prices which proved to be a success in its domestic market(China).