Shanzhai Phones Essay examples

Satisfactory Essays

1. What characteristics are critical to the success of Shanzhai companies? What can mainstream companies do to mitigate the impact of Shanzhais? Characteristics that are critical to the success of shanzhai companies are:- * Fast supply chain:- Since they don’t carry any inventory they transfer the inventory risk to wholesalers thus converting their inventory quickly into fast cash. * 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. * Target mass market:- The target the people who could not afford the modern expensive mobile phones by …show more content…

* They should learn good qualities (from tianyu) of shanzhai and implement it in their own industry and try to reduce the cost of product. * They should broaden there market by contacting wholesalers who can sell their phones in rural market as well.

2) What must companies like Shanzhais do to become mainstream? Things that companies like shanzhai should do to become mainstream:- * They should go through all the legal procedure of the government and make their brand name. * They should focus on producing products of high quality and good reliability as these are the major drawbacks of their product. * Rather than copying famous brand products they should make their own innovative products and add more features that attract the customers. * They should provide good customer support. * They should look out for countries, which have minimal cost for legal procedure and at the same time provide good market for their phones. * They should use standardization in their production to achieve high quality. * They should collaborate with big companies like foxconn and establish their brand name. * Since IMEI is one of the major reason for the loss of sales of this phone, so they should develop phones that have IMEI codes so that they can be tracked easily. This will help a lot to them in exports to india as well. 3) What are positive and

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