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
were branded to the bone. They always understood that they were selling brands before product. They had their eyes fixed on global expansion.
Another weakness of Company Q is in marketing and promotions. Even the best products have to be marketed and sold. Since the major stockholders of the company are technology and production
To properly determine the market demographics of the target market, one must first identify the market. In regards to the overall target market, users would include those between the ages of 10-65. Both male and female will be targeted. In addition, small to medium sized businesses (those employing 500 of less people) will also be targeted. According to census data there are currently 312 million documented individuals in the United States. Of those, both the baby boomers and their children are the largest demographic, composing roughly half the population. These individuals are more familiar with telephone handsets and those would be more apt to purchase the product. In addition, the states with the largest amounts of these demographics are New York, California, Florida, and Texas. Our repositioning strategy will focus on these key target markets. Within these markets however, the company should use very direct, pinpointed marketing. For instance, Miami, Florida, has the third amount of wealth per capita in the United States. As such, the repositioning strategy would benefit from marketing in this region. The same can be said for Tyler Texas, Los Angeles California, and New York, New York.
If the reputation of the company and the relationships whit their clients does not affect by supplying more imitated products "which we can not guarantee".
Several key points are presented in the article for how companies can be successful. The first, is that companies must be innovative and be willing “to change their core products or business models” (Bertolini et al., 2015, p. 90) to keep up with the change in the marketplace. This may require that they rebrand their product, or change their business
It only focus on high end and performance market segment initially, so R&D, marketing activities are more effective than other companies with its competitive advantage in High-Tech product.
They also applied to certification and approval of the international telecommunications standards and for the NAL (Network access license) which usually costs about($30,000 - $40,000). The development time was about 4-6 months. The Shanzhai companies had a simple conceptual design process. Their market research was simple and they relied on the input from distributors and local sources. They outsourced the design to local design houses and did not perform quality inspections. They often bypassed the required government approvals. Companies like MediaTek introduced turnkey solutions such as the chipset (SOC- System on Chip) provided integrated functions into one chip which was previously provided by multiple chips. The manufactures only had to source components such as camera, battery and exterior housing. The chip provided functions for basic communication, was blue tooth ready, had Touch screen support, Interface for camera etc. If the manufacturers needed extra functions they paid an extra fee to access the software drivers for those functions. Shanzhai mobile phone makers could now quickly and easily develop new models. The time taken for a Shanzhai company from conceptual design to mass production was as short as 45 days. In general they took about 8 days to analyze and copy a new model (from a branded company) including the circuit board, software and the structure. The main circuit board and the software design together with the purchase of
The dilemma here is whether or not they should change their product. Are they taking advantage of government subsidies, or should they change the way they sell their business? Do they want to evade the law or follow the spirit of the law? Following the spirit of the law means obeying what the law intended, instead of
How to provide their customers with a unique and desirable product line that no other
With any industry, there are many challenges within a company and some that are unbearable, but workable to achieve. Many companies, if not all want to be able to bring in the most revenues, profit, ROE, and have an image rating that will portray consumers to keep coming back and purchasing their products, their products are also reflected in the stock market and how the company is doing financially. If a company cannot distribute within their goals and objectives on customer demands, the company may be at the
They learn from the masters, like in Kungfu. They are branded copycat or imitators, but they actually just have to learn and apply what they see from the bigger companies as these are the open secret formula for success.
In today’s society the cell phone market is a huge competitive industry for cell phone companies. There have been studies that show that half the world has cell phone accounts. One attribute that defines the cell phone market is the idea of consumers is giving up their land line phones. This has caused a large influx of customers into the market for cell phones. As technology continues to advance, a variety of cell phones are developed and marketed to different areas across the nation. Cell phones are available for business and
Target Market – “a segment that has been selected as a focus for the company’s offering or communications” (Jobber and Fahy, 2009)
Implement new strategies to prevent this from happening in the future and embark in a completely new advertising strategy to re-affirm their brand.
Zhujiang iron and steel company (ZISCO) is an important strategic business unit within Guangzhou iron and steel enterprises holding limited (GISE), established in 1997 as a state owned organization. Before 2003, ZISCo pursued a product differentiation strategy with a focus on domestic niche markets because ZISCo was new in steel market and had no distribution channel. With this strategy ZISCo couldn’t achieve economies of scale, minimum cost, high product quality and continuous production. This strategy also increased inventory cost, reduced the company’s bargaining power with supplier and created co-ordination problems.