Oneplus report PDF

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One plus business analysis report...

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INTRODUCTION OnePlus is a Chinese smartphone manufacturer based in Shenzen, Guangdong. It was founded in December 2013 by two former Oppo employees Pete Lau and Carl Pei. Its main goal is to offer premium handsets at a relatively lower price. OnePlus currently serves in 34 countries. It’s the leading smartphone manufacturer in India with a market share of 37%, ahead of the likes of Apple and Samsung.

VALUE CHAIN ANALYSIS INBOUND LOGISTICS OnePlus outsources the raw materials, components and various parts from FoxConn which is the world’s largest electronics manufacturer. In India the manufacturing is done by Oppo India Pvt. Ltd. OnePlus plans on starting its manufacturing process and operations in India in the coming years. OnePlus’s other suppliers include Panasonic, Siemens, Samsung and various other leading manufacturers. OPERATIONS OnePlus is famous for providing its consumers more value than the rivals which it does by offering premium handsets at a much lower cost. In India, the company started selling by a unique method of ‘Invite’ system, which is the person willing to buy a phone must have an invite code from someone else who is using a OnePlus phone. It also entered in a partnership with amazon to sell its handsets exclusively through amazon’s website and only sold its products online. OnePlus prides itself in offering products which last longer in the rapidly changing technological world. It keeps the cost low by cutting out warehousing costs i.e. it ships the finished products directly from the assembling plant to be sold in the market. OUTBOUND LOGISTICS •

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OnePlus entered the market with an exclusive distribution by Amazon, but gradually increased its offline sales through retailers and their own stores, but Amazon remains the major supplier of outbound logistics partner. Offers “OnePlus Care” App to enable the consumers to self-diagnose and avail free pickup-drop service, in case of a need to repair their devices. Currently the pickup-drop service is available across Bengaluru, Chennai, Kolkata, New Delhi and Mumbai.

MARKETING AND SALES • •

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Focuses on premium product without burning a hole in the consumers wallet. Made for niche market, a phone for “tech geeks” i.e., tech-savvy consumer community shouldn’t have to settle for overpriced phones that may not deliver, aligning with their tag “Never Settle”. Uses Lean startup methodology i.e., implement, examine the response then adjust accordingly without spending much on advertisements. Started with a Promotional alliance with Amazon in India, creating a huge buzz with Invite only model & then opening it up for everyone. Started with manufacturing outside India, gradually increasing the production domestically. Being a premium brand, OnePus had penetrated into tier 2 and 3 markets increasing from 28% to more than 50% of market share.

SERVICE • • • • • •

Offers “OnePlus Care” App, partnered with Servify, Mumbai based startup enables customers to connect with brand authorized service centers. Oneplus bears the customs duty and shipping charges themselves while shipping the products to India Collaborated with Zendesk for after sales customer service located around the globe serve through the following support channels Phone Live chat Social media

INFRASTRUCTURE •

One Plus main headquarter is in Futian District, Shenzhen, China. Shenzhen is known as China’s Tech megacity which is an added advantage for 1+ as technically skilled employees can be found easily.

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Currently its market presence is in 34 countries where it has offline experience stores while online sales are facilitated by amazon.com and other various e-commerce sites.

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One plus officially tweeted that it is going to open its world’s largest experience store in Hyderabad in the late 2020.

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It also had inaugurated its first Research and Development Centre in Hyderabad in 2019 and planned to invest Rs.1000 crores in India in coming 3 years as India is the biggest market for their products.

HUMAN RESOURCE MANAGEMENT •

As One plus releases a new phone in every 5-6 months. So, it needs highly skilled employees who can develop better featured smartphones at a faster pace.

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Currently there are total 3000 employees working for one plus in 18 countries and their workforce include 14 nationalities with 47% male employees and 53% female employees.

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The average age of workforce Is 25.6 years which implies that most of the employees are youngsters. The reviews of the working culture at OnePlus are extremely positive which implies that retention rate of employees is high.

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It also conducts skill development programs for its employees so that they are up to date with the current technologies in the market.

RESEARCH, TECHNOLOGY AND DEVELOPMENT OnePlus have utilized the advanced in-cell IPS LCD and ultra-bright LED technologies. The company expanded their product lines by introducing Televisions and headphones/earphones. They have also successfully developed the new quick charge technology called as Dash charging in which allows the user to have a battery life worth 60% in just 30 minutes of charging. OnePlus have also introduced the 90 Hz display in their latest phones, giving it the fastest screen refresh rate. They are also planning to expand in countries like Europe, USA and Indonesia to increase their market and have a larger consumer base. PROCUREMENT The procurement of most of the components is made possible through suppliers such as Cypress Corp, Mitsumi Corp. These suppliers are likewise significant providers to a ton of the other companies. OnePlus deliberately produces limited number of gadgets one after another and sells directly to consumers to bring down costs. They also follow the direct acquiring policies to guarantee all things are obtained and delivered within the budgeted time frames.

VRIO FRAMEWORK: We have done VRIO analysis of OnePlus which will be helpful to know whether the resources give us competitive advantage over long term or short term. We can see that the product, raw material quality, marketing strategy and the brand ambassador gives us short term advantage, although they are valuable and rare resources, they can be imitable by the competition. Whereas technological expertise and brand value of OnePlus is inimitable and organized, they provide a long-term competitive advantage over the competition.

Resources

Valuable

Rare

Inimitable

Organized

Implications

Product

Yes

Yes

No

Short term Competitive Advantage

Raw material Quality

Yes

Yes

No

Short term Competitive Advantage

Distribution System

Yes

No

Quality of service

Yes

No

Marketing strategy

Yes

Yes

No

Short term Competitive Advantage

Technological Expertise

Yes

Yes

Yes

Yes

Long term Competitive Advantage

Brand Value

Yes

Yes

Yes

Yes

Long term Competitive Advantage

Brand Ambassador

Yes

Yes

No

Short term Competitive Advantage

SWOT Analysis Strengths: • • •

OnePlus showed a YoY growth of 95% in the last decade which is the fastest for any smartphone brand. Its superior technological expertise and the brand value it has made over the years is one of the biggest strengths for OnePlus. It revolutionized the affordable luxury section of smartphones and achieved 152% growth in sales in the last 10 years

Weakness: • •

OnePlus has a limited production capacity limiting them to produce only 500,000 units per month. They started with a meagre marketing budget of $300 and relied heavily on word-ofmouth promotion. With global market domination the ultimate goal of the company, such a marketing technique may not be the best method to follow.

Opportunities: • •

OnePlus should try and experiment different marketing channels other than only online retailers. This can help them boost sales and customers in the long run. They can start making different phones to target different customer segments.

Threats: • • •

In today’s ultra-competitive smartphone industry, there are always new entrants that can enter the market and eat away their market share and the company needs to be proactive and protect itself from such threats. Such a meagre marketing budget and limited reach can spell disaster in the long run for OnePlus’s global ambitions. Established brands and market leaders like Apple and Samsung with their cutting edge technology and deep pockets are the biggest threats to any smartphone brand entering the market....