Market Potentiality of OnePlus in Brazil: External and Internal Analysis

This report discusses the market potentiality of OnePlus in Brazil through external and internal analysis. It identifies challenges and weaknesses of OnePlus and concludes that they have huge market opportunities in Brazil. Recommendations are also provided to overcome the identified challenges.

Running head: INTERNATIONAL BUSINESS MANAGEMENT
International business management
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Executive summary
The aim of this report is to discuss about the market potentiality of OnePlus in entering in the
market of Brazil. In accordance to that, external and internal analysis of OnePlus is being
discussed in this report. Various challenges and weaknesses of OnePlus are being identified
along with the market potentiality in Brazil. This report concludes that, OnePlus is having huge
market opportunities in the Brazilian market. This report also discussed various
recommendations, which will help them to overcome the identified challenges.

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Table of Contents
Introduction......................................................................................................................................3
Selection of the home country.........................................................................................................4
Analysis of the external environment..............................................................................................4
Analysis of the internal environment...............................................................................................6
Recommendations..........................................................................................................................10
Conclusion.....................................................................................................................................10
Reference.......................................................................................................................................12

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Introduction
In the current business scenario, contemporary business organizations have to look out
for the international opportunities in order to enhance their market presence and market share.
This is due to the reason that, current business state of affairs is more competitive in nature and
business organizations having to opt for various strategies in order to stay ahead in the
competition. Thus, initiation of the international business is one of the most effective strategies
being available for the contemporary business organizations.
OnePlus is one of the leading electronic device manufacturers in the current business
scenario. They were founded in China in 2013 and in this small period of time, they have been
able to gain positive word of mouth and goodwill in the market. As of now, OnePlus is having
2640 employees in their organization (Oneplusstore.com 2017). The mission statement of
OnePlus states that, they strive to offer the best product in the market of mobile devices with the
state of art technologies. Moreover, their products are also targeted for the best world experience
rather than providing mass market and affordable models (Rosenstein 2017). As of now,
OnePlus is having only 5.9 percent of market share in the global smartphone market. However,
OnePlus is one of the leading brands in the emerging category especially in the developing
countries such as India and China. Thus, in order to gain more market share and enhancing their
market presence in the global market, OnePlus is in the need of the initiation of the international
business (Paik and Zhu 2013). It will help them to target and enter in new markets along with
reducing the dependency on the existing market. Thus, the market opportunities will get
enhanced for them.

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This report will discuss about the external business environment for OnePlus to be faced
by them in the host country. Moreover, the internal environment will also be evaluated in order
to measure their effectiveness in dealing with the challenges in the international business.
Accordingly, recommendations will be provided in order to overcome the identified challenges.
Selection of the home country
For the business profile of OnePlus, Brazil is being selected as the chosen host country.
This is due to the reason that, Brazil is one of the leading developing economies in the world
alongside with India and China. Moreover, the economy growth rate of Brazil is higher than
various developed countries (Perry 2017). Thus, it will be a huge opportunities for OnePlus to
target this country. According to the report of (Oecd.org 2017), Brazil is having low rate of
inflation, which is enhancing the purchasing power of the customers. Moreover, according to the
report, initiation of the business friendly policies by the government is attracting more foreign
investors in the country. Due to the fact that, the target market of OnePlus is mainly the
developing countries. Thus, the emerging economy of Brazil will be perfect for them to enter.
Analysis of the external environment
The business scenario in Brazil will be different than that in the existing market for
OnePlus in terms of social, technological, political and other aspects. Thus, it is important to
determine the external environment that will be faced by OnePlus in operating in Brazil. PEST
analysis will be used in order to determine external environment of OnePlus in Brazil.
Political
environment
Brazil is having stable political system in the country. However, there
turbulences being noticed in their political scenario in the past and the

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political change are being done quickly. Another issue in their political
system is the corruption. It is being reported by the transparency
international that, Brazil is having ranking of 79 in terms of global
corruption index (e.V 2017). Thus, business organizations investing and
operating in Brazil will also have to face the challenge of corruption,
which will pose threat in attaining the required permissions for business.
Moreover, rapid change in the political scenario will pose threat for the
business organizations due to the reason that, legislations and regulations
may also change with the change in the political scenario (Scissors 2017).
Thus, in operating in Brazil, OnePlus will face the challenge of adhering
to the rapid change in the political scenario.
Economical
environment
The next environment is the economical environment. Economy of Brazil
is growing and emerging (Perry 2017). Thus, the purchasing power of the
customers is increasing and accordingly the market opportunities for
OnePlus will get increased. Moreover, the cost of skilled employees is
also lower compared to some other countries. Thus, it will help business
organizations to reduce their cost of production. However, one of the key
economical issues being faced in Brazil is the higher rate of tax for the
corporate. Brazil is having 15 percent corporate tax, which is higher
compared to some other economies. Moreover, no incentives are being
provided for generating profits in the country (Scissors 2017). Thus, the
cost for the products of OnePlus will get increased.
Social environment The social environment in Brazil is becoming more favorable for the

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business organizations with the growth in the middle class. This is due to
the reason that, middle class constitute the major portion of the total
population of Brazil. Moreover, Brazilian population is up-to-date in
nature and they are open to new technologies and brand. Thus, OnePlus
will have the opportunities to market their products in Brazil (Sawyer
2015). However, one of the key challenges that to be faced by them in
Brazil is the social inclination towards established brands. Thus, it may
get difficult for OnePlus to market their products being a new entrant in
the market.
Technological
environment
Technology is one of the key determining factors that to be maintained by
OnePlus in enhancing their competitive advantages. However, in this case
also, there are various challenges that have to face by the business
organizations such as OnePlus in operating in Brazil. One of the key
challenges is the inferior technological infrastructure in Brazil compared
to some other developing economies (Nagamo, Stefanovitz and Vick
2014). Thus, OnePlus will have less assistance of the domestic
infrastructure in their business operation. However, it is being reported
that, Brazil is rapidly improving in the information technology sector,
which will offer opportunities for the business organizations in future.
Analysis of the internal environment
Apart from the determination of the external environment, internal environment of
OnePlus should also be determined. This will help to identify the effectiveness of the internal

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factors of them, which will pose challenge or opportunities in the operation in Brazilian market.
SWOT analysis will be conducted in order to determine the internal environment of OnePlus.
Strengths  The features being provided by OnePlus is top notch and can be
compared to the flagship devices of various global brands. Even in
various cases, such as with the launch of OnePlus 5, they have offered
superior features compared to the flagship devices.
 Rolling out of updated software more frequently compared to the
competitors. This enables the customers to have the latest software in
their mobile device (Versavel and Lammens 2016). Thus, the devices
of OnePlus are more updated compared to their competitors.
 Features such as internal and external storage in the mobile are being
superiorly offered by OnePlus. They are the first manufacturer, which
offered 8 gb RAM in the mobile device along with providing 320 gb
as storage. Thus, superior features being offered by them help them to
stay ahead in the competition (Jean 2017).
 The target market is one of their key strengths for OnePlus. This is due
to the reason that, mainly the developing countries are being targeted
by OnePlus. Thus, the market opportunities for OnePlus is more due to
the reason that, growth of the economy of the developing countries is
more compared to the developed countries.
 The positioning of the product of OnePlus is targeted at the premium
segments (Bacon et al. 2017). However, they are being offered in
lesser price points. Thus, they are being able to target and cover more

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number of customers by offering premium features at more
competitive price points.
 The pricing strategy of OnePlus is helping them to create distinct
brand image in the market. This is due to the reason that, the pricing of
the products of OnePlus is more affordable compared to the global
brands (Rosenstein 2017). On the other hand, the pricing of OnePlus is
more compared to other mass market brands and products, which
helps them to have different operating segments from the majority of
the brands (Luu and Lubwama Muhamad 2016).
Weaknesses  The brand value and equity of OnePlus is less compared to other
global brands such as Samsung and Apple. However, the products of
OnePlus are directly competing with these brands (Kapferer 2012).
Thus, people tend to prefer known brands than the new entrants. Thus,
OnePlus should invest more on endorsing their brand in the host
market.
 Being a new entrant in the market, OnePlus is having shortage of
experience and other required resources. Thus, it is difficult to cover
all the operations in the internal market effectively.
 As discussed earlier, major population in Brazil prefers brands. Thus,
it will be difficult for OnePlus to market their products being a lesser
known brand.
 Entering in the new markets such as Brazil will make OnePlus to
invest in huge manner. This is due to the reason that, service centers

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should also be opened by them in order to provide service to the
customers. Thus, it involves huge cost for OnePlus, which also
involves risks.
Opportunities  The economy of Brazil is rapidly growing along with the increase in
the section of the middle class. Thus, the demand for new and updated
technological device will get increase in the future.
 Providing flagship devices in affordable prices will help them to
attract more customers across different income segments
(ETTelecom.com 2017).
 Offering incentives and benefits by the Brazilian government in
investing in the country will help to reduce the cost of settlement
(En.portal.santandertrade.com 2017).
 Demand for smartphones in the developing countries such as Brazil is
rapidly increasing.
Threats  Entry of new competitors is one of the biggest threats due to the
reason that, more organizations are entering in this sector and offering
updated products (Babatunde and Adebisi 2012). Thus, in the already
competitive market, OnePlus will face the threat of increase in
competition.
 Change of the preference and requirement pattern of the customers
changes rapidly. Thus, it will be a risk for OnePlus to rapidly update
their product portfolio in order to cater to changing needs of the target
customers.

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 OnePlus is having no experience regarding the need of the Brazilian
market. Thus, it may pose a challenge for them to effectively cater to
the target customers in the host market. The organizational structure
should be designed in such a way that, employees from Brazil can also
be included.
Recommendations
 One of the key challenges being identified is the political risk in Brazil. Thus, it is being
recommended that, OnePlus should get in to joint partnership with another local
organization. This will help them to reduce the risk in Brazil by reducing the amount of
investment (Sun and Lee 2013). Moreover, having local partner will help to effectively
determine the needs of the host market.
 Another identified challenge for them is the lack of brand value. Thus, it is important for
OnePlus to initiate various promotional activities in Brazilian market in order to create
brand identity among the target customers (Aekar and Biel 2013). It will help them to
effectively compete with the established brands in the market.
 Apart from launching new products in the market, OnePlus should also initiates the
process of effective service quality for their existing customers (Jahanshani et al. 2014).
It will help them to enhance the brand loyalty among the existing customers and
generation of positive word of mouth.
Conclusion
Thus, from the above discussion, it can be concluded that, OnePlus is having huge
business opportunities in the Brazilian market considering their economy. External and internal

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analysis of OnePlus is also being discussed in this report. It helped to identify various challenges
that may have to be faced by them in operating in the Brazilian market. Accordingly, various
recommendations are also being discussed in this report, which will enhance the competitiveness
and effectiveness of OnePlus in entering in the Brazilian market.

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