Strategy for WE Mobile

Running head: STRATEGY
Strategy
Name of the Student:
Name of the University:
Authors Note:

1STRATEGY
Table of Contents
Strategy for WE mobile.............................................................................................................2
Introduction:...............................................................................................................................2
External Analysis:......................................................................................................................3
VRIO Analysis...........................................................................................................................7
SWOT Analysis:........................................................................................................................8
Critical Analysis- WE Mobile:...................................................................................................9
Proposed Strategy.....................................................................................................................10
Reference..................................................................................................................................12
Appendices...............................................................................................................................13

2STRATEGY
Strategy for WE mobile
Introduction:
In the global market, the WE mobile faces competition from four other existing
competitors of the world. Among the top five mobile companies, the WE mobile has secure
WE the second position in the market regarding the sales. The company had secureWE the
second leader in the mobile manufacturing and sells by spending the highest amount in the
promotion and second lowest in the R&D sector (Hill 2017). The companies’ present policy
is to create greater market share and larger customer base in the successive year. In addition
to that, the WE MOBILE also engaged in the telecommunication network provider service. In
this project, the marketing plan will be analysed and discussed.
Figure 1: Key company data
(Source: created by Author)

3STRATEGY
External Analysis:
PESTEL Analysis:
In the current scenario, thePolitical tensions between two government of USA and
China have resulted in the increase in tariffs for American goods that are exported to the
Asian continent. This has resulted the price to almost double from $7 per handset last year to
$12 in the current year. There are no notable changes in production costs.Further, in Asia the
growth is projected to 25-30%.
Moreover,a common tax agreement has been made in the European Union that has
unified the corporate tax rates at 31% throughout Europe. It is believed by different
Economists believe that Europe is tend to loss its global market place in by further increasing
its high tax level. It will resulted the fall in the euro (Hillet al. 2014).
Five Force Analysis:
The Porter’s five forces model provides an analysis of the competitive pressure. That
helps in determining the profitability of an industry.The range of company profitability is
from -$1.5m to $1.9m, however this range is a result of managerial Decisions rather than
industry forces.The objective of this analysis are to determine the competition that may
increase and the effect it has on the profitability of the company (Chenget al. 2014).
Moreover, there are high possibilities that the attractive one to enter in the market and that
from the outsourcing manufacturers there is high threat of additional competition:
Level of competitive rivalry is moderate but may increase as the industry matures:
 demand is growing sustainably making this an attractive industry
o industry capacity exceeds demand (acting as a source of increased competition
and a