Analysis of Market Entry Strategy of Vivo
Added on 2023-06-12
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Running head: ANALYSIS OF MARKET ENTRY STRATEGY OF VIVO
Analysis of market entry strategy of Vivo
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Analysis of market entry strategy of Vivo
Name of the student
Name of the university
Author note
1ANALYSIS OF MARKET ENTRY STRATEGY OF VIVO
At a time when the industry of telecommunication stepped into the era of smart phone,
Vivo marked its presence in the Indian smart phones industry. The leading brand of global smart
phone company has started its journey in the year of 2009, as a sub brand of the company BBK
electronics (Vivo.com 2018). Later in 2011, the china based company entered into the world of
telecommunication with landline phones and wireless telecommunication sets. The company has
addressed the market trend during the evolution of smart phones and started manufacturing its
own range of smart phones in the year of 2014. The primary aim of this smart phone brand is to
provide quality products as well as services at an affordable price. Vivo brought the innovation
in the sphere of smart phone while making the customer’s life easier (Vivo.com 2018).
In industry that is highly competitive, the smart phone brand vivo entered with a strategy to
provide best features of a smart hone at a low price. At a time, when the renowned brands like
Samsung, Microsoft and others was competition with each other to serve the best smart
experience in the industry, Vivo, addressed that the market need and brought revolutionary
changes in camera specification (Statista 2018). It launched its product range in the global
market with the high quality camera in order to attract the maximum customer area.
In order to capture the growing sphere of smart phone of India, Vivo entered into the
Indian economy in the year of 2014. Launching it first smart phone model for the Indian market
the company embarked into the competition with other giant brands like Samsung, Microsoft and
many more (Statista 2018). As the Indian market of smart phone is price sensitive, the company
intended introduce such a price range that is competitive in the market. The Vivo smart phone
series available in the market has overall best features in it. Meanwhile keeping the market trend
in mind and to compete in the industry, it designs its products in a way attracts the attention of
the customers to buy it (Vivo.com 2018).
At a time when the industry of telecommunication stepped into the era of smart phone,
Vivo marked its presence in the Indian smart phones industry. The leading brand of global smart
phone company has started its journey in the year of 2009, as a sub brand of the company BBK
electronics (Vivo.com 2018). Later in 2011, the china based company entered into the world of
telecommunication with landline phones and wireless telecommunication sets. The company has
addressed the market trend during the evolution of smart phones and started manufacturing its
own range of smart phones in the year of 2014. The primary aim of this smart phone brand is to
provide quality products as well as services at an affordable price. Vivo brought the innovation
in the sphere of smart phone while making the customer’s life easier (Vivo.com 2018).
In industry that is highly competitive, the smart phone brand vivo entered with a strategy to
provide best features of a smart hone at a low price. At a time, when the renowned brands like
Samsung, Microsoft and others was competition with each other to serve the best smart
experience in the industry, Vivo, addressed that the market need and brought revolutionary
changes in camera specification (Statista 2018). It launched its product range in the global
market with the high quality camera in order to attract the maximum customer area.
In order to capture the growing sphere of smart phone of India, Vivo entered into the
Indian economy in the year of 2014. Launching it first smart phone model for the Indian market
the company embarked into the competition with other giant brands like Samsung, Microsoft and
many more (Statista 2018). As the Indian market of smart phone is price sensitive, the company
intended introduce such a price range that is competitive in the market. The Vivo smart phone
series available in the market has overall best features in it. Meanwhile keeping the market trend
in mind and to compete in the industry, it designs its products in a way attracts the attention of
the customers to buy it (Vivo.com 2018).
2ANALYSIS OF MARKET ENTRY STRATEGY OF VIVO
Within few months of its entry in the market Vivo has achieved a considerable profit
from smart phone industry. Presently, the company serves over 40 cities of 22 states in the
country. As per the market observe, the company has been able to give a tough competition with
the giant brand that already had e good hold of customers in the market. In the year of 2016, the
company introduced its major model of smart phone in order to strengthen its market position in
the country. As a result of its innovative development of products, the company has witnessed
significant sales in the past two years. Along with that, the demand of the Vivo smart phones is
considerably high in the industry. Within three months of its launch of smart phone series in
India, the company gained 21% share in the market. In the year of 2017, it also has acquired 7
percent market share (Statista 2018). Over the four years of existence in the Indian market, Vive
has become a reliable brand of quality smart phones (Vivo.com 2018).
The smart phone industry is one of the largest industries in India that grows in a rapid
speed. As the industry is growing rapidly, the customer requirement is also changing day by day.
The leading brands as well as the new entrants in the industry are in continuous competition to
serve new features to the customers in order to have a good hold of customers in the market
(Mohan 2014). As per the reports, 2.5 million devices have been sold by the second quarter of
the year 2017.
As the industry grows in rapid pace, a significant amount of new companies have been
entering in the industry with new offers. Companies like Oppo, Redmi and Lenovo are
continuously innovating new features and including them into their products, which push Vivo
also to develop its product range and modify the product specifications (Vikram and Ramanathan
2015). As Indian economy allows small to large companies to entry so that the economic growth
of the country can increase, the smart brands focuses on low price strategy to target the
Within few months of its entry in the market Vivo has achieved a considerable profit
from smart phone industry. Presently, the company serves over 40 cities of 22 states in the
country. As per the market observe, the company has been able to give a tough competition with
the giant brand that already had e good hold of customers in the market. In the year of 2016, the
company introduced its major model of smart phone in order to strengthen its market position in
the country. As a result of its innovative development of products, the company has witnessed
significant sales in the past two years. Along with that, the demand of the Vivo smart phones is
considerably high in the industry. Within three months of its launch of smart phone series in
India, the company gained 21% share in the market. In the year of 2017, it also has acquired 7
percent market share (Statista 2018). Over the four years of existence in the Indian market, Vive
has become a reliable brand of quality smart phones (Vivo.com 2018).
The smart phone industry is one of the largest industries in India that grows in a rapid
speed. As the industry is growing rapidly, the customer requirement is also changing day by day.
The leading brands as well as the new entrants in the industry are in continuous competition to
serve new features to the customers in order to have a good hold of customers in the market
(Mohan 2014). As per the reports, 2.5 million devices have been sold by the second quarter of
the year 2017.
As the industry grows in rapid pace, a significant amount of new companies have been
entering in the industry with new offers. Companies like Oppo, Redmi and Lenovo are
continuously innovating new features and including them into their products, which push Vivo
also to develop its product range and modify the product specifications (Vikram and Ramanathan
2015). As Indian economy allows small to large companies to entry so that the economic growth
of the country can increase, the smart brands focuses on low price strategy to target the
3ANALYSIS OF MARKET ENTRY STRATEGY OF VIVO
customers. The market report says that among the smart phone companies, Samsung holds the
maximum market share in the industry that is 24% (Singh 2018). Xiaomi comes second with
17% and Vivo is in the third position with 13%. However, the growth rate of Vivo is
comparatively higher than the other brands. In a very short time span it achieved considerable
market share in the industry.
The smart phone industry of the country is price sensitive. Customers in India, tend to
compare between the brands before buying a mobile phone. They mainly look for product with
maximum features but at an affordable price. Only 7% of the whole population of India uses
Brands like Apple that follow high price strategy (Vikram and Ramanathan 2015).
The major group of customers using smart phones is the young generation which
accounts for around 61 % percentage. The second major group is the working professionals aged
between 23-40 years (Mohan 2014). The large group of smart phone users, which is the young
generation, looks for high quality camera other than any features while buying smart phones.
Thus, the smart phone companies focus on the feature of high quality camera to persuade the
customers to buy their products.
Many factors are there that affect the smart phone industry in India. Recently the
economic reformation in the name of demonetization had a huge impact on the overall sales of
the industry. The purchasing power of the customers too lowered during the initial period
(Watkins Kitner and Mehta 2013). Therefore, it can be said that the Indian industry of smart
phone is economically unstable. Meanwhile, another aspect geographical diversification has a
significant influence on the industry. Sometimes it becomes challenge for the smart phone
customers. The market report says that among the smart phone companies, Samsung holds the
maximum market share in the industry that is 24% (Singh 2018). Xiaomi comes second with
17% and Vivo is in the third position with 13%. However, the growth rate of Vivo is
comparatively higher than the other brands. In a very short time span it achieved considerable
market share in the industry.
The smart phone industry of the country is price sensitive. Customers in India, tend to
compare between the brands before buying a mobile phone. They mainly look for product with
maximum features but at an affordable price. Only 7% of the whole population of India uses
Brands like Apple that follow high price strategy (Vikram and Ramanathan 2015).
The major group of customers using smart phones is the young generation which
accounts for around 61 % percentage. The second major group is the working professionals aged
between 23-40 years (Mohan 2014). The large group of smart phone users, which is the young
generation, looks for high quality camera other than any features while buying smart phones.
Thus, the smart phone companies focus on the feature of high quality camera to persuade the
customers to buy their products.
Many factors are there that affect the smart phone industry in India. Recently the
economic reformation in the name of demonetization had a huge impact on the overall sales of
the industry. The purchasing power of the customers too lowered during the initial period
(Watkins Kitner and Mehta 2013). Therefore, it can be said that the Indian industry of smart
phone is economically unstable. Meanwhile, another aspect geographical diversification has a
significant influence on the industry. Sometimes it becomes challenge for the smart phone
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