EC221: Smartphone Industry Analysis and Investment in China

This presentation offers an in-depth analysis of the global smartphone industry, with a specific focus on the Chinese market. It begins with an introduction to the industry's growth, key players (Samsung, Huawei, Apple, Xiaomi, Oppo), and consumer markets. The presentation then delves into a PESTLE analysis of the Chinese market, examining political, economic, social, technological, environmental, and legal factors. The analysis includes macroeconomic assessments, market segmentation, and critical success factors for potential overseas investment. The presentation concludes by discussing the oligopolistic nature of the smartphone industry and provides references to relevant academic research.

SMARTPHONE INDUSTRY
International Business Analysis

INTRODUCTION
 The focus of this presentation is on the smartphone
industry.
 The smartphone industry has been constantly growing
and developing in terms of models, suppliers and
market size.
 The focus of this presentation is on the largest consumer
market of the smartphone industry i.e. China.

ANALYSIS OF SMARTPHONE INDUSTRY
 China India, USA, Russian Federation and
Brazil are the major consumer markets in the
smartphone industry.
 Samsung, Huawei, Apple, Xiaomi and Oppo
are the biggest smartphone producers in the
world.

ANALYSIS OF SMARTPHONE INDUSTRY
 The smartphone industry is an oligopoly.
 In a oligopolistic market, smartphones are
produced by a number of firms but great
products are produced by only few firms such
as Samsung, Apple, Xiaomi, Oppo, etc.

ANALYSIS OF SMARTPHONE INDUSTRY
IN CHINA
For the macro- economic assessment, PESTLE
can be used:
 Political-
 One of the most powerful countries
 Stable political environment but lack of
political freedom.
 Economic-
 Average GDP growth of 10 % every year.
 Rapid urbanization and economic
development
 Unequal distribution of income.

ANALYSIS OF SMARTPHONE INDUSTRY
IN CHINA
 Social-
 Massive consumer
product market
 Increase in income result
in increase in spending
on smartphones.
 Technological-
 Country aims to become
global leader in science
and technology
 Converting itself into an
innovation- driven
economy

ANALYSIS OF SMARTPHONE INDUSTRY
IN CHINA
 Environmental-
 Affected due to rapid economic development
 Affected due to smartphones due to energy
consumption.
 Legal-
 Smartphone businesses and employment
practices are regulated by PRC Labor
Contract Law 2007, PRC Labor Law 1995 and
other legislations.

REFERENCES
 Cecere, G., Corrocher, N. and Battaglia, R.D., 2015. Innovation and competition in the
smartphone industry: Is there a dominant design?. Telecommunications Policy, 39(3-4),
pp.162-175.
 Chen, C.M. and Ann, B.Y., 2016. Efficiencies vs. importance-performance analysis for the
leading smartphone brands of Apple, Samsung and HTC. Total Quality Management &
Business Excellence, 27(3-4), pp.227-249.
 KOF. 2007. China's Significance in International Politics, [Online]. Available at:
https://www.files.ethz.ch/isn/31106/2007-01e%20(same%20as%202006-03d).pdf
[Accessed on: 12 January 2019].
 KOF. 2019. the economic cost of violence containment , [Online]. Available at: https://
www.files.ethz.ch/isn/178028/The%20Economic%20Cost%20of%20Violence%20Containme
nt.pdf
[Accessed on: 12 January 2019].
 Passport. 2019. Passport industry and category coverage, [Online]. Available at: https://
go.euromonitor.com/passport.html [Accessed on: 12 January 2019]
 Rahman, M. 2017. PESTEL analysis of China, [Online]. Available at:
https://www.howandwhat.net/pestel-analysis-china/ [Accessed on: 12 January 2019].
 Trading Economics. 2018a. China Disposable Income per Capita, [Online]. Available at:
https://tradingeconomics.com/china/disposable-personal-income [Accessed on: 12 January
2019].
 Trading Economics. 2018b. China Inflation Rate, [Online]. Available at:
https://tradingeconomics.com/china/inflation-cpi [Accessed on: 12 January 2019].
 Walla, P. and Schweiger, M., 2017. Samsung versus Apple: smartphones and their
conscious and non-conscious affective impact. In Information Systems and
Neuroscience (pp. 73-82). Springer, Cham.