OnePlus: Drivers of Globalisation, Strategy, and Indian Market Growth

This report provides a comprehensive analysis of OnePlus's business operations, particularly its strategies within the Indian market. It examines the drivers of globalization that have influenced OnePlus's expansion, including lower trade barriers, reduced communication and transportation costs, and advancements in information technology. The report details OnePlus's marketing strategies, such as influencer marketing, word-of-mouth promotion, and digital campaigns, and explores the reasons behind its success in India, including its research and development efforts, 'Made in India' manufacturing, and online sales approach. Furthermore, it assesses the significance of the Indian market for OnePlus's growth, highlighting its potential as a global hub and the importance of 5G technology. The report also addresses the challenges OnePlus faces, such as the economic impact of the COVID-19 pandemic, geopolitical tensions, and government regulations. It concludes by suggesting strategies for the company to maintain its market leadership, including maintaining transparency, corporate social responsibility, and continuous innovation. The report provides insights into the competitive landscape and the importance of adapting to the evolving market dynamics.

Critical Issues in Business
Management

TABLE OF CONTENTS
Critical Issues in Business Management.........................................................................................1
INTRODUCTION...........................................................................................................................3
Task..................................................................................................................................................3
1. Drivers of Globalisation for OnePlus, its strategy and reasons behind success -....................3
2. Significance of Indian Market for OnePlus Growth –.............................................................5
3. Possible Challenges that OnePlus could face in India and Measures for its growth Ahead-. .6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
Business management refer to control and monitor all activities related to purchase and
sales of product and services in market One plus is one famous Smartphone firm in operating in
various countries across the world. It offers high advance technology and various features in
mobile which influence large number of consumers in India. There are various factors which can
become opportunity and barrier in growth of firm as describe in report. Organisation follow
different strategy to attract Indian buyer’s and gain competitive advantage with the help of it.
Report also highlights reasons that contribute in growth of firm in country’s market and its
success. However, it also explain factors that can effect on expansion of market in different area
of country as well as policy associated with it.
Task
1. Drivers of Globalisation for OnePlus, its strategy and reasons behind success -
Globalisation has transformed the world and the competitive situation of companies. Drivers of
Globalisation focus on the significant effect on the competitive situation of the company.
Political and Social factors are the key forces behind the globalisation (Dörrenbächer and
Gammelgaard, 2019). Drivers of globalisation are the forces that guide towards closer economic
integration that are described below –
Lower Trade Barriers – Lower Trade barriers are perceived to be one of the key drivers. IMF has
shaped the expansions of world with the help of elimination of trade barriers like import tariffs,
is the fundamental element. OnePlus is able to business in India just because of less import tariff
in respect to other countries and to save the tariff they are manufacturing the products in India.
Lower Communication Costs – From the past two decades, here has been the decrease in
communication cost as well. The massive investment in It-infrastructure has subsequently helped
in lowering the cost of communication, is one of the key drivers of globalisation.
Lower Transportation Costs – Lower transportation costs is also one of the key drivers of
globalisation as it enables the product manufactured from far markets to become more
competitive (Gupta and Singh 2019). With the rising prices of fuels, transportation costs also
increases the price of the product. OnePlus India, manufactures products locally which also help
the company to save the extra transportation cost and save customers from various duties.

Information and Technology Development – Not just the cost of communication has improved,
the whole process of communication and interaction has been transformed. From the past two
decades, internet has evolved as been the source of communication and this source is more faster
and cheaper than the conventional sources. Evolution of workplace can be seen because of the
internet. During the time of pandemic, companies have managed to do successfully do its
activities with help of technology. While considering the OnePlus, it is china based company but
still has successfully operated its business in low cost and less infrastructure.
OnePlus Strategy in India –
Use of Influencer Marketing – OnePlus came up with the magnificent strategy that requires
banking on the influence of personalities and other brands to uplift and attract people to their
product. The greatest example of this is, its collaboration with Netflix India. It also engages with
big Indian personalities like Amitabh Bachhan to launch its OnePlus 7 series.
Supporting Word of Mouth – Before the launch of OnePlus, company created active community
and the first buyers started spreading gossips about the phone innovative features (Perraton,
2019). With the satisfaction from the product Indian buyers endorsed the brand.
Less Expenditure on Conventional Marketing – OnePlus marketed its products by campaigning
through digital platforms with the help of Facebook and Twitter. It launched campaign with the
tagline ‘smash the Past’ where users had to make videos from their present phone and they can
win chance of getting new OnePlus smart phone.
Created Buzz with Exclusivity – OnePlus created situation that second user can only purchase the
product if the first OnePlus buyer gave invite, this was the company strategy of exclusivity to
maintain bit scarce situation in the market.
Affordability with the Quality Device – The best thing that any company can do it is to provide
the quality with the best price. OnePlus India came up with the great features than of its
competitors with the affordable price range in India which made young generation go gaga over
it.
Maximising Hashtags – OnePlus used the power of hashtags with the social media platform
which gave the company huge reach of its target customers that was the young generation.
Company’s hashtag #NeverSettle went so viral which means different things to different people
but it created the superior brand image.

Reasons behind the success of OnePlus –
India is one the most important market for the OnePlus, as the company have good market share
in the Indian mobile Industry.
Strengthening Research & development – Company before entering the Indian market industry
did the proper research about the need the need of Indian market, price affordability and about its
target customer that how much they can pay to the company for its Smartphone. Then it
launched its product with the help of identifying the different innovative marketing strategies
that can inform about the company’s product to its target customers. OnePlus India setup the
biggest R&D centre in India where it have 250 employees and is further looking for the 1000-
1500 people in upcoming years by investing 1000 crore to grow more in Indian Market
(Ananya,2019).
Manufacturing – OnePlus used ‘made in India’ concept for manufacturing its product, which
gave the company benefit by reducing the cost of importing the product. Since, the company
came in India in 2016, it has started manufacturing locally and today almost 100% of the phones
that company sells in India are assembled locally. In 2020, company has started exporting
Smartphone from India.
Online – Company did not invested in putting the stores initially when it came, as it was the
point of time for experiment so it chose digital platform for the product launch. Company started
selling its product online through e-commerce by partnering with Amazon in India. In 2018, it
started selling offline by opening just 30 stores in India and through its own websites online and
now after its success and growth it has decided to come up with more stores to sell its product
offline (Dipesh, 2019).
Customer Service – OnePlus provides has no. of customer service staff and customer service
setup in few countries which help the Indian customer to solve any issue regarding their
products. Company with the launch of its first product provided customers free warranty for
three years, in order to develop faith among them.
2. Significance of Indian Market for OnePlus Growth –
The quick and extensive adoption of Smartphones in India has led to demand and supply deficit
which helped OnePlus in the growth in India. OnePlus by manufacturing the phones locally and

offering quality product in affordable price raised the demand by 5x and found the road to its
success.
India has potential to grow to be the chief global software development foundation for OnePlus
because it represents the impactful market of talent and resources that will impact what OnePlus
does.
Indian Market is the most important market for OnePlus and one of the rapid emerging as a zonal
headquarters for its enlargement into global markets. It entered Indian Market four years back,
and is trying to make India a global Export hub for its brand. OnePlus has started manufacturing
5G devices and selling them in overseas like in North America.
OnePlus has inaugurated its R&D facility in India, which will play a crucial role in development
of advance technologies like machine learning, 5G and AI which benefit India and its citizens.
Manufacturing its products in India has been beneficial as it has reduced the labour cost and
saved for various duties, its main operation just invests the large amount for the smooth working
of the operations in India (Balázs, 2018). OnePlus declared that India is most essential in terms
of revenue; India contributes to alost a third of its global revenue.
With the success of company through the online platform, Oneplus launched its stores in India
and with such great response, company has decided to launch more of its offline store in various
cities.
3. Possible Challenges that OnePlus could face in India and Measures for its growth Ahead-
One of the greatest challenge that one is facing after the pandemic, is that people in India are
highly affected due to corona virus pandemic, some have lost jobs, some have faced cut in the
salary. Because of the slowdown in economy there are no major sales in current year(Sawhney
and Goodman, 2016).
With the ongoing tensions on Lac, government of India have banned various apps and also made
decisions to slowly cut down its relations with China, this is the one the major challenge which
company can face in upcoming time as it is china based company and funding and investments is
done from there.

Indian government has challenged many chinese company, for the growing privacy issue and
data safety. Every Chinese company is required to submit the necessary documents and proofs,
in case the company is in doubt it is direct exit from India.
To emerge as the leading player in the Indian Smartphone Industy OnePlus have to make certain
strategies and take some decisions.
In India, faith is a big thing, so to continue being the mobile market leader company has to
maintain the transparency and provide its innovative services in the market (Qumer and
Purkayastha, 2019).
OnePlus like any other corporate has to fulfil its corporate social responsibility, so by
contributing for good cause company can gain praise which will develop its goodwill in Indian
market and help it to grow more.
Company has also taken initiative to launch a budget Smartphone with the best features soon, so
it may come up as success for the company.
Company has also decided to launch its new product line that is Smart TV, because it observed
that there is no new innovation in the TV line, to make difference in this product line, company
is ready.
Digital platforms are the best place to influence the audience, so company always come up with
the different content and innovative ideas that can leave the lasting impact on its Indian
customers.
Betting offline Store, OnePlus idea of coming up with more offline stores in various cities across
India will help in generating more revenue for the company (Dörrenbächer and Gammelgaard,
2019). This time company has tied up with Reliance Digital to bring its product online. This
strategy of tying up with different brands in the initial stage is exclusively chosen by OnePlus in
Indian smartphone industry which not only benefits OnePlus but also helps to save its cost.

CONCLUSION
It can be evaluated from report that Mobile manufacturing industry in Indian setting
various kind of strategy to attract customer and also facing challenges in implementation. One
plus is china based company that running business in different part of world. It offer quality
services with attractive specification in mobile phones and hence able to attract Indian buyer’s
for its product. There are number of drivers that impact on globalisation of firm such as lower
trade barriers, cheap communication costs, strong supply chain management system etc. One
plus set various kind of strategy to target India customers such as mouth to mouth publicity, less
expenditure on conventional marketing, quality devices etc. However, after pandemic and war
tension between both countries created number of challenges such as Indian’s boycotted Chinese
product and government increase taxes as well as custom duties. Company can able to tackle it if
invest in promotion strategy and become premium brand in eye of customers.

REFERENCES
Books and journals
Balázs, I.C.B.S.É., 2018. GLOBALISATION TENDENCIES AND TRENDS
TODAY. HUMÁN INNOVÁCIÓS SZEMLE. p.107.
Dörrenbächer, C. and Gammelgaard, J., 2019. Critical and mainstream international business
research. critical perspectives on international business.
Gupta, M.O.J. and Singh, A., 2019. Influence of Product's Price on Consumers' willingness to
Purchase Chinese Mobile Phones: Controlling the Effect of Product Ouality & Design.
Perraton, J., 2019. The scope and implications of globalisation. In The Handbook of
Globalisation, Third Edition. Edward Elgar Publishing.
Qumer, S.M. and Purkayastha, D., 2019. OnePlus: A Chinese Tech Startup Aiming to Disrupt
the Global Smartphone Market. In China-Focused Cases (pp. 41-64). Springer,
Singapore.
Sambo, V.T. and Kanyane, M., 2020. Ethics and Accountability in BRICS Countries Analysing
Critical Issues.
Sawhney, M.S. and Goodman, P., 2016. OnePlus: Crossing the chasm in the smartphone market.
Kellogg School of Management.
Online
Ananya Bhattacharya, A., 2019 [Online]. Available through: <
https://qz.com/india/1770115/why-onepluss-india-strategy-differs-from-xiaomi-realme-
vivos/>
Darpan Saxena,D., 2019 [Online]. Available through: < https://www.superheuristics.com/one-
plus-marketing-strategies/>
Dolly Mahayan,D., 2019 [Online]. Available through: <
https://www.exchange4media.com/advertising-news/what-has-been-the-market-
winning-formula-for-oneplus-96930.html>
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