OnePlus Strategy in Indian Market

This report analyzes OnePlus's strategy in the Indian smartphone market, evaluating the key drivers of globalization, the relevance of the Indian market for growth, and the challenges faced by the company. It highlights OnePlus's successful positioning and marketing strategies, as well as recommendations for overcoming competition and enhancing market share.

ONEPLUS THE CHINESE SMARTPHONE
START-UP TARGETS INDIA

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1 Evaluating the key drivers of globalisation for OnePlus and its strategy in India and reason
behind its success........................................................................................................................1
2 Discuss the relevance of the Indian market for growth in OnePlus.........................................3
3 Determining the key challenges faced by OnePlus when growing business in India.
Determine what should OnePlus do to emerge as a leading player in the Indian smartphone
market?........................................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Business management are considered to be as the key principles which is useful in
effectively developing, organizing, and also planning various set of business operations which is
useful in managing the business in efficiency and significant manner. This study will highlight
on evaluating the drivers of globalisation for OnePlus its strategy in India. It also determines the
relevance of Indian market for growth of OnePlus. Furthermore, this study also determine the
possible challenges faced by OnePlus when growing business in India. OnePlus is a Chinese
smartphone manufacturer company which was founded in the year 2013 by Pete Lau and Carl
Pei. This company is headquartered in Shenzhen, Guangdong, China. Officially the company
serves around 34 countries worldwide. The key products of the OnePlus company are
smartphones, power banks, earphones, bags, hydrogen OS, oxygen OS, television, shirts and
phones cases.
MAIN BODY
1 Evaluating the key drivers of globalisation for OnePlus and its strategy in India and reason
behind its success.
Globalization is considered to be as one of the useful measure which is useful in establishing
their business at a global or international level. The key four areas associated with the
globalization mainly includes market, government, competition and cost. The external drivers
tends to mainly influence the main condition linked with the globalization which improves the
business efficiency and also attain better set of results and effective outcomes (Panigrahi, 2019).
Market drivers mainly comprises of areas such as understanding the common needs of the
customer and also transferable marketing. The emergence of the global markets for the
standardized set of products has allowed corporations in order to cater the demands within new
markets with existing set of products (Drives for Globalisation, 2017). Government influence is
considered to be as the major driver where they focus on effectively leading with the key policies
which leads to reduction in the trade barriers and also results in shift in the open market
economy. Rapid change within the technology is also considered to be as one of the major driver
which in turn eventually leads to greater set of improvement within the global connectivity,
communication and mobility. This way it is useful in driving up the globalization. Political
drivers is considered to be as one of the major driver which has led to the liberalize trading rules
and in turn also deregulate the market which eventually leads to allowing of the foreign direct
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investment with low degree of tariffs across the globe. Competitive driver is also one of the
major driver of the globalisation for OnePlus. This is mainly because of the fact that, global
international firms tends to increase the competition level as they provide same set of products
and services (Kumar, Ayedee and Gupta, 2020). Strong interdependence within the countries,
FDI actions and high two way trades is considered to be as the major support for this competitive
driver.
Going international is considered to be as a well –established trend associated with the OnePlus
Company. OnePlus has effectively implemented this strategy to go global at its early stage
development. The key vision of the OnePlus Company is to be recognized as one of the
respected global brand. OnePlus Company aggressive marketing strategy which is considered to
be useful for creating one of the most desirable phone across the globe. This strategy is
considered to be highly prominent in increasing the market share of the company across the
globe.
OnePlus which is a China based technology tends to establish its business in India. However,
India is considered to be as the fastest growing smartphone market across the world. OnePlus has
positioned itself in India to effectively appeal to users of high end phones and also undercut the
rival products on the price (Arike, 2015). OnePlus devices has also appealed to the cost
conscious young clients in India where most of the buyers were first-time operators of
smartphones. In India, December 2014, the OnePlus Company has sold close to 1 million
smartphones in India by the end of 2015.
The OnePlus Company has built teams in India and has also opened significant number of shops
and has also co- operated with the telecom operators to improve their global presence. China is
considered to be still one of the largest market. Suddenly, India has emerged and mainly
accounts for 1/3rd of total sales which is undoubtedly one of the largest market across the globe.
Bangalore in the Southern India is referred to as the Silicon Valley of Asia because of the influx
of large number of high tech companies. OnePlus Company has also offered large offline
experience shop.
One of the key reason behind the success of the OnePlus Company is that, it offers quality set of
products and premium set of smartphone within India. This has resulted in massive growth and
success to the company (Singh, Chauhan and Dhir, 2019). They also take regular feedback and
survey within the Indian market and improve the business efficiency.
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2 Discuss the relevance of the Indian market for growth in OnePlus.
The Indian market has wide degree of concentration user which is significant for the growth of
the OnePlus Company. The agglomerative results in making the experience store a feasible
business model. This does not even creates a brand but also considered to be crucial channel in
order to bring a breakthrough within sales and improve greater operational efficiency and growth
for OnePlus Company.
OnePlus Company tends to effectively strengthen the position within the Indian market with the
use of overseas expansion strategy (Luu, and Lubwama Muhamad, 2016). The enormous Indian
market is continuously evolving into accommodating more upper midrange devices. OnePlus has
traditionally been known for its cost efficient mobile phones that provide high end specifications
at budget prices. India has a gigantic pool of both new and old mobile users who are looking for
best value for money devices in the upper budget segment.
India is the fastest growing trillion dollar economy in the world. This implies that more people
are able to afford upper midrange devices instead of budget devices. Established brands will be
able to reap the benefits of early market penetration in the long run. OnePlus has been keeping
low profit margins in order to gain market share in India.
Private as well as government sector companies are rapidly digitalizing its services in order to
remain competitive. All companies in India have started offering their services on mobiles in the
recent years. Hence a lot of consumers have started to realize the potential of a good smartphone.
Hence the number of people upgrading to higher end smartphones is high. This is especially
important in markets like India which are very price sensitive. Even small changes in price can
have significant impact of number of customers.
Establishment of brand value among the youth, OnePlus has sponsored many Indian influencers
with youth as their primary target audience. This is an efficient digital marketing tactic which has
been proven effective to other companies as well (Krishnan, 2020). Youth is highly susceptible
to influencers and creates positive connection between the brand and youth.
Diversification of product offering is important for OnePlus as their revenue is highly dependent
on the sales of their smartphones. OnePlus has launched their own line up of TV’s. This is also
very clever as holding period of TVs is much higher than that of smartphones. This also keeps
people associated with the brand and helps to offer software features that allow for seamless
interaction of smartphones with the TVs.
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5G has been introduced in the newer smartphone series of OnePlus. 5G infrastructure in India is
in its early phases hence this does not make it a prime selling point in the Indian market and also
increases the price of their smartphones in India. This however establishes OnePlus as the early
adopters of new technologies like 5G in India which makes their devices future ready. When 5G
is rolled out in India, the average consumer is likely to gravitate towards OnePlus as they have
been the early adopters of 5G in India. Therefore capitalizing in the Indian market is highly
significant for OnePlus in the current as well as upcoming years.
3 Determining the key challenges faced by OnePlus when growing business in India. Determine
what should OnePlus do to emerge as a leading player in the Indian smartphone market?
OnePlus Company has faced few challenges In India which mainly includes intense competition,
low smartphone penetration, concerns associated with intellectual property rights, and price
sensitive Indian customers. OnePlus Company have long way to go to effectively catch up with
market leaders within India (Sawhney and Goodman, 2016). This mainly comprises of home
grown players and Chinese smartphone brands which offers high end phones at an affordable
price. Large number of competitors present in the market tends to impose greater set of challenge
upon the OnePlus Company when growing business in India. This means there are large number
of competitors who has been providing the suitable set of services and products to the customers
at an affordable price. Price sensitive Indian customers is considered to be as one of the major
challenge. Customers of India prefer products which are reasonable and within their budget.
They prefer products which are pocket friendly.
In order to OnePlus to effectively emerge as a leading player within the Indian smartphone
market, the company must focus on establishing their business as a premium segment in order to
be one of the top choice brand which improves the business operations and efficiency. The
company must focus on word of mouth as a promotional tool which helps in improving their
customer base and market share. The company must also focus on improving the business with
effective social media networking which is useful in attaining higher operational goals. Mass
media advertising on the television is considered to be highly prominent because it improves the
business outcomes and leads to greater operational growth. Social media advertising on the
social media platforms like Facebook, Twitter, Instagram, YouTube, etc. which in turn is
considered to be prominent in reaching mass number of people. This way it is relevant in
improving the sales of the company (Yin, and Prabhu, 2018). This way it is considered to be
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useful in setting strong set of performance and improve the brand loyalty of the OnePlus
Company. Competing with the top competitors and adopting stringent strategies is considered to
be highly prominent to emerge as one of the leading player within Indian smartphone market.
OnePlus Company must also comply with all the rules and intellectual property rights in order to
work in a legal and reliable manner. This way it leads to higher operational growth and better
efficiency (Sridevi, Niduthavolu, and Vedanthachari, 2020). The OnePlus Company must
significantly focus on effectively providing the smartphones to the products which are affordable
and are highly reasonable. This way it is useful in attaining higher market share and emerge as a
leading player in the Indian smartphone market. The company must also focus on penetrating the
market with the greater set of accuracy and improve their target base. However, India is one of
the best option to improve their business outcomes and attain greater efficiency.
CONCLUSION
From the conducted study it has been summarized that, Market, technological, cost and
political drivers are the key drivers of the globalization for OnePlus. OnePlus devices has also
appealed to the cost conscious young clients in India where most of the buyers were first-time
operators of smartphones. OnePlus has sponsored many Indian influencers with youth as their
primary target audience. Capitalizing in the Indian market is highly significant for OnePlus in the
current as well as upcoming years. OnePlus Company has faced few challenges In India which
mainly includes intense competition, low smartphone penetration, concerns associated with
intellectual property rights, and price sensitive Indian customers. Social media advertising on the
social media platforms like Facebook, Twitter, Instagram, YouTube, etc. which is considered to
be prominent in reaching mass number of people.
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REFERENCES
Books and Journals
Arike, A., 2015. Navigating through the competitive global Android smart phone market, case
study on OnePlus.
Krishnan, A., 2020. Following the Money: China Inc's Growing Stake in India-China Relations.
Kumar, A., Ayedee, D. and Gupta, D., 2020. Xiaomi’s Journey in India: A Roller Coaster
Ride. International Journal of Management (IJM). 11(3).
Luu, D. and Lubwama Muhamad, S., 2016. Customers Perspective of a Non-Reward Referral
Marketing.: A Case Study of OnePlus Smartphone Manufacturer.
Panigrahi, C.M.A., 2019. Designing a Perfect Business Model-Lessons from Success
Stories. International Journal of Management, Technology, and Social Sciences (IJMTS), ISSN,
pp.2581-6012.
Sawhney, M.S. and Goodman, P., 2016. OnePlus: Crossing the chasm in the smartphone market.
Kellogg School of Management.
Singh, S., Chauhan, A. and Dhir, S., 2019. Analyzing the startup ecosystem of India: a Twitter
analytics perspective. Journal of Advances in Management Research.
Sridevi, P., Niduthavolu, S. and Vedanthachari, L.N., 2020. Analysis of content strategies of
selected brand tweets and its influence on information diffusion. Journal of Advances in
Management Research.
Yin, E. and Prabhu, J.C., 2018. Innovation in China and India. In Handbook of Research on New
Product Development. Edward Elgar Publishing.
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