Realme Telephone Company Business Model Analysis MGMT20143

This report provides a comprehensive evaluation of Realme Telephone Company's business operations, focusing on its value proposition, customer segments, distribution channels, customer relationships, and revenue streams. It identifies key resources, partners, and activities, while also examining the cost structure and critical success factors essential for the company's sustainability. The analysis highlights potential downside risks and suggests recommendations for future growth, emphasizing the importance of adapting the business model to maintain competitiveness in the dynamic smartphone market. The report also touches upon Realme's strategic use of online retail marketing and its collaboration with e-commerce giants to establish a strong market presence.

Realme Telephone Company

Executive summary
The importance of evaluating business operation can be justified only when there is a
requirement of the change for a better future. The following report is based on the evaluation of
the operation performed by Realme Telephone Company. The objectives that have been
discussed in the report is well in accordance with the better understanding of the value it will
provide to the employees as well as to the customers. Customer segment and the channels
used for distributing the products have been well indicated in the file. Key success factors along
with the downside risk related to the newborn company are provided with ample information.
The way the organisation gets funding and the activities for better development of cost
structures has been discussed with enough depth in the report provided.

Table of content
Introduction 4
1. Value proposition 4
2. Customer segments 4
3. Channels 5
4. Customer relationships 5
5. Revenue streams 5
6. Key resources 6
7. Key Partners 6
8. Key activities 6
9. Cost structure 7
Critical success factors 7
Downside risks 7
Business model changes 8
Recommendations 8
Conclusion 8
References 9
Appendix 11

Introduction
The current report will try to establish a marketing overview of Realme Telephone. Attributes
such as value proposition, customer segments, distribution and networking channels, customer
relationships, revenue streams, key resources, partners, activities and lastly cost structure of
Realme will be discussed.
1. Value proposition
The young generation needs affordable yet powerful smart devices which can easily handle
their day to day needs. Realme has decided to develop phones having features similar to
premium smartphones but the pricing will be competitively done so that the customer’s first
preference will be buying the product from Realme. Since the targeted market group is mostly
young and likes to flaunt, Realme has also made significant deliberations while designing their
products.
2. Customer segments
Realme is focused on exploring technological advancement as well as a breakthrough that
happened in the last decade of electronics and communication history. In order to sell the
products Realme segmented The the business on the basis of the technology that may be
particularly useful for a certain customer segment namely the millennials. These individuals
have started earning money or are pursuing higher education. By segmenting their target
consumers Realme has displayed the use of selective targeting strategy in which Realme is
dedicated to developing products for the particular segment rather than trying to Cater to the
entire market. In terms of positioning Realme and is exploited Advancement in the context of the
processors, device specifications as well as Technology involved in the image capturing that it
will help the user to capture high-quality photos.
The targeted age group up of the customers are 15 to 40 years who help from the middle class
and lower-middle-class income groups. The particular segment has been the behaviour pattern
of these consumers highlight that they are easier to accept the changes and advancements in
personal devices and use the same to flaunt in front of their social groups. These consumers

also so don't believe in using the same phone for a long period of time because they are tech
savvy and like to keep up ahead when it comes to technology. The millennials also spend a
significant amount of time in online gaming which is why the company realised the potential of
developing high-performance devices having extended battery life that can deal with the
entertainment and gaming needs of the customers.
3. Channels
In order to handle the surplus orders and managing distribution networks Realme has use of
several distributor channels like wholesaler, retailers, commerce websites as well as physical
stores. Realme also tries to distribute their products and services by operating retail like outlets
for which Realme has received a licence. Realme has become one of the biggest smartphone
brands within months of entering the Indian market. This has been possible partly because of
the spin-off of Oppo. Initially the distribution channels of both Realms where the same and this
means in terms of distribution, Realme was able to carry out sales in domestic as well as Global
markets. However, as Realme separated from Oppo, Realme begin to realise the necessity to
have their own distribution channels. This is the primary reason why Realme has been
exclusively selling its products in global e-commerce websites like Amazon and Indian e-
commerce sites like Flipkart and integrating the e-commerce giants delivery channels with their
own. Realme did not have to undertake the initial struggle that one may face when entering the
competition.
4. Customer relationships
The primary Moto of any new organisation is to work together with the users to enhance the
experience of using their smart devices (Faryabi, Fesaghandis & Saed, 2015). The customers
are the central focus of the business and it is important for Realme to satisfy the customers in
order to sustain in the competitive market. Realme e develop their products by taking assistance
from the customers by allowing them to who provide the feedback in aspects of hardware as
less software. In order to make sure that the customers keep using the device Realme has
adopted Rapid release cycles in which form weather updates are released on the basis of the
customer feedback. The company is trying to establish yourself as a market player who does
not only want to make the sale but also tries to understand the customers. In order to attract

customers the primary strategies generally used by any new company are flash sales, digital
marketing and sponsor marketing (Odoom, 2016). This means that the consumers may feel that
there is a very limited scope of purchasing a device that is brilliant in terms of quality and finish.
In order to cut back from increased pressure of inefficient distribution channels after breaking off
Oppo, of the current strategies seem to be pretty cost effective without alienating the customers.
5. Revenue streams
The utilisation of revenue streams is not only to operate an organisation but also to make a
proper plan for the operation that needs to be incorporated in future (Rahman, Ismail, Albaity &
Isa, 2017). The company is focusing on developing the products by keeping in mind the
performance and design for the middle range smartphone price category. Presently the different
competitors of Realme like Samsung, Apple, Xiaomi, Huawei and Motorola are exhibiting
products having features similar to the products that Realme is trying to sell. However, the
product sold by Realme is much cheaper in comparison to that of the competitors. Since the
consumer's that are targeted have recently begun earning or are college students, Realme
acknowledges the fact that they will not be affluent enough to buy premium smartphones.
However, they do wish to have a technological advance device that can support their day to day
communication, entertainment and gaming needs. The revenue model implemented by Realme
is online retail marketing as the company wants to establish dominance over the entire digital
market and give stiff competition to its rival Xiaomi.
6. Key resources
The key resources that Realme requires are high-quality phone cases, powerful processes and
microchips, experienced assembly line, digital presence and collaboration with other technology
companies to make use of there Technologies and intellectual properties. The listed resources
are the key to the survival of Realme. All the hardware requirements can be fulfilled in the
domestic markets. Only e software development will be outsourced to China. There is a very
limited revenue stream for the company, as its primary objective is to establish dominance in the
market. Promotional activities like flash sales and heavy discounts are the best suited
promotional activities that can be applicable to any new telecom organisation at the current
stage (Li, 2016).

7. Key Partners
The key partners are those entities which are critical for the sustainability of a brand in the
competitive market (Dibb & Simkin, 2016). In order to make use of the digital online space
Realme has collaborated with digital media houses for the promotional activities and in order to
sell their products, Realme has established its ties with E-Commerce Giants like Flipkart and
Amazon to use the online marketing space. In addition to the distribution and the promotional
channels, Realme also has to who make sure that the customers do not face any problem after
the sales. In order to do so, any company has to decide whether to work with the parent
company or as an individual (Aggrawal, Ahluwalia, Khurana & Arora, 2017). Realme decided to
work alongside its Parent company, Oppo and use there existing facilities for dealing with
customer issues and after sale service. In order to develop their high-end low-cost devices, the
company has to oo significantly e work on the relationship with their hardware suppliers like
Snapdragon who provide Realme with The chipset.
8. Key activities
The key activities are the fundamental business practices that need to be implemented by the
company in order to penetrate the market space. In order to who remain true to their objective of
providing consumers with technologically advanced devices, the company needs to continue its
research and development till work to create devices and platforms that are readily accepted by
the customers (Garín-Muñoz, Pérez-Amaral, Gijón & López, 2016). The next major activity that
Realme has to undertake is is building a market presence. This is necessary sense Realme has
become independent from its mother company and it is in direct competition in the market
space. Providing exceptional customer service is also a very critical activity that needs to be
accomplished by Realme. This can be done by funnelling a small percentage of profit on
building the distribution network that will effectively take care of distributions and customer
relationships. The final activity that any organisation should undertake is promotional activities
so that the company can attract more buyers that will lead to more transactions which in turn will
help in developing the customer service and distribution networks (Jiang, Hu, Zhao, Yang &
Yang, 2018).

9. Cost structure
The most important component of the business model is keeping the distribution channels live
and making sure that at the Assembly line as the necessary components while working (Shieh &
Lai, 2017). Promotional activities and purchasing hardware components can be considered as
the most expensive of activities. Making use of digital marketing and physical stores are the
most expensive resources.
Critical success factors
Perhaps the most critical factors that can have a significant impact on the success of the brand
is how the consumers perceive the brand and their products. Realme has to keep in mind that it
is specifically targeting the mid and low-income groups who want to exploit the very worth they
expend to have a new, innovative, powerful and better functional smartphones that keep in mind
the basic smartphone consumer's needs like processing, the image capturing and gaming.
Another critical success factor is that the brand has to develop their own after sales service and
customer service division as they are trying to make it as a big market player and just selling
phones is not going to cut it (Zhang, Liang & Wang, 2016). Another factor to be considered is
their use of hardware in phones. If the hardware is not up to quality, the smartphones that the
brand makes will never be able to break even in the competitive market.
Downside risks
The company may become broke due to its low-profit business plan. They might be also forced
to charge at par with the other smartphone manufacturers if they are not able to break even in
the market. The brand Realme will always have the reputation of being a sub-brand of Oppo
and this may discourage a lot of buyers when they come to know that the brand does not have
its own channels of customer service. Another downside risk is that selling high-end
smartphones at a cheap price is very risky because the market is already saturated with high
end and cheap smartphones as well (Rahman & Masoom, 2015).

Business model changes
The current business model of the company is just fine as it is for now at least. Maybe later the
company needs to broaden its criterion of the target markets. However, there may be a
requirement of an urgent change in the business environment bringing in the urgency to change
the business model. In viewing the recent case of the organization, we can understand that the
organization uses the Nickel-and-Dime as change model (Pourdehghan, 2015). The Nickel-and-
Dime as change model provides services and products to customers at a very cost sensitive
manner and are the low price in general. Realme satisfies the criteria as they provide 8000 INR
smartphones with high-end features in a market dominated by Vivo, Oppo and others.
Recommendations
The brand is recommended to invest in customer and after-sales service. The recommendation
is specific because the brand is relying on the services of its mother company and this does not
give the brand the ability to sustain in the market as a competitor. The recommendation is
applicable because as customer feedback and excellent brand image are the brand’s business
principles. The recommendation is measurable as the amount of feedback and complaints can
be easily monitored and recorded to provide better performance goals. The recommendation is
realistic because who has ever heard a company not having its own channels to handle
customer feedback and complaints. The recommendation is time-bound and this step must be
taken by the brand within the next 2 years to provide them with market dominance.
Conclusion
This report effectively captures the various marketing elements of Realme as it tries to operate
and sustain in the competitive market of Electronics and Communication devices.

References
Dibb, S., & Simkin, L. (2016). Market segmentation and segment strategy. Marketing theory: A
student text, Sage, Los Angeles, 251-279.
Zhang, H., Liang, X., & Wang, S. (2016). Customer value anticipation, product innovativeness,
and customer lifetime value: The moderating role of advertising strategy. Journal of
Business Research, 69(9), 3725-3730.
Rahman, S. A. U., & Masoom, M. R. (2015). Effects of Relationship Marketing on Customer
Retention and Competitive Advantage: A Case Study on Grameen Phone Ltd. Asian
Business Review, 1(2), 97-102.
Shieh, H. S., & Lai, W. H. (2017). The relationships among brand experience, brand resonance
and brand loyalty in experiential marketing: Evidence from smart phone in Taiwan.
Journal of Economics & Management, 28, 57-73.
Garín-Muñoz, T., Pérez-Amaral, T., Gijón, C., & López, R. (2016). Consumer complaint
behaviour in telecommunications: The case of mobile phone users in Spain.
Telecommunications Policy, 40(8), 804-820.
Jiang, H., Hu, Z., Zhao, X., Yang, L., & Yang, Z. (2018). Exploring the Users’ Preference Pattern
of Application Services Between Different Mobile Phone Brands. IEEE Transactions on
Computational Social Systems, 5(4), 1163-1173.
Faryabi, M., Fesaghandis, K. S., & Saed, M. (2015). Brand name, sales promotion and
consumers' online purchase intention for cell-phone brands. International Journal of
Marketing Studies, 7(1), 167.
Aggrawal, N., Ahluwalia, A., Khurana, P., & Arora, A. (2017). Brand analysis framework for
online marketing: ranking web pages and analyzing popularity of brands on social
media. Social Network Analysis and Mining, 7(1), 21.

Li, L. (2016). The relationship between global brand and face in the Chinese market: A
comparative study of Chinese and American global cell phone brands. International
review of business, (16), 49-64.
Rahman, M., Ismail, Y., Albaity, M., & Isa, C. R. (2017). Brands and Competing Factors in
Purchasing Hand Phones in the Malaysian Market. The Journal of Asian Finance,
Economics and Business (JAFEB), 4(2), 75-80.
Odoom, R. (2016). Brand marketing programs and consumer loyalty–evidence from mobile
phone users in an emerging market. Journal of Product & Brand Management, 25(7),
651-662.
Pourdehghan, A. (2015). The impact of marketing mix elements on brand loyalty: A case study
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Appendix
Business canvas model
Key Partners
E-Commerce
websites
Promotional
companies
Hardware
developers and
manufacturers
Parent company,
Oppo
Key activities
Research and
development
Promotions
Building network
and distribution
channels
Value
proposition
Powerful devices
Technologicaly
advanced
Lots of features
Affordable
Customer
relationships
Customer feedback
Flash sales
Sponsor marketing
Customer segments
Millennials
Age group of 15 to 40
Belonging from middle
and lower middle class
groups
Tech savvy
Key resources
Good quality
materials
Powerful chipsets
Experience
assembly line
Distribution
channels of e-
commerce
companies
Channels
Using the physical
stores of Oppo.
Using distribution
network of e-
commerce
companies
Cost structure
Minimum profit
Promotion through sales
Word of mouth promotions
Revenue streams
Developing premium smartphone at affordable price
Online retail