OnePlus: A Chinese Tech Start-up Aiming to Disrupt the Global Smartphone Market
| Case Code: LDEN107 Case Length: 20 Pages Period: 2013-2016 Pub Date: 2016 Teaching Note: Available |
Price: Rs.400 Organization : OnePlus Industry: Smartphone Countries : China; Global Themes: Entrepreneurship, Business Model, Startup Management, Competitive Strategy |
Abstract Case Intro 1 Case Intro 2 Excerpts
Abstract
This case is about the meteoric rise of OnePlus, a Shenzen-based technology startup gained attention globally for its high-end budget smartphones sold directly to consumers online through an innovative invite system. Founded in 2013 by former OPPO executives Pete Lau and Carl Pei, OnePlus was one of the fastest growing Chinese startups that made a mark globally in a very little time with its sleek devices, killer price tags and by-invite exclusivity. The company positioned itself between low-cost smartphone companies like Xiaomi and high-end makers like Apple and Samsung and significantly undercut them on price, despite closely matching them on features. Right from the outset OnePlus promoted itself as a global company with a global mindset. The challenge before founders Pete Lau and Carl Pei were how to sustain lower prices, make profits and achieve international success going forward.
Issues
This case is designed to enable students to:
- Evaluate the business model of OnePlus and understand the factors that contributed to the success of OnePlus
- Examine the competitive strategy adopted by OnePlus
- Examine the global first strategy of OnePlus
- Understand the threats faced by Chinese start-ups like OnePlus in the global smartphone sector
- Identify the challenges faced by OnePlus in the intensely competitive Chinese as well as global smartphone market and explore strategies that the company might adopt to sustain itself in these markets
Contents
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Introduction
The Beginning
Gaining Momentum
Business Model of OnePlus
Global First Strategy
Marketing
Initial Results
Challenges
The Road Ahead
Exhibits
Keywords
Entrepreneurship; Start-up phase; Scalable start-ups; Business model; The business model canvas; Four box framework; Business Model; Innovation; Competition; Hypercompetition; Competitive strategy; Hybrid Strategy; International management; Globalization strategy
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