SMARTPHONE INDUSTRY IN INDIA

By- GROUP-6
Arush Bhatnagar
Aseem Garg
Atharv Chauhan
Nitesh Panda

Raghav Aggarwal
Utkarsh Vardhan
 INTRODUCTION
APPLE’S MISSION
STATEMENT
APPLE DESIGNS MACS, THE BEST PERSONAL
COMPUTERS IN THE WORLD, ALONG WITH OS X,
ILIFE, IWORK AND PROFESSIONAL SOFTWARE.
APPLE LEADS THE DIGITAL MUSIC REVOLUTION
WITH ITS IPODS AND ITUNES ONLINE STORE. APPLE
HAS REINVENTED THE MOBILE PHONE WITH ITS
REVOLUTIONARY IPHONE AND APP STORE, AND IS
DEFINING THE FUTURE OF MOBILE MEDIA AND
COMPUTING DEVICES WITH IPAD.
XIAOMI MISSION
STATEMENT
MISSION STATEMENT : “MAKING QUALITY
TECHNOLOGY ACCESSIBLE TO EVERYONE”.
“AT XIAOMI, WE STRIVE TO CREATE THE
HIGHEST QUALITY PRODUCTS IN LOWEST
POSSIBLE PRICES IN ORDER TO PROVIDE
PEOPLE ACCESS TO THE NECESSARY TOOLS
AND SERVICES THAT CONNECT THEM TO THE
WORLD, AND ULTIMATELY, TO THEIR DREAMS”
 PESTEL ANALYSIS
POLITICAL FACTORS
• Stable political situation in India.
• The Union Government is
encouraging privatisation in
various industries.
• Introduction of 12% GST rate on
all mobile handsets irrespective
of their manufacturing region i,.e
locally manufactured or
imported.
• Additional custom duty imposed
by the Ministry of Electronics and
Information Technology on all
imported handsets. Advantage to
local manufacturers.
• Mobile handsets are integral to
India’s Make in India program.
ECONOMIC FACTORS
• India is among the fastest
growing economies in the world.
• A moderate inflation rate of
(3.31%) in India.
• India is both value-conscious and
cost-conscious economy.
• The income level of citizens has
increased over the past decade
which has facilitated the growth
of the smartphone industry.
 SOCIAL FACTORS
• Literacy rates in India have
improved.
• Ease of communication with
smart phones has led to
widespread use in urban and
rural areas.
• The working class Indians today
are tech savvy and highly
dependant on smart phones.
• Smart phones are also
considered a status symbol in
India which has led to their
higher sales as compared to
feature phones.
TECHNOLOGICAL FACTORS
• India possesses one of the
strongest IT sectors in the world,
promoting constant IT
development, software
upgrades and other
technological advancements.
• Smartphone manufacturers are
differentiating their products by
providing unique features with
high focus on R&D.
• The Indian government is also
spending on research and
development in the
technological field (Make in
India program)
 LEGAL FACTORS
• No regulations around data
storage or access to private
data in India has brought
into question the security of
personal information of
smart phone users in India.
• Various manufacturers are
fighting patents cases
against each other over
various technologies and
features used in their
product.
ENVIRONMENTAL FACTORS
• Mobile phone manufacturers
are continuously trying to
improve the environmental
credentials of their products
by :
Improving energy
efficiency of the devices.
Making eco friendly
products which contain bio-
plastics and recycled
materials instead of PVC.
Using renewable and
recycled materials in
packaging. Eg : virgin
wood fibres.
PORTER’S 5 FORCES ANALYSIS
 APPLE INC.
Threats of New Entrants
Experiences moderate threats from new entrants
1. High capital requirements
2. High cost of brand development
Bargaining Power of Buyers
The bargaining power of buyers is strong in
affecting Apple’s business
1. Low switching cost
2. Small size of individual buyers

Competitive Rivalry or Competition

with Apple
Apple faces the strong force of
competitive rivalry or competition
1. High aggressiveness of firms
2. Low switching cost
Bargaining Power of Apple’s Suppliers Threat of Substitutes product
Apple experiences the weak force of the bargaining The threat of substitution is weak in affecting
power of suppliers Apple’s business
1. High number of suppliers 1.low availability of substitutes
2. High overall supply 2.Low performance of substitutes
 XIAOMI CORPORATION

Threats of New Entrants Bargaining Power of Xiaomi Buyers

Experiences low threat of new entrants The bargaining power of buyers is low
1. Benefits from Economies of scale because raw 1. Too many options available in smartphones.
materials were purchased in bulk. 2. Switching cost is Low.
2. High capital investment of 41 million in 2010

Competitive Rivalry or Competition with

Xiaomi
Xiaomi faces strong competitive rivalry or
competition
1.Extremely high competition among the brands.
2. Holds very low % of market share.

Bargaining Power of Xiaomi Suppliers Threat of Substitutes or Substitution

Xiaomi experiences moderate bargaining power of The threat of substitution is moderate in affecting
suppliers Xiaomi’s business
1. Loyal Suppliers, majorly located in Taiwan 1. Declining sales in the Chinese Market.
2. Develop strong relationship 2.High availability of substitutes smartphones.
 HIGH STRATEGIC GROUPS

Semi - Low Premium

PERFORMANCE/

Semi - Premium
SPECS

Mid - Range
LOW

Low

LOW PRICE HIGH

 Apple's Strategy
• Portfolio – laptops, tablets, wearables,
Apple TV, music.
• TG – age (20 – 50), occupation (students,
executives, professionals), high income level.
• 1 assembly plant:
• iPhone SE and 6S built locally.
• Import of other models from US – premium
pricing.
• Price skimming strategy – older models.
• Refurbished phones – much cheaper.
Xiaomi's Strategy
• Expansive portfolio – TVs, wearables,
power banks, air purifiers, security
cameras, brand merchandise.
• TG – age (18 – 65), occupation (students,
employees, professionals), benefit (cost
effective).
• Heavy reliance on online market (55%
share) – online store 3rd largest retail site
(after Amazon and Flipkart)
• Local R&D.
• 6 local assembly plants - 2
phones/second.
• 95% of phones made locally – avoid
import tariff.
• Aggressive pricing – "honest pricing."
 SWOT Analysis Of Apple Inc.
• Apple is one of the oldest hardware manufacturers
• Its control over the product and quality is optimum
STRENGTH
• It has a brand loyalty
• Apple has a very strong R&D department

• Highly priced
WEAKNESS
• Complaints from customer for the device

• Expanding its mobile market in India

OPPORTUNITY • Potential market share
• High adoption of mobile phone

• Competition from android devices

THREATS
• Legal Issues
 SWOT Analysis Of Xiaomi
Corporation
• High product innovation
• Strong brand portfolio
STRENGTH
• Strong dealer community
• Positive word of mouth

• Financial planning is not done properly and efficiently

WEAKNESS
• Limited success outside core business

• New taxation policy

OPPORTUNITY • Adopting offline sales channel
• Exploring new markets

• Loss leader strategy is questioning the sustainable future

THREATS of the company
• Future profitability at stake
THANK YOU !!