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SMARTPHONE INDUSTRY IN INDIA

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

Raghav Aggarwal
Utkarsh Vardhan
INTRODUCTION

APPLE’S MISSION XIAOMI MISSION


STATEMENT STATEMENT

APPLE DESIGNS MACS, THE BEST PERSONAL MISSION STATEMENT : “MAKING QUALITY
COMPUTERS IN THE WORLD, ALONG WITH OS X, TECHNOLOGY ACCESSIBLE TO EVERYONE”.
ILIFE, IWORK AND PROFESSIONAL SOFTWARE.

“AT XIAOMI, WE STRIVE TO CREATE THE


APPLE LEADS THE DIGITAL MUSIC REVOLUTION
WITH ITS IPODS AND ITUNES ONLINE STORE. APPLE HIGHEST QUALITY PRODUCTS IN LOWEST
HAS REINVENTED THE MOBILE PHONE WITH ITS POSSIBLE PRICES IN ORDER TO PROVIDE
REVOLUTIONARY IPHONE AND APP STORE, AND IS PEOPLE ACCESS TO THE NECESSARY TOOLS
DEFINING THE FUTURE OF MOBILE MEDIA AND AND SERVICES THAT CONNECT THEM TO THE
COMPUTING DEVICES WITH IPAD.
WORLD, AND ULTIMATELY, TO THEIR DREAMS”
PESTEL ANALYSIS
POLITICAL FACTORS ECONOMIC FACTORS
• Stable political situation in India. • India is among the fastest
• The Union Government is growing economies in the world.
encouraging privatisation in • A moderate inflation rate of
various industries. (3.31%) in India.
• Introduction of 12% GST rate on
all mobile handsets irrespective • India is both value-conscious and
of their manufacturing region i,.e cost-conscious economy.
locally manufactured or
imported. • The income level of citizens has
• Additional custom duty imposed increased over the past decade
by the Ministry of Electronics and which has facilitated the growth
Information Technology on all of the smartphone industry.
imported handsets. Advantage to
local manufacturers.
• Mobile handsets are integral to
India’s Make in India program.
SOCIAL FACTORS TECHNOLOGICAL FACTORS
• Literacy rates in India have • India possesses one of the
improved. strongest IT sectors in the world,
promoting constant IT
• Ease of communication with development, software
smart phones has led to upgrades and other
widespread use in urban and technological advancements.
rural areas.
• Smartphone manufacturers are
• The working class Indians today differentiating their products by
are tech savvy and highly providing unique features with
dependant on smart phones. high focus on R&D.

• Smart phones are also • The Indian government is also


considered a status symbol in spending on research and
India which has led to their development in the
higher sales as compared to technological field (Make in
feature phones. India program)
LEGAL FACTORS ENVIRONMENTAL FACTORS

• No regulations around data • Mobile phone manufacturers


storage or access to private are continuously trying to
data in India has brought improve the environmental
into question the security of credentials of their products
personal information of by :
smart phone users in India. Improving energy
efficiency of the devices.
• Various manufacturers are Making eco friendly
fighting patents cases products which contain bio-
against each other over plastics and recycled
various technologies and materials instead of PVC.
features used in their Using renewable and
product. recycled materials in
packaging. Eg : virgin
wood fibres.
PORTER’S 5 FORCES ANALYSIS
APPLE INC.
Bargaining Power of Buyers
Threats of New Entrants The bargaining power of buyers is strong in
Experiences moderate threats from new entrants affecting Apple’s business
1. High capital requirements 1. Low switching cost
2. High cost of brand development 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 Xiaomi's Strategy
• Portfolio – laptops, tablets, wearables, • Expansive portfolio – TVs, wearables,
Apple TV, music. power banks, air purifiers, security
• TG – age (20 – 50), occupation (students, cameras, brand merchandise.
executives, professionals), high income level. • TG – age (18 – 65), occupation (students,
• 1 assembly plant: employees, professionals), benefit (cost
• iPhone SE and 6S built locally.
effective).

• Import of other models from US – premium • Heavy reliance on online market (55%
pricing. share) – online store 3rd largest retail site
(after Amazon and Flipkart)
• Price skimming strategy – older models.
• Local R&D.
• Refurbished phones – much cheaper.
• 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
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