Company Analysis of One Plus Mobile Phone Company

1. ONE +
COMPANY
ANALYSIS
GROUP-10
ANIRUDH AGARWAL –
17A1HP210
MRINAL DAS –
17A1HP213
SURBHI SINGH –
17A1HP234
ANKIT AGARWAL –
17A1HP432
B. MANOJ –
17A1HP529

2. INTRODUCTION
• OnePlus was founded on 16 December 2013 by
former Oppo vice-president Pete Lau and Carl
Pei.
• The company's main goal was to design a
smartphone that would balance high-end quality
with a lower price than other phones in its class.
• OnePlus entered into an exclusive licensing
agreement with Cyanogen Inc. to base its
products' Android distribution upon a variant of
the popular custom ROM Cyanogen Mod and use
its trademarks outside of China.

3. VALUE CHAIN ANALYSIS- PRIMARY
ACTIVITIES
INBOUND LOGISTICS
• Most of the inbound logistics such as obtaining
components and parts is done by outsourced by
FoxConn, world’s largest electronics manufacturer.
They are done in Shenzhen, China.
• The Manufacturing in India is done by Oppo India
Pvt. Ltd and soon, One Plus is also going to start its
operations in India with their upcoming launches.
• Infineon, Panasonic corporation,
Siemens, Cypress semiconductor
corp. are some of the suppliers of
OnePlus mobiles. OnePlus works closely
with the suppliers to check on the
fluctuating demands of their products.

4. OPERATIONS
• The most commonly cited reason for their success is they
offer more value than their rivals.
• One Plus has an innovated unique supply-chains that have
forgone the warehousing-and-inventory-accumulation
model, and replaced it with a direct-from-manufacturing-
to-shipping model.
• Reviews and analyses often point to limited stock /
unavailability as shortcomings of this brands, when in fact,
it’s the very basis for their success.
• In an industry where the latest-and-greatest has a
maximum shelf-life of twelve months, One Plus has built
scalable businesses that reach the future faster (and
cheaper).
• One Plus’s main contribution to the Smartphone Wars has
been to cut out warehousing time altogether, bringing
smartphones to market as soon as they are assembled, in
whatever minimum order quantity is available.
• This model is somewhat unstable, and doesn’t deliver a
uniform customer experience like Apple. It reaches ahead as

5. OUTBOUND LOGISTICS
• OnePlus has exclusive distribution channel only with Amazon and Amazon
remains the major supplier of outbound logistics partner of OnePlus
• OnePlus is partnering with Servify, a Mumbai-based tech startup founded in late
2015, to provide pickup and logistics for after-sales services of its smartphones.
• The company has also launched the OnePlus Care app to enable customers to
self-diagnose their smartphones and avail free pickup-drop service from their
home or office, in case of a need to repair their OnePlus devices.
• The free pickup-drop service will be available across Bengaluru, Chennai,
Kolkata, New Delhi and Mumbai. OnePlus’s business model is built around
ecommerce—and getting them shipped to India, bearing the customs duty and
shipping charges themselves.

6. MARKETING AND
SALES
• One plus adopts a Market Focus Strategy.
• Triple threat three-pronged marketing strategy.
• The phone is cheap, but without compromising quality. It’s
relatively low priced with a high specification ratio.
• It’s invite-only. This has been the driving force in creating the
craze behind the phone, as the manufacturers are appealing to
basic human nature.
• 3 million ‘Notify Me’ registrations were made prior to the launch of
OnePlus 6 making it one of the most awaited smartphones of the
year.
• It’s a niche product. OnePlus has the reputation of being the
phone for tech geeks.
• Have gone for strong Promotional alliance with Amazon in India,
initially creating a huge buzz with Invite only model & then
opening it up for all.
• Online-Only Sales Strategy if followed by OnePlus.

7. MARKETING AND
SALES• Amazon India is the exclusive ecommerce
channel partner of OnePlus for the last four
years. The device went on sale on May 21
(exclusively for Amazon Prime members) and
OnePlus reported more than ₹100 crore in
sales in less than 10 minutes of launch.
• Despite being a premium brand, the
company’s penetration into tier 2 and tier 3
markets has increased from 28 percent in
2016 to over 50 percent in 2018.
• One in two customers for OnePlus choose to
trade in their old phones for a new OnePlus
phone and 40 percent of customers choose
the ‘No cost EMI’ option, a sales strategy that
helped OnePlus expand its customer base in
India.

8. SERVICE
• OnePlus Care is your personal device assistant
and has been powered by Servify. As a smart
device ownership platform, Servify enables
OnePlus device owners to connect with the
Brand Authorised Service Centres. Through the
OnePlus Care App, customers can self-diagnose
their smartphones and also avail free pickup-
drop service from their home or office in case
of a need to repair their OnePlus devices.
• Also, they have collaborated with Zendesk for
after sales customer service which is located in
10 different corners of the globe and has the
following support channels:
• Phone
• Live Chat
• Forums
• Social Media
• To provide service effectively and efficiently,

9. VALUE CHAIN ANALYSIS-
SUPPORT ACTIVITIES
FIRM INFRASTRUCTURE
• Oppo electronics is a major financial investor for one
plus.
• Shenzhen is the best place for making hardware, so its
positioning is good in China.
• Entry into the IPO to expand the business publically
• OnePlus has made India its second headquarters and is
hiring a lot of executives and government support in
campaigning ‘Make In India’ drive.

10. HUMAN
RESOURCES
MANAGEMENT
• Focus on high skill employees
in Engineering, IT and
management areas.
• Investing more in research
part.
• Survey through Focus Group.
• Improving training either for
local employees or global
employees.

11. RESEARCH, TECHNOLOGY & SYSTEMS
DEVELOPMENT
• Leading in AI ( Artificial Intelligence)
• Designed using the world’s most advanced in-cell IPS LCD and ultra-bright
LED technologies.
• Pixel density of 401 PPI.
• Expansion in Europe, USA and Indonesia.

12. PROCUREMENT
• The procurement in OnePlus facilities is
done via various suppliers based on the
availability and demand
• Most of the procurement of components
is done through suppliers such as
Mitsumi Corp, Cypress Corp. These
suppliers are also major suppliers to a
lot of the companies
• OnePlus purposefully manufactures
limited amounts of devices at a time and
sells directly to consumers to lower
costs.
• Direct purchasing policies to ensure all
items are purchased and delivered
within budget and time constraints.

13. VRIO FRAMEWORK
Resources/
Capability
Valuable Rare Inimitable Organized Competitive Implications
Quality of Service
Yes No
Competitive Parity
Product
Distribution Yes No
Competitive Parity
Products
Yes Yes No
Temporary Competitive Advantage
Marketing
Strategy Yes Yes No
Temporary Competitive Advantage
Technological
Expertise Yes Yes Yes Yes
Long Term competitive Advantage
Brand Value
Yes Yes Yes Yes
Long Term competitive Advantage

14. SWOT ANALYSIS
STRENGTH
Fastest growing smartphone company
having exclusive partnership with Amazon.
Low cost smartphones with latest
technology and high specifications.
Special platform android OS, which sets
OnePlus apart from other smartphones.
Due to its affordable price, OnePlus sold
30,000 units of its second version OnePlus
2 in just 60 seconds.
WEAKNESS
• OnePlus has a limited production capacity
as compared to other smartphone
companies.
• OnePlus with a limited marketing budget
will face issues in the smartphone market.
• OnePlus is restricting itself with online
communication i.e. amazon which is
benefitting for the early adopters who are
comfortable making online purchase. This
step may affect the reach of customers
who still prefer offline purchase.

15. SWOT ANALYSIS
OPPORTUNITIES
OnePlus can use different marketing
channels.
OnePlus can target different customer
segments.
THREATS
New entrant OnePlus will face lot of
difficulties in the smartphone industry
which is highly dominated by other
companies.
Oneplus has to spend huge money on
the marketing of the product, to increase
the brand awareness in the market.
Oneplus will face competition for the
established smartphone companies like
apple, samsung, xiaomi, Lg

16. THANK-YOU!!!