Drivers of Globalization
The major driver of globalization for OnePlus is technology. Technology is one of the key factors in any modern business. OnePlus is not an exception and has utilized technology to grow its business internationally. Thank technology, OnePlus was able to penetrate and make more sales in the Indian market. Initially, there were no offline stores where clients could purchase the phone but were supposed to make their orders online (Tian,2015). The company has maintained a close relationship and regular engagement with its clients through online platforms. One plus has managed to conduct online research on the various markets they want to invest in without traveling physically to the various destinations. Technology has helped OnePlus overcome various global challenges such as transportation cost, delayed exchange of information, and trade barriers. Software experts can work smoothly and collaboratively from various parts of the world.
The second key force that has made OnePlus expand its business operations internationally is the market. Customers in different parts of the world have increasingly demanded smartphones with advanced features but affordable (Moncada-Paternò-Castello, 2011). OnePlus is utilizing the opportunity to offer its customers exactly what they need. It has opened new markets since most brands that offer similar products have high pricing for their products. International clients have continued to emerge as their needs continue to grow. Other brands offer similar products but not identical, which gives OnePlus some kind of uniqueness, which is desirable by most clients. Another key driver of globalization is competition. OnePlus see the need to globalize its operations since there is little competition in some markets. Thereby, it is likely to gain a larger market share since the rivals offer little competition in pricing and quality of their products.
Strategy in India
One plus has adopted various strategies to ensure it remains a top brand in India. The company launched a new marketing strategy and is exploring further options such as campaigns for promotion. For instance, it organized pop up events in various parts of the country to promote the OnePlus 6T series. OnePlus has collaborated with Reliance Digital to enlarge the offline outlet’s network. The company takes the offline market as an integral part of its marketing strategy since it serves as the strategic method while the online market is the point of sale. The offline store is key in building long term relationship with its customers and loyalty to the brand. The company had initially adopted an exclusivity strategy where not everyone could buy the phone despite its national recognition. It was not a matter of choice; one had to strive to get it since it could only be acquired through an invite from other users (Ugbah& Evuleocha, 2007).
India being a new market for OnePlus, the company had to plan to grow its market. Despite the production of premium price phones, it strategized on creating more medium-premium smartphones since this range occupies a larger percentage of the market (Qumer & Purkayastha, 2019). The company had previously focused more on the premium price phone, which restricted its target market. Still, with the introduction of the medium one, a market of close to a hundred cities opened up. The strategy triggered the movement of customers from brands that offer premium devices to OnePlus. Value for money is important since they would get a phone with similar features and equally good at affordable prices. Smart pricing is another strategy used by OnePlus to attract more customers to the brand. OnePlus phone could be termed as relatively cheaper compared to other brands in India. People require products of high quality at prices that are affordable to them.
Reasons Behind Its Success
The secret of OnePlus’ success in the Indian market is well known; however, it’s challenging for most companies to adopt and execute. Its success is due to its endless efforts to create and deliver top quality smartphones at affordable prices to the people. OnePlus has managed to form a group of users who are not enticed by advancement in technology only but also collecting feedback so that the company can know where to make improvements in the future. Each of the products released to the market is created regarding the feedback collected from the OnePlus community (Sawhney & Goodman, 2016). The company’s main focus is creating the best smartphone across all markets. Through the community feedback, the company has managed to make massive improvements and avoid repeating mistakes. OnePlus is a high-end smartphone offered at an affordable price, thus gaining a competitive advantage over its rivals.
Another master plan that saw OnePlus succeed in the Indian market is its support to its products for more than one year, unlike other companies. The longer the product stays in the market, the higher its profit since the production cost decreases with time. OnePlus did not invest in marketing and avoided selling its products to retailers who would hike the prices. The company revealed an invite-only technique where only those invited were able to purchase (Luu & Lubwama, 2016). OnePlus used its forums and promotions to distribute the invites. This technique ensured that the company did not manufacture more smartphones than the demand. This strategy aroused critics and controversy, but it turned out to be a blessing for the company. It builds a good reputation equitable to other leading brands such as Samsung, Apple, among others. OnePlus offered a deal that amused most Indians: top-notch specification at almost half the price.
Significance of India in OnePlus’ Growth
The Indian market is one of the most interesting and enticing places to buy a smartphone, and for this reason, OnePlus has made a huge investment. India is one of the few countries that is growing not only in price but also in volume. The market is evolving to become more premium. One of the factors attributing to premiumization is the rationalization of cost; the smartphone entry level is becoming better. The price of most phones has gone up, thus becoming suitable for OnePlus to make more sales. The second factor is the demand for quality products; clients who have been using the low-priced phone are turning to the middle premium and premium phones. Again, favoring OnePlus since its main target in the market are the middle and upper class. This is a good reason for customers to buy OnePlus smartphones.
India is in the top priority market list for OnePlus and soon might be made the regional headquarters for international market expansion. The company is already manufacturing its products locally and exporting them to other markets globally. One plus launched an R&D plant that will serve as a center for developing new technology and artificial intelligence. India is full of great talents and brilliant minds willing to make more innovations, thus pushing the company forward. There is a huge potential for growth in India, and the market is wide enough for further exploration. In the near future, OnePlus will expand its export volume. India is an important market for OnePlus and represents a market with a huge impact on resources and talents that influence what the company does.
Possible Challenges in Future
Despite a good start for OnePlus in India, the brand is expected to encounter challenges in the future. OnePlus should not be contented with the current performance trend but focus more on future challenges and their solution to emerging as the top brand. One of the major challenges that OnePlus is likely to encounter in the future is competition from other brands (Latif et al., 2014). OnePlus may have won the hearts of many Indians and occupied a larger market share than its rivals, but they should be prepared for tougher competition. It should also be worried about new entrants in the markets that are likely to develop similar products at reduced or more affordable prices. Its competitors are likely to develop phones that have advanced features to attract more people. The higher the number of new entrants into the market, the stiffer the competition.
It is likely that in the future, OnePlus will encounter the challenge of counterfeit smartphones. Other brands have had a similar problem and OnePlus is no different. The presence of counterfeit smartphones reduces the sales volume of original phones by a significant percentage (Aljafar, 2015). Unfortunately, once it starts to happens becomes unavoidable, but the company must learn how to cope with the challenge. There is a likelihood that OnePlus will encounter more court cases in the future. The sale of OnePlus handsets was once banned in India but later lifted on an agreement to change the operating system. There is a probability of its competitors presenting more cases before court to try to destabilize the company. Uncertainty of the economy is another challenge likely to affect OnePlus. Recent events such as the coronavirus pandemic have fueled uncertainty of India’s market, which may lead to a decline in sales of new smartphones.
What to Do to Emerge as A Leading Player
OnePlus must develop strategies and techniques to make it the leading company in sales of smartphones in the Indian market. A smart pricing strategy is one way of ensuring that OnePlus captures a larger market share than its competitors (Dong et al., 2016). Other brands such as Apple Inc and Samsung have a pricing strategy that captures the elite class. To have a competitive advantage, its products’ pricing should capture all classes of people in the market. More so, the middle class since they occupy a larger percentage of the market. OnePlus should appoint a team of professionals who will cope with the changing times. For instance, it was once sued by Micromax for the use of the Cyanogen operating system, where it lost the case and was banned from the Indian Market. The company later appointed a new set of new lawyers who pushed for the ban to be lifted. A clear indication that professionals will keep the company on top.
OnePlus should build a strong customer-oriented culture. There are many leading brands in India, and the aim of each of them is to occupy the largest market share by making more sales. A customer-oriented culture takes into consideration the customer needs while developing their products (Arike, 2015). With such a culture, OnePlus will win new customers from other brands and return to older clients. A company’s culture is its strength; it may either build it towards success or destroy it. OnePlus should stay close to its customers, but building platforms or a community where clients can give feedback. Feedback gives the company insight on what to improve and probably new functionalities and should be incorporated. Customers feel appreciated and feel comfortable when the company keeps on engaging them.