Case ID: GS75     Solution ID: 28814

Shanzhai Bandit Mobile Phone Companies Case Solution

Abstract

In 2008, more than 750 million mobile phones were produced in China. A noteworthy part (20 percent, or around 150 million units) of these telephones were delivered by Shanzhai organizations. These organizations had quickly taken a huge share (around 10 percent) of the overall market. This marvelous development was fundamentally due to nonconventional ways to deal with the worldwide market in market situating, fast item advancement, and firmly coupled, responsive and proficient store network administration. Despite the fact that Shanzhai frequently has been seen as a term for forging, in all actuality it is more than simply replicating. Current PDAs contain advanced equipment, programming and frameworks innovation, yet Shanzhai organizations of just 10 individuals could influence a refined (however casual) system of item creators, makers, and wholesalers to make an effective business. This case portrays the Shanzhai marvel, and how these organizations work. It likewise gives a case of one organization that effectively transitioned from a Shanzhai culture to wind up distinctly a noteworthy standard compel in the Chinese cell phone industry. The case additionally examines strengths that test the eventual fate of the Shanzhai model.


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