Shanzhai (“Bandit”) Mobile Phone Companies: The Guerrilla Warfare of Product Development and Supply Chain Management Case Study Solution
This case explains the Shanzhai phenomenon, and how these business run. It likewise supplies an example of one business that effectively change from a Shanzhai culture to become a significant traditional force in the Chinese smart phone market. The case likewise talks about forces that challenge the future of the Shanzhai design.
In 2008, more than 750 million cellular phone were produced in China. A substantial part (20 percent, or about 150 million systems) of these phones were produced by Shanzhai business. These business had actually quickly taken a substantial share (about 10 percent) of the around the world market. This remarkable development was mostly thanks to nonconventional methods to the international market in promote positioning, fast product growth, and firmly combined, responsive and effective supply chain administration. Though Shanzhai frequently has actually been viewed as a term for counterfeiting, in truth it is more than simply duplicating. Modern cellular phone consist of advanced hardware, software application and systems innovation, yet Shanzhai business of just 10 individuals might utilize an advanced (though casual) network of product line designers, producers, and suppliers to earn an effective organisation......................................................................
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