تلفن های همراه راهزن: یک استراتژی اقیانوس آبی

The cellphone market has been dominated by global brand companies for years. However, “bandit” cellphones (i.e., unbranded or unknown-brand “white box” cellphones) have introduced a new business model that is changing the rules of the game. Low cost, high value-added features are characteristic of bandit cellphones. Developing countries offer huge market potential for the growth of bandit cellphone sales. MediaTek (the biggest supplier of chips for bandit cellphones in China) and many small and medium-size Chinese companies have created new businesses in the manufacture and sales of these cellphones. This paper uses the blue ocean strategy, proposed by Kim and Mauborgne, to analyze the bandit cellphone strategy. This analysis provides a good example in the field of strategy and innovation management.

Shipments of cellphone shipments worldwide amounted to more than one billion units in 2007, and growth continues to increase, and strong demand from developing countries will drive global cellphone shipments to new records over the next five years. In 2000, Nokia, Motorola, and Ericsson dominated the cellphone market with over 70% of market share. In 2008, this changed somewhat to reflect Nokia, Samsung, Motorola, LG, and Sony Ericsson as the top five cellphone brands. The strong growth of Samsung and LG showed that nothing is impossible in the high-tech industry. Global brand companies still dominate the cellphone market. However, a new business model has begun to change the rules of the game. By the end of 2007, bandit cellphones were being manufactured in such numbers that they have become a threat to the domination of branded cellphones. Low cost, high value-added features are characteristic of bandit cellphones. In China, these unbranded or unknown-brand “white box” cellphones satisfy a wide range of demands from consumers. In rural areas, farmers want cellphones with loud speakers, while young people want cellphones with a distinctive appearance. Others like cellphones with powerful audio and video functions. With hundreds of different bandit cellphone models available in the market, consumers can easily find one that meets their needs. At the same time, many consumers feel that global brand cellphones do not offer as many options. This paper focuses on MediaTek, a chipset supply company, which has created a new business model for manufacturing cellphones. Kim and Mauborgne [1] proposed the “blue ocean” strategy, which emphasizes avoiding competition while creating value innovation that drives down costs while simultaneously driving up value for buyers. They developed a framework that includes four-actions: factors to be eliminated, reduced, increased, and created. Thinking that is different from traditional strategy is the key to creating value innovation. This paper uses the blue ocean strategy to explain MediaTek’s strategy in the cellphone industry. Section 2 describes MediaTek and the cellphone market. Section 3 explains the blue ocean strategy. Section 4 presents the four-action framework and strategy canvas applications. Section 5 presents the conclusion.

In the last decade, branding has become an important competitive priority in the cellphone market. However, MediaTek and its partners have changed the rules of the game in China by creating new business models for the cellphone market. Value innovation is the most important component in the blue ocean strategy. If MediaTek and its partners create value without innovation, it will quickly be imitated. If they create innovation without value, they will produce products and/or services beyond what customers are ready to buy or use. This case confirms the applicability of the blue ocean strategy. Analyzing the Chinese cellphone market using this strategy, we found that MediaTek and its partners have created a different strategy canvas. The business model created by MediaTek has attracted imitation by other industries such as the notebook industry, but MediaTek’s successful strategy has had a significant impact on the technology industry in the Asia-Pacific region. This case analysis is an excellent example for use in the study of strategy and innovation management.