competitive advantage of china smartphone in …
TRANSCRIPT
COMPETITIVE ADVANTAGE OF
CHINA SMARTPHONE IN INDONESIA MARKET
By
Feng Lihui
014201300052
A Skripsi presented to the
Faculty of Business President University
in partial fulfillment of the requirements for
Bachelor’s Degree in Economics Major of Management
December 2016
i
PANEL OF EXAMINERS
APPROVAL SHEET
The Panel of Examiners declare that the skripsi entitled
“COMPETITIVE ADVANTAGE OF CHINA SMARTPHONE IN
INDONESIA MARKET” that was submitted by Feng Lihui majoring in
Management from the Faculty of Business was assessed and approved to
have passed the Oral Examinations on 23rd December，2016.
Chair - Panel of Examiners
Examiner I
Examiner II
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SKRIPSI ADVISER
RECOMMENDATION LETTER
This skripsi entitled “COMPETITIVE ADVANTAGE OF CHINA
SMARTPHONE IN INDONESIA MARKET” prepared and submitted
by Feng Lihui in partial fulfillment of the requirements for the Bachelor
of Economics in the Faculty of Business has been reviewed and found to
have satisfied the requirements for a Skripsi fit to be examined. I
therefore recommend this skripsi for Oral Defense.
Cikarang, Indonesia, December 21th, 2016
Acknowledged by, Recommended by
Dr. Dra. Genoveva, M.M Dr. Dra. Genoveva, M.M
Head Management Study program Advisor Program
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DECLARATION OF ORIGINALITY
I hereby declare that this skripsi entitled “COMPETITIVE
ADVANTAGE OF CHINA SMARTPHONE IN INDONESIA
MARKET” is, to the best of my knowledge and belief, an original piece
of work that has not been submitted, either in whole or in part, for any
degree, associate ship, conference or any other publications.
Cikarang, Indonesia, 16 December ,2016
Feng Lihui
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ABSTRACT
The purpose of this study is to analyze the internal and external factors of China Smartphone Brand in Indonesia market, which later will be continued to the analysis of its strategy to gain competitive advantage. The method in this research used qualitative method. The researcher started the analysis with the 4Ps，the next is CPM Matrix, internal factors and external factors, SWOT strategies, TOWS Matrix, IFE Matrix, EFE Matrix, IE Matrix, BCG Matrix, SPACE Matrix, Grand Strategy Matrix and the result in the QSPM. According to Porter (1985), a firm’s strengths will ultimately fall into advantage, differentiation, cost leadership, and focus. According to Parnell (2006), a firm strength can choose to lower costs than its competition or differentiating their product and/or service by consumer to charge higher price. Followed by preliminary interviews with the customer who use the china smart phone and the smart phone store which sell the Mobil phone in Indonesia. This paper attempts to open up various of competitive strategy surrounding this complex and high competitive industry. It thus, provided a base for future researchers to examine any aspects of smart phone and technology industry in Indonesia.
Keywords: smart phone industry, Business strategy, Competitive Advantage, 4P, CPM, SWOT, EFE, IFE, IE, BCG, SPACE, Grand Strategy, QSPM.
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ACKNOWLEDGEMENT
During the entire duration of compiling this thesis, I would like to express my great
thanks to everyone who cares about me, give me the patient guidance, supporting. I
feel very lucky that my friends and teachers give me help, then, I can successfully
completed my thesis at a specified time.
First of all, and most importantly, I would like to present my special regards and
thanks to my beloved advisor, Ms. Dr. Dra. Genoveva, who give me a professional
guidance, valuable advice, motherly mentorship, passion and patient support to help
me finish the whole thesis. Without her patience guidance, I couldn't finished this
thesis all by myself. I will also miss the time which I discussed with my advisor.
Secondly, I would like to thanks to my parents and my sister who give me moral and
financial support. When I met the difficulties, they were patiently to teach me,
encourage and support me, help me overcome the difficulties, and give me confidence
and motivation.
Finally, I would like to thanks to smart phone shops and phone users who is cooperate
with me in the interview, so, I successfully completed my interview with the
collection of useful information. Thank you for the professional knowledge and
assistance from the entire lecturers at the University. At the same time, i would thanks
to all my good friends. I am very grateful to all of my friends for their help and
support during the thesis period. Thanks to all the lecturers and friends for caring and
helping, let me successfully complete my thesis on time, thank you very much!
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TABLE OF CONTENTS
PANEL OF EXAMINERS APPROVAL SHEET ............................................................ i
SKRIPSI ADVISER RECOMMENDATION LETTER ................................................. ii
DECLARATION OF ORIGINALITY ........................................................................... iii
ABSTRACT................................................................................................................... iv
ACKNOWLEDGEMENT .............................................................................................. v
TABLE OF CONTENTS ............................................................................................... vi
CHAPTER I PROBLEM STATEMENT ........................................................................ 1
1.1 Introduction ...............................................................................................1
1.2 Problem Identification ............................................................................... 4
1.3 Statement Of The Problem ........................................................................ 5
1.4 Research Objectives ................................................................................... 6
CHAPTER II INTRODUCTION .................................................................................... 8
2.1 The History Of Smart Phone Industry In Indonesia ................................. 8
2.2 China Smart Phone In Indonesia ...............................................................9
CHAPTER III LITERATURE REVIEW ..................................................................... 13
3.1Theoretical Review.......................................................................................... 13
3.1.1 Competitive advantage concepts ............................................................ 13
3.1.2 Marketing concepts................................................................................ 14
3.1.3 Marketing Mix ....................................................................................... 15
3.1.4 SWOT Analysis ..................................................................................... 16
3.1.5 TOWS matrix ........................................................................................ 17
3.1.6 IE matrix analysis .................................................................................18
3.1.7 BCG Matrix ........................................................................................... 18
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3.1.8 Quantitative Strategic Planning Matrix (QSPM) ................................... 19
3.2. Previous research ............................................................................................ 19
3.3.Theoretical Framework ................................................................................... 23
3.4. Dimensions of Variables .................................................................................. 24
CHAPTER IV DATA ANALYSIS ................................................................................ 27
4.1 “4P” Analysis ................................................................................................... 27
4.2 CPM Matrix .................................................................................................... 31
4.3 TOWS Analysis................................................................................................ 33
4.3.1 TOWS Matrix analysis .......................................................................... 33
4.3.2 SWOT Matrix ........................................................................................ 40
4.3.3 The Internal-External （IE）Matrix Analysis ...................................... 42
4.4 BCG Matrix ..................................................................................................... 45
4.5 SPACE Matrix ................................................................................................. 47
4.6 Grand Strategy Matrix .................................................................................... 48
4.7QSPM Matrix ................................................................................................... 49
5.1 Conclusions .............................................................................................. 57
5.2 Recommendations .................................................................................... 60
REFERENCES ............................................................................................................. 62
Appendix I .................................................................................................................... 66
Interview Result............................................................................................................ 66
Source: Smart phone store ............................................................................................ 66
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CHAPTER I
PROBLEM STATEMENT
1.1 Introduction
In recent years, with scientific and technological progress and social and economic
development, people's living standards are improving. From the beginning of the
feature phones to smart phones now, mobile phones have undergone tremendous
changes, as an essential part of people's lives, mobile phones in people's lives played a
huge role.
Telephone from Bell has been invented so far, telephone communications has been
more than 100 years of history, and become an indispensable tool for people's lives
and work. As a mobile communication technology which restricts the development of
mobile phone, it has been developed rapidly in the recent years. It is experienced the
four stage. The first stage is the 1G technology (analog communication technology
stage) began in 1949, Bell laboratories invented the cellular mobile communication
system. The second stage is the 2G technology (digital communication technology
stage). This technology originated in Europe, the European Telecommunications
Standards Institute Technical Committee set up the "Mobile Special Group" (referred
to as GSM), after several years of unremitting efforts, in 1991, it opened the first
digital system. And the GSM technology has been used so far, and it plays an
irreplaceable role in the current mobile phone system. The third stage is the 3G
technology (multimedia communication technology stage). the 3G technology is a
new generation mobile communication system which is developed by the integration
of wireless communication technology and Internet communication technology. With
the development of the 3G technology, the emergence of the value-added services, the
original loose industrial chain needs to be re-integrated, only the mobile operators can
play this important task, so the relationship between operators and mobile phone
2
manufacturers determine the pattern of the mobile phone industry. The fourth stage is
4G technology (the fourth generation of mobile communication system technology).
With the maturity of 4G technology and the reduction of mobile traffic fee, and
related mobile phone manufacturers to support the 4G standard, 4G mobile phone will
certainly become popular (Gao , 2010).
Figure 1.1 Indonesia’s Mobile Penetration
Source: Kathirmathi,2009
Indonesia has 62.7% mobile penetration rate, and is the 4th largest market for mobile
users, trailing behind China, USA, and India. 48% of these users had used their
mobile phone to access the Internet. This number is higher than Thailand (36%) and
Singapore (35%) (Winarti, 2010). And Indonesia is the world's largest archipelagic
country with a population of more than 240 million and it is the fourth largest
population country in the world. In recent years, Indonesia's domestic political
situation is stable, high-speed and stable economic growth, steady improvement in the
people's income levels, the mobile phone sales has a rapid growth, the market
potential is huge, and it become the largest mobile phone market in Southeast Asia.
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Indonesia is composed of 17,508 large and small islands, and the feature of its
multi-island and land area are wide dispersion, the development of the fixed telephone
network is more difficult, so that Indonesia is based on wireless mobile network
communications, which also fostered Indonesia's huge mobile phone market.
Indonesia as an important economy in Asia, the development of economic is rapid, so,
the mobile phone market has been a high-speed development. Follow Indonesia
mobile phone market is developing rapidly, there will have more and more mobile
phone users, with the development of the economy and the improvement of people's
income level, the consumer demand will increase, it will promote the user updates
from the functional mobile phones to smart phones (Huang, 2011).
Indonesia is one of the founding members of the Association of Southeast Asian
Nations (ASEAN). It has abundant natural resources and well-educated human
resources, and its economic development potential is enormous. Indonesia is one of
the most rapidly growing mobile communications market in the world, mainly based
on wireless mobile network communications, at the same time, the population of
15-64 year old residents reached 65.7%, the whole society belongs to the
adult-oriented society, the ability to accept new things is strong, With the
improvement of per capita purchasing power and consumer tastes ,it showing good
mobile phone penetration in Indonesia communication market, this also fostered a
huge mobile phone market in Indonesia. In this environment, Indonesia mobile phone
communication market has also attracted a lot of foreign capital injection and
investment, at the same time, China's mobile phone brands are gradually emerging in
the Indonesian mobile phone market, Foreign investment also bring more power,
opportunities, and challenges to the Indonesia mobile phone market. In this
environment, it can be better promote the technology exchange and development of
mobile phone market in Indonesia, and meet the needs of different levels of people in
Indonesia, provide them with more choices (Xue, 2011).
Now, in Indonesia's mobile phone market, the emergence of Chinese mobile phone
brands have ZTE, Lenovo, HTC, Oppo, Vivo, Huawei, Asus, Xiaomi, Coolpad,
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Meizu etc. Before writing this paper, I made a pre-survey, and selected 50 people as
the survey object, the 50 peoples are from the university who are the students and
lecturers. We can have a simple understanding that what is the awareness of the
Indonesian friends for China's mobile phone brand.
The pre-survey in Indonesian respondents awareness “what they have mention 3
China smart phone brand in Indonesia market?” ( the research with students and
lecturers in the president university )
Figure 1.2 In The First Reaction, The Brand Awareness of China Mobile Phone brand
Sources: Researcher
Based on the pre-survey, we can see that mostly Indonesians familiar with China
smart phone. This is just a pre-survey reference, we can simply understand the ranks
of Chinese mobile phone in people's minds / awareness, in this paper we also need to
do a detailed of analysis.
1.2 Problem Identification
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in the first reaction,Indonesia friend have choose which china smartphone brand in Indonesia market
Number
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Mobile phone industry, an important part of communication services, has become a
sunrise industry and represents the modern communications industry and the modern
mobile phone service industry. Smart phone has been regarded as a technology
strategic industry on its own. In Indonesia, It mainly based on wireless mobile
network communications, the potential for growth is very promising. And we know
that many foreign-funded enterprises enter Indonesian mobile phone market, thus, it
have formed a strong competitive power in the Indonesian mobile phone market. Even
Indonesia is a big market, but, the customer buy the china smart phone because the
cheaper prices, not really related to the operation system. In this highly competitive
situation, how to improve China mobile phone brand's competitive advantage, and be
better to meet the customer needs, improve customer satisfaction, enhance customer
loyalty, it has become the focus of mobile phone brand development goals. Nowadays,
in the Indonesian mobile phone market, the overall ranking of China's mobile phone
is not particularly prominent, Samsung, apple these brands are still ranked relatively
close. So, we are faced with this situation, Chinese mobile phone brand how to
formulate the competitive strategy to enhance their competitive advantage, in order to
enhance the market share in Indonesia's market, improve their brand awareness, and
produce more high quality products to meet the needs of different levels of customers,
has become the China mobile phone brand in the development target of Indonesian.
1.3 Statement Of The Problem
Accounting to the phenomenon as explained in the previous section, the researcher
indicated several problems which would be answered through this research, which
are:
1. How about internal factors of China smart phone brand in Indonesian market?
2. How about external factors of China smart phone brand in Indonesian market?
3. How about China smart phone positioning in Indonesian market?
4. What are the best alternative competitive advantage for China smart phone brand
in Indonesia smart phone market?
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1.4 Research Objectives
With the problems in the research as stated above, these are several objectives that the
researcher would like to obtain through this research:
1. To analyze the internal conditions of China smart phone brand in Indonesian
market .
2. To analyze the external conditions of China smart phone brand in Indonesian
market.
3. To analyze the China smart phone positioning in Indonesian market?
4. To identify the best alternative competitive advantage for China smart phone
brand in Indonesia smart phone market.
1.5 Significance of The Study
In this research, the research proposal has a useful significance of the study
contributes to theoretical, public knowledge and also for these aspects:
1. For Researchers: this research will give some good examples and understanding
of research smart phone, and provide the different market methods to do
research, gain the basic information of China smart phone market share, market
situation and condition in Indonesia market, get the knowledge to do other
researches well.
2. China Smart Phone Industry：this research will expect to contribute more and
provide the industry the basic information of running a business strategy, know
how to get the big market share, create some values, highlight the competitive
advantage and how to operate business successfully to attract the consumers.
3. For Readers: this research will help readers to get the more information of china
smart phone, it will be better and clear to help the reader’s understanding, in the
end, the readers can get some information that they needed. Meanwhile, the
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reader can gain much smart phone knowledge, learn the business operational
strategy, know how to choose the china smart phone, get the information of the
smart phone development trend of Indonesia, and so on.
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CHAPTER II
INTRODUCTION
2.1 The History Of Smart Phone Industry In Indonesia
Mobile phone development to the present, it has not only a tool for the phone calling
and text messaging, it also has join the social and multimedia function, making
mobile phone become bridge for users to communicate with the outside world. in
people's daily lives, it has play a very important role. Indonesia is the world's fourth
largest population country and the largest archipelagic country with a total population
of 240 million. And now, the economic of Indonesia have a rapid development and
politics is stability. In addition, due to the unique geographical structure, the
development of fixed telephone network is more difficult. Therefore, Indonesia is
based on wireless mobile network communication, which also indicates the
opportunity of the Indonesian mobile phone market. This is also attracting the
investment and production of foreign mobile phone company and local mobile
phone company.
From the chart, we can see from 2010 to 2013, the GDP per capita is continue rising,
which also indicates that the national purchasing power increased, in this case, it will
stimulate the people's demand for the purchase of mobile phones. At the same time, a
lot of peoples likes surf internet by phone, through the chart, Internet penetration is
also rising, which also indicates that the increasing penetration of smart phones, but
also indicates that the demand for a smart phone is increasing, it means that the
Indonesian mobile phone market exists greater opportunities.
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Figure 2.1 The GDP per capita of Indonesia / Smartphone penetration / Internet penetration
Source: Gouw, 2014
Now, in the Indonesian mobile phone market, the current mobile phone brands have
Samsung, Smartfren, Blackberry, Lenovo, Evercoss, Sony, Mito, Apple, Nokia,
Huawei, Oppo, ZTE, Xiaomi, LG and others. We can see that there are a wide variety
of mobile phone in Indonesia market, the different models and different functions of
mobile phone can meet the needs of different groups of people, and it will provide
more convenience to the Indonesian people's life and communication. At the same
time, in this mobile phone environment, it is better to promote the development and
improvement of mobile phone industry in Indonesia.
2.2 China Smart Phone In Indonesia
Due to the unique needs and the status quo of the Indonesian mobile phone market, it
has attracted a lot of foreign mobile phone companies came to Indonesia for
investment and production. Now in Indonesia, the Chinese mobile phone brands have
ZTE, Lenovo, Oppo, Vivo, Huawei, Xiaomi, Asus and others. China is the world's
largest mobile phone market, Indonesia is one of the four largest mobile phone market
in Asia, this two markets will attract a lot of foreign-invested enterprises to invest and
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produce. The same with China's mobile phone market is that Indonesia's population is
also very large, and the per capita GDP is also very close, in the market, the low-end
mobile phone of below 2,000 Yuan which have largest sales, and the current price of
most mobile phone brands are also in this range, So, the Indonesian market is very
suitable for the development of China's mobile phone business enterprises. Indonesia's
3G license issued a few years earlier than China, but Indonesia and China are same
belong to the developing countries, the resident's desire of the 4G network is less than
the Europe and the United States developed countries (Liu,2007）. In the future
development process, it will be based on 3G networks, And as we know, the 3G
technology of China mobile phone companies is already very mature, and Indonesia is
also a strong development of 3G networks, which have also provides a very good
opportunity for China's mobile phone companies, but also, it can make the Indonesian
people has a more Good experience in the mobile phone .
Although in Indonesia and China market, the market share of the largest brand is
Nokia, but the most popular mobile phone is not the same, China's most popular
mobile phone brand is Apple, Indonesia's most popular mobile phone brand is the
BlackBerry, from this point, we can see the difference between the two markets.
Apple's mobile phone is popular mainly because it has a lot of functional applications,
and these applications rely too much on the network can be achieved, and BlackBerry
does not need too much dependence on the network can achieve most of the functions.
in the aspects of the network building, Indonesia is still have a big gap with china, so
in Indonesia, the new generation of smart phones still can not be compared with
traditional mobile phones such as BlackBerry.
At present, there have 60 kinds of Chinese-made mobile phones in the Indonesian
market, it mainly concentrated in the low-end market, accounting for 90% of the
low-end mobile phone market (Tang, 2008). The more common china domestic
mobile phone brands are Huawei, ZTE and T-TOUCH, the three china domestic
mobile phone companies have set up the after-sales service points in Indonesia.
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Especially, Huawei and ZTE have get the highest awareness among the Indonesia
people, this is because this two Chinese companies have the construction ability to
build telecommunications base station equipment, Indonesia's three major operators
Telkomsel, Indosat and Axiata XL both with this two home companies to build base
stations, and this two companies has provide a complete set of telecommunications
network solutions to the three operators, but also, it have improve their own mobile
phone terminal sales, so they have received a higher awareness in Indonesia
(Yang,2008). In addition to the above mentioned three mobile phone brands, there are
many Chinese mobile phone brands are constantly to innovate and improve the
products, they are hoping to provide high-quality products, quality service, and the
appropriate price to get Indonesia people's favorite, and also get more market share in
Indonesia market. At the same time, they opened more after-sales service site in
Indonesia, it can improve the consumer confidence, so that they can put up the sales.
At the same time, in the face of the competition of mobile phone manufacturers, the
competition of external hardware is not the only standard, the built-in service will
become more and more important. Meanwhile, the China mobile phone enterprises
also realized that in order to obtain greater market share in Indonesia, it should not use
the successful model of China to Indonesia, they should produce the product to meet
the need of Indonesia consumer base on the situation of Indonesia. In this way, they
can be better to meet the need of Indonesia people and have a better develop and grow
in Indonesia.
2.3 Research Gap
The gap of this research is between the Smart Phone management integration and
marketing strategic management process, these are different areas and direction be
analysis as the competitive advantage to the market share in the china smart phone
industry. And, different paper has different research method and way. In the previous
research, the scholars concentrated on the SWOT, IFE Matrix, EFE Matrix and IE
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Matrix, OSPM Matrix to analysis the market condition and competitive position. In
this research, the researcher have use a lot of research method to find the most
competitive advantage of the china smart phone industry in Indonesia. Then, it will be
more accurate to the research.
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CHAPTER III
LITERATURE REVIEW
3.1. Theoretical Review
3.1.1 Competitive advantage concepts
Competitive advantage is a business concept describing attributes that allow an
organization to outperform its competitors (Porter in Genoveva & Tjin, 2016).
Competitive advantage grows out of value a firm is able to create for its buyers that
exceeds the firm's cost of creating it. Value is what buyers are willing to pay, and
superior value stems from offering lower prices than competitors for equivalent
benefits or providing unique benefits that more than offset a higher price. There are
two basic types of competitive advantage: cost leadership and differentiation (Porter,
Competitive Advantage, 1985). This advantage derives from attribute(s) that allow an
organization to outperform its competition, such as superior market position, skills, or
resources. In Porter’s view, strategic management should be concerned with building
and sustaining competitive advantage.
Figure 3.1 Competitive advantage strategy Source: David, 2015
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In the process of crafting strategy (figure 3.1) company have to decide five basic
competitive strategies such as overall low-cost, broad differentiation, focused
low-cost, Focused differentiation and best –cost provider.
3.1.2 Marketing concepts
The marketing concept is the commonly held idea that companies achieves success by
meeting the needs and wants of their customers. This is important because it defines how your
company will drive business and flourish.
a) Definition from experts
1) Marketing is defined as an activity, set of institutions, and processes for
creating, communicating, delivering, and exchanging offerings that have
value of customers, clients, partners, and society of large (Ferrell, 2014).
Marketing is the management process responsible for identifying,
anticipating, satisfying customer’s requirements profitably (Bradley,
2013).
2) Marketing is so basic that it cannot be considered a separate function. It is
the whole business seen from the point of view of its final result, that is,
from the customer’s point of view, business success is not determined by
the producer but by the customer (Drucker, 2013).
3) Marketing is an organizational function and a set of processes for creating,
communicating, and delivering value to the customer’s and for managing
customer relationship in ways that benefit the organization and its
stakeholders (Kotler, 2013).
4) Functions of marketing. Marketing is responsible for the performance of
eight universal functions; buying, selling transporting, storing,
standardizing and grading, financing, risk taking, and securing marketing
information. Some functions are performed by manufactures, others by
retailers and still others by marketing intermediaries called whole seller
(David ,Kurtz, 2014).
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5) Buying – ensuring that product offerings available in sufficient quantities
to meet customer demands.
6) Selling – using advertising, personal selling and sales promotion to match
products to customer needs.
7) Standardizing and grading – ensuring that products offering meet quality
and quantity controls of size, weight, and others variable.
8) Financing – providing credit for channel members and consumers.
9) Transporting – moving product from their point of production to location
convenient for purchaser.
10) Storing – warehousing product until need for sale.
11) Risk taking – dealing with uncertainty about future customer purchases.
12) Security marketing information – collecting information about consumers,
competitors, and channel members for use in making marketing decisions.
b) Marketing strategy
Marketing strategy involve selecting and analyzing target markets and creating and
maintaining an appropriate marketing program (product, distribution, promotion and
price) to satisfy the needs of those target markets (Ferrell in Liu, 2015).
3.1.3 Marketing Mix
The marketing mix is the mixture of controllable tactical marketing tools (product, prices,
place and promotion) that the firm uses to pursue the sought level of sales in the target market
(Kotler in Genoveva & Tjin, 2016). The elements of marketing mix have been classified
under four heads-product, price, place and promotion. That is why marketing mix is said to be
a combination of four P’s. Decision relating to the product includes product designing,
packaging and labeling, and varieties of product. Decision on price is very important because
sales depend to a large extent on product pricing. The third important element is place, which
refers to decision regarding the market where products will be offered for sale.
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a. Price is the amount the consumer must exchange to receive the offering
(Solomon et al, 2009).
b. Place includes company activities that make the product available to target
consumers (Kotler and Armstrong, 2010).
c. Product means the goods and services combination the company offers to
the target market (Kotler and Armstrong, 2010).
d. Promotion includes all of the activities marketers undertake to inform
customers about their products and to encourage potential customers to
buy these products (Solomon et al, 2009).
3.1.4 SWOT Analysis
SWOT analysis is an analytical tool used for the identification and categorization of internal
and external factors. Strengths and weaknesses in SWOT analysis are termed as internal
factors while opportunities and threats termed as an external factors (David in Genoveva &
Tjin, 2016).
The SWOT analysis consist of :
1) Strengths refer to internal characteristic which may be deemed favorable for the
organization.
2) Weaknesses refer to internal characteristic which may be deemed unfavorable
for the organization.
3) Opportunities are external characteristic which organization may use to its
advantage.
4) Threats are external characteristic which may be potential sources of failure to
the organization
Benefits from using SWOT analysis
We will look at the main advantages of a performing a SWOT analysis (Beattie in Liu, 2015).
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1. Provides a visual overview
A SWOT analysis is usually presented as a square with each of the four areas
making up one quadrant. Although all the points under a particular heading may
not be of equal importance, there is some insight to be had in seeing how the
number of opportunities measures up to the number of threats and so forth.
2. Promotes discussion
One of the challenges is that the discussion can be derailed by listing things rather
than thinking strategy, but this can be counteracted by strong facilitator. Often the
SWOT analysis that you envision before the session changes throughout to reflect
factors you were unware of and would never have captured if not for the group’s
input.
3. Quick
SWOT analysis is quick and comparatively easy to do. You can conduct a SWOT
analysis for the overall business strategy over the course of a meeting and that
chart will serve as a quick way to vet ideas throughout the brainstorming session.
4. Flexible
SWOT can be used to guide overall business strategy session, but it can also be
used to drill into a specific segment like marketing production or sales.
3.1.5 TOWS matrix
SWOT analysis is then used in four ways to develop strategies: using strength to take
advantage of opportunities (SO), to reduce the likelihood and impact of threats (ST), using the
opportunities to overcome weakness (WO), and being aware of limitations that emerge from
the combination of weaknesses and threats (WT) (Collado in Liu, 2015).
(S-O) strategies
Use a firm’s internal strengths to take advantage of external opportunities.
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(S-T) strategies
Use a firm’s strengths to avoid or reduce the impact of external thretas.
(W-O) strategies
Aim at improving internal weaknesses by taking advantage of external opportunities.
Sometimes key external opportunities exist, but a firm has internal weaknesses that
prevent it from exploiting those opportunities.
(W-T) strategies
Defensive tactics directed at reducing internal weakness and avoiding external threats
(David, 2011).
3.1.6 IE matrix analysis
IE matrix is obtained based on the combination of the weighted score of IFE and EFE Matrix
which already done before to identifying the internal and external factors that exist in the
company. IE Matrix is one of the parameters used to describe the position of the company so
that the alternative strategies that will be proposed to the company are accordance with the
end condition. In addition, IE matrix can describe the hopes that company will do in the
future (Nirmala in Liu, 2015).
IE Matrix is positioning the various divisions of a company which then will be analyzed in
more detail. IE matrix shown in nine cells, which divided into three major parts that have
different strategy implications, those are Grow and build, Hold and Maintain, and Harvest or
Divest.
3.1.7 BCG Matrix
The BCG Growth-Share Matrix is a portfolio planning model. It is based on the observation
that a company’s business units can be classified into four categories based on combinations
of market growth and market share relative to the largest competitor, hence the name
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“growth-share”. Market growth serves as a proxy for industry attractiveness, and relative
market share serves as a proxy for competitive advantage. The growth-share matrix thus maps
the business unit positions within these two important determinants of profitability
(Henderson in Genoveva & Tjin, 2016).
Henderson reasoned that the cash required by rapidly growing business units could be
obtained from the firm’s other business units that were at a more mature stage and generating
significant cash. By investing to become the market share leader in a rapidly growing market,
the business unit could move along the experience curve and develop a cost advantage. From
this reasoning, the BCG Growth-Share Matrix was born.
3.1.8 Quantitative Strategic Planning Matrix (QSPM)
Quantitative strategic planning matrix (QSPM) is the stage three of strategy – formulation
analytical framework, which is the decision stage. QSPM is a technique objectively indicates
which alternative strategies are the best (David in Liu, 2015).
The QSPM determines the relative attractiveness of various strategies based on the extent to
which key external and internal critical success factors are capitalized upon or improved
(David in Liu, 2015).
3.2. Previous research
There are several researches that also use the same tools in analyzing competitive strategy
that also as the reference for this research in developing analysis data, as follow.
20
Table 3.2 Previous Research
NO Title Year & researcher(s)
Findings/results
1 Analyzing Of Marketing
Strategy Formulation In
Improve Competitive
Advantage Of ECI
Genoveva &
Stivenes Tjin
Siam (2016)
The purpose of this study is to formulate a competitive
advantage strategy, in order ECI enterprise as a
newcomer in fast food franchise business. The method
in this research used qualitative method, with in-depth
interviews, observation, and FGD (Focus Group
Discussion) of the respondents were considered to
have experiences and knowledge in the field of
fast-food restaurant. The result of FGD were tested
with the method of triangulation to compare with
observation and interview data. The formulation of
competitive advantage is done in three stages, the
result showed that competitive advantage strategy for
ECI is to integrate the strategy of QSPM matrix and
SWOT matrix, the 1st is market development and 2nd is
market penetration.
2 The Analysis Of
Business Strategic
Planning Of A Start-up
Company
Liu Rui (2015)
This research will aim to analyse the internal and
external of J&T Express, which later will be continued
to the analysis of its strategy to gain competitive
advantage. According to Michael Porter, a firm’s
strengths will ultimately fall into advantage and
differentiation. According to Parnell (2006), a firm
strength can choose to lower costs than its competition
or differentiating their product and/or service by
consumer to charge higher price. Followed by
preliminary interviews with Mr. Jet Lee, the founder
and CEO of PT Global Jet Express and Ex-CEO of PT.
21
OPPO Indonesia Electronics. This paper attempts to
open up various issues surrounding this complex and
fragmented industry. It thus, provided a base for future
researchers to examine any aspects of logistics and
supply chain management in Indonesia.
3 The Analyzes of
Competitive Advantage
Improvement of PT
Saung Mirwan using
Analytical Network
Process(ANP)
Yuti Arlan
(2012)
The result of the research gave the factors affecting the
competitive advantage of vegetables agribusiness.
Aspects that affect business were natural resources and
environment, technology, number of buyers, and the
increasing number of buying product. This Information
was the result from EFE Matrix, which analyzing the
external factor condition of the company. The total
score of IFE matrix showed a number that PT Saung
Mirwan had a strong internal condition by means PT
Saung Mirwan had enough capability to response
external factor. SWOT matrix also included in the
research to generate alternative strategies suitable for
the company and prioritized the alternative strategy
from the most suitable to the least suitable strategy to
the company using analytical network process.
4 The Analysis Of
Indonesian Consumers To
Buy China’s Electric
Product (A Case Study Of
Indonesian Students In
President University)
Huang
Xiaofeng
(2014)
With more and more cooperation between China and
Indonesia, more China’s industry and products entry
into Indonesian market, especially the electric product.
China’s electric products have advantage in its price,
but relative low quality. If China’s electric industry
want have a good development in Indonesia, they need
to have an exhaustive understand about Indonesian
market and make the right marketing strategy. There
are many factors can influence on consumer to buy the
22
products, but this research focus on marketing 4p
which are product, price, place and promotion. This
research is using quantitative method to analysis data,
where the questionnaire has already tested by pilot test.
Through factor analysis, there are 5 latent factors, and
the dominant factor is factor 2 which the writer named
it“quantity discount of price”. Through descriptive
analysis, the main factor is the price which can affect
Indonesian consumer to buy China’s electric products.
5 The analysis of
Management Strategy in
Facing Business
Competition (Study of PT
Telkom Indonesia, TBK)
Reni
Rahmawati
(2008)
The result of the research showed the good position of
PT Telkom by the analysis of EFAS(External Factor
Analysis Strategy) and IFAS(Internal Factor Analysis
Strategy ). The analysis also shows that the company
can keep growing.
6 Gaining And Sustaining
Competitive Advantage In
The Mobile Phone
Industry
Petra Jerger
(2016)
This paper indicate the process of gaining and
sustaining competitive advantage, with a focus on the
nature of competition within the mobile phone
industry. The success of a company relies on the use of
information and knowledge of the competitive
environment and business to create successful business
strategies. Firms within an industry endlessly compete
with these strategies to show their customers that they
are the best choice in the market. This is where
sustainable competitive advantage is extremely
important as it represents strength that is hard for
competitors to neutralize. The thesis will continue with
a case study analysis of Apple and Samsung, and will
evaluate their levels of competitive advantage and
23
power in the market, and will conclude with a look into
the possible future outcomes. The thesis concludes by
summarizing all the major elements about gaining and
sustaining competitive advantage in this specific
industry and also a personal view of its competitive
environment in the future.
Sources: Constructed by researcher
3.3.Theoretical Framework
Figure 3.3 Theoretical Framework
Source : Researchers, adaptation from David, 2015
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Table 3.4 The Data Of Respondents
Source: By the researcher
3.4. Dimensions of Variables
In this research, there are several formulas in the form of matrix as strategy formulation:
1. IFE matrix
Internal Factor Evaluation (IFE) matrix is a strategy tool used to evaluate firm’s internal
environment and to reveal its strengths as well as weakness.
2. EFE matrix
External Factor Evaluation (EFE) matrix is a strategy tool used to examine company’s
external environment and to identify the available opportunities and threats.
3. CPM matrix
25
The Competitive Profile Matrix (CPM) is a tool that compares the firm and its rivals and
reveals their relative strengths and weaknesses. The analysis displays the information on a
matrix, which makes it easy to compare the companies visually. The results of the matrix
facilitate decision-making. Companies can easily decide which areas they should strengthen,
protect or what strategies they should pursue.
4. SWOT matrix
SWOT analysis is an analytical tool used for the identification and categorization of internal
and external factors. Strengths and weaknesses in SWOT analysis are termed as internal
factors while opportunities and threats termed as an external factors.
5. SPACE matrix
The SPACE matrix is a management tool used to analyze a company. It is used to determine
what type of a strategy a company should undertake.
6. BCG matrix
The BCG Model is based on the product life cycle theory that can be used to determine what
priorities should be given in the product portfolio of a business unit.
7. IE matrix
Internal-External (IE) matrix is another strategic management tool used to analyze conditions
and strategic position of a business. This is based on an analysis of internal and external
business factors which are combined into one suggestive model.
8. Grand Strategy matrix
Grand Strategy Matrix is very useful instrument for creating different and alternative
strategies for an organization. Grand matrix has four quadrants; each quadrant contains
different sets of strategies and the entire firms along with their respective divisions must fall
in one of the quadrant. This matrix has two dimensions(competitive position and market
growth).
26
9. QSPM matrix
Quantitative Strategic Planning Matrix analysis is high - level strategic management approach
for evaluating possible strategies. QSPM provides an analytical method for comparing
feasible alternative actions.
27
CHAPTER IV
DATA ANALYSIS AND INTERPRETATION
4.1 “4P” Analysis
Figure 4.1 Marketing Mix Analysis
Source：Researchers, adaption from Kotler, 2012
In this part, the researcher use the "4P" principle as a tool to investigate marketing, it
including the price, product, promotion, and place. In order to better meet the needs of
customers, achieve business objectives, and get the long-term development, we must
combine the needs of the target market and a variety of marketing tools to obtain a
long-term development.
Product- With the growing popularity of mobile phones, consumer differentiation
also has appeared, the demand for smart phones showing a diversified, people are
increasingly the high requirements for the design of smart phone. Chinese mobile
phone designers also efforts to highlight the fashion of mobile phones in modeling,
28
color, material, features and decorations, At the same time, smart phones are mainly
used IMD, IML and other new materials to help smart phones improve clarity,
three-dimensional sense, while also reducing the surface scratches, increase the visual
sense (Chen,2010).
For example, nowadays, the smart phones commonly used IPS hard screen, which is
the world's more advanced LCD panel technology, it will show a better animation
quality. At the same time, the size of mobile phone and smart phone screen material
have highlight the Chinese smart phone have improve the innovation and
breakthrough in the product visual design. In the smart phone applications, the
Chinese smart phone is also efforts to innovate and hope to provide more excellent
applications to facilitate people's lives, for example, in the development of online
retailer, Alipay have appeared, it as a third-party payment software, can facilitate
people's online shopping. Also, the China smart phone has also developed a variety of
applications on mobile phone themes, so it will provide more convenience for the
customer who pursue the fashion ( Badr ,2014). At the same time, China has strong
experience in network communication and wireless network. For example, Huawei
and other companies have provide hardware equipment, software, services and
solutions for Indonesian telecom operators and professional network owners.
Therefore, in Indonesia, China smart phone have a good relationship with the
Indonesia network operators. We know that Indonesia's mobile network operators
have Telkomsel, Indosat, Axiata XL and so on, so I believe that China smart phone
will give customers a good internet experience (Siswarini,2011). In the smart phone
operating system, the China smart phone is also trying to make the technology
innovation. We all know that Xiaomi smart phone have two operation system, one is
MIUI, this is based on the depth development of Android system; one is Android OS
v2.3.5 (Li, 2012). Many people choose xiaomi smart phone is also because of this
feature, in the smart phone system, they can provide the more choice, allowing
customers to experience the convenience in the telephone and text messaging.
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Price-Indonesia is an emerging middle-income country, has got an enormous gains in
poverty reduction, cutting the poverty rate to more than half since 1999, to 11.2% in
2015. But, In the population of 252 million, it also have more than 28 million
Indonesians still live below the poverty line. Approximately 40% of the entire
population remain vulnerable of falling into poverty, as their income hover marginally
above the national poverty line, set at 330,776 rupiah per person per month ($22.60)
(World Bank, 2016). Therefore, we found that the gap between rich and poor people
in Indonesia still exists, in order to better meet the needs of different levels of people,
the price of China smart phone positioning is also very reasonable. However, in the
case of a suitable price, the China smart phone also hope that they can provide the
high-quality to improve their competitive advantage. Therefore, when the Chinese
smart phone compete with other mobile phone brands, the price can become their
main competitive factor.
Promotion- In the promotional activities, China smart phone have a rich experience.
In China, the China smart phone is good at using all social media and advertising to
promote their products, so in the promotion, the China smart phone brand still has its
own unique method. For example, when the China smart phone hold a promotion
activities in Indonesia, they are using the advertising, social media, and through face
to face interaction to provide gifts to consumers, in this way, it can better to attract
people's attention. Meanwhile, they are very good at combining Indonesian local
culture to disseminate the product, it will better make people know and understand the
products, they usually invite the famous star of Indonesia to disseminate, they will
also choose a large shopping mall to hold the face to face Activities, in the case of star
effect, the customers can have a better experience in the relaxed environment. they
will also give customers a small gift, so that in the hearts of customers, they can feel
the China smart phone brand intentions and welfare. I think this can establish a good
relationship with customers and improve their visibility.
Place-Chinese brands have a continuous development in Indonesia, but they also
actively learn from the good market competition strategy, For example, we know
30
Alfamart and Indomaret these two retail stores, their market strategy is a very worth
learning case, because the combination of Indonesia's geographical situation, we
know that the geographical situation is too scattered, so they take a wide range of
retail facade to increase their competitive advantage, because it can increase people's
awareness of the brand. Therefore, the China smart phone brands also understand the
market situation in Indonesia, and carry out the development of market strategy. As
we can see, on the road smart phone retail stores, the China smart phone brand have
inject, and china smart phone brand logo is very clear, so that customers can better
remember the Chinese brand, it will improve the brand awareness and competitive
advantage. In the shopping mall, we can also see the Chinese mobile phone store, so,
it will facilitate the customer have a better experience, and it will provide a better
place to help customers to solve the questions and demand. With the rapidly
development of Indonesia's online business, China's mobile phone is also actively
joined to provide customers with more ways and means.
Through the “4P” principle, we can understand that China smart phone industry have
a comparative advantage in terms of price positioning. And it have a long time sales
experience in China, not only in the technical aspects have a strong experience, and
also good at providing cost-effective products to meet the customer needs. And,
through the interview, we understand that China smart phone industry can provide an
appropriate price and a relatively high rate of phone quality and price, the appearance
of fashion design can meet the expectations of people. At the same time, in the
promotion of smart phones, the marketing strategy of china smart phone is very
attractive. And nowadays, Indonesia's online retailer and online shopping industry
have a rapidly development, so, there provide more sales channels to meet the needs
of mobile phone users. At the same time, The phone user can experience the
convenience from the entity store, online shop and repair shop.
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4.2 CPM Matrix
Table 4.2 CPM Matrix
Source: Constructer by Researcher
CPM Matrix, represent the Competitive Profile Matrix and is a powerful marketing
competitive strategic analysis tool. From table 4.2, we can see that the competitive
scenarios of Xiaomi, Oppo, Huawei, and Lenovo in the industry. Here, Product factor
is the most important critical success factors, as indicated by a weight of 0.10. For the
customers, the first contact is the product, a good product performance have a closely
linked with the needs of customer. so that a good product performance is very
important for the successful development of a brand. Through the researcher, we
summed up the CPM (Competitive profile matrix), As we can see, the most
competitive brand is Xiaomi(3.78) and the second is Huawei(3.75), and then
Lenovo(3.63), and finally Oppo(3.36). And, we put the weight of Price, Promotion
and Place is the 0.05. A good product performance is the basis for successful brand,
32
other factors are the means of market competition, so the proportion of the product is
the largest. CPM Matrix provide the strengths and weaknesses of all major
competitors in China smart phone industry on a single page. This helps visualize and
adjust the competitive landscape.
Through the CPM matrix, we can understand the relative competitive advantages
and shortcoming of each mobile phone brands, through such research methods, it can
help each brand to better understand their own. At the same time, it can help mobile
phone brand have an adjustment and communication on time. Through the above
CPM matrix analysis chart, we can see the Xiaomi company have get a good score in
product prices and product performance, which indicating xiaomi company's main
competitive advantage is to provide a cost-effective products. however, in the
promotional activities is relatively weak. This means that xiaomi have a short
development time in Indonesia market, however, it provide the quality of products
and product prices can meet people's needs. In this case, xiaomi still need to pay
attention to the market development, they need to invest funds to promote and
introduce their products. In the dissemination process, we still need to pay attention to
the integration of Indonesian culture, so as to better penetrate the Indonesian market ,
and obtain a good market effect.
For the Oppo company, we can see that oppo phones have a great advantage in sales
place and sales channels, which means oppo has a deep understanding of Indonesia's
market environment and geographical environment, and know how to arrange their
own sales place, it will better access to the market, and appear in the people's attention,
it will provide more convenience in the purchase channels. However, in the smart
phone pricing is still relatively adjusted, they need to understand the consumption
level of different target groups, and make the level of product performance have a
reasonable match with the price level.
For Huawei, we found that the sales channel position of huawei is very good, which
also shows that Huawei is familiar with the Indonesia geographical environment, but
33
also need to improve in the diversity of product promotions, because it will make a
closely relationship between Huawei and customers by the promotion activities, and
establish a good relationship, so, it is very important for the future development, Then,
Huawei also need to provide more neoteric form in the promotional activities.
For Lenovo company, they have a good performance in the product sales place.
However, it also need to improve in the product performance and promotion, in
product performance, Lenovo should continue improve the technology innovation to
meet the needs of people from different sectors. In the promotion of diversity, it
should learn the innovate, through the use of different forms to attract the attention of
customers. On the whole, the China smart phone brands have their own unique
competitive advantages, but, it still have to pay attention to the integration of
Indonesia's local culture, so as to better penetrate the Indonesian market to meet
Indonesian people's needs, and provide a high-quality products and services .
4.3 TOWS Analysis
4.3.1 TOWS Matrix analysis
Table 4.3 TOWS Matrix
34
Source: Constructer by Researcher
4.3.1.1 SWOT Analysis
1. Internal Factors
a. Strengths
1) The price is relatively cheap
Indonesia is the world’s fourth most populous nation, Although,
Indonesia's economic development is growth, but the gap between rich
and poor people still exists in Indonesia. In this case, the Chinese mobile
phone industry needs to make an appropriate price meet the needs of
different people. As we know, the Chinese mobile phone brands already
have a long-term development in China, when they open new markets,
they will looking for a competitive advantage by reducing the cost of the
products so that customers can experience a cost-effective product .
35
2) Fashion design, a great variety, it provide a different choice for different customer group
When we finished improving product performance, many companies will
focus on the phone design, because the product performance is only a
basic need, Nowadays, people are increasingly pursuing the experience of
beauty, the appearance of the mobile phone design has also been various
Mobile phone company's attention. For example, in the market, there are a
lot of business smart phone, the design is mainly simple and generous, and
it also have the basic office software, mobile phone resolution is high, so it
will convenient for the video conferencing. At the same time, there also
have the music phones, the phone mainly to meet the needs of young
people, the mobile phone appearance design on the use of more rich colors,
and, the music function is well. And also, There have the older smart
phones, the design is relatively simple with the right screen size. In the
continuing market demand, these mobile phone brands know how to
produce the different types, different functions, different needs of mobile
phones to meet the needs of the market.
3) Strong management
Huawei was founded in 1987, it has 29 years of development history in
China. In 2000, it stationed in the Indonesian market, so far, it already
has 16 years of development history. Xiaomi was established in 2010,it
has six years of development history in China, and in 2014, it have enter
the Indonesian market, until now, it also has two years of development
history. Oppo was established in 2004, has 12 years of development
history in China, it entered the Indonesian market in 2013, now, it has
three years of development history. Lenovo was founded in 1989,it has
27 years of development history, while in Indonesia has also been a long
development (Zhou,2012). These companies have a strong organizational
management system, including: sales and service, products and solutions,
36
finance, marketing strategy, operation and payment, human resources and
other six links, and they also employ a professional management team
responsible for the company’s operation and management. They are
pursuing a customer-centric, hard work for customers to create more
high-quality and high-performance products.
4) Branded image
Xiaomi, Huawei, Oppo, Lenovo These four brands have a long history of
operating time, and also through continuous innovation and improve
product quality to obtain a very good product image. This is because their
core values are customer-oriented, customer demand is their highest goal,
they are also committed to providing customers with the highest quality
products.
5) Experience advantage
The four smart phone brands, the establishment of time are more than 5
years, and get a good response. They are also put a lot of manpower and
capital in the smart phone technology research and development part, the
purpose is to continuously improve the technology and create more good
products. At the same time, in this development process, they also
accumulated a very good experience and technology accumulation.
b. Weaknesses
1) Lack of market development ability
According to the survey, we learned that Indonesia is a multi-island
country, the geographical situation is more complex, as a foreign
investors, we don’t have a clearly understanding with the geographical
situation in Indonesia, but as investors in Indonesia, we still need a
detailed survey of the Indonesian market, which can better help us
understand the various regions of Indonesia's consumption level, in order
to help us better open up the market.
37
2) Lack of high-end positioning
The four smart phone brands are more concentrated in the mid-end
positioning, However, it can be accepted by most of people. According to
the Indonesia development situation, the gap between rich and poor is
relatively large, we still need to increase the high-end positioning, and
produce high-end products to meet the needs of high-end consumers, In
this way, it can expand the consumer groups, and find the more potential
customers.
3) New comer
As a foreign market development of the industry, it will still be affected
by the impact of new competitors, because these new competitors will
have their own unique competitive advantage.
4) Market positioning is not allowed, the lack of differences, personalized
For this four mobile phone brands, the market positioning is still a
problem. Now, the Indonesian economy continues to develop, people's
consumer power and income levels are constantly changing, which we
should to require the information and make the appropriate changes
timely, However, due to foreign investment, if we can not timely get the
market information, it will result in a wrong market positioning. At the
same time, if the position of mobile phone is not prominent, it will be the
lack of differentiation and personalization.
2. External Factors
c. Opportunities
1) Indonesia has a large population
Indonesia, the world's fourth most populous country, has a population of
260,796,236 (Indonesia Population,2016).
2) Rapid economic development
38
Through the research, Indonesia’s real GDP in 2015 is estimated to
witness an increase above 6.5 percent, slight increase from last year’s 6.3
percent.
3) The growing demand for wireless mobile networks, the mobile phone
market has a lot of space for growth
Indonesia is a multi-island country, the geographical situation is scattered,
the development of fixed telephone network is more difficult, so
Indonesia is a wireless mobile network communications, while the
high-speed economic growth, it will steady increase in people's income,
but also promote people to the need of wireless networks Communication,
which also fostered a huge Indonesian smart phone market.
4) Chinese mobile phone brands can segment the market and combined with
the local culture of Indonesia, then, provide the personalized mobile
phone
Chinese mobile phone can be combined with Indonesia's unique culture,
it will better integrate into the market to meet the needs of the public, and
better be accepted by people.
5) Good 3G market environment
Indonesia's 3G market environment has become increasingly stable,
operators have increased the number of mobile phones, which has created
a good space for the development of China's mobile phone
6) Changes in consumption attitudes
Indonesia's population tends to younger, and have a more frequent
Internet access, the ability to accept new things is relatively high.
d. Threats
1) Competition from existing smart phone brand
39
Now, in the Indonesian market, not only it exist the Indonesia's domestic
mobile phone, but also have the foreign mobile phone such as Samsung
and Apple, Sony and other brands of competition
2) New comer in the same smart phone industry
In this competitive environment, it have more new entrants appear in the
Indonesia mobile phone market.
3) Competitors try to develop the follow-up software, provide the useful
applications
If the competitors want to maintain their competitiveness, they should
focus on innovation, highlighting the differences, through the
development for the follow-up software, it allows customers to has a
continuous understanding with the company's brand, so that you can
enhance brand awareness and customer experience, At the same time, it
also help to form their own competitive advantage.
4) China’s mobile phone faces a patent threat
Competition in the mobile phone market is complex, it have a lot of
wireless technology key patents of large telecom equipment companies,
the mobile phone market will bring the threat from other brands patent.
4.3.1.2 SWOT Strategy Analysis
1. STRATEGIES S-O
1) To provide cost-effective products (S1,O1,O2,O3)
2) Combined with Indonesia's culture, and to provide personalized mobile
phones to meet the needs of different customer groups (S2,O4)
3) To provide younger and highlight the personality of mobile phones to
meet the needs of young people (S1,S2,O6)
40
4) Develop the competitiveness of products with professional experience
(S4,S5,O5)
5) Strengthen the development of the vertical integration system
(S3,O1,O2,O3,O5)
2. STRATEGIES W-O
1) Based on the existing products and make the market expansion
(W1,O1,O2,O3,O4)
2) Produce the high-end and unique smart phone to meet the needs of
high-end consumers (W1,W2,O1,O2,O3,O4)
3) Pay attention to the strategy of competitors, improve the competitiveness of
our products (W3,O5,O6)
4) To strengthen product innovation, personalized and differences, to meet the
purpose of different consumer groups (W4,O4)
3. STRATEGIES S-T
1) Use the cost-leading strategy to reduce costs (S1,S3,T1,T2)
2) Create a good user experience (S4,S5,T3)
3) Focus on innovation, develop useful and unique applications (S5,T3,T4)
4. STRATEGIES W-T
1) Create more face-to-face opportunities with customers, enhance the user
experience and improve their own advantages (W1,W3,T1,T2)
2) Create more personalized, unique products that is different from the
competitor (W2,W4,T1,T2,T3)
4.3.2 SWOT Matrix
41
Table 4.4 SWOT Matrix
Source: Constructer by Researcher
4.3.2.1 Internal Factor Evaluation (IFE) Matrix Analysis
Internal Factor Evaluation (IFE) Matrix is a strategy tool which is used to summary,
auditing and evaluation internal factors of a company that included the major
strengths and weaknesses in a company.
Based on the data gathered from the people who I have interviewed, in Figure 4.4,
researcher can obtain the data, And to discuss the 3rd problem researcher made in
Chapter I - How about china smart phone positioning in Indonesia market?
Researcher also put the IFE analysis with 4 china smart phone brand and make a
comparision which is : Xiaomi, Oppo, Huawei, Lenovo. Researcher and interviewer
42
believe these four brands can present the china smart phone industry in indonesia
market.
From figure 4.4 above we can see the IFE total weighted score of each company. The
Xiaomi’s IFE weighted score is 3.3, Oppo’s IFE weighted score is 2.75, Huawei’s
IFE weighted score is 3, Lenovo’s IFE weighted score is 2.9. As we can see from data,
Both Xiaomi and Huawei have a strong internal position, and Lenovo rank 3rd with a
huge brand image and technology experience advantage. Oppo rank the 4th, It have
the weakest internally position. It pay much attention to the mobile phone battery
reserves and cell phone camera function, while ignoring the development of mobile
phone performance.
4.3.2.2 External Factor Evaluation (EFE) Matrix Analysis
External Factor Evaluation (EFE) Matrix is a strategy tool which is used to summary,
auditing and evaluation external factors of a company that included the major
opportunities and threats in a company.
From figure 4.4 above we can see the EFE total weighted score of each company. The
Xiaomi’s EFE weighted score is 3.1, Oppo’s EFE weighted score is 2.6, Huawei’s
EFE weighted score is 2.9, Lenovo’s EFE weighted score is 2.75. It means Xiaomi
and Huawei are responding in an outstanding way to existing opportunities and threats
in China smart phone industry. The Lenovo EFE weighted score is 2.75, it also have
perform a weak capability. And since Oppo company have a good market penetration
in Indonesia, the capability on opportunities or avoiding external threats is still weak.
4.3.3 The Internal-External （IE）Matrix Analysis
43
Table 4.5 IE Matrix
Source: Constructer by Research
In order to gain a suitable business strategy, The IE matrix belongs to the group of
strategic portfolio management tools to get detailed corporate strategy. As the result
from internal factor analysis and external factor analysis of Xiaomi, Oppo, Huawei,
Lenovo. As we can see, Xiaomi with 3.3 of total IFE and 3.1 of total EFE in
internal-external (IE) matrix will result that Xiaomi is in cell number I; Oppo with
2.75 of total IFE and 2.6 of total EFE in internal-external (IE) matrix will result that
Oppo is in cell number V; Huawei with 3 of total IFE and 2.9 of total EFE in
internal-external (IE)matrix will result that Huawei is in cell number IV; Lenovo with
2.9 of total IFE and 2.75 of total EFE in internal-external (IE) matrix will result that
Lenovo is in cell number V.
Table above represent the strong internal factor evaluation and high external factor
evaluation of Xiaomi (IFE:3.3 and EFE:3.1) means that to fall into cells I and in a
position grow and build. And also represent the strong internal factor evaluation and
medium external factor evaluation of Huawei (IFE:3 and EFE:2.9) means that to fall
44
into cells IV and in a position grow and build. So, we know that Xiaomi and Huawei
have in a same position grow and build with the most appropriate strategies can be
applied by Xiaomi and Huawei are intensive, which include market penetration,
market development, and product development or integrative strategy that include
backward integration, forward integration, and horizontal integration.
In intensive strategy, market penetration strategy is used when there is a current or
similar products exist in Indonesia phone market, Xiaomi and Huawei can apply the
market penetration strategy. They can combine Indonesian cultural backgrounds, and
offer a personalized, cost-effective and differentiated products and services to the
market, and then, it also need engage in advertising and promotion to attract existing
and potential customers. At the same time, through reducing their production and
operating costs, they can have a lower price than the market competitors to gain
more competitive advantage. Xiaomi and Huawei also can apply market development
strategy. On the basis of doing a good job in the existing products, but also need to
increase the target market and segment the market, it can help us to look for the
potential customers. And, we can also expand the sales channels, and now,
Indonesia's online retailer and online shopping industry have a rapidly development,
so, there provide more sales channels to meet the needs of mobile phone users. At the
same time, The phone user can experience the convenience from the entity store,
online shop .
Table above represent medium internal factor evaluation and medium external factor
evaluation. As Oppo and Lenovo are fall into cells V that can be describe as hold and
maintain with the most appropriate strategies can be applied by Oppo and Lenovo,
which include market penetration and product development.
In hold and maintain strategy, When there is a current or similar products exist in
Indonesia smart phone market, Oppo and Lenovo can adopt the market penetration
strategy to ensure that the competitor's customers to use Oppo and Lenovo products,
and it also can increase the Oppo and Lenovo's promotion to potential customers or
45
current customers. Through the price penetration, it can set up a lower prices, thus, it
can increasing the attractiveness of the product and the challenge of competitor.At the
same time, Oppo and Lenovo can also apply product development strategy by the
improvement of existing products, develop a new product, and make the difference to
stimulate new customer demand. It can provide high quality and high technology
products to apply the product development strategy, in order to obtain a more
extensive sales market.
4.4 BCG Matrix
Figure 4.6 BCG Matrix
Source: Constructer by Research
The Growth of smart phones in Indoneisa reached an average of 11.2%
(Prakoso,2016). Indicating that the smart phone industry’s growth rate is quite high.
Through the research, Xiaomi’s market share is 19%, Lenovo’s market share is 7%,
Oppo’s market share is 5%, Huawei’s market share is 1% (eMarketer, 2016). So, we
can see that Oppo, Lenovo and Huawei have a relatively small, but has a chance to
grow.
46
Under these condition, Position Xiaomi by BCG matrix is “Stars”(figure 4.6). It have
represent a high market share and high growth rate. It mean that it have a high
competition. So, the concentration and investment needs to be high in
marketing activities so as to increase and retain market share. And as we know that
the smart phone industry is especially true in rapidly changing, where new innovative
products can soon be outcompeted by new technological advancements. So, in this
position, we can apply the strategy which is vertical integration, horizontal integration,
market penetration, market development, product development. Position Oppo,
Lenovo and Huawei by BCG matrix is “Question Mark” (figure 4.6). The brand
which have the position in “Question Mark” have high growth prospects but a low
market share. It is uncertainty. However, since these business units are growing
rapidly, they do have the potential to turn into stars. They should apply the build
strategy, through increasing the investment and improve the product performance, it
will give the impetus and engage in the product, In this way, it can increase its market
share. And also, they can apply the strategy which is market penetration, market
development, product development, divestiture.
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4.5 SPACE Matrix
Figure 4.7 SPACE Matrix
Source: Constructer by Research
For Xiaomi and Huawei companies, they are stay in the space of Aggressive. They
need to continue to increase investment in innovation, it will help them form their
own competitive advantage. At the same time, it can highlight the differences in
products and services, so as to show their competitive advantage in the competitors, at
the same time, the differences can help them to make a better market segments, and
they can find a lot of potential users. Through the rapid product innovation,
innovative marketing activities and reasonable price setting can widening the gap with
the competitors.
For the Oppo and Lenovo these two companies, They have stay in the competitive
space. They need to increase the investment, at the same time, they also need to
control the scope of the cost, they can reduce the cost range and increase their
competitive advantage. Meanwhile, they can increase the intensity of investment in
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the distribution channels, through this way, i think customers can see these two brand
in any shopping malls, roads, shops, online store. It is able to increase their brand
awareness and improve their own competitive advantage.
4.6 Grand Strategy Matrix
Figure 4.8 Grand Strategy Matrix
Source: Researchers
Based on figure 4.8, Xiaomi, Oppo, Huawei and Lenovo are in quadrant 1. So, in this
quadrant smart phone industry in Indonesia have experienced rapid growth with 11.2%
(Prakoso,2016), it also have a strong competitive position. The first quadrant
represents strategies for maintaining rapid growth and find the ways continue to create
rapid growth when they have a strong competitive position.
And they have a good growth because it provide the product and service that is
processed in the relatively cheap price, fashion design, strong management, branded
image, experience advantage. So, in this situation, they need to continue to focus on
the current market, and we should make the corresponding changes according to the
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market demand, In here, we can apply the strategy which market penetration and
market development. At the same time, Basis on the changes of market demand and
customer needs, we need to strengthen the technical innovation and improve the
product performance, so here, we can adopt the product development strategy. When
these companies have excess resources, they can apply the most effective strategy
which include backward integration, forward integration and horizontal integration.
At the same time, when these companies over-emphasis on the single product, We can
take the concentric diversification strategy, it may reduce the risk from the narrow
product line, so, this can help us to better reduce the risk.
4.7QSPM Matrix
Table 4.9 Xiaomi’s QSPM Matrix
AS= Attractiveness Score TSA= Total Attractiveness Score
Attractiveness Score: 1= not acceptable; 2= possibly acceptable; 3=probably acceptable; 4= most acceptable
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Source: Researcher
Quantitative strategic planning matrix is an important analytical tool for the company
strategic decision making phase. This kind of analysis tool can objectively indicate
which strategy is the best for the company. From figure 4.9 above, we can see that a
suitable strategy for Xiaomi is a market penetration with a score of 6.10. Market
penetration strategy is how you make some strategies and plan when there have some
similar and current product exist in the market. So, we should make some plans to
face the change of the market directly. As far as we know, Xiaomi smart phone as a
new entrants to enter the Indonesian market, the product have get the people's
attention by virtue of providing cost-effective. As a new entrant, though, it get a good
attention and sales, and it also need to develop a good market strategy to deal with the
future development. According to the analysis of QSPM Matrix, we can see that the
market penetration strategy is still quite useful for the development of Xiaomi
company.
As a new entrant, Xiaomi can use the market penetration strategy to get a long term
development, and they should pay attention to the transmission route of new media by
the advertising, Face book, Google, instagram and so on. In this way, they can
disseminate and introduce the xiaomi smart phone. according to the survey, most of
indonesia people like use the software on the smart phone which is like Face book and
other social media. As a new entrant, we can invest the money in the social media, it
can help our products get a better disseminate and introduce. When people use the
social media, there will have a simple impression of our products. At the same time,
in the entity store, we need to increase the product promotion activities, thereby, it
also can increase the strategic position of the product. Xiaomi company can give a
certain discount, promotions or some gifts in the statutory holidays. In this way, in the
user's mind, they will feel that they have get some additional benefits from xiaomi,
and the user will be very happy to participate in activities. By participating in the
activities, it will also affect the user's evaluation and feelings of the product, I think
this is a very good market penetration strategy. In Indonesia, we can see that there are
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two retail stores "Alfamart and Indomaret" will emerge in our eyes with a near
distance. I think their marketing strategy is very successful, So, I think xiaomi
company also can increasing the sales channels, retailers and intensive sales locations
to ensure that the sign of xiaomi can seen by many people and attention. At the same
time, we know that Indonesia's online retailer and online shopping industry is also
have a rapidly development. we know that Lazada is Indonesia's e-commerce site,
Xiaomi can sell their products use this channel. Because we know that Indonesia's
population tends to younger, which determines their ability to accept new things is
better, and because of the rise of the online retailer, it will attract people to buy their
own products through the internet.
The second strategy is market development strategy with a score of 6.05. Market
development strategy is to do a good job on the basis of current products, and also
need to know how to increase the target market and segment the market, we must
continue to expand the market consumer groups, In this way, it can help us to find the
more potential customers. As far as we know, Indonesia is the fourth largest
population in the world, so, under such a large population base, it is indicates that
there will be more demand in the market, we need to subdivide the geographical
conditions of Indonesia, and make a understanding of the consumption level of people
in each region , Thus, we can develop the different market strategies. At the present,
the gap between the rich and poor is still exists in Indonesia, so we can develop a
reasonable market strategy to meet the needs of people at the different levels of
consumption. For the high-income and high-consumption level of customers, we need
to improve our technology, and we should try our best to produce the high-end smart
phones to meet their needs. Similarly, for the relatively low consumption level of
customers, we still need to provide good smart phones to meet their needs, and then
bring them with the different experience, so, they will trust our products and our
service attitude. At the same time, when we face the competition, we need to reduce
our costs, so that we will get more competitive advantage in the price. So, I think it
will get more attention base on a cost-effective products.
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Table 4.10 Oppo’s QSPM Matrix
AS= Attractiveness Score TSA= Total Attractiveness Score
Attractiveness Score: 1= not acceptable; 2= possibly acceptable; 3=probably acceptable; 4= most acceptable
Source: Researcher
Figure 4.10 concludes that a suitable strategy for Oppo is a product development with
a score of 6.20. Product development strategy is that we should continuous
improvement of existing products and be innovative develop the new products to
improve our product performance. It will better reflect the differences with the
competitor, and we can expand the scope of sales and attract more potential customers
from competitors. This strategy need the Oppo company to continue innovate on its
products and provide the more new products to stimulate the new smart phone
demand of customer. We know that the mainly features of Oppo company is the
music phones and large storage battery. As we discussed before, the Indonesian
population tends to be younger, they have a high ability to accept the new things, and
their have a highly demands about beauty. Therefore, for Oppo company, in the
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process of their product development, not only they need to improve the product
performance, but also need to pay attention to the design of mobile phones appearance.
For the appearance of the mobile phone design process, they need to pay attention to
the size of the screen, the appearance of the design, such as the Samsung mobile
phone edge series mobile phone, they take the curved screen, this appearance of
innovation has attracted a lot of customers. Therefore, Oppo company can also be
innovative in the appearance of mobile phones, while paying attention to the customer
hold feeling experience with the smart phone. At the same time, we should focus on
the improvement of the screen effect, we can change the screen using material, so that
customers feel the sense of smoothness. Because, I think every little detail will affect
the customer's evaluation of the product experience. Indonesian people like use phone
to record the good moment, so, Oppo company can continue to improve the phone
camera function, so that it will attract the attention of customers who like to take
pictures. Based on the performance of Oppo existing products, we can improve our
technology, and constantly provide customers new experience. I think this product
development strategy will promote Oppo smart phone have a better development.
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Table 4.11 Huawei’s QSPM Matrix
AS= Attractiveness Score TSA= Total Attractiveness Score
Attractiveness Score: 1= not acceptable; 2= possibly acceptable; 3=probably acceptable; 4= most acceptable
Source: Researcher
Figure 4.11 indicated that a suitable strategy for Huawei is a market development with
a score of 6.10. Through the survey, we learned that Hawei has a history of 16 years
in Indonesia, at the same time, Huawei in China has been engaged in information and
communications solutions, and also, In 2012, it has become the world's largest
telecom equipment manufacturers in the world, so in the aspect of
telecommunications network, Huawei has a very rich experience. At the same time, in
the 2012, Huawei have make a cooperation with Indonesia's famous telecom network
operator SMI, which also indicates that SMI will help Hawei to better promote and
provide good products and services to people. according to the long time development
in Indonesia, Huawei has a good market penetration strategy, and based on the long
time experience, Huawei can provide high-quality products to meet the people's need.
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So, I think that the most effective strategy for HUAWEI is the market development
strategy. As we know that Indonesia is a multi-island country with a big population
density, home broadband penetration is not high, but, the demand of mobile user
traffic increases, so, this is a very good opportunity for Huawei. And, Huawei have a
good experience in the transmission network, fixed wireless and wire line fixed access
network. Huawei can develop more new products to enhance their brand awareness,
when customers experienced, they will be more believe that Huawei can provide
better service and high quality products to meet the needs of people experience on
network and mobile phone experience.
Table 4.12 Lenovo’s QSPM Matrix
AS= Attractiveness Score TSA= Total Attractiveness Score
Attractiveness Score: 1= not acceptable; 2= possibly acceptable; 3=probably acceptable; 4= most acceptable
Source: Researcher
56
Figure 4.12 indicated that a suitable strategy for Lenovo is a market penetration with a
score of 6.15. In here, we think Lenovo can take the market penetration strategy, it
can reduce the price to increase the attractiveness of the product and competitive
advantage. At the same time, we should also pay attention to the product innovation,
reflect the differences, so that customers can felling a different experience, which is a
way of market penetration. At the same time, Lenovo's marketing channels are too
traditional, Lenovo can optimize their competitive advantage through the improve the
marketing channels, I think they can use the new media and the development of
online suppliers, and constantly to improve their marketing channels. At the same
time, Lenovo also can invite different levels of customers have a face-to-face
experience and exchange through the establishment of party or product launches, I
think it is also a way to spread and promote the product performance. At the same
time, Lenovo also need to focus on product optimization and improvement, through
the provision of personalized, differentiated, cost-effective products, widening the gap
with the competitors, I think this market penetration strategy is suitable for the
long-term development of Lenovo smart phone.
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CHAPTER V
CONCLUSIONS AND RECOMMENDATION
5.1 Conclusions
Based on Chapter 4 analysis and interpretation result into several
conclusions, as follows:
1. China Smart Phone Industry Internal Factor Analysis
Strength and weakness are according to the most to the least
influential factors: (with weighted score)
Strength:
a. The price is relatively cheap (0.20)
b. Branded image (0.15)
c. Fashion design, a great variety, it provide a different
choice for different customer groups (0.10)
d. Strong management (0.10)
e. Experience advantage (0.10)
Weakness:
a. Market positioning is not allowed, the lack of
differences, personalized (0.15)
b. Lack of high-end positioning (0.10)
c. Lack of market development ability (0.05)
d. New comer (0.05)
2. China Smart Phone External condition
Opportunities and Threat are according to the most to the least
influential factors: (with weighted score)
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Opportunities:
a. Rapid economic development (0.15)
b. The growing demand for wireless mobile networks, the
mobile phone market has a lot of space for growth
(0.15)
c. Chinese mobile phone brands can segment the market
and combined with the local culture of Indonesia, then,
provide the personalized mobile phone (0.15)
d. Indonesia has a large population (0.10)
e. Good 3G market environment (0.10)
f. Changes in consumption attitudes (0.10)
Threat:
a. Competitors try to develop the follow-up software,
provide the useful applications (0.10)
b. Competition from existing smart phone brand (0.05)
c. New comer in the same smart phone industry (0.05)
d. China's mobile phone faces a patent threat (0.05)
3. The China Smart Phone Positioning In Indonesia Market
The internal factor evaluation and high external factor evaluation of
Xiaomi (IFE:3.3 and EFE:3.1) means that to fall into cells I and in a
position grow and build. And also represent the strong internal factor
evaluation and medium external factor evaluation of Huawei (IFE:3
and EFE:2.9) means that to fall into cells IV and in a position grow
and build. So, we know that Xiaomi and Huawei have in a same
position grow and build with the most appropriate strategies which
include market penetration, market development, and product
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development or integrative strategy that include backward integration,
forward integration, and horizontal integration.
At the same time, It represent medium internal factor evaluation and
medium external factor evaluation. As Oppo(IFE:2.75 and EFE：2.6)
and Lenovo（IFE:2.9 and EFE:2.75） are fall into cells V that can be
describe as hold and maintain with the most appropriate strategies
can be applied by Oppo and Lenovo, which include market
penetration and product development.
4. The Alternative Strategy:
1) Based On The BCG Matrix
The result of BCG Matrix showed the position of Xiaomi is
“Stars”(figure 4.6). In this position, it can apply the strategy
which is vertical integration , horizontal integration, market
penetration, market development, product development. Position
Oppo, Lenovo and Huawei by BCG matrix is “Question Mark”
(figure 4.6). They should apply the build strategy, through
increasing the investment and improve the product performance,
it will give the impetus and engage in the product, In this way, it
can increase its market share. And also, they can apply the
strategy which is market penetration, market development,
product development, divestiture.
2) Based On The Grand Strategy Matrix
Xiaomi, Oppo, Huawei and Lenovo are in quadrant 1. The first
quadrant represents strategies for maintaining rapid growth and
find the ways continue to create rapid growth when they have a
strong competitive position. they can apply the most effective
strategy which include backward integration, forward integration
60
and horizontal integration. At the same time, when these
companies over-emphasis on the single product, We can take the
concentric diversification strategy, it may reduce the risk from
the narrow product line.
3) Based On The QSPM Matrix
Quantitative strategic planning matrix is an important analytical
tool for the company strategic decision making phase. This kind
of analysis tool can objectively indicate which strategy is the
best for the company. For the Xiaomi company, The first
suitable strategy for Xiaomi is a market penetration with a score
of 6.10, The second strategy is market development strategy
with a score of 6.05. For the Oppo company, a suitable strategy
for Oppo is a product development with a score of 6.20. For the
Huawei company, The suitable strategy is a market development
with a score of 6.10. For Lenovo company, a suitable strategy is
a market penetration with a score of 6.15.
Overall, the china smart phone should focus on three strategies,
market penetration strategy, market development strategy and
product development strategy. This will require us to adjust the
strategic plan to meet people's needs with Indonesia's market
development characteristics, cultural backgrounds and habits,
geographical situation, people's income level and people's
preferences. At the same time, we hope to bring more high
quality and service to Indonesia.
5.2 Recommendations According to the real situation, china smart phone industry have a good
market operation strategy evaluation criteria to minimize error in market
61
positioning. Unfortunately as a foreign smart phone company in Indonesia,
China smart phone have provide high-quality service for the customer,
emphasis to promote the china smart phone brands, create a better brand
awareness and brand image. According to the results of the survey and
interviews, combined with the real situation, several recommendations are
given here
1. For China smart phone Industry
China smart phone industry can use data and research methods in this
research study to evaluate strengths and weaknesses, and continuously
adjust and improve the competitive strategy by a combination of
Indonesia's economic development level, the cultural background,
people's living habits, the geographical situation and competitors. In
this way, it can be better help Chinese mobile phone industry to find a
more appropriate market strategy and competition strategy, it can help
China smart phone industry continues to improve their own strength.
When they facing the competition, they can find out the corresponding
solution, at the same time, they will have a better performance in the
competition.
2. For future research study
The researcher suggests that for any future research should to expand
the scope of the research and the research object, in order to better
confirm the authenticity of the key information and reduce the error.
They can be better understand their own strengths and weaknesses, and
in the market competition, they can make a better respond.
At the same time, other future researches similar to this topic, the
researcher would suggest the future researchers to explore and use more
research methods to have a more comprehensive investigate and
understand about these research objects, so that we can have a more
authoritative and in-depth understanding of the field.
62
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Appendix I
Interview Result
Source: Smart phone store
Q: Do you sell Chinese mobile phones in your stores?
A: Yes, our store have Xiaomi, Huawei, Oppo, Lenovo, ZTE, Asus, Meizu
Q: How do you think the Chinese mobile phone sales in your store?
A: In the beginning, whenever the new China smart phone brand into our store, the
sales are not particularly good, when customers facing an unfamiliar product, the first
reaction is not trust with this product. However, the China smart phone will set the
counter, and provide different types of smart phones, to help people have a better
experience. After a while, I found that this way is really very good. Slowly, a lot of
users came and ask about the price, and when we told them the price, their first
reaction is very surprised, they think the price can afford to buy. Later, there are a lot
of people come to ask the price of Chinese mobile phones, and they are very satisfied
with the price. Subsequently, the store's sales of Chinese mobile phone brands have
increased.
Q: Which china smart phone is the best sales in your store?
A: Now, In my store, the best sales is Huawei smart phone, and also, the sales of
xiaomi is also good, this two smart phone brand sales just have a little differences. I
think this may be related to the reasons for the late xiaomi smart phone into the
Indonesian market. At present, the people are more trust with Hawei smart phone,
because Huawei smart phone enter the Indonesia market is relatively a long time, and
it have played a huge role in the development of wireless networks in Indonesia. So,
67
the people are more trust with the Huawei smart phone. At the same time, Huawei is
also constantly put into a lot of technology and innovation on the phone, and they are
constantly try to expand the user population, so, Huawei's mobile phone sales is also
very impressive.
Q: What are the difference between the Chinese mobile phone brands and other
mobile phone brands?
A：I think the China smart phone are good at providing the cost-effective product.
And, in the appearance design of the smart phone, the China smart phone is also very
fashionable, and it is more cater to people's preferences. At present, the people prefer
the Xiaomi smart phone, one because of his price, the other is because of his
operating system. Many people are very interested in this feature. We know that the
Oppo smart phone is a music phone, so, there are a lot of students would like to use
this phone. Also, the Chinese smart phone is relatively good at the use of promotional
activities, so that, it can attracted a lot of people to choose the Chinese mobile phone.
As we know, Samsung smart phone or Apple phone prices are very high, not
everyone can afford, so, I think they are the most consideration factor is the price.
Q: What is the strengths and weaknesses of china smart phone?
A: I think the advantage of China smart phone is the high cost-effective product. In
the appearance design of smart phone, the China smart phone has improved a lot, it
can meet the needs of people on the appearance of the phone. As far as I know, China
smart phone brand has been a good response, so I think china smart phone has the
enough experience and ability to constantly improve their brand awareness. then, they
can attract more consumers and meet the consumer needs. And china smart phone
also have the shortcoming, when the china smart phone facing a strong competitors,
their advantage is not prominent with the lack of localization of high-end consumer
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groups, I think Chinese mobile phone also need to constantly improve the technology
and produce the high-end smart phone products to expand their consumer groups.
Meanwhile, it also need some ways to improve their brand awareness, because. We
know that the social development is very rapidly, the channels of receiving the new
information are also increasing, Therefore, they should seek the ways to enhance their
brand awareness.
Q: What is the Opportunities & Threats of china smart phone?
A: I think china's smart phone brand opportunity is very large. Because, now
Indonesia's economic development is very rapidly, so, the people's demand for smart
phones is also increasing, smart phone also play an important role in the people's life.
So, I think the China smart phone brand will still have a lot of opportunities. However,
the china smart phone brand is still facing many threats, such as the threats from the
competitors. As we know, for the Samsung and apple smart phone, although they
have a higher price, but still adored by everyone, so the other smart phone brands also
face a threat. Nowadays, the technology is also have a rapidly development, there are
many opportunities and challenges with the smart phone brands, and I just hope that
all smart phone brands can be actively respond to the challenge, and produce more
excellent products to meet the people's need.
Q: Have you ever used the China smart phone, How do you think about it?
A: I have used, I have used Xiaomi and Huawei smart phones, I think their price is
very good. They have a good cost performance. At present, I use the xiaomi smart
phone, the appearance design of xiaomi is very simple and generous. In the using, I
think the system is very smooth with a fast response. And the price of xiaomi is very
reasonable. Although, Xiaomi smart phone have enter the Indonesia market in 2014,
but I think they are really has their own advantages.
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Q: You make the phone brand for so many years, so, will you continue to supply the
China smart phone?
A: Yes, I am very optimistic about the China smart phone, they have provide a
reasonable price, because we know that the Indonesian people's income level,
so ,there is not all people can accept the higher smart phone price, and I also think that
this factor is very important. At the same time, the technology of China smart phone
is also have a lot of innovations. We know that Huawei have operate a long time in
Indonesia, and it is more good at wireless network development and use. It also have
play a very important role in Indonesia's network development. Therefore, I believe
that the strength of China smart phones, I believe they will continue to innovate and
improve the technology, I think these China smart phone brands can have a better
development.
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