FITT Final project

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Algonquin College *

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Feb 20, 2024

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FITT – Feasibility of International Trade Name of the Company: OnePlus Product/Service: Export of Smartphones Target Market: India Name: Lakshmi ID Number: [041121719] SUBMITED TO: Mathew Thomas. PAGE 1

TABLE OF CONTENTS EXECUTIVE SUMMARY………………………………………………………………………………………3 RESEARCH OBJECTIVES……………………………………………………………………4 RESEARCH DESIGN AND METHODOLOGY ................................................................. 6 PRESENTATION OF DATA AND ANALYSIS ................................................................. 8 KEY TRENDS AND ISSUES ............................................................................................ 12 POTENTIAL RISKS .......................................................................................................... 13 MARKET INTELLIGENCE ................................................................................................ 15 COMPETITIVE LANDSCAPE ........................................................................................... 16 HOW THE DATA COLLECTED HELPS TO ADDRESS THE RESEARCH OBJECTIVES? .................................................................................................................. 17 IMPLICATIONS FOR COST AND PRICING ANALYSIS .................................................. 18 PRICING STRATEGY ........................................................................................................ 19 IMPLICATIONS FOR RISK ANALYSIS AND MITIGATION STRATEGIES ...................... 22 CONCLUSION .................................................................................................................... 24 ACTION PLAN .................................................................................................................... 25 REFERENCE ...................................................................................................................... 26 APPENDICES……………………………………………………………………………………..27 PAGE 2

Executive Summary: OnePlus, a major competitor in the global smartphone industry, is considering exporting cutting- edge mobile devices from China to India, a region recognized for its high demand for luxury handsets. This feasibility study dives at the possibility of bringing OnePlus devices to India while capitalizing on the brand's reputation for innovation and quality. The study considers critical factors such as market demand, regulatory concerns, and the competitive environment. The study's goals are to determine the viability of this proposed trade effort by thoroughly assessing the risks and possibilities involved with the import/export transaction. The report derives insights from desk research and interviews with industry professionals, using a thorough research design and methodology that includes both secondary and primary data collecting. The gathered data reveals key trends, difficulties, and challenges in the Indian smartphone industry, highlighting details such as political stability, economic uncertainty, and stiff rivalry from established businesses. Market data emphasizes the sector's extremely competitive character, underlining the necessity for potential newcomers like OnePlus to carve out a distinct niche. The results of cost and price analysis indicate that the proposed deal may be viable if a competitive pricing strategy is used. However, risk analysis reveals possible problems such as political insecurity, currency volatility, and trade obstacles, necessitating a deliberate strategy to address these issues. Competition, regulatory compliance, and the prospect of changes in the political and economic environment are among the anticipated obstacles. Proposed mitigation techniques include developing alliances with local entities, cultivating good relationships with government officials, and diversifying the product line to manage these risks. The conclusion reached is that entering the Indian market is doable but requires careful study and risk mitigation methods to avoid large hazards. Additional primary research is advised to assess the possible influence of these issues on the proposed attempt. Overall, our research provides significant data to OnePlus decision-makers as they consider joining the dynamic and competitive Indian smartphone market. Research Objectives PAGE 3

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The opportunity The business opportunity for OnePlus is to export Smart Phones, to India. India is where OnePlus wants to sell its devices. With one of the biggest smartphone marketplaces in the world and a middle class that is expanding quickly, India offers premium smartphone makers enormous commercial potential. There may be a market for OnePlus smartphones in India due to the country's growing interest in cutting-edge technology and increased brand awareness. One plus majorly export its smart phones to Vietnam and Taiwan. Compare to other 2 countries India is the second largest populated country consisting of 1.46 billion people and GDP of 3,732.22 billion Dollars in the year 2023, Whereas Vietnam and Taiwan population are 98.85 million and 23.57 million. GDP is expected to increase at the rate of 6.3% for 2023-24 in India, 5.3% in Vietnam and 1.42% in Taiwan. Hence, based on this information OnePlus chose India to export its smartphones. The research aims to address the following questions: To determine the demand for One Plus Smartphones in India To identify the regulatory requirements for exporting smart phones to India. To analyze the competition in the Indian Market To assess the potential profitability of exporting Smart Phones to India. To investigate and assess the most effective distribution channels for OnePlus devices in India, taking both online and offline retail possibilities into account. To investigate and assess the most effective distribution channels for OnePlus devices in India, taking both online and offline retail possibilities into account. To Create awareness about the brand The research objectives are: Market Analysis: To examine the demand patterns, customer inclinations, and competitive environment of the Indian smartphone industry as it stands today. To customize OnePlus goods to satisfy regional demand, it is important to comprehend the Indian smartphone industry. It assists in discovering market gaps, possible difficulties, and development prospects. Technological Compatibility: This study aims to examine how well OnePlus smartphones operate with India's current mobile networks, infrastructure, and technologies to guarantee smooth operation. For OnePlus devices to be seamlessly integrated into the current mobile PAGE 4

infrastructure and avoid problems with network connectivity and performance, technical compatibility is essential. Data Security and Privacy Compliance: To guarantee that OnePlus devices comply with Indian data security and privacy legislation, protecting user information and fostering customer trust. Compliance with data security and privacy rules fosters customer trust by ensuring them that their personal information is being handled appropriately, which is crucial for brand reputation. Product Localization: To discover possibilities for product localization, such as language preferences, software customization, and the addition of region-specific features, to improve user experience. Customizing goods based on local tastes improves user experience and market acceptance, showcasing OnePlus' dedication to fulfilling Indian consumers' individual demands. Consumer Price Sensitivity and Affordability: To study consumer affordability and price sensitivity in the Indian market to develop pricing strategies that are appropriate for the target population. Understanding price sensitivity and affordability levels drive pricing tactics, allowing OnePlus to position its devices competitively while maximizing market penetration. Perception and Brand Loyalty: Determine brand loyalty among existing OnePlus users in India and analyze brand perception in comparison to rivals. Measuring brand loyalty and perception gives insights into the efficacy of previous marketing initiatives and aids in the refinement of tactics to increase brand trust and loyalty. Digital Marketing Effectiveness: The goal of this study is to assess the efficiency of digital marketing channels in reaching and engaging the Indian audience, with a particular emphasis on social media, online advertising, and influencer collaborations. Evaluating digital marketing channels allows optimal budget allocation, allowing OnePlus to successfully reach and engage its target audience via the most effective platforms. Socio-Cultural Trends: Identify and comprehend current socio-cultural trends in India that may influence smartphone usage and preferences, ensuring that OnePlus remains relevant and connects with the local environment. Maintaining cultural relevance ensures that OnePlus remains culturally relevant, building a stronger connection with Indian consumers and improving the brand's resonance. PAGE 5

Post-Purchase Experience: The goal of this study is to look at the post-purchase experience of OnePlus smartphone customers in India, including customer happiness, product reviews, and the possibility of repeat purchases. Analyzing the post-purchase experience may help you evaluate customer happiness and loyalty, as well as provide ideas for improving customer support and after-sales services. Long-Term Market Sustainability: To assess the long-term viability of the OnePlus smartphone market in India, considering aspects such as changing customer tastes, technical improvements, and market saturation. Evaluating the market's long-term viability assists OnePlus in planning for the future, considering elements that may impact the smartphone business in India over time. To summarise, every research aim is crucial in directing OnePlus's export endeavor, ranging from comprehending market dynamics to executing efficacious marketing tactics and managing possible hazards. Strategic decision-making is informed by the combined insights obtained from these goals, which ultimately contribute to the success of OnePlus smartphone exports from China to India. Research Design and Methodology The research design employed in this study combines primary and secondary research. Data collection for secondary research came from a variety of sources, including trade magazines, government publications, and industry reports. Indian people were surveyed and interviewed as part of primary research. A mixed-methods approach was chosen as the research design and technique to gather the data required for this feasibility study. This method gathers data from a range of sources by combining quantitative and qualitative research techniques. Descriptive research technique is being used because descriptive research is a research approach that entails gathering information about a market to describe the present market state, current demographics. It is typically used to compare market characteristics or to determine the frequency with which something occurs. The following stages will be included in the study design and methodology: Data sources: A range of data sources have been used to get crucial information on the viability of exporting OnePlus devices to India, including: PAGE 6

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Market studies: In-depth analyses of the competitive environment, development potential, and status of the Indian smartphone market can be found in reliable sources' comprehensive research. Trade Statistics: Understanding the current trade dynamics between China and India in the smartphone sector would be aided by the analysis of trade statistics, including import and export data. This information will direct the development of a successful market entrance plan. Governmental Sources: Data about market laws, industry trends, and standards in India may be obtained with authority from governmental sources, such as the Ministry of Electronics and Information Technology and regulatory agencies. Methodology Choice: Secondary research was used as the main research approach for this study. There are other factors that support this decision. By using already-existing information and data, secondary research eliminates the requirement for direct data collecting. This method offers a thorough understanding of the Indian smartphone industry, including competitive dynamics, consumer preferences, and the regulatory landscape, making it especially appropriate for achieving our study goals. Furthermore, secondary research provides an economical and effective way to collect and examine the vast amounts of data needed for this evaluation. Survey: Goal: To Gather data on consumer behavior, opinions regarding smartphones, and OnePlus awareness. Approach: Utilize web-based questionnaires aimed at a cross-section of the Indian populace. Focus Areas: Recognize customer inclinations, opinions, and the state of the OnePlus smartphone industry. Interviews: Goal: Get information on market circumstances, distribution routes, and regulatory frameworks from important parties. Methods: Use video conferencing or phone interviews to interview distributors, retailers, and regulatory bodies. PAGE 7

Focus Areas: Compile data on market trends, distribution logistics, and regulatory obstacles. Cost Analysis: Goal: Conduct an extensive cost analysis to see whether the export endeavor is feasible. Methods: Examine the expenses associated with manufacturing, shipping, and any tariffs or taxes levied by China and India. Focus Areas: Determine if exporting OnePlus devices to India is financially feasible. The goal of this research design and methodology is to fully address the goals of the feasibility study regarding the export of OnePlus smartphones from China to India. It does this by combining quantitative and qualitative methodologies. A thorough grasp of the market dynamics and potential obstacles to entering the Indian smartphone market is ensured by the mix of secondary research, surveys, interviews, cost analysis, risk assessment, and demographic census. Presentation of Data and Analysis Market Analysis: India's smartphone industry was estimated to be worth US$ 139 billion in 2021 by 2028, it is projected to have grown to US$ 281 billion at a compound annual growth rate of 10.5%. In terms of shipments, the smartphone market in India reached 160.70 million units in 2021. Over the projection period of 2022–2027, it is anticipated to increase at a compound annual growth rate (CAGR) of 7.97%, reaching 253.28 million units in 2027. 2021 saw a 555% year-over-year rise in 5G shipments, with 29% of all shipments coming from 5G devices. The demand for smartphones has increased, owing mostly to remote learning and virtual social gatherings. India's smartphone industry is expanding rapidly, propelled by factors including rising disposable incomes, greater internet penetration, and an increasingly tech-savvy populace. The demand for smartphones has been growing steadily over the last five years, according to our thorough study, with a noteworthy Compound Annual Growth Rate (CAGR) of almost 10%. This trend indicates that the market is dynamic and attractive, which is in line with OnePlus's strategic goals as it enters the market. PAGE 8

The increasing need for advanced technology, e-commerce, and digital connection have all contributed to the demand for high-end smartphones in India. With an emphasis on delivering cutting-edge technology and high-end user experiences, OnePlus is in a good position to meet this demand and have a big influence on the Indian smartphone industry. According to market data, Samsung leads with a 34% market share in India, while OnePlus has a 33% share. Competitors: There are several local and international players in the Indian smartphone market. Some of the key competitors in the smart phone segment include Vivo, Apple, and Karbon. One Plus will need to differentiate its product and create a strong brand presence to compete effectively in the market. It is also important to note that some local competitors may have an advantage due to their existing relationships and networks in the market. 1· Xiaomi Group Chinese company Xiaomi Inc., registered in Asia, is a manufacturer and developer of home appliances, household goods, and linked software and electronics for consumers. Xiaomi is the second-biggest smartphone manufacturer, behind Samsung. In India, Xiaomi holds a 22% market share. Xiaomi increased sales with the help of the Redmi 9 and Redmi Note 10 series. Xiaomi is OnePlus's main rival when it comes to flagship killer status, particularly in the Android phone market. 2. Samsung Enterprise PAGE 9

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Samsung Group is a global industrial corporation based in Seoul, South Korea, with its headquarters located in Samsung Town. It is the biggest chaebol in South Korea and consists of a varying number of related enterprises, the majority of which are unified under the Samsung brand. As of 2020, Samsung has the eighth-highest global brand value. In India, Samsung has a 19% market share. In India, Samsung unveiled a few low-cost and mid-range 5G handsets. 3. Apple Inc. This international technology firm is based in the United States and specializes in computer software, consumer gadgets, and other online services. With sales of $274.5 billion in 2020, Apple is the largest technological business in the world. In January 2021, the company achieved the status of the most valuable in the world. In Q32021, the US tech giant Apple saw year-over- year growth of 212 percent, with iPhones priced in India exceeding Rs 45,000. Additionally, Apple Inc. just surpassed $3 trillion in stock market value, making it the first and largest firm in the world. Apple is the fourth-largest smartphone maker and the fourth-largest PC company in the world based on sales. The business is one of the Big Five IT companies in the United States. In terms of rivalry, OnePlus is closely rivaled by Apple. 4. The Realme Brand The company is a Chinese smartphone maker with headquarters in Shenzhen, China, and New Delhi, India. On May 4, 2018, Sky Li, who was previously the vice president and CEO of Oppo India, founded the organization. Holding a 14% market share is Realme. In the Rs 20,000 price range, the company's 5G smartphone was the best-selling brand. PAGE 10

Competitive Edge: To overcome competitors, OnePlus Software distinguishes its phones from other Android products with Oxygen OS, a unique Android platform. It feels so good that most people fall in love with it right away, and it gives users a ton of customizing choices. The company offers stunning design and acts quickly when making decisions on plans and material selection, which may work to OnePlus's advantage. One of the organizations that is well-known for providing items with extremely quick execution is OnePlus Performance. They are capable of handling whatever task you throw at them, including demanding gaming, movie playback, and even simple web surfing. Key growth drivers of the market: The surge in demand for smartphones was caused by the manufacturing firms' price strategy and their exclusive online distribution. Due to the growing popularity of smartphones over basic feature phones, consumers' preferences have changed. Revenue: In 2023, the Smartphone market will generate $41.7 billion in revenue. The market is predicted to expand by 7.20% each year (CAGR 2023-2028). The Smartphone market is anticipated to reach 234.5 million units by 2028. In 2024, the Smartphone market is predicted to increase by 5.9% in terms of volume. Revenue in Billion USD: 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 10 20 30 40 50 60 70 27.5 32.4 31.8 37.2 37.8 41.7 44.7 48.2 51.8 55.4 59.1 Revenue Revenue PAGE 11

Key Trends and Issues: Rise in Premium Smartphone Segment: Premium cellphones are becoming more and more in demand as users want for advanced functions and fashionable looks. OnePlus, which is well-known for its high-end flagship smartphones, may take advantage of this development to become a dominant force in the premium market. Trends in the Features of Smartphones: 5G Connectivity: As 5G networks are deployed in India, there is an increasing need for smartphones that can support 5G technology. OnePlus, a company well-known for its technical advancements, might benefit from this trend by providing 5G-capable handsets. Camera Technology: Advanced camera features are becoming more and more important to Indian consumers. Thanks to its reputation for having excellent cameras, OnePlus can adjust its product lineup to the changing needs of Indian customers. Regulatory Framework: India boasts a well-organized regulatory regime pertaining to electronic items, encompassing cellphones. Electronic products must be certified by the Bureau of Indian Standards (BIS) to be sold in India. To guarantee adherence to Indian norms and laws, OnePlus must follow these guidelines and receive BIS certification for its mobile devices. Competitive Landscape: Local and foreign companies are fighting for market share in India's fiercely competitive smartphone industry. Vivo, Xiaomi, and Samsung are some of the main rivals. In India, these businesses have developed a robust distribution network and a well-known brand. By highlighting its unique selling points—such as its premium build quality, user experience, and cutting-edge features—OnePlus may proactively position itself. Consumer Behavior: PAGE 12

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Indian customers are known for their price sensitivity and propensity to look for value while making purchases. To appeal to a wide range of customers, OnePlus should consider price tactics that create a mix between premium features and affordability. Brand Loyalty: The Indian smartphone market is heavily influenced by brand loyalty. OnePlus, which has a devoted following, may improve its standing by utilizing its current customer loyalty and community involvement programs. Online shopping Predominance: Buying cellphones online is a common practice in India. This trend is ideally suited to OnePlus' direct-to-consumer business strategy and exclusive partnerships with internet platforms. To successfully penetrate the market, the organization needs keep highlighting its online sales approach. Charts: In India, over half the population (52%) is below 30. India's smartphone user base is diverse, with 53% of users being between the ages of 18 and 24. Hence, it is profitable for the company to export smart phones to India. Smart Phone users in India by age: 53.59% 33.06% 11.12% 2.22% Users 18-24 25-34 35-44 45-54 Potential risks associated with trade in the selected target market: PAGE 13

There are several hazards associated with exporting OnePlus smartphones from China to India, from legal issues to market-specific factors. The following are some major dangers connected to this business endeavor: Regulatory Compliance: Import laws: It might take a lot of time and effort to follow India's import laws and get the required certifications, such as a Bureau of Indian Standards (BIS) certification. Customs and tariffs: To prevent delays and financial consequences, it is essential to comprehend and navigate the customs and tariffs that apply to imported electronics. Market Competition: Intense Competition: There are many local and foreign competitors in the Indian smartphone industry. Gaining market share may be difficult in a very competitive environment. Local Preferences: It's critical to comprehend and accommodate regional customer preferences. Products that do not match the tastes of the market may arise from failing to achieve this. Economic Factors: Currency fluctuations: The price and profitability of OnePlus mobile phones in the Indian market may be impacted by changes in the exchange rate between the Chinese Yuan and the Indian Rupee. Economic Conditions: The demand for smartphones generally as well as consumer purchasing power may be impacted by economic downturns in China or India. Supply chain and logistics: Supply Chain Disruptions: Product availability and delivery schedules may be impacted by supply chain disruptions brought on by international events like the COVID-19 pandemic, natural catastrophes, or geopolitical conflicts. For example, in 2020 India banned China products at that time it was difficult for the company to export their products and sell in Indian market. PAGE 14

Problems with transportation: Shipment, transportation, and logistics-related difficulties can cause delays and raise expenses. Innovation and Technology: Technological Changes Quickly: The smartphone market is changing swiftly. Products that don't stay up to date with technology changes might end up being less competitive or obsolete. Intellectual Property Issues: It's critical to protect intellectual property rights, particularly in marketplaces where product imitations are common. Social and Cultural Factors: Cultural Sensitivity: Marketing or product tactics that fail to connect with the Indian consumer base may result from misinterpreting or ignoring cultural quirks. Consumer Behavior: For efficient marketing and product placement, it is crucial to comprehend the varied consumer behaviors seen in India's various areas. Political and geopolitics Risks: Geopolitical Tensions: Trade relations and commercial activities may be impacted by the ongoing or intensifying geopolitical tensions between China and India. Policy Changes: The export of electronic goods may be impacted by modifications to the laws or trade policies of either nation. Data privacy and cybersecurity: Data Security: To keep customers' confidence, it's essential to guarantee user data security and abide by Indian data protection regulations. Cyberthreats: There is a chance that cyberthreats, including data breaches or hacking attacks, can cause problems for operations and reputation. In conclusion, Effective risk management techniques, in-depth knowledge of the Indian business, and ongoing observation of market and regulatory developments are all necessary to mitigate these risks. A thorough risk assessment and keeping up with the ever-evolving PAGE 15

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business environment can assist minimize potential obstacles when exporting OnePlus smartphones from China to India. Market Intelligence: In order to assess the feasibility of exporting Smartphones to India, it is important to understand the market intelligence and competitive landscape of the country. Here are some key points of information on the Indian market.  India, with more than 1.3 billion inhabitants, is the second most populous nation in the world. With a high young population and a diversified population, India is one of the world's biggest smartphone markets.  India's GDP is expected to rise at a rate of 6.5% in 2024, making it one of the fastest- growing economies in the world. The market for cellphones is expanding as a result of rising disposable incomes, particularly in cities.  Indian customers place a premium on smartphones with cutting-edge features like powerful performance, long-lasting batteries, and high-quality cameras. Although there is a market for high-end smartphones, there is also a sizable demand for low- and mid- cost handsets.  Online sales channels, such as e-commerce platforms, are critical to smartphone sales in India. Offline retail channels such as exclusive brand stores and multi-brand retail outlets play an important role as well.  For smartphone import, compliance with Indian rules, including getting Bureau of Indian Standards (BIS) certification, is required. Compliance with data protection rules and the security of customer data is becoming increasingly important.  India is a culturally varied country, and consumer tastes differ by area. Understanding these subtleties is critical for successful marketing and product positioning. Offering smartphones with multilingual support has the potential to increase market penetration.  With the deployment of 5G networks, there is an increase in demand for 5G-enabled handsets. Smartphones with new features, such as AI capabilities and high-resolution screens, are popular among Indian consumers. PAGE 16

 Before purchasing a smartphone, Indian buyers frequently perform extensive web research. Given the competitive nature of the business, developing, and maintaining brand loyalty is critical.  Positive client experiences are enhanced by a robust after-sales service network and rapid customer assistance. Customer satisfaction depends on clear warranty rules and prompt repair services. Competitive Landscape: There are several other international and domestic smartphone companies operating in India, besides the ones that are discussed above including Samsung, Apple and Karbon. Competitive Dynamics: Price Competition: Price sensitivity is high in the Indian market, leading to intense price competition among smartphone brands. Online Sales: The trend of online smartphone purchases continues to grow, with brands focusing on exclusive online launches and sales. Innovation: Brands compete to introduce innovative features, camera technologies, and other advancements to differentiate themselves. Brand Positioning: Clear brand positioning and marketing strategies are crucial for capturing consumer attention and loyalty. Offline Retail: A significant portion of smartphone sales still occurs through offline retail, requiring a strong presence in physical stores . Market Trends: 5G Adoption: The deployment of 5G networks is impacting consumer tastes, with an increase in demand for 5G-enabled devices. PAGE 17

Dominance in the Mid-Range: The mid-range category remains fiercely competitive, with firms delivering feature-rich smartphones at low costs. Sustainability: As people become more conscious of environmental concerns, there is a greater need for eco-friendly and sustainable smartphone solutions. How the data collected helps to address the research objectives?  To Analyze the Size and Potential of the OnePlus Mobile Market in India: Population and Demographics: Data on India's population size, age distribution, and economic factors give insights into the potential user base and market size for smartphones. Economic Landscape: Data on India's economic development, disposable income, and consumer expenditure may be used to estimate purchasing power and the potential market for luxury smartphones like OnePlus. Smartphone Adoption Rates: Data on smartphone penetration in India aids in determining market saturation and the potential for development in the premium smartphone category.  To Understand Indian Smartphone Consumer Preferences and Trends: Consumer Behavior: Information gathered on consumer preferences, features favored by Indian consumers, and the popularity of various smartphone manufacturers aids in identifying market trends. Competitor Analysis: Knowing the tactics, strengths, and weaknesses of important companies in the Indian smartphone industry (such as Samsung, Xiaomi, and others) will help you find opportunities for distinction. Online vs. Offline Sales: Understanding the prevalence of online sales and the importance of offline retail channels aids in the development of successful distribution strategies.  To Determine the Competitive Environment and Market Entry Points: Data on prominent participants in the Indian smartphone industry, as well as their market share and strategy, contribute to a thorough competition analysis. PAGE 18

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Brand Perception: In the Indian market, consumer opinion and views of OnePlus may drive marketing and positioning tactics. Market Trends: Data gathered on the most recent trends in smartphone functionality, design, and technology adoption in India assists OnePlus in aligning its offers with market expectations. Implications for Cost and Pricing Analysis Production Costs: It is critical to understand the costs of producing OnePlus smartphones in China, including labor, materials, and overhead. Data on manufacturing efficiency and costs can aid in the refinement of the estimate. Transportation Costs: Information on logistics, shipping, and transportation costs from China to India helps calculate the cost of physically transporting smartphones to the Indian market. Import tariffs and Taxes: Accurate evaluation of additional expenses connected with bringing cellphones into India is made possible by detailed data on Indian import tariffs, taxes, and customs procedures. Compliance Costs: Understanding regulatory requirements, including BIS certification, allows compliance costs to be included in the total cost analysis. Demand in the Market: The degree of demand for OnePlus smartphones may have an influence on price considerations in the Indian market. When there is a high demand, the company may be able to charge a premium, but low demand may need competitive pricing methods. Competition: The presence of competitors in the Indian smartphone industry may have an impact on price strategy. If there are multiple rivals selling similar products, OnePlus may need to price their smartphones strategically to remain competitive. Overall, the information gathered through market research and competitor analysis can help One plus refine their cost and pricing analysis by providing insights into production costs, market demand, competition, import/export fees, currency exchange rates, and profit margins. By considering these factors, the company can assess the overall viability of the transaction and make informed decisions about pricing and profitability. PAGE 19

Pricing strategy: Competitor Pricing: Data on pricing strategies of important rivals in the Indian smartphone industry aids in determining an optimum price plan for OnePlus mobiles. It reveals the price points that the market is prepared to accept. Consumer Affordability: Understanding the Indian economy and consumer purchasing power helps for the establishment of pricing strategies that are in line with what the target market can afford. Value-Added characteristics: Consumer preferences and trends help discover characteristics that may be highlighted to justify premium pricing and separate OnePlus mobiles from competitors. Costs of Distribution Channels: Data on distribution channels, both online and offline, aids in the calculation of associated costs such as retailer margins, promotional charges, and marketing costs. Pricing Strategy and Overall Transaction Viability for Exporting OnePlus Mobiles from China to India: Model of Cost-Plus Pricing: Calculation: OnePlus can use a cost-plus pricing model, which considers the complete cost of the mobiles, including manufacture, transportation, import tariffs, taxes, and other fees. The ultimate selling price is then increased by a markup. Markup: The markup will represent OnePlus' targeted profit margin. This strategy guarantees that all expenditures are paid and that the firm achieves the desired amount of profit. Value Based Pricing: Perceived Value: Given OnePlus's premium status in the smartphone industry, a value-based pricing approach can be implemented. The cost would be determined by the perceived value of OnePlus smartphones among Indian buyers. PAGE 20

Market Comparison: OnePlus can examine current market prices in India for similar high-end smartphones and position its pricing based on the unique features and perceived value it provides. Cost Analysis for OnePlus Mobiles: Unit Cost: Determine the overall cost per mobile unit, considering manufacturing expenses, shipping, import tariffs, taxes, and other fees. Total Unit Price: After determining the unit cost, OnePlus may calculate the total cost of each mobile device. OnePlus Mobile Pricing Structure: Retail pricing: Establish the retail pricing for OnePlus smartphones, ensuring that it is competitive in the Indian market while also providing for a healthy profit margin. Set wholesale price for wholesalers and distributors, considering their profits, and maintaining a mutually advantageous partnership. Maximum Retail Price (MRP): Set an MRP with a margin cap to ensure that distributors and retailers may profit while adhering to pricing rules. Pricing Structure: Costs of Mobile PRICE Screen xxx +Components xxx +Camera xxx +Factory xxx +Transportation xxx +Storage xxx PAGE 21

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 Cost of Production xxx +Distribution Costs xxx +Retail Costs xxx +Marketing Investments xxx  End Price Premium Brands(others) OnePlus Rs 40,000-70,000 Rs 20,000-30,000 As people in India are sensitive to the price of the product, the pricing structure of one plus is perfect for Indian customers, it can make more sales than competitors in the market and can make more profits. Viability Assessment:  Data gathered on the Indian smartphone industry, such as current demand trends and growth estimates, gives insights into the prospective market size and hunger for luxury handsets.  Understanding how Indian customers view and value smartphones, particularly luxury brands, helps determine whether the market is open to OnePlus mobiles.  Information on economic circumstances and geopolitical issues enables risk assessment, assisting in the identification of potential obstacles that may affect the transaction's feasibility.  Data on regulatory requirements and compliance costs aids in determining if it is feasible to fulfill the requisite standards and regulations for importing smartphones into India. Finally, the information gathered allows for a thorough cost and pricing analysis of the proposed transaction. It enables a more in-depth understanding of manufacturing, transportation, compliance, and distribution costs, which aids in the development of a competitive pricing strategy. Furthermore, insights into market demand, customer behavior, and potential dangers help to determine the transaction's feasibility in the Indian market. PAGE 22

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Implications for Risk Analysis and Mitigation strategies: Fluctuations in currency exchange rates: Changes in foreign conversion rates may have an influence on the ultimate cost of the purchase for OnePlus. Mitigation: Implement financial hedging methods to reduce the risks associated with currency changes. Keep an eye on currency developments and consider negotiating contracts in stable currencies. Tariffs and trade regulations: Changes in trade legislation, tariffs, or import/export policies can have an impact on the cost structure and profitability. Mitigation: Stay updated about trade policies, interact with regulatory agencies, and retain supply chain flexibility to respond to regulatory changes. Consumer Preferences and Market Demand: A mismatch between OnePlus smartphones and Indian customer tastes may hinder market adoption. Mitigation: Conduct extensive market research to learn about the preferences of Indian consumers. Marketing techniques and product characteristics should be tailored to local demand. Competitive Pricing Pressures: Intense rivalry in the Indian smartphone industry may put downward pressure on price and profit margins. Mitigation: Constantly monitor rival pricing, distinguish OnePlus phones with unique features, and emphasize brand value to justify high cost. Economic Downturn in Target Market: Economic downturns in India may have an impact on consumer purchasing power and demand for luxury cellphones. Mitigation: Diversify product offerings to meet the needs of various market segments. To respond to changing economic situations, use flexible pricing schemes. Protection of Intellectual Property: Market risks of intellectual property infringement or counterfeit items. PAGE 23

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Mitigation: Increase the effectiveness of intellectual property protection procedures. Work with local governments to enforce and defend the OnePlus brand and goods. Quality Control Issues: Manufacturing quality failures can result in product recalls, reputational harm, and financial losses. Mitigation: Implement stringent quality control procedures throughout the production process as a mitigation strategy. Audit and evaluate supplier performance on a regular basis. In conclusion, OnePlus can improve its resilience, maintain smooth operations, and maximize its prospects of success in the Indian market by proactively recognizing these possible risks and establishing effective mitigation plans. In dealing with volatile market circumstances, regular monitoring and revisions to the risk mitigation plan will be critical. Conclusion Finally, the research findings indicate a favorable environment for OnePlus to export mobiles from China to India, therefore tapping into the healthy and developing smartphone industry. The Indian consumer market, which is distinguished by a tech-savvy urban population with growing purchasing power, represents a big potential for OnePlus' premium devices. The report emphasizes the critical relevance of market intelligence and competition analysis for OnePlus to successfully traverse the complexities of the Indian market. The Indian smartphone industry has a steady demand for high-end products, which is well aligned with OnePlus' brand positioning. To capitalize on this need, the organization should spend in ongoing market research to keep up with changing customer tastes, technical advances, and competition activity. A critical strategic aspect is the creation of a distinct value proposition that distinguishes OnePlus from other market participants, stressing new features, cutting-edge technology, and a superior user experience. PAGE 24

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A proactive risk management approach is essential for a successful market launch. The study addresses possible hurdles, such as regulatory complications and cultural differences. To successfully reduce these risks, OnePlus should develop and implement contingency plans. It is critical to build good connections with local partners, suppliers, and government officials in order to navigate legal frameworks and cultural sensitivities. The report acknowledges that, while entering the Indian market is a feasible option, it requires thorough planning, strategic thinking, and flexibility to industry-specific difficulties and possibilities. The action plan described provides OnePlus with a clear roadmap for addressing significant findings and suggestions. By implementing this strategy, OnePlus will not only be able to overcome obstacles, but will also be strategically positioned to profit on the tremendous potential of the Indian smartphone market. In essence, with its reputation for producing innovative and high-quality smartphones, OnePlus is well-positioned to make a huge impact in India. The mentioned tactics, which are based on market intelligence, risk management, and strategic differentiation, will help OnePlus navigate the complexities of the Indian market and develop a long-term and profitable presence. Action plan The report suggests that OnePlus proceed with the intended market entrance after a comprehensive review of the market dynamics and possible hurdles associated in exporting OnePlus mobiles from China to India. The decision is based on many major criteria, including India's enormous market potential for premium smartphones, the urban population's growing tech-savvy and spending power, and OnePlus' well-established reputation for providing innovative and high-quality handsets. The venture's financial feasibility is emphasized by the expectation of a good profit margin, as the cost of manufacture and export is predicted to be lower than the selling price of OnePlus smartphones. Furthermore, positive future trends and conditions in the Indian smartphone industry contribute to OnePlus's optimism about optimal development potential. The action plan includes strategic mitigation techniques in recognition of anticipated problems in the Indian market. Cultural sensitivity training to address potential cultural differences, the PAGE 25

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establishment of a dedicated team for regulatory compliance, the development of robust logistics plans to overcome transportation challenges, and a vigilant monitoring of competitors to differentiate OnePlus through unique features and brand value are all part of this strategy. Implementing a flexible pricing strategy to adapt to market conditions and competitive pressures, forming strategic partnerships with local firms for insights, and conducting continuous primary research, including surveys, to adapt products based on evolving consumer preferences are all risk mitigation strategies. The recommended market entrance method is to ship OnePlus phones straight to local Indian distributors and wholesalers. For effective market penetration, it is recommended to use distributors with established clientele that carry non-competing product lines. Maintaining control over production processes in OnePlus facilities ensures product quality while mitigating outsourcing concerns. The venture's long-term success is dependent on a dedication to ongoing market research, staying ahead of industry trends, and remaining flexible to changing market dynamics, technology breakthroughs, and customer habits. To summarize, while hurdles remain, OnePlus' well-structured action plan prepares the company for success in building a strong presence in the Indian smartphone market, capitalizing on possibilities, and providing high-quality smartphones to the Indian user base. References: Business, G. Y. (2022, June 20). Oneplus marketing strategy in 2022: Top 10 major proven takeaways. RDS Digital | Holistic Digital Marketing Agency | Digital Marketing Company Bangalore . Retrieved November 27, 2023, from https://rdsdigital.in/oneplus-marketing- strategy-in-2022-top-10-major-proven-takeaways/ About OnePlus (never settle): OnePlus Canada. (n.d.). OnePlus . Retrieved November 27, 2023, from https://www.oneplus.com/ca_en/brand OnePlus. (2023, November 22). Wikipedia . Wikimedia Foundation. Retrieved November 27, 2023, from https://en.wikipedia.org/wiki/OnePlus India smartphone market remained flat yoy in 3q23 with 44 million units, says IDC. (n.d.). IDC . Retrieved November 27, 2023, from https://www.idc.com/getdoc.jsp? containerId=prAP51365623 PAGE 26

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New battles define a slowing Indian smartphone market. (2023, August 11). Hindustan Times . Retrieved November 27, 2023, from https://www.hindustantimes.com/business/the-battle-for-smartphone-supremacy-in-india- samsung-vs-vivo-vs-xiaomi-101691724882431.html Bundhun, R. (n.d.). Why smartphones are key for India’s digital ambitions. The National . Retrieved November 27, 2023, from https://www.thenationalnews.com/business/technology/2022/09/05/why-smartphones-are-key- for-indias-digital-ambitions/ Rashi.sood. (2023, October 18). 20 most demanded products in India Online [2023]. Shiprocket . Retrieved November 27, 2023, from https://www.shiprocket.in/blog/most-demanded-products-india-online/ Smartphones - india: Statista market forecast. (n.d.). Statista . Retrieved November 27, 2023, from https://www.statista.com/outlook/cmo/consumer-electronics/telephony/smartphones/india Appendices: OnePlus Differentiation Plans: 1. Creating a Buzz Through Uniqueness When OnePlus, a new brand, emerged in India, it produced a scarcity scenario in which everyone was unable to purchase the phone, despite the market sensing that the phone was well received by buyers. OnePlus introduced a uniqueness method in which you could only obtain the phone if one of the OnePlus users invited you to buy the OnePlus phone. As the phone is not easily available in the market if you desire it, you must make more and more attempts to obtain it. 2. The Product's Quality A great product is a one plus one approach that draws more and more consumers, and OnePlus never underestimates the importance of product quality. It was evident that Samsung and Apple phones have very slick looks, so trying to compete with a cheaper one would only PAGE 27

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succeed if the quality was maintained. And that was one of the most difficult problems that OnePlus faced. 3. Ingenious Application of One plus Influencer Marketing OnePlus has yet another amazing method that necessitates relying on the influence of other companies or celebrities to build awareness and attract customers' attention. In its latest partnership with Netflix India. OnePlus India was the first to release the first look at the highly anticipated Sacred Games season 2 in 2019. This marketing campaign garnered many visitors to their social media accounts, even from die-hard fans of the series. OnePlus not only used Netflix's impact, but also collaborated with well-known actresses, models, and social media influencers. 4.Product Lifecycle of OnePlus OnePlus' marketing approach employs the fantastic release of color and special edition variations in its product life cycle to keep its products at the forefront of customers' minds. For example, the OnePlus 5T debuted with a midnight black version, followed by a Star Wars edition, Sandstone White, and Lava Red editions that drew in a lot more buyers due to its distinctive edition. PAGE 28

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