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Transsion Mobile: Deep Blue Ocean in Africa
Author(s): CHEN, Guoli, ZHUANG, Xinhe
Summary
The global mobile phone market is becoming saturated, especially in developed economies where phone makers are competing for market share in an increasingly ‘red ocean’. In contrast, the African market for mobile phones has huge growth potential given a fast-expanding population and high proportion of young people, yet relatively low rate of mobile phone penetration. Transsion, a Shenzhen-based mobile phone manufacturer (that few Chinese have heard of), spotted a blue ocean opportunity and within a few years had become the “mobile phone king of Africa”. The case describes its growth trajectory, competitors, challenges and future opportunities.
The case has proved to be well suited to a discussion of any or all of the following topics: 1. Value innovation (blue ocean strategy, ERRC framework, strategy canvas) 2. Competitive strategy (industry analysis, competitive analysis); 3. Global strategy (market entry, localization, and differentiation) 4. Growth strategy, technology strategy and firm evolution.