Shanzhai “Bandit” Mobile Companies

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Shanzhai “Bandit” Mobile Companies From the production and manufacturing, distribution, and all the way to the physical usage of the Shanzhai phone, there were a lot of controversies that were associated with the Shanzhai mobile phone company. Even though Shanzhai is looked down upon due to not following Chinese government regulations, poor product quality as well as safety concerns, the company has been able to make a large sum of profits. The main component that allowed Shanzhai to do this is their extreme fast pace of getting their products out in the market for a very low price. The market for handsets in China is very large therefore a lot of global companies were interested in coming into China and serving their user base. Local companies starting forming, using simpler supply chain networks to their advantage. However, even with all these companies serving the handset user base in China, there was a part of the market that wasn’t being served. This is where Shanzhai saw an opportunity to vastly succeed in serving the part of the market that wasn’t being catered to. This part of the market consisted of users who couldn’t afford regular price phones and were very price sensitive. Therefore Shanzhai created phones that imitated the most current models of mainstream companies such as Lenovo or Apple. These devices, however, would be much cheaper than the real phones however, the quality would be poor. Shanzhai had many factors that contributed to their success such as their fast response to customer demand in a short period of time. It only took approximately 45 days for Shanzhai to develop a new design and mass produce the product, which was much faster than an average mainstream company. Not only did Shanzhai meet the demand of the customers by producing all of the products in a short period of time, but also knew what designs would be popular and be

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