An Overview of Mobile Phone Distribution Channels in China

In: Business and Management

Submitted By dpuchot
Words 4205
Pages 17
An Overview of Mobile Phone Distribution Channels in China
February 2003

TABLE OF CONTENTS 1 CHINA MOBILE PHONE MARKET ...........................................................................2 2 CLASSIFICATION OF CURRENT HANDSET DISTRIBUTION CHANNELS ..................3
2.1 2.2 2.3 2.4 Conventional Handset Distribution Channels .....................................................................3 Conventional IT Distribution Channels...............................................................................4 Household Appliances Chains .............................................................................................4 Number of Distributors/Retailers ........................................................................................6

3 OPERATIONS OF CHINA HANDSET DISTRIBUTION CHANNELS ..............................5
3.1 3.2 3.3 Inter-Channel Relationship..................................................................................................5 Distribution Modes for GSM Handsets................................................................................7 Distribution Modes for CDMA/GPRS Handsets..................................................................8

4.
4.1 4.2 4.3 4.4

CHARACTERISTICS OF HANDSET DISTRIBUTION CHANNELS IN CHINA ........9
High-end vs Low-end Handsets ...........................................................................................9 Major cities vs medium-to-small cities ................................................................................9 Rural Areas ..........................................................................................................................9 Regional differences in distribution channels......................................................................9

5.
5.1 5.2 5.3 5.4

EVOLUTION OF HANDSET DISTRIBUTION CHANNELS…...

Similar Documents

Mobile Phone Manufacturer in China

...Expanding Global Operations: Mobile Phone Manufacturing in Shenzhen, China Professor Julian Dalzell MGMT 801: Human Resources in the Global Firm Fall 2012 Group 4 Team Members: Ben Alverson Wyman Bowers Lindsay Gilliam Rod Jaraiedi Alicia Parker Yolanda Rhodes Gabriel Saracila Eric Seymore ------------------------------------------------- I. Introduction The competitive pressure in today’s manufacturing landscape is more complex than ever, resulting in the need for companies to maintain high quality levels and concurrently strive to keep costs low. As a result, investing in China has become imperative for both private and public companies. The gradual adoption of free-market business principles, bolstering low labor costs, well-managed operations and supply chain efficiency all have propelled China to the forefront of business expansion. As a growing mobile phones manufacturer, we are seeking to extend our business to China in order to successfully compete in what has become a “global economy”. Our primary objective is to identify a suitable area to stage a domestic assembly operation and regional headquarters from which other subsequent Asian operations will be managed. Once the location and plan of action have been determined, we will need to facilitate staffing operations for the new site and define the parameters for the HR philosophy for the new regional organization. All planning, execution, and staffing goals must be met within 12......

Words: 9636 - Pages: 39

Distribution Channels

...istribution Channels at Clothing Retailer Hennes & Mauritz A key ingredient in retailing success is the strength of a company's distribution channels. Kerry Capell's (2002) Business Week article looks at Sweden-based Hennes & Mauritz's (H&M) sourcing and inventory management strategies and their reliance on distribution channel partners. H&M has developed a unique distribution channel strategy to compete with better entrenched retailers including Gap, Old Navy, Zara and FCUK. H&M Product Strategy Understanding H&M's distribution strategy requires a clear understanding of their product philosophy and strategy. Like Gap and other clothing retailers, H&M markets to a particular segment of the fashion consumer market. H&M's philosophy is "Fashion and quality at the best price" (H&M, 2004). H&M keeps up with its competitors by providing a variety of styles from "updated classics and fashion basics" to cutting-edge fashion trends (H&M, 2004). Kotler defines the product as a combination of goods and services (Kotler et al, 2001). H&M seeks a product edge by providing affordable fashion lines similar to its competitors, but with a "fast turnaround" from design to production to sales floor (Capell, 2002). Capell focused on this integrated distribution channel in his article. Distribution Channel Outline Marketers often refer to the fourth P, place, as placement, logistics or distribution. Marketers must create a place or a way for logistics and physical delivery to......

Words: 746 - Pages: 3

Company Profiles - Distribution Channel

...DUMANGAS, Roniel U. DISTRIBUTION CHANNEL BSBA-NKTG3 03-12-13 1.) Research for a company profile of the ff. : -Oil Industry -Media Industry -Telephone Company -Computer OIL INDUSTRY (PETRO CHINA COMPANY) PetroChina Company Limited (“PetroChina”) is the largest oil and gas producer and distributor, playing a dominant role in the oil and gas industry in China. It is not only one of the companies with the biggest sales revenue in China, but also one of the largest oil companies in the world. PetroChina was established as a joint stock company with limited liabilities by China National Petroleum Corporation under the Company Law and the Special Regulations on the Overseas Offering and Listing of Shares by Joint Stock Limited Companies on November 5th, 1999. The American Depositary Shares (ADS) and H shares of PetroChina were listed on the New York Stock Exchange on April 6, 2000 (stock code: PTR) and the Stock Exchange of Hong Kong Limited on April 7, 2000 (stock code: 857) respectively. It was listed on Shanghai Stock Exchange on November 5, 2007 (stock code: 601857). Since the foundation, PetroChina has established and improved standard corporate governance structure, in accordance with the applicable laws and regulations including the Company Law and the Mandatory Provisions for the Articles of Association of Companies to be Listed Overseas and the Articles of Association. The shareholders’ meeting, the Board of Directors and the Supervisory......

Words: 1853 - Pages: 8

Distribution Channel

...distribution channels Nokia’s global developer program, Forum Nokia connects developers to the tools,technical information, support, and distribution channels they can use to build and marketapplications around the globe. Through its website and from offices in the US, Europe,Japan, China, and Singapore, Forum Nokia provides technical and business developmentsupport to developers and operators to assist them in achieving their goal of successfullylaunching applications and services to consumers and enterprises..Nokia uses Dangaard Telecom. Dangaard Telecom , headquartered in Padborg, in southern Jutland and Europe'slargest distributor of mobile phones, aims to become the world's largest distributor in thenext 12 months by cultivating new markets and developing new business areas. DangaardTelecom says that record revenues and profits in the latest fiscal year have fuelled itsgrowth plans.Steen Folmer Pedersen, group director of Dangaard Telecom says: "In the last 12 monthswe have earned more money than ever before. It has enormous importance to us and tosouthern Jutland, and the fine earnings should naturally be invested in new strong growthin all our areas". i2 the biggest mobile distribution company in africa & middle east. Nokia , Motorola &Sony Ericsson have made contract with i2. Accessibility Almost one in five of the world’s population lives with some kind of recognizeddisability, including those related to ageing. Nokia is committed to providingaccessibility......

Words: 461 - Pages: 2

Mobile Phones

...new means of communication which have made our life so simple and easy going. Mobile phone can be seen as the most used present day phenomenon in this fast growing time. Mobile phone is a revolutionary step in the field of tele-communication. We had the days when the telephones only served the purpose of communication through sound. Mobile phone has completely changed the concept of the telephoning. Now a phone is not only a mere phone but it is a lot in itself. A mobile phone works on a unique networked system which needs no wiring, no fixation and no botheration. Originally it was used in cars, airlines, and passanger trains but increasingly it is becoming ubiquitous. It is basically low- power radio telephone. In this magical system calls go through radio transmitters that are located within small geographical unit which are known as cells. Since each cell's signals are too weak to interfere with those of other cells operating on the same frequencies and more channels can be used than would be possible with high power radio frequency transmission. Narrow-band frequency modulation (FM) is the most common mode of transmission, each message is assigned a carrier, unique to the cell from which it is transmitted. The cellular phone was first tested in 1978. The cellular market in Britain alone had grown at a rapid rate to 8.5 million users by 1997. In Japan it is as high as one mobile phone per ten people. However, when the number of cellulars users had increased......

Words: 567 - Pages: 3

Distribution Channel

...DISTRIBUTION CHANNEL The California Pizza Kitchen strategy to build a strong company with leadership position in the pizza industry decided to expand their distribution channel by not just having company owned business but utilizing franchises to expand their customer base. Franchising provides the ability to expand business rapidly at less of a financial risk. Profits are higher due to lower costs. Another channel is their high quality fast-casual concept called California Pizza Kitchen ASAP. The ASAP restaurants are smaller than the full service restaurants and offer a limited menu in attractive high traffic areas. They offer in-house dining or take out. This channel allows the company to get their product out to the consumer at a lower cost with smaller overhead (smaller rents, less employees, lower utilities). They also teamed up with Kraft Pizza a division of Kraft Foods another distribution channel, which has a line of frozen pizzas that are sold to supermarkets. These additional channels provide growth opportunities and name recognition. Currently, Kraft distributes pizzas in supermarkets focusing on markets in which the restaurants are located in from east coast in Georgia, Maine, to the west coast in Arizona, Nevada and California. The extensive development process involved input from CPK so that they maintained the quality of the restaurant in the frozen product. From the Kraft Manufacturing building, the pizzas are delivered by trucks......

Words: 353 - Pages: 2

Mobile Phone Market

...Competition in the Mobile Phone Markets of the United States and Europe International Business Master's thesis Mika Husso 2011 Department of Management and International Business Aalto University School of Economics AALTO UNIVERSITY SCHOOL OF ECONOMICS Department of Management and International business Master’s thesis ABSTRACT ANALYSIS OF COMPETITION IN THE MOBILE PHONE MARKETS OF THE UNITED STATES AND EUROPE Competition in an economic context is a widely studied phenomenon with a significant body of accumulated research and theory. However, competition in the mobile phone industry, despite its prevalence in public discussion, has received significantly less attention in academic research. Within the international business (IB) context there are very few academic studies that seek to analyze and compare the different geographical mobile phone markets from the viewpoint of competition. This thesis examines competition in the mobile phone markets of the United States and Europe in light of interviews and secondary data covering years 2002 - 2011. The framework used for the analysis is founded on concepts drawn primarily from industrial organization (IO) economics, IB theory and microeconomics. The first part of the thesis gives an overview of the U.S. and European mobile phone markets and the second part focuses specifically on Nokia, its actions and performance on the U.S. market. The findings reveal that the U.S. and European mobile phone markets are......

Words: 30791 - Pages: 124

Distribution Phone Cases China

...* Distribution a. geographical coverage b. distribution channels c. physical distribution and logistics d. electronic distribution Mobile phone accessories revenue grew 18% to $1.2 Billion in 2010 and in 2012 grew to $20 billion. By 2017, estimated revenue of smartphone accessories is supposed to be close to $38 billion. As you can see the smartphone market is booming and with it the smartphone accessories market is booming. Otterbox is a very well-known company in the U.S. and some European countries. If Otterbox could grab a big market share in China, it would be crucial for the company. Being able to maximize revenues and reduce costs within the distribution sector is crucial. Also, being able to adjust to other cultures and capitalize on a distribution deal is crucial. There are many different laws, regulations, and restrictions to exporting goods globally. I will discuss what I think is the most efficient and effective way to distribute Otterbox products into Shanghai and Beijing. Once the product is created and promoted you have to figure out which market is the best market for your product. We are going to try to enter the Shanghai and Beijing markets. There is a lot of potential for such a big and rapidly growing market. All consumer and industrial products will eventually go through the distribution process. The trick is making the distribution as profitable and efficient as possible. We believe that having agent middlemen in the beginning of the distribution......

Words: 755 - Pages: 4

Mobile Phones

...RAHMAN CONTENTS INTRODUCTION 2 History 2 Human Behavior and Health 2 The Parents' Approach 3 Mobile Phone Use Leading to Stress Among Teens: Study 3 METHADOLOGY 6 OPERANTITONAL DEFINITION 6 SAMPLE 6 INSTRUMENT 6 HYPOTHESIS 6 METHOD 6 RESULT 10 DISCUSSION 2 LIMITATIONS 2 INTRODUCTION A mobile phone (also known as a wireless phone or cellular phone) is a short-range, electronic device used for mobile voice or data communication over a network of specialized base stations known as cell sites. In addition to the standard voice function of a mobile phone, telephone, current mobile phones may support many additional services, and accessories, such as SMS for text messaging, email, packet switching for access to the Internet, gaming, Bluetooth, infrared, camera with video recorder and MMS for sending and receiving photos and video. Most current mobile phones connect to a cellular network of base stations (cell sites), which is in turn interconnected to the public switched telephone network (PSTN) (the exception is satellite phones). History In 1908, U.S. Patent 887,357  for a wireless telephone was issued in to Nathan B. Stubblefield of Murray, Kentucky. He applied this patent to "cave radio" telephones and not directly to cellular telephony as the term is currently understood. Cells for mobile phone base stations were invented in 1947 by Bell Labs engineers at AT&T and further developed by Bell Labs during the 1960s...

Words: 2487 - Pages: 10

Distribution Channel

...250-900/- | Distribution Channel 1: Inferences * The owner itself is order-taker for wedding purpose and office gatherings. * Two managers appointed one for Outsourcing and other for other services. * Average 30-40 people needed to execute one catering order. OBSERVATION 2: Name of catering agency | No. of sales personnel | Customer GroupMin-Max | Outsourced Services | Service Charges (Per Plate) | Govind Caterers | 35-65 | 120-1000 | Decoration, Tents, Water | Rs.200-750/- | Distribution Channel 2: Inferences * The firm has delegated their work into two parts Order Taker and Order Executor * The process to execute one catering order takes almost one week. * Approx 40 people needed in Average wedding order OBSERVATION 3: Name of catering agency | No. of sales personnel | Customer GroupMin-Max | Outsourced Services | Service Charges (Per Plate) | Sri Nandini caterers | 25-75 | 150-1500 | Transportation, Tents | Rs.180-950/- | Distribution Channel 3: Inferences * The Manager takes the order and has responsibilities to execute same on time * Always theirs is conflict between outsourced people and their own workers * Approx 25 people needed in general orders. OBSERVATION 4: Name of catering agency | No. of sales personnel | Customer GroupMin-Max | Outsourced Services | Service Charges (Per Plate) | Svs Caterers & Tent house | Max-90 | 50-500 | Ice creams,Water, D J | 210-800/- | Distribution Channel......

Words: 1042 - Pages: 5

A Study on “Enhancement of Distribution Channel” at Microsoft Mobiles.

...INDUSTRIAL INTERNSHIP REPORT ON “A STUDY ON ENHANCEMENT OF DISTRIBUTION CHANNEL” A summer training project report submitted in partial fulfillment of the requirement of Post-Graduation Diploma in Management SUBMITTED BY: G.SRIVIDYA ROLL NO. 2T4-17 SUPERVISED BY: MRS.V.ANNAPURNA (ASST. PROFESSOR) SIVA SIVANI INSTITUTE OF MANAGEMENT SECUNDERABAD-500100 2014-2016 COLLEGE CERTIFICATE COMPANY CERTIFICATE ACKNOWLEDGEMENT I would take this opportunity to express my sincere gratitude to everyone for their valuable assistance and support during my Industry Internship Program (IIP) at Microsoft Mobiles Kakinada & Rajahmundry. I would like to heartily thank my company guide, Mr. Subair (Regional Sales Manager), at Microsoft Mobiles, Hyderabad for giving me an opportunity to work at Microsoft Mobiles and for his valuable guidance during the course of my internship. His inputs and suggestions have played a very crucial role at every stage in the development of the project and my knowledge as a whole. I would also like to thank corporate guide Mr.Satya Sundhar, (Area sales manager) and for helping me throughout and guiding me and Mr.Kiran, Team leader corporate guide, for teaching me and coaching me with each and every small detail required to successfully complete my project, their guidance at the grass root level and helping me overcome every little problem I faced. I would also like to acknowledge, Mrs.v.Annapurna (Asst. Professor)......

Words: 7852 - Pages: 32

Distribution Channels

...1).NUMBER OF CHANNEL MEMBERS a. Channel level refers to each layer of marketing intermediaries that performs some work in bringing the product and its ownership closer to the final buyer. b. Direct marketing channel has no intermediary levels; the company sells directly to consumers. c. Indirect marketing channels contain one or more intermediaries. * These channel members are connected by types of flows: -Physical flow of products -Flow of ownership -Payment flow -Information flow -Promotion flow Type of Channel Members Channel activities may be carried out by the marketer or the marketer may seek specialist organizations to assist with certain functions. We can classify specialist organizations into two broad categories: resellers and specialty service firms. Resellers These organizations, also known within some industries as intermediaries, distributors or dealers, generally purchase or take ownership of products from the marketing company with the intention of selling to others. If a marketer utilizes multiple resellers within its distribution channel strategy the collection of resellers is termed a Reseller Network. These organizations can be classified into several sub-categories including: * Retailers – Organizations that sell products directly to final consumers. * Wholesalers – Organizations that purchase products from suppliers, such as manufacturers or other wholesalers, and in turn sell these to other resellers, such as retailers or......

Words: 820 - Pages: 4

Distribution Channel

...Web: www.beemanagement.com Email: bee@beemanagement.com Web: www.astrategies.com Email: info@astrategies.com ANALYSIS & EVALUATION OF DISTRIBUTION CHANNELS IN VARIOUS SECTORS The project involved analyzing and evaluating distribution channels of various companies belonging to sectors like: 1. Precious and semi precious stones, 2. White goods, 3. Cement, 4. FMCG Methodology: This research comprised of activities like listing down various agencies like manufacturers, distributors, etc and also chambers and libraries like the Indian merchant chambers and interacting with them in order to gather first hand information. PRECIOUS AND SEMI PRECIOUS STONES The Indian Gems and Jewellery industry is an age old industry and comprises mainly of two types of markets, viz the organized sector and the unorganized sector. The organized sector with branded jewelers, Public Sector Units (PSUs), etc forms only 10% of the precious and semi-precious stones market, whereas, the unorganized sector forms 90% of the gems and jewellery market in India. The unorganized sector employs around 1.5 million workers serving over 0.1 million gold jewelers and over 8000 diamond jewelers. Precious and semi-precious stones industry is a significant earner of foreign exchange. This sector contributes around 17% of India’s exports. The bulk of the Indian gems and jewellery exports comprise imports of rough diamonds, cutting and polishing in India, and re -exports. Cut and Polished Diamonds (CPD) and gold......

Words: 3682 - Pages: 15

Distribution Channel

...Swedish Sawmill Distribution Channel Challenges Åsa Gustafsson asa.gustafsson@lnu.se Lars-Olof Rask lars-olof.rask@lnu.se School of Engineering Linnaeus University, Växjö, Sweden Abstract Purpose; The purpose of this study is to identify distribution channel research needs given the variety of distribution channel challenges among Swedish sawmill companies. Design / methodology / approach; Explorative case study research Findings: The paper proposes a typology of sawmill distribution channel challenges, as well as aligns research needs with distribution channel type. The typology is based on i) number of sawmill units within the firm, in combination with ii) distribution channel heterogeneity. Significant management decisions and research needs are identified for the different types. Research limitations / implications; This research makes tentative statements regarding typology of sawmill distribution channel challenges and potential research needs in the Swedish sawmill industry with regards to the respective typology. However, further research is needed in order to validate these results. What is original/value of paper: This paper focus on the sawmill industry distribution channels, which is a neglected but important area for sawmill’s competitive advantage. The paper also contributes to research by applying contingency theory and typology as an approach to deal with the variety of sawmills distribution channel challenges. Keywords; Typology, distribution channel......

Words: 4034 - Pages: 17

Nokia Distribution Channel Structure

...Nokia (India) Mobile Handset Distribution Channel Structure With Special Reference To Dibrugarh Town Distribution (or place) is one of marketing element in marketing mix and hence designing a distribution Network for a product is very important aspect for any company’s product. The success of the channel design will be declared as the product is readily available at ease for the consumers. Here we as a group have chosen the Nokia mobile company for doing this assignment. The company established in 1865 having its foundation in Finland. Nokia is one of the leading mobile communications in the world, it has 9 manufacturing plants throughout the world and they have 130,000 employees. The company owns R&D centres in Japan and China. Nokia mobile company plays a major role in India and have huge market share In comparison to other players. They have started its process in India in 1995 and have their offices in major cities like New Delhi, Mumbai, Chennai, Kolkata, Hyderabad, and Bangalore. And also they have targeting all class of people by releasing different kind of mobiles with different features. China started mobile services in 1988 whereas, India started mobile services in 1995. By 2001 India exceeded China’s growth rate in mobile services. This shows how the distribution channels of the mobile companies working in India. Here in this report we are trying to bring out the efficient network of distribution addressed by Nokia in India. Distribution Channel......

Words: 949 - Pages: 4