Research On Differentiation Strategy Of Smartisan Technology Co.,Ltd.

With the economic development in our country and the rising living standard,the market for smartphones has been booming.The smartphone has become a new intelligent terminal device which is different from the traditional communication equipment,especially after the advent of iPhone.Based on the huge market demand and the technical change,the oligopoly market structure dominated by the foreign manufactures for the mobile phone has been broken gradually,and many new domestic brands have also appeared in China.“Smartisan” is one of the famous ones.Smartisan Technology Co.,Ltd.,a company founded by Luo Yonghao with thousands of fans,is controversial from its beginning.Is it a right choice for such a start-up company with no technology patents,no brand popularity and no abundant fund to choose the differentiation strategy as its core strategy in the current environment? How to make and implement the strategy in such a fierce and cruel competition? These have already become the real problems that “Smartisan” has to face.This article takes the Smartisan's smartphone business as the research object,uses the literature analysis,case analysis,PEST model,Porter competitive model and SWOT analysis as the main research methods,and is based on the related theories of corporate strategic management and differentiation strategy.Through an overview of “Smartisan” and the evaluation of the market performance of several core products under the differentiation strategy,it is concluded that the company is currently facing three serious issues-lack of brand identity,weak product competitiveness and lack of discourse power of supply chain.However,it still has many opportunities with national policy encouragement,strong domestic demand,increased recognition of the domestic mobile phone market,more attention from the capital market and unimpeded online sales channels.While the company is also facing many challenges because of the fierce competition of competitors,the cooling of the capital market and the feature that is easy to be substituted by the entrants.At the same time,through the analysis of its talents and teams and marketing capabilities,we can obtain that the excellent talents and teams,high-identity of systems and softwares,unique design concepts,a certain size of fans and the excellent ability of internet marketing and self-media marketing are all its advantages,while late entry into the industry,lack of technology and patent accumulations,small product shipments,low rate of high quality products and low cost efficient are the company's main disadvantages.On this basis,we propose several reference strategies such as the brand value strategy,diversification strategy,differentiation strategy and low-cost strategy by the SWOT analysis.and then through the combination of the qualitative analysis and quantitative analysis of the QSPM matrix,we conclude that it is the right and only choice to use differentiation strategy as the core competitive strategy.Finally,the author offers the five specific directions to realize the differentiation-designing differentiation,operating system differentiation,VAS differentiation,marketing differentiation and positioning differentiation.Meanwhile,to ensure the effective implementation of the strategy,we propose five safeguards in our design-Human Resources and Team Guarantee,Management System Guarantee,Corporate Image Guarantee,Management and Operation Team Guarantee and Financial and Financing Guarantee.We hope that the research results can provide some support for “Smartisan” to solve the current problems and realize the strategic goals;on the other hand,it can give some reference to the entrepreneurs and start-ups using differentiation strategy as their core strategy.