Subject category:
Strategy and General Management
Published by:
INSEAD
Version: 07/2020
Length: 21 pages
Data source: Published sources
Abstract
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.
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Abstract
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.