The Research On Chinese Smart Phone Industry Based On The Product Differentiation Theory

China mobile phone industry started in the late1990s, and it hasgone through a dramatic change so far. The release of the3G lisenceannounced that the Chinese telecommunication industry entered anew era. With new links join in the telecomunication industry chain andthe status of each link changed a lot, the environment has undergonegrate changes. As a result, the smart phone industry becomes ahighlight link of the chain. At present, the smart phone industry is in theintroduction stage of the product life cycle. Based on the productdifferentiation theory, this paper analyzes the present situation of thedevelopment of the smart phone industry and the existing problems,then demonstrates the significant feasibility of the productdifferentiation strategies in smart phone industry and how to apply themto China smart phone industry in the golden development opportunitythat3G era has brought. At last, we introduced some examples as‘mi’,ZTE and DOOV, which have successfully applied productdifferentiation strategy.This paper characters mainly on the following aspects: First, thetheory of the product differentiation as the basis of the article, whichorganically combained with the communication industry, present thereaders a different perspective for the development of Chinese smartphone industry. Second, there are many problems in the developmentof Chinese smart phone industry, such as low-end homogenity, weakbrand result from inadequate techonlogy, lackage of the intergration of marketing channel constraction and so on; what’s more,this paperputs forward some reference strategies such as rational productpositioning, pay more attention to product development andmarketing channel construction. Third, the cases of ‘mi’,ZTE and DOOVshow us successful applycations of the product differentiation, whichprovide Chinese smart phone enterprises good examples for reference.This paper educed the following conclusions:1、The product differentiation have significant effect on the smartphone industry. At present, the smart phone industry is in the early stageof the product life cycle.On the one hand, Chinese smart phone marketis rapidly expanding; on the other hand, the consumer demand isbecomeing more and more diversified, personalised andcharacteristics; what’s more, the smart phones renewal so fast thatmake the produce differentiation strategy a good way for Chinesesamrt phone enterprises to improve the consumer value and providefavorable conditions for them to accumulate advantage resources.2、The smart phone enterprises need the following requirements toacheive success with product differentiation: Reasonable productpositioning is the precondition; pay enough attention on R&D providesthe core strength; advertising, channel construction and servise alsoplay important roles for the success of product differentiation.3、 The product differentiation strategy can help some strongChinese smart phone enterprises form unique competitive advantage,which will significantly improve their competition ability. According tothe characterastics of Chinese smart phone industry, local enterprisesshould focus on one or two new hot spot to make the best use of thelimited resourses and develop the most advatage or the most potentialmarket, which is the best way to be special and to grow stronger.