T Company's Strategic Transformation Analysis

Rapid progress has been made in mobile phone industry in the past 30 years. There are over 2 billion mobile users around the world. China's mobile phone enterprises have experienced learning from international brands, brand building, business model innovation, and participating in global competition. Most mobile phone brands have R&D teams in China, and more than 90% mobile phones are assembled in China. A complete eco-system from supply chain to R&D resource is established in southern China. Due to the lack of core intellectual property, competition among these enterprises relies on high turnover rate and low cost. Some enterprises turned to overseas markets, and tried to open up a new blue ocean. Some of them built their own brands, and others provided ODM service for abroad brands. Because of more and more ODM enterprises, the competition is increasing.In order to develop their own manufacturing, some countries such as India, Indonesia, implement Semi-Knocked Down (SKD) policies. These policies try to attract China's mobile phone companies to set up factories in those countries, and help their local mobile phone industry. In the long term, it will inevitably lead to an industry transfer between China and those countries. China's mobile phone companies are facing the issues of sustainability.With the popularity of iPhone and Android system, more people chose to use smartphone. Much more applications work with data service and Internet. User value of these applications becomes an important part of smartphone business. Some manufacturers try to create a new business model with the combination of hardware and content for a better profit margin.TN Mobile where the author works, is such a company focuses on overseas cellphone ODM market. It is facing such issues as intense competition, low profit margins, rising human costs. In recent years, TN Mobile built a brand in Europe. In this paper, the author researches in TN Mobile's ODM business with traditional strategy analysis tools, such as PEST analysis, Michael Porter's Five Forces Model and SWOT analysis. With the study in the business environments, key resources and ability, the author tries to find out the strength, weakness, opportunities and threats of TN Mobile. The author advises that TN Mobile should focus on European market, and discover the users'Internet value for a better profit margin.