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Analysis of OnePlus One
Analysis of OnePlus One
Analysis of OnePlus One
ANALYSIS OF
ONEPLUS ONE
Analysis of OnePlus One Mobile Phone
Analysis of OnePlus One
Table of Contents
EXECUTIVE SUMMARY........................................................................................................................ 3
WHY ONEPLUS ONE?...................................................................................................................... 5
ONEPLUS — AT A GLANCE............................................................................................................. 5
SWOT ANALYSIS.............................................................................................................................. 6
Strengths....................................................................................................................................... 7
Weakness...................................................................................................................................... 8
Opportunities................................................................................................................................ 8
Threats........................................................................................................................................... 9
Findings from SWOT Analysis:.................................................................................................... 9
PEST ANALYSIS.............................................................................................................................. 10
Political Factors.......................................................................................................................... 10
Economic Factors....................................................................................................................... 11
Social Factors.............................................................................................................................. 11
Technological Factors................................................................................................................ 11
Potter's 5 Forces Model.................................................................................................................. 13
Application of Potter's 5 forces model on OnePlus One.............................................................14
The Marketing Research Process.................................................................................................. 17
Problem definition, Decision alternatives and research objectives.......................................17
Research Plan Development and Information Gathering............................................................18
Information Analysis................................................................................................................... 18
Buying roles and decision making process.............................................................................19
Purchase Behaviour................................................................................................................... 20
Gist of Analysis........................................................................................................................... 22
Positioning strategy for OnePlus One.......................................................................................... 24
Suggestions and Indicative Foresights....................................................................................25
Conclusion......................................................................................... Error! Bookmark not defined.
REFERENCES..................................................................................................................................... 28
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Analysis of OnePlus One
EXECUTIVE SUMMARY
Ease of carrying out business in India coupled with rise in disposable income of individuals has
enhanced the competitiveness of Indian Industry across all sectors. Era of digitalization has
not only led to an exponential growth in the demand for various electronic products but at the
same time dissolved the market barriers of reaching out to potential customers.
The impact of this transition has led to an exponential rise in the demand of various products.
This ever increasing demand and the rising competition with global competitors has made
Indian business market highly competitive. Innovative strategies are thus devised and
adopted to cut down the costs and subsequently reduce the price of products.
Traditional marketing and advertising can constitute up to 50% of the cost of the product.
Thus, social media channel of marketing has been widely adopted these days to curtail down
this marketing price substantially. Additionally, the SEO enabled social media marketing
The social media marketing channel offers a plethora of alternatives to market directly to the
targeted consumers at the lowest possible cost. Many companies still utilize both the channels
of marketing — offline and online, but with different contributions of both towards realization
of sales. A few companies have dared to adopt social media only based marketing channel.
Additionally, in terms of the sales channel, e-commerce channels have a lot to offer to provide direct
access to customer and significantly cut down the cost associated with involving several players for
reaching out to the end consumer. Leveraging these incentives, several brands have been able to
provide exclusive offers for enhancing the sales realization through e-commerce channel. In fact,
many brands have been able to realize the benefits of this and shift to an e-commerce only mode of
sales.
An innovative and interesting strategy has been adopted by OnePlus that combines the benefits of
social media marketing along with the incentives offered through e-commerce only mode of sales.
Additionally it adopted an invite only model that not only provided the much required hype to its first
launch but also enabled the company to cut down their marketing expense to negligible figures.
In this report, we have conducted the market analysis of the strategy adopted by OnePlus for
marketing its product OnePlus One. The analysis encompasses all crucial analyses for
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Analysis of OnePlus One
A comprehensive SWOT analysis was the first step towards garnering the information pertinent to
the adoption of this strategy. The SWOT analysis clearly highlighted the concern areas where
OnePlus needed to be more cautious and also identified the areas where they can further improvise
SWOT analysis was followed by an exhaustive PEST analysis to analyse the impact of Political,
Economic, Social and Technology parameters on the adopted strategy. This clearly pointed out
towards the environmental impact of various parameters on the success of any marketing strategy.
Porter's 5 Forces Analysis was also conducted to study the impact of external factors on
OnePlus One. The analysis of clearly categorised the risk from five most prominent
Further, a primary survey was conducted to capture the responses from consumers & understand the
brand perception that had been created. Also, consumer behaviour was analysed based on the
responses captured through this exhaustive survey, encompassing over 100 relevant respondents.
The market segmentation of OnePlus One was closely analysed and studied towards the end so as to
decipher its marketing strategy and assess the compliance of its positioning with company's planned
positioning.
The detailed analysis of the marketing strategy of OnePlus One after conducting all the above
mentioned analyses came out with interesting results. The gist of the results focuses on need
to continuously change the strategy and to come up with new modes of marketing to target
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Analysis of OnePlus One
when it came to marketing of the product. It has earned the title as the new king of mid -
range smartphones, and the buzz surrounding the product is still growing at an
unprecedented rate. It's the smartphone that's managed to dominate the market in a very
short amount of time, an impressive feat accomplished largely due to a clever marketing
plan.
What makes the marketing plan of OnePlus One unique is the invite-only system launched by
the company. The phone was sold only through the e-commerce channel using Amazon in
India. The 'buy-by-invitation' system allows the manufacturer to gradually fulfill the demand
while customers are kept in a constant state of anticipation. This also adds to the phone's
appeal as a "VIP product" for only a "select" group of people. This has been the driving force in
creating the craze behind the phone, as the manufacturers are appealing to basic human
It was quite surprising to see people eager to shell out money for a phone they had never
seen. It was this craze in the market that helped the company sell 500,000 mobile phones by
It is clear that OnePlus One has emerged as an epitome of implementing effective marketing
strategies that maximizes the sales with the least possible expense.
dream phone. The company has a tag line 'NEVER SETTLE', by which they mean that their
customers will never settle for anything less. The first product launched by the company to the
The OnePlus One is an Android based smartphone with CynogenMod OS. The One was
competing devices released at around the same time. The company's main goal was to
design a smartphone that would be cheap and still not compromise on the performance as
well as the quality; one that would balance the quality of high-end devices from its major
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Analysis of OnePlus One
competitors with a lower price than other phones in its class. The company's primary cost-
The company introduced the concept of buy with invite only. The phone was first made
available for sale exclusively from the OnePlus website, but previously required prospective
customers to obtain an invitation before they could purchase it. These invitations were
primarily distributed by the company through contests, some of which attracted attention for
their unconventional in nature. Further the customers would get a couple of invites to share
with their friends and family. As per the company they viewed this strategy as a source of
sharing your happiness. People would share the invites for others to experience what they
Oppo, another Chinese smartphone company, manufactures the phones for OnePlus. This
way they company promises a good phone quality and also negates the doubts of product
The company took the smartphone industry by a storm and was an instant hit among the
youth who were happy to avail the best features without burdening their pockets.
SWOT ANALYSIS
With the above background about the company & the product, it becomes imperative to
conduct a SWOT analysis of the product OnPlus One, to understand which strategies
A brief schematic showing the key findings from SWOT analysis is shown below in Figure
6
Analysis of OnePlus One
STRENGTHS: WEAKNESS :
1. High Configuration 1. Poor Customer Service
2. Low price 2. Lots of bugs and glitches
3. Custom OS 3. Cyanogenmod legal dispute
SWOT
Analysis
}
OPPORTUNITIES: THREATS :
Strengths
Performance, Superb Battery Power and Excellent Camera Features, that are not only
comparable to other phones in the same category, but in fact better than most of the
i. Quad-core 2.5 GHz processor, Qualcomm Snapdragon 801 chipset with 3GB RAM
0. 3100mAh Battery
Low Price — OnePlus One not only provides the one of the best features available in the
market but also ensures very low price than renowned Brands like Samsung and Apple.
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Analysis of OnePlus One
42000 37000 !
Weakness
demand.
Opportunities
get hands on feedback about the phone & thus, in a way for
launches.
Analysis of OnePlus One
Threats
Change in Tastes — The tastes of consumers with regard to smartphones are extremely
volatile as seen in the case of Blackberry smartphones which went from having 22 million
Lack of Exclusivity — The company's decision to remove invite-only sales of the phone might
make an impact on its exclusivity as it will be available to the masses easily now, thus
Distribution — The distribution for this phone is only online. The average consumer is still
Micromax may take advantage of this by pushing their products through retailers.
The SWOT analysis clearly brings out that the exceptional features offered by OnePlus One
at the lowest market price has clearly provided the distinctive edge that has helped them
achieve such exceptional sales. Also, the weaknesses show that even after capturing such a
big market, there are loopholes that can pose a challenge for the company.
The opportunities pave the pathway for catalysing growth in sales of OnePlus One & also
show high potential for subsequent launched due to the strong customer base. Also, given
the volatile nature of the mobile phone industry, it is highly recommended not to ignore the
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Analysis of OnePlus One
PEST ANALYSIS
POLITICAL:
3 1.
1. Make in india . ECONOMICAL:
campaign 1. Smartphone
0. Growing market Industry in India
2. Suspicion on foreign 0. Low inflation rate
products
SOCIAL:
5.
1. Youth
2. Social media
presence
III TECHNOLOGICAL:
3. Consultation from
the users 1. Cloud Storage
4. Internet
penetration
Political Factors
Make in India- The launch of 'Make in India' campaign by the Government of India on 25th
September 2014 will soon witness growth of existing Indian mobile phone companies such as
Micromax and also facilitate mushrooming of new companies in this sector. A noticeable
impact of this campaign can be seen through the announcement by Spice group to set up a
new plant in Uttar Pradesh. Electronics being one of the key sectors of Make in India, tough
competition in the fastest growing mobile phones sector, from Indian companies, is assured.
Growing market- India ranks among the top two mobile phones market in the whole world.
This provides companies a huge base for revenue production and innovation.
Suspicion on foreign products- Lately India has become suspicious of phones coming from
foreign countries like China. Indian Air force issued alert against Xiaomi last year fearing that the
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Analysis of OnePlus One
Economic Factors
Smartphone Industry in India — Witnessing a 33% growth in the Indian smartphone market
for the year 2014-2015, India looks to dominate the global market in future. Other than the
existing 34 brands, new brands look to enter the market here as it promises quick growth
and penetration. OnePlus has not yet dominated the Indian markets but seems to have a
bright future.
Low inflation rate — Indian Economy is growing at 7.3% and the Inflation rate has raised
from what it was at the start of this year, but is still relatively low at 5%. Smartphones are
the new trend and people seem to have an ever higher purchasing power for them.
Social Factors
Youth — The youth is always looking to get the best features at a low price. OnePlus
One fulfils that requirement by providing features that are available in substantially
expensive smartphones of other brands. Also the invite only mode entices the youth
Social media — The social media presence of the metropolitan youth is quite substantial due
to which OnePlus One has been able to get a lot of publicity from its users. The word of
mouth publicity & the leverage to offer their invite to anyone of their peers of their choice
Internet penetration - The internet penetration in India is only 19%. Thus, the exclusive
availability only through online mode considerably cuts down on the potential number of
customers.
Technological Factors
Regular updates in OS- Cyanogen mod which was the OS used has gone for an exclusivity
deal with Micromax in India and thus will no longer be updated in existing OnePlus One
mobiles. In a market where update plays an important role, this can spell disaster for the
company. However, they have come up with their own OS, which may resolve this issue.
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Analysis of OnePlus One
They are providing regular updates for their OS which are custom made for the model. Also the
Cloud storage: OnePlus has partnered with Dropbox and now offers a whopping 1TB of
Dropbox space on its OnePlus One which definitely entices users in today's era of cloud
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Analysis of OnePlus One
Named after Michael E. Porter, Porter's Five Forces methodology is used in this project to
analyze the business strategies of smartphone manufacturer OnePlus. The five forces
involved are:
2. Threat of Substitutes
5. Competitive Rivalry
This tool is a handy method to assess how each of the market drivers impact the companies
and then based on the analysis suitable business strategies can be devised. Further,
companies are known to study the markets they want to approach thoroughly and deeply
before they make a move and it is in this perspective that this analysis is undertaken.
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Analysis of OnePlus One
Bargaining Rivalry
power of between
suppliers - competitiors
HIGH - HIGH
The analysis clearly indicated that the threat of new entrants was High.
proprietary knowledge. Companies like Apple and Samsung which are leaders
money to be invested in the set up and also in the R&D department to keep
3. Trade regulations- For companies like OnePlus which import products from
China, quite a few trade regulations have to be met in order to sell their products in
India.
the distribution network required for the phone manufacturer to reach the
customers.
5. High Resistance for new player- The smartphone industry is full of competition
as of date and this provides a stiff resistance to any new player who tries to enter into
the market.
Analysis of OnePlus One
Threat of substitutes
The analysis clearly indicated that the threat of substitutes was Medium.
necessity in today's world and people find it hard to find any substitute for it when
2. Value for Money - Smartphones provide the maximum features at the cheapest price.
Smartphones provide us with options of phone calls and text messages, emails and web
3. Tablets, Netbook, Smart Watch are Potential Substitutes - There can be different
substitutes solving different purposes but not all can be substituted by one device. This leads
The analysis clearly indicated that the bargaining power of buyers had High impact on the
selection — It is the consumers that drive the innovation in the smartphone industry.
The smartphone companies constantly evolve to meet the demands of the customers
intermediate service providers providing after sales services play a crucial role as
customers approach them for after sales services and spare parts. This does not
mean that the customers are at the mercy of the companies but it helps them choose
3. Exclusivity to the customers — In order to please the customers and give them
exclusive treatment OnePlus started a unique feature of selling their phones through
invite system.
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Analysis of OnePlus One
The analysis clearly indicated that the bargaining power of suppliers had High
outside supplier for providing the update and support for the
3. Supplier availability — The suppliers for OnePlus one are available only in
China and all the products have to be imported on demand. This makes the
Competitive Rivalry
The analysis clearly indicated that the threat from competitive rivalry was found to be High.
like Apple, Samsung, Nokia (now Microsoft) and others provide a stiff competition to
a new entrant.
breaking them away for a new company is difficult and requires a unique
feature like OnePlus provides the best features at the cheapest price.
3. High diversity of rivals — OnePlus has come out with only one phone as of
now whereas rivals have number of models in the market catering to different
segments based on price and purpose of buying the phone which gives people more
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Analysis of OnePlus One
OnePlus brand launched a new smartphone- OnePlus One. The One was designed to be a
released at around the same time. The company's main goal was to design a smartphone
that would be cheap and still not compromise on the performance as well as the quality;
one that would balance the quality of high-end devices from its major competitors with a
lower price than other phones in its class. The company's primary cost-cutting measure
was a decision to exclusively sell the device online. Their method of entering into the
giving them invitation to buy the phone online. This novel idea is being researched and
The phone was first made available for sale exclusively from the OnePlus website, but
purchase it. These invitations were primarily distributed by the company through contests,
some of which attracted attention for their unconventional in nature. Further the customers
would get a couple of invites to share with their friends and family. As per the company they
viewed this strategy as a source of sharing your happiness. People would share the invites
for others to experience what they have. As of now, the device no longer requires an invite
to purchase. The whole campaign was successful and it created wide brand awareness
about the company. They are selling the phone at cost price. The strategy of the company is
to redistribute their costs to better benefit the user. Rather than putting money towards a
large marketing budget, they are focusing on online marketing and community interaction.
Rather than working with retail partners, they rely on selling the device online. The
relevance of this approach is the marketing strategy of online phone companies or even e-
17
Analysis of OnePlus One
a way to have a direct interaction with the customer. We have gathered information using
primary data sources. The research instrument used is a questionnaire. There are closed
ended questions specifying all the possible answers and it provides answers that are
relevant to the topic and easier to interpret. There are open ended questions too which
allows the respondent to answer in their own words thus measuring how people think in a
certain way. We have used Dichotomous questions to know where the user buys the phone
from- online or offline, a Multiple Choice question to know the various factors which the
respondent consider while buying a phone, Likert Scale questions to know the importance
of service centres and the importance of offers for a respondent and Single Answer
questions to know the price range, the reason for buying a phone and the motivation to
buy one.
The Indian smartphone sale is driven by teens and youth. 22% of the buyers are teens and
majority of the users are youth. So the major sample consists of this majority section in
India to know the general trend of smartphone usage. We have analysed responses from
over 100 respondents. The respondents were contacted through social media and online
mediums such as Facebook, Whatsapp and Gmail. We have also used our personal contacts
to get the response. Online research is inexpensive, fast and versatile. Also respondents in
Asia feel more pressure to conform and therefore not be as forthcoming in offline activities
such as focus groups as online. So the complete information collection was through online
media.
Information Analysis
18
Analysis of OnePlus One
0 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9
Persons affecting the decision making
Friends
Online forums
Relatives
options customers look into for advice on their purchase and found out that friends and
online forums has a 89% chance of affecting a customer decision. With its invitation model
and high online presence OnePlus One definitely manages to score points in this section.
While analysing the unstated needs of the customer, we found most of the respondents needed
the phone to have a good battery back-up (84 respondents) and a good processor (80
respondents). Again one plus one comes out winner in this as well as it has both a good process
Requirements of specifications
Sum of Opera tin g Syst em Sum of Bet ter Ca mera Su m of Slim and ligh t weigh t Sum of Pen drive c ompat ible
Su m of Sty lish Sum of Cost effect iv e Sum of High Sc reen resolu tion Su m of Good batt er y ba cku p Sum
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of Good Gr aphics processor Su m of Good pr oc es sor an d RAM Su m of La rge Scr een siz e
Also we tried evaluating the secret needs of the customer when they buy a phone. Majority
(71%) of the surveyed group wanted their phones to show them as formal, mature and tech -
savy while and/or at the same time being an owner of an exclusive phone, which are the
parameters OnePlus one has positioned itself in. In fact 20% of the respondents wanted an
exclusive phone, which is a need that OnePlus One managed to tap in by making their phones
.
Secret needs when buying a phone
1
n Popularly used phone
n Stylish
n Tech-Savy
n Others
Purchase Behaviour
Consumer purchase behaviour was tracked by analysing response of the customer to the
channel used, the amount they planned to spend on purchase, effect of flash sale on
consumers, importance of good service network and trade-off between brand and
specification.
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Analysis of OnePlus One
While analysing the sales channel preference we noticed that only 56% of consumers prefer
E-commerce over retail outlet. We felt this was not a good thing for OnePlus one phone since
it sells only through the e-commerce channel. However, targeting the customer who is
planning to buy phones in the range of 10,000 to 30,000, we found out that a higher
proportion (61%) of people were willing to buy online.
n E-commerce portal
E-commerce portal Retail Outlet Retail Outlet
Studying the importance of flash sales, we asked respondents if they were willing to wait for
an offer to come. On analysing the responses we found that a staggering 74% were expected
to wait for the flash sales and will attempt to make a purchase in the flash sales. Also we
studied the expenditure people are planning to incur on the phone and found majority of them
wanted a phone in Rs. 10,000 to Rs. 30,000 category (82 respondents).
Below Rs
10,000 38 7.6 10 76
Rs 10,000-
Rs 20,000- 96 19.2 26 74
21
Analysis of OnePlus One
30,000
Rs 30,000-
40,000 27 5.4 6 90
Above
Rs 40,000 19 3.8 7 54
390 which means an expected 74 out of 105 gave importance to presence of service
centres nearby before making a purchase. With importance to brand v/s specification to
trade off, we got a importance to specification score of just 308, which meant that only 59%
of respondents would value specifications over branded phone, which is something that will
10000-15,000 65 24 13 54
15000-20,000 72 22 14.4 65
20000-25,000 48 16 9.6 60
5000-10,000 54 16 10.8 68
Less than
5000 2 2 0.4 20
Gist of Analysis
The analysis of the marketing model of OnePlus One through an exhaustive primary survey
clearly indicates towards the success of this model across all the parameters considered i.e.
the decision influencers, which were primarily social media forums and OnePlus One due to
its strong presence throughout the social media definitely scores well in this criterion;
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Analysis of OnePlus One
matching all the secret needs of consumers and also at the same time catering to the
specification requirements of them. The results of the sales channel favored e-commerce
channel but given that the questionnaire was primarily filled by online users and still the
preference for e-commerce for these consumers was just around 56 %. This figure clearly
indicates the preference for retail medium for Indian consumers. On an overall basis, the
analysis clearly proves the marketing model of OnePlus One to be highly efficient.
On the other hand, Porter's 5 Point analysis clearly indicates that the threat from the analyzed
parameters towards the success of OnePlus One is high and thus, OnePlus needs to
continuously devise new strategies to stay updated and competitive in the market.
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Analysis of OnePlus One
The customers' perception about a brand relative to other competitive brands, based on
the market & positions it in the requisite domain. The innovative strategies adopted by
OnePlus One to position itself in the Indian market are enlisted below:
1. 'Never Settle' — The branding statement of the company, which means that
company would strive for the best user experience and not rest till they have found it.
0. This positions OnePlus One amongst a niche range of products that strive for
perfection.
1. Branded itself as Beast — often referred to as 'The Beast' due to its
3. Most Economical Phone — OnePlus One has the best features available when
compared to phones priced in its range. It leaves behind several high end phones when
4. This ensures OnePlus One offers the best configuration in its price band and leads it.
2. Exclusivity — OnePlus One positioned itself apart from others by providing exclusivity
and the requests they received for the invite ensured they enjoy exclusivity. This led to
3. An all new OS — CynogenMod gave the first experience as the new android based OS
of OnePlus One. This helped the company create a demand for itself by introducing a
targeted the technology savvy youth which is always hungry for more when it comes to
performance and configuration. Also, the economical price bracket which is a major
influencing factor for youth ensured there was no stopping for the success of OnePlus
One.
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Analysis of OnePlus One
10. Positioning Aligned Goal — OnePlus One aims to provide the configuration of high
price segment phones to the consumers of the low price segment phones, at the
1. Aligned with the company's tagline 'Never Settle', it should constantly evolve
new models loaded with upgradations. The delay in release of new models leads
2. Needs to improve the customer service network as it was an important feature which
markets
3. Since the company focuses on the niche market of phones catering to tech-
geeks, it needs to ensure timely updates on its Oxygen OS. In fact, it should
it should maintain the by invite only model of sale in the initial phase of product life
cycle. Also in the primary research of market, it was noticed that 20% of respondents
5. Company must continue with its forum of collecting opinions of users through social
media channels, to ensure that target group of tech-geeks can feel connected to brand.
6. OnePlus should continue with having an exclusive e-commerce partner, so that it can
keep the marketing cost down. Also as the smartphone model has already entered star
product, could enable OnePlus to gain better profits even though the phone price is
maintained. Also 61% respondents would prefer to purchase from the online portal
7. As barriers to entry are very low and there is every chance another brand can target
the niche market of phones for tech-geeks, OnePlus could organize competitions for
techgeeks on an annual basis to ensure better brand perception in the minds of target
customer.
8. OnePlus also needs to enter into other tech related fields other than smart
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Analysis of OnePlus One
9. Flash sales also could be used to attract early adopters as 71% of respondents in
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Analysis of OnePlus One
Gist of Findings
The market analysis of the success of OnePlus One based on several analyses could be
summarised as follows:
a) The SWOT analysis clearly indicates that OnePlus One marketed itself by
exploiting the weakness of the other products and using them as its own strengths.
The Strengths were highlighted in such a manner that people did not pay attention
b) The Potter's 5 forces model was applied on the product and it showed that
since there is high threat to new entrants, still OnePlus was able to create a
market for its own by banking on its technology and exclusive selling strategy.
aspects of OnePlus One. It emphasised on various issues the company faced while
launching its first product in the Indian market. Though it faced problems on the
political front being a Chinese brand, the good economic condition helped in its
sales. Similarly being advanced in the technical aspect, the phone targeted the youth
of the nation.
d) In the last part of the project we studied about the STP of the product. It
was clear that the phone was targeting the youth and techno-savvy people. The
phone provided best features at the cheapest price and hence positioned itself as
To conclude, it can be stated that the innovative approach adopted by OnePlus for
marketing its product One has been highly successful for achieving outstanding sales
figures and at the same time drastically cut down on expenses. Even though, there were
several risks involved but being the first risk taker definitely gave OnePlus the edge to
create a niche for its product. As the saying goes, "High Risks, High Gains", has been actually
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Analysis of OnePlus One
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Analysis of OnePlus One
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