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Bandit cellphones: A blue ocean strategy

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  • Chang, Shih-Chi

Abstract

The cellphone market has been dominated by global brand companies for years. However, “bandit” cellphones (i.e., unbranded or unknown-brand “white box” cellphones) have introduced a new business model that is changing the rules of the game. Low cost, high value-added features are characteristic of bandit cellphones. Developing countries offer huge market potential for the growth of bandit cellphone sales. MediaTek (the biggest supplier of chips for bandit cellphones in China) and many small and medium-size Chinese companies have created new businesses in the manufacture and sales of these cellphones. This paper uses the blue ocean strategy, proposed by Kim and Mauborgne, to analyze the bandit cellphone strategy. This analysis provides a good example in the field of strategy and innovation management.

Suggested Citation

  • Chang, Shih-Chi, 2010. "Bandit cellphones: A blue ocean strategy," Technology in Society, Elsevier, vol. 32(3), pages 219-223.
    • Handle: RePEc:eee:teinso:v:32:y:2010:i:3:p:219-223
    DOI: 10.1016/j.techsoc.2010.07.005
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    References listed on IDEAS

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    1. Michael L. Katz & Carl Shapiro, 1994. "Systems Competition and Network Effects," Journal of Economic Perspectives, American Economic Association, vol. 8(2), pages 93-115, Spring.
    2. Roderick E. White, 1986. "Generic business strategies, organizational context and performance: An empirical investigation," Strategic Management Journal, Wiley Blackwell, vol. 7(3), pages 217-231, May.
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    Cited by:

    1. Mohammed A. Hajar & Ammar Ahmed Alkahtani & Daing Nasir Ibrahim & Mohammed A. Al-Sharafi & Gamal Alkawsi & Noorminshah A. Iahad & Mohd Ridzuan Darun & Sieh Kiong Tiong, 2022. "The Effect of Value Innovation in the Superior Performance and Sustainable Growth of Telecommunications Sector: Mediation Effect of Customer Satisfaction and Loyalty," Sustainability, MDPI, vol. 14(10), pages 1-20, May.
    2. Wang, Chi-Tai & Chiu, Chui-Sheng, 2014. "Competitive strategies for Taiwan's semiconductor industry in a new world economy," Technology in Society, Elsevier, vol. 36(C), pages 60-73.
    3. Corina M. RÃDULESCU, 2017. "New Strategic Orientation of Firms Based on Value Innovation," North Economic Review, Technical University of Cluj Napoca, Department of Economics and Physics, vol. 1(1), pages 303-311, October.
    4. Mohammed A. Hajar & Ammar Ahmed Alkahtani & Daing Nasir Ibrahim & Mohd Ridzuan Darun & Mohammed A. Al-Sharafi & Sieh Kiong Tiong, 2021. "The Approach of Value Innovation towards Superior Performance, Competitive Advantage, and Sustainable Growth: A Systematic Literature Review," Sustainability, MDPI, vol. 13(18), pages 1-33, September.
    5. Ehsan Khanmohammadi & Mostafa Zandieh & Talieh Tayebi, 2019. "Drawing a Strategy Canvas Using the Fuzzy Best–Worst Method," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 20(1), pages 57-75, March.

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