If it is possible Xiaomi trade in SA
Leno’s purchase of Motorola Mobility became official on same day, and with its new subsidy, the company has become the third-largest smartened manufacturer in the world with 8 percent market share, bumping Axiom down to fourth. Still, Axiom said it has its sights set on raising enough money to become the world’s most valuable private tech firm. 1. 2 International expansion In just four years, Axiom, which is known colloquially as “little rice,” has gone from a strictly low-end producer to competition for some of the largest mobile companies in China such as Apple Inc. ND Samsung Electronics Co. Ltd. Now, global expansion is on the horizon, but there are plenty of hurdles for Axiom to export its phones and its philosophy to the West.
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This called Axiom must enter the international market The process started early last ear by testing water in Hong Kong, Taiwan and Singapore. Axiom’s flash sale strategy proved a huge success in these markets. Beginning of this year, Axiom announced Axiom would expand to 10 countries this year.
We can see that Axiom wanted to target markets similar to China, developing countries with huge population where its low price is an advantage. Assai: Malaysia, India, Indonesia, Thailand, Vietnam; Europe: Russia, Turkey; America: Brazil, Mexico. We can see, Africa isn’t in its expanding list. But we group strongly recommended Axiom export South Africa, the reason and the strategy analysis as below. . South Africa PEST Analysis and Cell industry introduction by ups 2. Political South Africa is a parliamentary republic, although unlike most such republics the President is both head of stated head of government, and depends for his tenure on the confidence of Parliament. The executive, legislature and judiciary are all subject to the supremacy of the Constitution, and the superior courts have the power to strike down executive actions and acts of Parliament if they are unconstitutional. The National Assembly, the lower house of Parliament, consists of 400 members and is elected every five years y a system of party-list proportional representation.
The National Council of Provinces, the upper house, consists of ninety members, with each of the nine provincial electroluminescent ten members. After each parliamentary election, the National Assembly elects one of its members as President; hence the President serves a term of office the same as that Of the Assembly, normally five years. NO President may serve more than two terms in office. The President appoints a Deputy President and Ministers, who form the Cabinet which consists of Departments and Ministries.
The President and the Cabinet may be moved by the National Assembly by a motion of no confidence. In the most recent election, held on 7 May 2014, the African National Congress (NC) won 62. 2% of the vote and 249 seats, while the main opposition, the Democratic Alliance (DAD) won 22. 2% of the vote and 89 seats. The Economic Freedom Fighters, founded by Julius Male, the former President of the Ann.’s Youth Wing who was later expelled from the NC, won 6. 4% of the vote and 25 seats.
The NC has been the governing political party in South Africa since the end of apartheid. Since 2004, the country has had many thousands of popular protests, some Eileen, making it, according to one academic, the “most protest-rich country in the world”. There have been a number of incidents of political repression as well as threats of future repression in violation of this constitution leading some analysts and civil society organizations to conclude that there is or could be a new climate of political repression, or a decline in political tolerance.
Leaders of the BRICKS nations at the G-20 summit in Brisbane, 15 November 2014. South African President Jacob Zamia and Chinese President Huh Joints upgraded bilateral ties between the two countries on 24 AUgUSt 201 0, hen they signed the Beijing Agreement, which elevated South Africans earlier “strategic partnership” with China to the higher level of “comprehensive strategic partnership” in both economic and political affairs, including the strengthening of exchanges be;en their respective ruling parties and legislatures.
In April 2011, South Africa formally joined the Brazil-Russia-India- China (BRICKS) grouping of countries, identified by President Zamia as the country’s largest trading partners, and also the largest trading partners with Africa as a whole. Zamia asserted that BRICKS member countries would also ark with each other through the SIN, the Group of Twenty (620) and the India, Brazil South Africa (BIBS) forum. By 201 3, China have become the single largest trading partner of South Africa. 2. 2 Economy South Africa has a mixed economy, the second largest in Africa after Nigeria.
It also has a relatively high GAP per capita compared to other countries in sub-Sahara Africa ($1 1,750 at APP as of 2012). Despite this, south Africa is still burdened by a relatively high rate of poverty and unemployment, and is also ranked in the top 10 countries in the world for income inequality, measured by the Gin coefficient. Unlike most of the world’s poor countries, South Africa does not have a thriving informal economy; according to COED estimates, only 15% of South African jobs are in the informal sector, compared with around half in Brazil and India and nearly three-quarters in Indonesia.
The COED attributes this difference to South Africans widespread welfare system. World Bank research shows that South Africa has one of the widest gaps between per capita GNP versus its Human Development Index ranking, with only Botswana showing a larger gap. After 1 994 overspent policy brought down inflation, stabilized public finances, and some foreign capital was attracted, however growth was still subpart. From 2004 onward economic growth picked up significantly; both employment and capital formation increased. South Africa is a popular tourist destination, and a substantial amount of revenue comes from tourism.
Illegal immigrants are involved in informal trading. Many immigrants to South Africa continue to live in poor conditions, and the immigration policy has become increasingly restrictive since 1994. Principal international trading partners of South Africa-?besides other African countries-?include Germany, the United States, China, Japan, the United Kingdom and Spain. The South African agricultural industry contributes around of formal employment, relatively low compared to other parts of Africa, as well as providing work for casual laborers and contributing around 2. 6% of GAP for the nation.
Due to the aridity of the land, only 13. 5% can be used for crop production, and only 3% is considered high potential land. In August 2013, South Africa was ranked as the top African Country of the Future by FED magazine based on the country’s economic potential, labor environment, cost-effectiveness, infrastructure, business friendliness, and foreign direct environmentalist’s. The IFS ranks South Africa as the 36th safest tax haven in the world, ahead Of the Philippines but behind the Bahamas. 2. 3 social During 1995-2003, the number of formal jobs decreased and informal jobs increased; overall unemployment worsened.
The government’s Black Economic Empowerment policies have drawn criticism from Nave Magenta, lead economist for research and information at the Development Bank of Southern Africa, for focusing “almost exclusively on promoting individual wineries by black people (which) does little to address broader economic disparities, though the rich may become more diverse. ” Official affirmative action policies have seen a rise in black economic wealth and an emerging black middle class. Other problems include state ownership and interference, which impose high barriers to entry in many areas.
Restrictive labor regulations have contributed to the unemployment malaise. Along with many African nations, South Africa has been experiencing a ‘brain drain in the past 20 years. This is believed to be potentially damaging for the regional economy, not in citation given][clarification needed]and is almost certainly detrimental for the well-being of those reliant on the healthcare infrastructure. The skills drain in South Africa tends to demonstrate racial contours given the skills distribution legacy of South Africa and has thus resulted in large white South African communities abroad.
However, the statistics which purport to show a brain drain are disputed and also do not account for repatriation and expiry of foreign work contracts. According to several surveys there has been a reverse in brain drain following the global uncial crisis of 2008-2009 and expiration of foreign work contracts. In the first quarter of 2011, confidence levels for graduate professionals were recorded at a level of in a UPS survey. 2. 4 Technological Several important scientific and technological developments have originated in South Africa.
The first human-to-human heart transplant was performed by cardiac surgeon Christiana Bernard at Grotto Churl Hospital in December 1967, Max Tiller developed a vaccine against yellow fever, Allan McLeod Carjack pioneered x-ray computed tomography, and Aaron Kaleidoscope aerographical electron microscopy techniques. With the exception of that of Bernard, all of these advancements were recognized with Nobel Prizes. Sydney Brenner won most recently, in 2002, for his pioneering work in molecular biology.
Mark Shuttlecock founded an early Internet security company Thaw, that was subsequently bought out by world-leader Version. Despite government efforts to encourage entrepreneurship in biotechnology, IT and other high technology fields, no other notable groundbreaking companies have been founded in South Africa. It is the expressed objective of he government to transition the economy to be more reliant on high technology, based on the realization that South Africa cannot compete with Far Eastern economies in manufacturing, nor can the republic rely on its mineral wealth in perpetuity.
South Africa has cultivated a burgeoning astronomy community. It hosts the Southern African Large Telescope, the largest optical telescope in the southern hemisphere. South Africa is currently building the Karol Array Telescope as a pathfinder for the ?1. 5 billion Square Kilometer Array project. On 25 May 201 2 it was announced that hosting of the Square Kilometer Array Telescope will be split over both the South African and the Australia/New Zealand sites.
Telecommunications infrastructure in South Africa provides modern and efficient service to urban areas, including cellular and internet services. In 1 997, Talked, the South African telecommunications partially, was partly privatized and entered into a strategic equity partnership with a consortium of two companies, including CBS, a U. S. Telecommunications company. In exchange for exclusivity (a monopoly) to provide certain services for 5 years, Talked assumed an obligation to facilitate network modernization and expansion into the unseeded areas.
A Second Network Operator was to be licensed to compete with Talked across its spectrum of services in 2002, although this license was only officially handed over in late 2005 and has recently begun operating under the name, Motel . Five cellular companies provide service to over 30 million subscribers, with South Africa considered to have the 4th most advanced mobile telecommunications network worldwide. The five cellular providers are Voodoos, MET, Cell C,Virgin Mobile and Talked (Mobile), which is run by Talked. 2.
Mobile Industry Telecommunications is one of the fastest growing sectors of South Africans economy, driven by explosive growth in mobile telephony and broadband connectivity. With a network that is 99. 9% digital and includes the latest in fixed-line, wireless and satellite communication, the country has the most developed telecoms network in Africa. South Africans has a relatively low rate of fixed-line telephony, with around 4. 2;million fixed-line connections (I TU, 201 0). Fixed-line telephony is dominated by Talked, which is listed on the SSE and majority owned by the Department of Communications.
Telecoms monopoly in running fixed-line services came to an end in 2006, when the country’s second fixed-line operator, Motel, began its operations. Majority- owned by Indian’s Data Communications, Motel offers voice and data services to around 9-million customers. Mobile phone use in South Africa has increased from 17% of adults in 2000 to 76% in 201 0, according to research firm Nielsen Southern Africa. Today, more South Africans 29-million use mobile phones than radio (28-million), TV (27-million) or personal computers (6-million).
Less than 5-million South Africans use landlines phones. South Africa has four licensed mobile operators: MET N, Voodoos (majority owned by UK Videophone), Cell C (75% owned by Saudi Ogre, an international telecommunications holdings firm), and ATA, a subsidiary of Talked. Mobile penetration is estimated at more than 1 0%, one of the highest rates in the world. South African mobile companies are also making inroads internationally, with MET leading the way: the company has well over 1 O- million subscribers in more than 20 countries in Africa, Asia and the Middle East.
The increase in usage of mobile and smartness has also lead to increasing numbers of South Africans using the Internet. There were an estimated 8. 5-million users by the end of 201 1, up from 6. 8-million the year before. It is projected that the 10-million user barrier will be broken by the end of 201 2 (World Wide Word, May 2012). While mobile phones are driving usage, data costs are being driven down by the increasing number of undersea cables connecting sub-Sahara Africa to the rest of the world. Undersea cable capacity to South Africa at the end of 201 1 was 2. 69 Terabyte a second (Tips), and that will rise to 11. Tips by the end of 2012. This doubled again in 2013. The government, via the Department of Communications, aims to implement a national broadband network to ensure universal access by 2020. Broadband Infract, the state-owned company tasked with improving internet access and bringing down broadband prices, sells high-capacity long-distance transmission services to telecoms operators, internet service providers and other value added network service providers. MET N, Voodoos and Motel are jointly building a skim fiber-optic cable en;ark connecting several major centers across South Africa.
The first phase of the cable, linking Sautéing with Zulu-Natal, as commissioned in June 2010. Fibbers Telecommunications is building a 12 km national open-access fiber-optic broadband network, which will increase the supply of long-distance capacity between major cities such as Johannesburg, Cape Toffee and Durban, as well as towns and rural areas along the route. It is a partnership between Cell C, CIT firm Internet Solutions, and investment management and advisory firm Convergence Partners. Provinces, via their municipalities, also have plans to invest in affordable broadband infrastructure.
The Western Cape, for example, aims to connect the 4 000 overspent facilities and every school in the province to a broadband network, as well as ensure the public has easy access to CIT facilities. 3. How to operate Axiom in South Africa 3. 1 The smartened market in AS Lees see a South African Mobile Report reveals the mobile phone brands of choice by South Africans Internet users, which showed that the most popular mobile phone brands among the country’s Internet users are BlackBerry, Samsung, Monika, and Apple.
The following chart shows the mobile phone brands owned by South African Internet users. Mobile phone brands owned in AS It should be noted that a single user can own multiple devices. 3. 2 What phones South Africans really want Smartened purchase preference The low position of Apple’s phone (12. 3%) is mainly attributed to the fact that phones are relatively expensive in the country. The similar proportion Apple in these two chart shows the Apple purchaser has kind of brand loyalty.
High owned level of Monika and Blackberry exceed two thirds, but preference of these two brand account less than one third, many South Africans plan to purchase a Samsung smartened when they upgrade their current phone. Samsung is expected to be the market leader in South Africa over the next few years. So we assume here that more people tend to price sensitive in choosing smartened, and the biggest competitors could be Samsung, we have great market space to serve in the price sensitive smartened users. 3. 3 How does Axiom benefit S. A. smartened users?
Specs Comparison between Mi 4 vs. Samsung vs. Expire Z vs. ETC MM We clearly see the main specs among these new generation phones , MI are more competitive in RAM and Battery use based on the similarities of other specs. We check from commerce website ,the price of Samsung SO sell ERROR, in exchange with ARM, about RHOMB ,kind of lower the price compare with China. But after calculating the changing price ,Samsung still has higher in half than MIM. So from both pictures to illustrate , we find the Axiom user will enjoy the fast speed of operating, touch, big screen, nice design, and very competitive price. . 4 How to position it? For the nice experience with good price, the dynamic image will attract more young generation and the group people who more care the good performance-cost that are our advantages , less brand loyalty users tend to our first lot users in AS. )Butte need to cultivate our own brand fans, our business model and the process of manufacturing are difficult to be copied by other international brand , and it is impossible for AS local people to do such kind of brand, from product itself we have great advantage 2)Low level image difficult to be changed when you want to enter into the high level .
So we position our products as high quality ,good In cost performance . 3. 5 Business Model in overseas trade For supplies, we still put manufacturers in China, some good suppliers we have been cooperated with , air ship to South Africa by CA airlines. TO open he market we need to find more channels, social medias are still our main tool to do marketing, for it is difficult to find a close partner as agent to do that , but finding exclusive agents also is our acceptable way in South Africa market.
At the beginning Partnered with local commerce website such as Edgewise (claimed largest online mall in South Apical). South Africa Official Faceable Page We might sell its products on its official website in the future. We might cooperate the local agents having the experience store to sell together. With a bit higher price , ERROR for MIM is similar to the price buying Samsung SO, the old generation of Samsung and one-year distributor warranty. Unitary products and concentration Every year only arise one product, and focus on it; Focus on one price point, only do one product.
This strategy has help the company to better control the quality, especially technology about the hardware. We can continue this business model in AS Already invite costumer to participate in the product design At the beginning of designing the products, Axiom listen to costumer’s opinion widely and this action make the products more cater to costumer’s needs and second potentially arouse the purchase desire of consumer. N SAC’S experience store,We will invite AS local to participate in the product improvement.
Treat costumer friendly and provide petty favors After the first launch of MOM, when they buy the products, we will give them coupon and a thank you letter, together with a film to protect the mobile phone. All these actions can make the consumer deeply feel the sense of belonging to Axiom Company and win good public praise. High configuration but low price-“Future Goods”, price difference with the nominal and actual Axiom’s normal price is 1999 however the actual price to buy it normally is ore than 1 999 even is 2499 as it use the strategy “Panic buying”.
Costumer finally buy it with even with price 2499 which is much higher than the nominal price they still think it’s worthy. And this is the key point for Axiom to success to use customer’s mentality. This will be our main strategy in AS. To develop greatly in AS,we will put effort to attract local Venture Investment. After the first launch of MOM,we will develop other products to be aliened with domestic:Hardware,Software and Internet service. In summary, we start by launching local official website and Faceable Page, ND local forum.
We would choose to sell its product on local official website, or cooperate with local e-commerce website. Gradually, when we could fully localize and solve delivery and payment issues, it will sell on its official website, also the not very low price, we can cooperate with local agent to have experience store. 4. Risk and Return Analysis by SOOT We need to think about risks in South Africa The news for Axiom over the internet can be easily found, but not all of them are good news. The good news is that Axiom keeps its strong performance in China market. 1 Creativeness However, recent news by PC World questioned privacy concerns about Axiom sending user data its server without permission. What’s more, Axiom’s globalization is shadowed by its claim of “Apple of China”. The launch of MIL 6 soon got tech media’s critics of “copying ISO 7”. Its goanna take Axiom a long time to build its brand internationally, It will not be an easy battle for Axiom to change its global image of “copycat”, but we will have to wait and see. 4. 2 Leadership Axiom’s CEO Lei June plays an important role in Axiom’s marketing in China.
But stepping out of China, nobody knows Lei June. Rather than being an positive brand influence, Lei Sun’s early claim of being “Steve Jobs” in China actually is a big hurdle for Axiom’s globalization. Nobody will care about an imitator. 4. 3 E-Commerce Channel Axiom’s flash sale in China is extremely successful, with direct online-only sale on its official website. But the e-commerce business environment may differ in different countries, marketing, logistics and customer services varied. How Axiom remain close relationships with its customers will be an even cougher challenge for the culture understanding. . 4 Quality Control When going abroad in AS, Axiom should pay more attention to its quality control to prevent large scale complaints, and really focus on customer services to build up the brand’s word-of-mouth. After all, high quality smartened with low price is everything to Axiom. 4. 5 Chain Expansion Africa is so different with other continents, the country we target has the highest GAP level in Africa, and most countries in Africa people cannot imitate the consumption habit, many are considering the basic needs.