The following is about the reasons why choosing Axiom smartened and the objective. Firstly, Axiom smartened is a product which produced by Axiom Tech. Which is privately owned electronics company central station in Beijing of China. Axiom is the 5th largest cellophane distributor in the worlds. The first smartened designed from Axiom is launch in China in August 201 1 . Moreover, Axiom phone gained 10. 7% share of the market in mainland Chinas. The following is using Boston Consulting Group analysis (appendix 1) for analyzing its business units.
Axiom smartened is the part in ‘Stars’ as it has the potential for growth in the coming three years and the increasing in the related market share. 5 After the above mention, it is possibly sure that Axiom phone is the potential profitable product which suitable to launch into Hong Kong market. PEST analysis Political Hong Kong and Mainland have a conclusion a free trade agreement of Closer Economic Partnership Arrangement (CHEAP)6, therefore, economic connection between these two places has never been closer.
Mainland can doing business in Hong Kong easily because it is welcome. Economic The data of GAP per capital in Hong Kong was found in the website of Trading Economic (Appendix 2). 7 kept high level stably and increased from 2010 to 2014 continually. It indicated that the economic in Hong Kong is prosperous and people living in Hong Kong have the higher purchasing power and more willing to buy luxury good compare with poor economic environment as smartened is classified as luxury good. Social From the Survey which conducted by HUG POP SITES, it found that Hong Kong people change their mobile phone once a year and they have a sense in following the trend. That mean when a new version of phone or the fashionable deigned phone launch, they would like to purchase it even their phone are still work. No doubt that it have the positive effects for doing a smartened business in Hong Kong. Technology The industry of smartened in Hong Kong is quite prosperous.
There are many phone’s professionalism full of experience in repair phone or the after service. They have the knowledge in the field of smartened 10. In case of doing smartened business in Hong Kong, no need hesitation as there are a number of experienced labor can hire for. After the analysis of the doing business environment in Hong Kong, it find out that there are many advantages. It is the nice place for Axiom launch business here. SOOT analysis Strengths The selling price of Axiom is publicly known low in around RAMBLE-3999.
It is also the high-end smartened with Qualm Snapdragon, high quality of hardware and software supports 1 . High-end smartened with reasonable price which is lower than Phone for around 45. It is a large strength for company to operate company. Weaknesses Company is lack of worldwide recognition as it is the producer set in China ndNDhe goodwill of the producing in China is bad because of the cases of poor quality. Also, XiAxiomust a regional smsmartenedompany in this stage, it still have not expand its business to western countries.
Moreover, the pronunciation of the company name is one of the problems. Its name is set up with Pinyin, But not all Hong Kong people have a well-known on it, they may cannot read and pronoun it. Which will increase the difficulty for recognition. Opportunities XiAxiomevenue doubled to $12 billion in 201413, some version of XiAxiomhone have sold out within three minutes. 4T4throwth of this kind of sales is speeding up, market share will raise.
Threats Legal challenge from rivals is a great threat for the company which really need to pay attention for. The design of the smsmarteneds always criticized that it plpopularizedPPhonend Samsung. It will affect the company image for customers. suSuggesthat company should hire the own design team for designing product. Otherwise, company may face the legal responsibility in plagiarism if rivals accusing. After the analysis above, it is found that the advantage of XiAxiomoing business is greater than the disadvantage of that in Hong Kong.