Study on Competitiveness of Shanzhai Cell Phone Industry Based on Industrial Cluster Theory

The newly-emerged Shanzhai cell phones in recent years sell very well both in China and other developing countries. In this article we focus on the current situation of the development of the Shanzhai phones and a deep analysis of its industrial chain has been conducted. Based on the analysis of distribution and characteristics of the Shanzhai cell phones, we can judge that the Shanzhai mobile phones belong to the category of Industrial Cluster, therefore the traits of an Industrial Cluster could be employed to analyze the Shanzhai mobile phone industry. Based on a GEM model, the analysis proves that, the Shanzhai mobile phone industrial chain is domestically competitive, but not so well in markets. Hence we propose some suggestions.

[1]  Erkko Autio,et al.  A theoretical grounding and test of the GEM model , 2008 .

[2]  Poh Kam Wong,et al.  Entry and Competitive Dynamics in the Mobile Telecommunications Market , 2006 .

[3]  HA Henny Romijn,et al.  Determinants of innovation capability in small electronics and software firms in southeast England , 2002 .

[4]  Paul Tracey,et al.  Alliances, Networks and Competitive Strategy: Rethinking Clusters of Innovation , 2003 .

[5]  Bi-Huei Tsai,et al.  Cluster evolution of IC industry from Taiwan to China , 2009 .

[6]  Stuart A. Rosenfeld.  Bringing business clusters into the mainstream of economic development , 1997 .

[7]  Varun Grover,et al.  Information technology innovations: general diffusion patterns and its relationships to innovation characteristics , 2002, IEEE Trans. Engineering Management.

[8]  D. Walwyn.  Finland and the mobile phone industry: A case study of the return on investment from government-funded research and development , 2007 .

[9]  M. Porter,et al.  The Competitive Advantage of Nations. , 1990 .

[10]  M. Porter.  Clusters and the new economics of competition. , 1998, Harvard business review.

[11]  Jonghwa Kim,et al.  A dynamic competition analysis on the Korean mobile phone market using competitive diffusion model , 2006, Comput. Ind. Eng..

[12]  Michael E. Porter,et al.  The Adam Smith Address: Location, Clusters, and the ìNewî Microeconomics of Competition , 1998 .

[13]  M. Porter.  Location, Competition, and Economic Development: Local Clusters in a Global Economy , 2000 .

[14]  T. Padmore,et al.  Modelling systems of innovation:: II. A framework for industrial cluster analysis in regions , 1998 .