Elaborative SWOT Analysis of OnePlus – A Chinese Consumer Electronics Manufacturer

Products of OnePlus

OnePlus is mostly engaged in producing the world’s best smartphones. But it also deals in other segments such as

• Smartphones
• Earphones
• Power Banks
• OxygenOS
• HydrogenOS
• Phone cases
• Shirts
• Bags
• Televisions
• Smart Watch

Competitors of OnePlus

OnePlus competes on a global level with many other smartphone manufacturers. The top 5 competitors of OnePlus are

• Oppo
• Xiaomi
• Samsung
• Apple
• Lenovo
• ASUS

As now we have a better understanding of OnePlus, let’s look into the SWOT Analysis of OnePlus.

SWOT Analysis of OnePlus

A SWOT analysis identifies a company’s strengths, weaknesses, opportunities, and threats. A proven and true management paradigm that allows OnePlus to compare its business and performance with competitors and the industry as a whole.

So let us go ahead and first have a glance at the strengths of OnePlus from the SWOT analysis of OnePlus.

Strengths of OnePlus

As one of the leading companies in the industry, OnePlus, Inc. It has numerous strengths that make it stand out in the market. These strengths not only help protect your market share in existing markets but also help you penetrate new markets.ion along with the weakness of the organization falls under the internal factors.

• Amazing Design: The company does not shy away from experimenting with the choice of design and materials, which is the prime factor of the OnePlus.
• Quality Performance: OnePlus smartphones are known for being super-fast performers. Their smartphones are really smart that can run anything you install in them, including basic video playback to hardcore gaming.
• Entry in New Markets: Recently, the company entered into an exclusive licensing agreement with Cyanogen Inc. to the base android distribution of its products with variants of popular customs.
• Best Software: Oxygen OS which is a special android platform by OnePlus sets its phone apart from other android phones. It looks so fantastic that the majority of people fall crazy for it initially at first sight itself. Also, the users will get free updates from the OS for almost two years absolutely free.
• Company Goals: The company’s main goal is to design a smartphone that would be balancing the need for high-end quality with a lower price than other phones so that the user will “Never Settle” down for the low-quality products produced by other companies.
• Diversity in Portfolio of Product: Oneplus has diversified its product ranges such as Shirts, Bags, Televisions, SmartWatch and other essential accessories which has been achieving impeccable growth just like OnePlus smartphones.
• Effective Marketing Strategy: The brand is known for its marketing strategies in which it promotes its products through popular web series on Netflix or through brand ambassadors like superstars Robert Downey Jr. and Amitabh Bachchan.

Weaknesses of OnePlus

Strategy is all about choices and weaknesses are areas where companies can improve through SWOT analysis and leverage their competitive advantage and strategic positioning.

• Defect in Camera: The smartphone’s camera is prone to produce inconsistent photos with overexposed images. This is the reason why the customers are not satisfied with their smartphones and prefer other brands with better camera quality.
• Critical Lack of Talent: Particularly in the areas of technology and digital transformation, OnePlus is facing a lack of talent which is causing OnePlus to struggle to structure processes in light of developments in Artificial Intelligence.
• Increasing Prices: Oneplus main motive was to provide affordable smartphones with premium qualities. But now, OnePlus is moving away from its words by pricing its latest technology smartphones at a higher end.
• Negligence: Oneplus Co-Founder Carl Pei has left the company in 2020 to start his Technology startup named Nothing. 
• Sells only on Online Platforms: The major drawback for OnePlus is that it relies on its sales of products on the e-commerce marketplace Amazon which leads to OnePlus not capturing the market that likes to visit a mobile store and purchase smartphones.
• Limited or Flagship Sales: OnePlus smartphones always come with limited offerings of its products on Amazon and a window of the limited time that barely closes in a second for a customer to make a purchase of a OnePlus smartphone. This led to increasing hatred for OnePlus by customers who were excited and long waited to purchase a phone.

Opportunities for OnePlus

Opportunities are potential areas for companies to focus on to improve results, increase sales, and ultimately profit.

• Open New Markets Through Government Agreements: New technology standards and government free trade agreements provided to OnePlus opens up opportunities for OnePlus to enter newly developed markets. 
• New Customers Through Online Channels: The company has invested huge amounts of money in its online platform over the past few years. This investment opened up a new sales channel for OnePlus. Over the next few years, companies will be able to seize this opportunity by better understanding their customers and meeting their needs through big data analytics.
• Economic Recovery: Economic recovery and rising consumer spending after years of recession and slow industrial growth are opportunities for OnePlus to attract new customers and increase market share.
• Variety Features in New Products: New products with new features would attract more users. For example, the OnePlus phones do not have wireless charging features which are in trend nowadays. So, if OnePlus constantly introduces new features it can easily attain a new user base.
• Artificial Intelligence: The company can leverage developments in AI to better predict consumer demand, target niche segments, far better recommendation systems, and good user experience.

Threats to OnePlus

Threats are environmental factors that can harm a company’s development. Here are some of OnePlus’s threats:

• Strong Competitors: The company has many competitors, including the strongest brands Apple and Samsung. OnePlus should continue introducing technology according to new trends and stay updated so that it does not lose market share.
• Alternate Cheaper Options: The market is flooded with lower priced smartphones that contain the same features relating to brands like OnePlus. Brands like Xiaomi or Realme are selling equally competitive phones at a lower price which is another major challenge for OnePlus.
• Privacy in Data: Asian countries like India are banning Chinese products due to allegations of Chinese brands like OnePlus breaching the sharing of customer data with Chinese Security Agencies. Also, many countries have banned Chinese applications from Play Store and App Store.
• Competition with Parent Company: OnePlus is competing on the global market with its parent company BBK Electronics product Oppo and Realme which tends to increase competition and internal fights within the two organisations.
• Controversies & Criticism: OnePlus has been subjected to major controversies and criticism related to customer support, OnePlus USB-C cable and app performance throttling which has led to a significant decrease in the brand’s market reputation.

This ends our elaborative SWOT analysis of OnePlus. Let us conclude our learning below.