In 2008, more than 750 million mobile phones were produced in China. A significant proportion (20 percent, or about 150 million units), these phones were made Shanzhai companies. These companies have been quickly adopted by a large percentage (about 10 percent) of the world market. This phenomenal growth was mainly due to the non-traditional approaches to the global market in the market positioning, rapid product development, and closely related, responsive and efficient supply chain management. Although often thought of as Shanzhai term for forgery, in fact it is more than just a copy. Cell phones contain complex hardware, software, and systems, but Shanzhai companies, only 10 people can effectively use complex (though unofficial) Network product designers, manufacturers and distributors to make a successful business. This case describes the Shanzhai phenomenon, and how these companies operate. It is also an example of a company that has successfully moved from a culture of Shanzhai, becoming a major force in China's major mobile phone industry. The case also discusses the forces that challenge the future model of Shanzhai. "Hide
by Hau Lee, Mitchell M. Tseng, power Siu, David W. Hoyt Source: Stanford Graduate School of Business 23 pages. Publication Date: Mar 09, 2010. Prod. #: GS75-PDF-ENG
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