o bsc in international business o ronment o exam: 48 hours

o BSc in International Business o International Business Envi-

ronment o Exam: 48 hours individual

home assignment o 14.10 – 16.10.2015 o Oliver Møller: 3000696-0269 o Number of pages: 9 and char-

acters: 23,454

International Business Environment BSc International Business Oliver Møller, 1st year IB Exam start date: 14/10/15 Course Coordinator: Larissa Rabbiosi Exam end date: 16/10/15

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Chinese OnePlus enters Brazil

1. OnePlus

Since the smartphone manufacturer Oneplus Ltd. was established in 2013 in Shenzhen, China, it has ex-

panded with unprecedented force into new markets. OnePlus being Born Global companyi – “We are

going to be a lot more aggressive in our international expansion” (Pete Lau, OnePlus co-founder and

chief executive officer) – with 88 employees from 13 different countries has led to OnePlus engaging in

3 different continents (Europe, Asia and North America), achieving revenue of $300M+ in the fiscal year

2014! With international operations accounting for 61% of total sales (OnePlus Ltd., n.d.). Offering its’

customers a wide range band support for service providers worldwide while being carrier unlocked,

thus suited perfectly for the global market; hence being able to do so because of a limited product port-

folio with the OnePlus smartphone as flagship product (Ibid.). Wholly ownedii by parent company OPPO

Electronics Corp., one of the largest smartphone manufacturers in Chinaiii; although OnePlus claims to

be an exclusive brand with no formal ties to OPPO. Renowned for its smartphone’s incomparable price-

to-quality ratio, customization and performance OnePlus has gained a competitive edge over competi-

tors as will be explained in the following essay. OnePlus business model is based on an invite-system,

which only allows customers with an invite to purchase, exclusively online (Ibid.). This model offers

enormous growth potential as echoed in demand for the OnePlus 2 e.g.: exceeded 1,000,000 reserved

OnePlus 2 smartphones within 72 hours (Ibid.). OnePlus aims at expanding further internationally as

Pete Lau expressed – the Brazilian market then presents favorable conditions as of being the next step

in OnePlus’ international expansion plan.

1.1 Why Brazil?

Brazil being the fourth largest smartphone market in the world offers huge potential for OnePlus seek-

ing to expand as indicators suggest promising conditions. OnePlus being a company leveraging on its

business model to produce cheap smartphones with international quality suggest OnePlus prospering

from the current economic slowdown, outcompeting competition on price. Moreover smartphone sales

are forecasted to grow with 103% between 2013-2018 (Euromonitor: Mobile Phones in brazil, 2014)

thus displaying exceptional future consumer growth. According to ABINEEiv 2015 should remain the

“year of the tablets and smartphones” in Brazil further acknowledging the possibilities of the Brazilian

smartphone market. Hence in the light of OnePlus ambitions Brazil is an attractive destination.


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2. Agenda

The aim of this essay is to develop an optimal entry strategy for OnePlus when entering Brazil, based on

the findings of the market analysis and internal factors. Agenda is as follows:

1. Customized PESTLE-analysis and summarization

2. Dunning’s eclectic paradigm and entry strategy

3. Conclusively it will be discussed to which extent the proposed internationalization decision in-

fluence on the strategy and organization as well as which action might be necessary given the

internationalization decision selected.

3. Analysis of the Brazilian market

3.1 Political-legal: Brazil consists of a highly complex regulatory framework, thus complicating the ease

of doing business due to long bureaucratic delays, efficiency losses and other red tapes. Additionally

companies operating in Brazil need to navigate through burdensome regulations whilst being able to in-

teract with the public sector and society, which is commonly denoted ‘jeitinho’. Averaging 92nd out of

202 economies in 2013 in the “Regulatory quality index” (World bank, 2013).

Paying tax in Brazil accompanies huge difficulties in regard of doing business due to the numer-

ous taxes and contributions, multiple and complex tax schemes and inefficient tax collection proce-

dures, which in its essence is a complicating factor in respect to time- and resource management when

firms are required to fulfill their tax obligations; the total tax rate as a percentage of profits reached

68,9% of total profits in 2015v. In the face of the slowing economy, the Brazilian government pushed for

tax measures aimed at increasing federal revenue. As of February, this year, companies have to pay a

higher rate of their profits for social initiatives. Tariff rates and trade barriers still remain relatively high,

mainly due to the import duty, Industrialized Product tax (IPI) and the merchandise and Service Circula-

tion tax (ICMS)vi – (United States Trade Representative, 2013). However a decree (Portaria No. 87) was

issued by Brazil’s Ministry of Communications, which provides an exemption from taxes for

smartphones fulfilling the subsequent requirement (1) pre-loaded package of locally developed applica-

tions. This tax exemption would essentially lead to a price reduction of up to 30 percent. Thus affecting

OnePlus engagement going forward in Brazil as such political initiatives can provide favorable conditions

for foreign business. Generally there are few prospective indicators of constructive change in the politi-

cal environment due to the uncertainty of the mentioned dynamicsvii; conversely some “loopholes” ex-

ist for smartphone businesses like OnePlus.


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3.1.1 bi-lateral and multi-lateral trade agreements: Brazil and china have engaged in multiple bilateral

trade agreements, and in 2014 China’s President XI Jinping signed 54 new agreements aimed at improv-

ing infrastructure, telecommunication, energy/tech. sector and trade in generalviii. Since China and Bra-

zil became part of the BRIC, they have continuously pushed for stronger interaction as regard to trade

and finance. Both countries do still have high barriers to entry, as neither side has made any effort to-

wards removal of tariffs and noteworthy trade barriers. Having huge effects on the internationalization

process, as it wouldn’t allow for the centralization of production in those locations where the factor en-

dowments (Heckscher-Ohlin theory, 2014, Hill pp.174), and skill is optimal. Thus not making it attractive

to make an FDI, as factor endowments for smartphones are strongest in Chinese markets; the product

life-cycle theory (PLC-theory, Ray Vernon) then suggests that Brazil would import smartphones, as the

production advantage is greatest in China.

3.1.2 Exchange rate regime: Both the Brazilian real and the Chinese yuan are ‘dirty floating’ currenciesix

– mainly targeted at the USD to boost exports, protect industries and competitiveness – currently ex-

changeable at a rate of 1.66 yuan to 1 realx. Thus the value of the currencies being relatively similar,

meaning the cost of exchange isn’t insuperable. However speculation can create volatile movements in

exchange rates and hereby impacting OnePlus’ profitability as exchange rates can quickly change in ei-

ther a positive or negative direction. OnePlus competitiveness is consequently affected, calling for

greater strategic flexibility when currency markets fluctuate. This increases cost, as OnePlus would get

an adequate insurance coverage towards fluctuations, directly hurting profitability. On the other hand

governments can intervene if temporary shocks arise, having huge impacts on OnePlus competitiveness

as they rely highly on competitive pricing abroad – ultimately affecting profitability. Reversely a fixed

exchange rate between China and Brazil could avoid major currency fluctuations, minimizing the use of

hedging and removing uncertainty accompanied with exchange of OnePlus’ transactions, increasing

profitability. Inflationary pressures are also reduced, assuring no sudden rise in the cost of production –

affecting profitability. If the fixed rate is too high it will make exports uncompetitive for OnePlus, if too

low it could cause inflation; an economic paradox.

3.2 Economic: The financial crisis had major complications for Brazilian economy as reflected in their

real GDP, which is forecasted to contract by 3% in 2015 after a minor growth of just 0.1% in 2014xi. The

Brazilian economy shrank by 0.7% in the second quarter of 2015, hereby being the second consecutive

quarter of contraction implicating that Brazil is officially in recession. A slow recovery is however pre-

dicted to emerge in 2016 driven by the depreciation of the real – boosting exports. Hereafter GDP

growth is projected to rebound reaching 3% per year by the end of the decade. Future performance will


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be moderated in accordance with the slowdown in China’s softer demand for imports, since China ac-

counts for approximately one third of exports and is experiencing an economic slowdown as well.

Constraints on consumer spending – unemployment and the effects of fiscal consolidation –

have contributed to an estimated decline of the real value of private final consumption of 2 percent for

2015. Consumer expenditure per capita amounted to R$16,599 in 2014xii. Thus mirrored in the in-

creased price sensitivityxiii towards luxury goods (elastic), though this decade should post the most dy-

namic growth in consumer communication expenditure. High Inflation rates also contributed to a re-

duction in consumer spending, as inflation reached 6.3% in 2014 and is forecasted to rise by 8.6% in

2015; hereby undermining the purchasing power consequently affecting sales (altering supply and de-

mand). The economic environment presents OnePlus with great opportunities, as consumers are be-

coming increasingly volatile towards price, thus displaying a significant incentive for consumers to be

thrifty instead of buying brands like Apple, HTC, Sony etc. at a premium.

3.3 Social and geographical: Smartphone growth is experiencing huge momentum in Brazil, with a pro-

jected growth rate in sales of 103% between 2013 and 2008 (Brazil, country pulse). This is mainly due to

a consumer shift towards ‘virtual integrated shopping habits’, where smartphones are becoming an im-

portant factor when purchasing online (Ibid). 72% of all Brazilian use smartphones to go online (US Me-

dia Consulting, 2014) – a new class of Brazilian consumers have emerged over the past decade and they

love quality, but are also aware of economic reality of which they are situated in .This development has

led consumers to seek for brands with a high quality-to-price ratio (Ibid.). Local consumers do neverthe-

less have a tendency to mistrust Chinese-manufactured products (Ibid.). OnePlus could actually benefit

from this development, as consumers do not associate OnePlus with Chinese manufacturers, thus giving

them advantages over other Chinese competitors operating in Brazil, like Xiaomi. Their company name

for one implies them having ties to the US, further backed by a survey conducted by International Data

Corpxiv. (Ibid) showed that the majority perceived OnePlus as having US origins. Internet retailing is ex-

panding exponentially with 93,6% in real terms between 2007 and 2012 to $11 billion (Euromonitor In-

ternational data, 2012), thus generating an environment in which OnePlus would thrive, as their busi-

ness model is based solely on Internet sales. Brazilian consumers score high on loyalty towards brands,

thus OnePlus online support platform seems appropriate in gaining such satisfactory circumstances.

Furthermore 35 million Brazilians have been added to the ranks of the country’s middle class

over the past decade, thus realizing a comprehensive middle class consisting of 104 million people

(Country Pulse, Euromonitor, 2015); middle class being defined as a monthly income between R$291

and R$1,019 making the OnePlus accessible for a broader crowd. Smartphone sales is expected to hit

75.5 million units I 2018, compared to 34.6 million in 2013 making Brazil the 4th largest smartphone


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market(Ibid.). The total population amounted to 202 million, growing at a steady rate as the population

is aging, generating a larger future consumer base for OnePlus. 85% of the population lives in urban ar-

eas, with respectable infrastructure and allowing for logistics to flow moderately smoothly in cities like

Sao Paulo and Rio de Janeiro.

3.4 Technological: Brazil’s information and communications technology sector (ICT) has engaged in a

government connectivity program, designed to increase the usage and availability of Internet (Business

Environment: Brazil, Euromonitor 2015). Contributing to the fact that mobile penetration rate reached

96,1% of households in 2014 compared to 78.5% in 2014 (Ibid.). Such initiatives encourage the use of

smartphone devices, making life easier for OnePlus. Regional connectivity has yet to be implemented,

thus pushing telecom operators to implement price zoning that surge the cost of using the Internet.

Though being an obstacle for OnePlus it also presents an opportunity, as consumers prefer unlocked

devices, due to high subscription fees derived from the cost of Internet connectivity.

3.5 Overview: The result of the PESTLE-analysis exhibited Brazil as an attractive market for OnePlus

with some potential risks that could be expected from an emerging market, none of which outweigh the

opportunities. To shortly summarize: (1) the political environment showed highly difficult to navigate in,

though some favorable options presented itself, (2) an contemporary economic slowdown fits OnePlus

competitive pricing just right, (3) change in virtual integration encourage immense growth in the

smartphone market, (4) insufficient Internet connectivity provided both obstacles and opportunities.

4. Dunning’s eclectic paradigm

With a completed analysis of the external environment and an OLI-analysis, a suggested entry strategy

can be conducted. Moreover a discussion concerning the influence of the internationalization decision

organizational structure and strategy

4.1 Ownership advantages:

4.1.1 Business model and managerial know-how: OnePlus has built a scalable business, which goes di-

rect-from-manufacturing-to-shipping thus phasing inventory costs and retailer margins out and boost-

ing profitability while being able to deliver affordable hardware with premium specs. Only being able to

do so because of its’ ‘invite only strategy’ which controls the output of production hereby having a high-

ly constrained approach towards supply and demand. In the smartphone industry having a scalable

business is vital as the Product Life Cycle (Carole Hedden, n.d.) usually has a maximum ‘shelf time’ of 12

months –“It’s all about scaling,” Pei, co-founder and Head of Global said at OnePlus’s Shenzhen head-

quarters. “Every piece of excess inventory puts us at a loss.”xv. The reason behind OnePlus success as

producing astonishingly cheap smartphones can be derived from them being able to leverage on its


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parent companies (OPPO Corp.) fully integrated value chain that allows for achieving experience curve

and location economies (Hill,pp. 389-390) – price being the core of its success acquainting a sustainable

consumer surplus per unit. Economy of scale and scope is also obtainable through OnePlus’ global

standardized processes with space for customizations (Ibid.). OnePlus’ globally dispersed supplier net-

work and allows for integrating the highest quality components at reasonable price (Ibid.). These factors

combined has enabled OnePlus to differentiate itself on three parameters (1) customization: OnePlus

offers an open-source customizable variant of the software built on Andriod, (2) performance: matches

specifications of latest generation smartphones,(3) and most importantly price: in average OnePlus

models cost half of its’ competitors; OnePlus is able to cut out ‘inventory-lag-time’ (ILT) near a product

launch, since ILT diminishes the highest obtainable value. OnePlus brings phones directly to market as

soon as they are assembled (just-in-time system) thus allowing for significant lower pricing than Apple

e.g. who has extensive ILTxvi – gaining a competitive advantage. High pressures for cost reduction and

having a competitive advantage based on location specific managerial know-how in shenzhen would

promote OnePlus’ entry into Brazil through exports.

4.1.2 Brand: OnePlus has been able to create a recognizable brand worldwide through clever market-

ing. Their invite-system generated a global buzz, as reflected in their: (1) spike in visits, which hit 26,4

millionxvii in December 2014 alone, (2) 100,000 thousand social media mentions, (3) 847 years spent on

One Plus website, (4) total forum posts of 8,656,060 in 2014 compared to a modest 24 in 2013 (OnePlus

annual report, 2014). Spending a fraction on marketing – essentially being free – outcompeting compet-

itors as HTC, Xiaomi and Motorola in visitor views. OnePlus has been able to built a worldwide cult that

follows them (OnePlus, n.d.) , suggesting them having a strong international brand (the three previously

mentioned differentiations being a part of their branding strategy): “They are arguably one of the few

Chinese vendors that isn’t often perceived as being Chinese.” Said Bryan Ma, a Singapore-based analyst

at research firm International Data Corp. Their marketing/branding strategy has been successful be-

cause of the world market for smartphones being distinctly similar thus making it unnecessary to local-

ize the marketing mix, in accordance with Theodore Levitt’s theory, reflected in OnePlus vision: “we

create products that transcend geography, customs and cultures” (Ibid) (little need for local responsive-

ness). Producing ownership advantages in that respect.

4.2 Location-specific advantages:

The PESTLE-analysis has been used to advocate for parts of China’s location-specific advantages.

4.2.1 PESTLE-analysis and its implications: a highly regulated political environment proved to be a brick

wall as doing business in Brazil in combination with few incentives targeted at FDI enhancements, while

increasing nationalization simply makes it uneconomical to pursue an FDI. Bilateral trade agreements


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were existing but however not substantial, thus not designed to facilitate investments (this attitude to-

wards FDIs can be traced to Brazil having a radical view on MNEs, believing that they only seek to ex-

tract profits; roots to Marxist political and economic theory). The sheer market size, huge customer

demand and a growing middle-class, suggest attractive FDI opportunities. Brazil’s rigid labor model de-

creases strategic flexibility and scalability, which previously was concluded to be vital for success mak-

ing it irrational to make an FDI.

4.2.2 Resource endowments: Labor cost in Brazil is perceived relatively low compared to developed na-

tions with an average monthly salary of $778xviii (Statista, 2014), thus appealing to OnePlus as they seek

to drive cost down. However Chinese wage per month was $656 (Ibid) thus making it unattractive to

make an FDI in Brazil purely based on labor cost as OnePlus competitive advantage descends from real-

izing optimal cost reduction. Furthermore Brazil is lacking a skilled labor force within manufacturing of

consumer electronics (Country Profile: Brazil, 2015). Not realizing high productivity would crush

OnePlus business hence not making the location-specific advantages extensive enough. Moreover

OnePlus is situated in a consumer electronic clusterxix (Shenzhen, china), the location-specific ad-

vantages: increased- productivity, opportunities for innovation and information flows are so extraordi-

nary strong that it wouldn’t make sense to transfer value-adding activities anywhere else.

4.3 Internalization: as mentioned in the ownership advantages OnePlus has a fully integrated value-

chain, allowing them to optimize their cost structure which couldn’t be accessible if deciding to contract

production out e.g. through licensing and/or franchise. They are then able to create synergies between

their most important capabilities (1) innovation, (2) operations, (3) marketing and (4) corporate func-

tions, as grasped in the ownership advantages. It would however make sense to sub-contract part of

the application development function to Brazilian developers, as this would allow for OnePlus to exploit

the tax exemption explained in 3.1, thus decreasing the cost of exporting (Apple among other

smartphone manufacturers have already taken use of this decreexx) – deepened in 4.5.

5. Entry strategy

Based on the OLI-framework and the Brazilian market analysis, a suggested entry strategy can be con-

ducted. 4.4 Time of Entry: If an entry is considered late or early is relevant because of the entry might occur be-

fore or after other international companies have engaged in a particular market (Hill, 2014, pp. 449-

451). In the case of OnePlus they must be considered late movers as several competitors have already

engaged in Brazil (Apple, HTC, Sony, Samsung etc. see appendix 1), though none of which has the same

price model. Thus suggests a late-mover entry and then avoiding pioneering costs that accompany the


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first-movers: positioning errors/ignorance of foreign environment cost of- educating customers and

marketing OnePlus is however better placed to incorporate the latest tech., reverse pioneers products

and beat them at cost. Reversely first-mover advantages allow for firms to establish a strong brand, ex-

ploit experience curve and location economies and create switching costs.

4.5 Suggested mode of Entry: in accordance with the OLI-analysis suggesting exporting as mode of en-

try due to strong ownership advantages, low location-specific advantages and importance having activi-

ties internalized. OnePlus having all its value-adding activities in Shenzhen can acquire experience curve

and location economies and at the same time avoid cost of establishment. While transportation costs

and tariffs diminish profits. Agents might not be in the best interest of OnePlus, although they can lev-

erage on OPPO’s ‘agent network’ in South America (OPPO Corp, n.d.).

4.5 Alternative mode of Entry: a non-equity strategic alliance consisting of contracting out parts of the

application development process would benefit OnePlus as of exploiting the tax exemption decree 3.1

making exporting more profitable as it suggests a cost reduction of up to 30%, while being able to lev-

erage on a shift towards more value-added solutions coming from Brazilian developersxxi; allowing for

complementary skill transfer. There might arise some issues as of giving away valuable information that

could hurt OnePlus and its brand – transaction costs might be respectively high in form of bounded ra-

tionality, opportunistic behavior and asset specificity – thus principal agent problems, cost of obtaining

information and inability to transfer OnePlus’ specific app technology become prominent. Partner selec-

tion is equally as important.

4.6 Scale of Entry: exporting advocates for small-scale entry as the strategic commitments bounded

with exporting have short-term impacts and are fairly easy to reverse, thus also allowing for OnePlus to

learn how to navigate in the Brazilian market. OnePlus also being a newly founded company faces great

liabilities that can hinder future growth, as a large-scale entry would have high strategic commitment

and major impact on future growth prospects. Thus a slow entry seems more appropriate. If market

conditions change the motivation for larger strategic commitments will appear.

4.7 Organization and strategy: To fully comprehend OnePlus’ organizational structure one can begin to

analyze the competitive nature, as Hill states that a firm has to have consistency in its strategy and or-

ganizational structure, equally it must match competitive conditions (Hill, 2015, p. 438). First, the

Smartphone industry is heavily competitive as displayed in appendix 1, meaning price being highly com-

petitive as well, hence requiring a strategy and structure able to cope. To facilitate mentioned OnePlus

offers a limited, standardized and centralized product portfolio that allows them to price as competitive

as can be. This is made possible by OnePlus’ unique business model that allows for reducing costs and

improving quality. As previously cited, OnePlus create products that transcend geography, customs and


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cultures thus diminishing the need for local responsiveness, suggesting that OnePlus pursue a Global

Standardization Strategy (Hill, 2015, p. 436). This strategy complements competitive pricing well, as the

need for radical customization is low thus appealing for mass-production. OnePlus is a single product

division company, meaning that it sells on line of products, smartphones, indicates a worldwide area

structure where decision-making powers are given according to location (Ibid.) – vice versa in a world-

wide division structure. To conclude, the suggested entry strategy won’t alter or counter the current

Global Standardization Strategy and worldwide are structure, thus being fully adoptable continuing as

currently.

Conclusion

Based on the conducted analysis, following actions (which have not been assessed/recommend previ-

ously) for OnePlus are advised if not deemed necessary considering the internationalization decision,

exporting: to reduce the risk of export OnePlus should hire an Export Management Company to identify

opportunities and navigate through regulations, which proved highly complex in Brazil. OnePlus should

also seek to develop good relationships with local distributors and customers to optimize their supply

chain, which correlates with OnePlus’ competitive advantage as supply chain optimization advance

profitability thus being of immense importance when trying to sustain a business model with close-to-

cost prices. It may be necessary for OnePlus to hire locals to establish a presence in the market, thus be-

ing proactive. Because trade implies different parties engaging in each other’s businesses across bor-

ders, the issue of trust becomes important. Flow of payments and goods from OnePlus directly to Brazil-

ian consumers spells implications in the form of each side being worried about receiving their assets.

Thus being a relevant issue in a country like Brazil, a semi-stable political economy. OnePlus would need

the use of a third party, handling its international transactions, adding an element of trust. Many inter-

national businesses, selling from an online store, have used PayPal e.g.as a third party consolidator,

thus encouraging OnePlus to do so as well.

To briefly conclude the overall essay, the external environment is predominantly emerging to-

wards a positive trend for OnePlus. The OLI-framework implied a favoring of exporting relative to FDI

and licensing. The recommended entry strategy showed adoptable into OnePlus’ strategy and organiza-

tional structure. All being highly interdependent.


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628445/

x Angel, 2014, #NeverSettle [online] available at: https://angel.co/oneplus

x Bnamericas, 2014, tax exempt for smartphones. [online] available at:

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effect

x Chinainternetwatch, 2014, smartphone offline market overview august 2014. [online] available at:

http://www.chinainternetwatch.com/10100/smartphone-offline-market-overview-august-2014/

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web.lib.cbs.dk/Portal/Pages/Statistics/Statistics.aspx

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x Jerome S. Engel, “Global Clusters of Innovation: Entrepreneurial Engines of Economic Growth around the world”, 1st ed.

USA, Edward Elgar publishing (EE). [online] available at:

https://books.google.dk/books?id=rgyZBAAAQBAJ&pg=PA323&lpg=PA323&dq=brazil+the+next+smartphone+cluster&sour

ce=bl&ots=CRJsh4-

Zfi&sig=RCrByFs2EeXdvdFkReAbZOkOX6g&hl=en&sa=X&ved=0CEIQ6AEwA2oVChMIs8aU6JK9yAIVx90sCh0__QWG#v=onep

age&q=brazil%20the%20next%20smartphone%20cluster&f=false

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OnePlus-a-wholly-owned-subsidiary-of-Oppo-Chinese-document-suggests-that-the-answer-is-yes_id55560

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oneplus-reaching-future-faster/

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https://ustr.gov/sites/default/files/files/reports/2015/NTE/2015%20NTE%20Brazil.pdf


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Reference list

For further explanation see bibliography

i https://angel.co/oneplus

ii http://www.phonearena.com/news/Is-OnePlus-a-wholly-owned-subsidiary-of-Oppo-Chinese-

document-suggests-that-the-answer-is-yes_id55560

iii http://www.chinainternetwatch.com/10100/smartphone-offline-market-overview-august-2014/

iv (Country Commercial Guide for U.S. Companies, 2015)

v Business environment: Euromonitor

vi https://ustr.gov/sites/default/files/files/reports/2015/NTE/2015%20NTE%20Brazil.pdf

vii Appendix (business environment: Brazil)

viii http://thebrazilbusiness.com/article/commercial-relations-brazil-and-china

ix http://www.ft.com/intl/cms/s/0/3185f656-1dfa-11e2-8e1d-00144feabdc0.html#axzz3oaCx7yAq

x http://www.x-rates.com/table/?from=CNY&amount=1

xi Brazil: country profile Euromonitor

xii Country profile: Brazil

xiii Business: country profile

xiv http://www.bloomberg.com/news/articles/2015-03-10/china-s-hottest-phone-maker-here-s-the-

upstart-chasing-xiaomi

xv TheTeardown: OnePlus One

xvi https://www.techinasia.com/talk/xiaomi-oneplus-reaching-future-faster/

xvii http://thenextweb.com/market-intelligence/2015/03/17/how-oneplus-ones-marketing-made-it-

the-most-desirable-phone-in-the-world/

xviii http://www.statista.com/statistics/226956/average-world-wages-in-purchasing-power-parity-

dollars/

xix https://www.techinasia.com/talk/xiaomi-oneplus-reaching-future-faster/

xx http://www.bnamericas.com/en/news/telecommunications/national-app-rules-for-tax-exempt-

smartphones-enter-into-effect

xxi Global Clusters of Innovation: Entrepreneurial Engines of Economic Growth around the world: page

322

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