The Impact of Innovation on Competitiveness in Smartphone Industry in China

Smartphone is considered as a common trend in this globalization era. Everyone wishes to have his / her own smartphone as it is making everyone’s life easier. Today, there are four major domestic smartphone brands that dominate the smartphone segment in China, which are Huawei, Vivo, Oppo, and Xiaomi, in which Xiaomi smartphone founded by Lei Jun was ranked at the Top-25 in Beijing which accounted for 6.8 billion. This study strived to analyse the impact of innovation on the competitiveness among smartphone manufacturers in Chinese context. Grounded by Porter’s Five Forces Framework, this study had assessed the five primary factors, which are the bargaining power of buyers, bargaining power of suppliers, threat of new entrants, threat of substitutes, and rivalry among competitors.