Case Notes/Answers
ONEPLUS CROSSING THE CHASM IN THE SMARTPHONE
MARKET by Mohanbir Sawhne
Discussion Questions:
The following questions can be assigned to students to help them prepare for class discussion
of the case:
1. What factors contributed to the early success of OnePlus? To what extent will these factors
still be relevant as OnePlus seeks to transition to the mainstream market? Be sure to consider the
state of the smartphone market, culture, product, branding, and marketing strategy.
2. Analyze the customer segments and personas provided in Exhibit 8. Which persona(s) would you
focus on to expand the OnePlus customer base?
3. Given your choice of target persona, what approach to value proposition and positioning would
you recommend? What should “Never Settle” stand for in the future? Make sure to link the chosen
persona to the positioning strategy.
4. What mix of distribution channels and partners do you think OnePlus should use? Should it stay
online only or should it expand its reach through physical retailers?
5. Given the information in the case related to marketing communication and in Exhibit 11, create a
marketing communications plan for OnePlus. Assume you have a marketing budget of $5 million.
What should be the mix between traditional and digital channels? Which media channels would you
emphasize and how would you allocate resources across each of the different channels? Build an
allocation spreadsheet with assumptions and justifications.
6. How can OnePlus remain true to its roots while growing into a bigger global player? What aspects
of its brand and culture would you recommend that it retain and what should it change as it grows
and evolves?
, TEACHING NOTE
MOHANBIR SAWHNEY AND PALLAVI GOODMAN
OnePlus: Crossing the Chasm in
the Smartphone Market
Case Synopsis
In early 2016, after the success of its first two smartphones, the OnePlus One and OnePlus 2,
China-based startup smartphone maker OnePlus was deciding how to build on its early success
and grow into a global contender in the highly competitive smartphone market. Technology
enthusiasts and geeks had flocked to purchase the first two generations of its smartphones and
expectations were high for the company’s next product. The company’s founders, Pete Lau and
Carl Pei, faced the challenge of broadening the appeal of OnePlus to address the mainstream
market without alienating its core customer base.
“Crossing the chasm” from the early adopters to the mainstream market involved addressing
three interrelated questions: First, what segments should OnePlus target as it sought to grow
beyond its loyal fan base? Second, what value proposition and positioning strategy should it adopt
to appeal to these target customers? Finally, what distribution and marketing communications
strategy should it employ to make best use of its limited financial resources? A key consideration
in formulating its strategy was to stay true to the company’s culture and mission of “Never Settle”
by charting its own course and not emulating the strategies of much larger competitors like Apple,
Samsung, LG, and HTC.
Learning Objectives
After reading and analyzing the case, students will be able to:
, Teaching Note: OnePlus KEL982
• Understand the challenges that technology companies face in “crossing the chasm” from
early adopters to the mainstream market
• Understand the importance of coherence and consistency in a company’s choice of target
audience, value proposition, and go-to-market strategy
• Appreciate the strengths and limitations of using loyal fans and social media to build
awareness and sales for an innovative startup company
• Appreciate the importance of personalities and company culture in the evolution of a
founder-led company
Appropriate Uses
This case can be used in a first- or second-year MBA marketing course to illustrate the linkages
among targeting, positioning, marketing communication and distribution strategies. The case can
also be used in a product management or marketing strategy course to highlight the challenges of
growth and the technology adoption lifecycle concept. Finally, it can be used in entrepreneurship
courses to illustrate the importance of founders and their passion in creating a billion-dollar
startup company. This teaching note assumes that students have already learned the fundamentals
of value proposition design and how to write a positioning statement.
Supplementary Materials
For Instructors
The following might aid instructors in leading discussion of this case:
• “The Second Album: The Untold Story Behind the OnePlus 2 Launch,” posted by OnePlus,
June 3, 2016, https://www.youtube.com/watch?v=CHWYFGeqSqI.
Assignment Questions
The following questions can be assigned to students to help them prepare for class discussion
of the case:
1. What factors contributed to the early success of OnePlus? To what extent will these factors
still be relevant as OnePlus seeks to transition to the mainstream market? Be sure to
consider the state of the smartphone market, culture, product, branding, and marketing
strategy.
2. Analyze the customer segments and personas provided in Exhibit 8. Which persona(s)
would you focus on to expand the OnePlus customer base?
3. Given your choice of target persona, what approach to value proposition and positioning
would you recommend? What should “Never Settle” stand for in the future? Make sure to
link the chosen persona to the positioning strategy.
4. What mix of distribution channels and partners do you think OnePlus should use? Should
it stay online only or should it expand its reach through physical retailers?
2
ONEPLUS CROSSING THE CHASM IN THE SMARTPHONE
MARKET by Mohanbir Sawhne
Discussion Questions:
The following questions can be assigned to students to help them prepare for class discussion
of the case:
1. What factors contributed to the early success of OnePlus? To what extent will these factors
still be relevant as OnePlus seeks to transition to the mainstream market? Be sure to consider the
state of the smartphone market, culture, product, branding, and marketing strategy.
2. Analyze the customer segments and personas provided in Exhibit 8. Which persona(s) would you
focus on to expand the OnePlus customer base?
3. Given your choice of target persona, what approach to value proposition and positioning would
you recommend? What should “Never Settle” stand for in the future? Make sure to link the chosen
persona to the positioning strategy.
4. What mix of distribution channels and partners do you think OnePlus should use? Should it stay
online only or should it expand its reach through physical retailers?
5. Given the information in the case related to marketing communication and in Exhibit 11, create a
marketing communications plan for OnePlus. Assume you have a marketing budget of $5 million.
What should be the mix between traditional and digital channels? Which media channels would you
emphasize and how would you allocate resources across each of the different channels? Build an
allocation spreadsheet with assumptions and justifications.
6. How can OnePlus remain true to its roots while growing into a bigger global player? What aspects
of its brand and culture would you recommend that it retain and what should it change as it grows
and evolves?
, TEACHING NOTE
MOHANBIR SAWHNEY AND PALLAVI GOODMAN
OnePlus: Crossing the Chasm in
the Smartphone Market
Case Synopsis
In early 2016, after the success of its first two smartphones, the OnePlus One and OnePlus 2,
China-based startup smartphone maker OnePlus was deciding how to build on its early success
and grow into a global contender in the highly competitive smartphone market. Technology
enthusiasts and geeks had flocked to purchase the first two generations of its smartphones and
expectations were high for the company’s next product. The company’s founders, Pete Lau and
Carl Pei, faced the challenge of broadening the appeal of OnePlus to address the mainstream
market without alienating its core customer base.
“Crossing the chasm” from the early adopters to the mainstream market involved addressing
three interrelated questions: First, what segments should OnePlus target as it sought to grow
beyond its loyal fan base? Second, what value proposition and positioning strategy should it adopt
to appeal to these target customers? Finally, what distribution and marketing communications
strategy should it employ to make best use of its limited financial resources? A key consideration
in formulating its strategy was to stay true to the company’s culture and mission of “Never Settle”
by charting its own course and not emulating the strategies of much larger competitors like Apple,
Samsung, LG, and HTC.
Learning Objectives
After reading and analyzing the case, students will be able to:
, Teaching Note: OnePlus KEL982
• Understand the challenges that technology companies face in “crossing the chasm” from
early adopters to the mainstream market
• Understand the importance of coherence and consistency in a company’s choice of target
audience, value proposition, and go-to-market strategy
• Appreciate the strengths and limitations of using loyal fans and social media to build
awareness and sales for an innovative startup company
• Appreciate the importance of personalities and company culture in the evolution of a
founder-led company
Appropriate Uses
This case can be used in a first- or second-year MBA marketing course to illustrate the linkages
among targeting, positioning, marketing communication and distribution strategies. The case can
also be used in a product management or marketing strategy course to highlight the challenges of
growth and the technology adoption lifecycle concept. Finally, it can be used in entrepreneurship
courses to illustrate the importance of founders and their passion in creating a billion-dollar
startup company. This teaching note assumes that students have already learned the fundamentals
of value proposition design and how to write a positioning statement.
Supplementary Materials
For Instructors
The following might aid instructors in leading discussion of this case:
• “The Second Album: The Untold Story Behind the OnePlus 2 Launch,” posted by OnePlus,
June 3, 2016, https://www.youtube.com/watch?v=CHWYFGeqSqI.
Assignment Questions
The following questions can be assigned to students to help them prepare for class discussion
of the case:
1. What factors contributed to the early success of OnePlus? To what extent will these factors
still be relevant as OnePlus seeks to transition to the mainstream market? Be sure to
consider the state of the smartphone market, culture, product, branding, and marketing
strategy.
2. Analyze the customer segments and personas provided in Exhibit 8. Which persona(s)
would you focus on to expand the OnePlus customer base?
3. Given your choice of target persona, what approach to value proposition and positioning
would you recommend? What should “Never Settle” stand for in the future? Make sure to
link the chosen persona to the positioning strategy.
4. What mix of distribution channels and partners do you think OnePlus should use? Should
it stay online only or should it expand its reach through physical retailers?
2
