Development of Chinese Cell Phone Brands in the Pacific Alliance Countries

Abstract

This exploratory research paper describes how Chinese mobile phone brands have developed in the countries that make up the Pacific Alliance (Chile, Colombia, Mexico, and Peru). The methodology used to gather information was mainly secondary sources, drawing on academic works, articles, reports, and sector studies. The research is structured in three parts: the first part is an introductory section that presents the evolution of Chinese brands and their need to enter foreign markets. The second part presents demographic and economic data on the four countries studied and the penetration of Chinese investment in the telecommunications industry. Finally, the third part develops case studies on the modes of entry (organic, inorganic, and born global) adopted by Chinese mobile phone brands. The research concludes by pointing out that Chinese telecommunications companies, and technology companies in general, have followed different development strategies to enter the countries that make up the Pacific Alliance, as well as Latin America and the Caribbean. Some of these companies have diversified their product offerings to gain market share and compete with other brands in the markets they are prospecting. To this end, they have considered the following key factors: search for and development of new markets, political and regulatory factors, investment and technological innovation, local distribution networks, use of digital media, development of differentiating products, and competitive pricing.