Case Study OnePlus: Crossing the Chasm in the Smartphone Market

OnePlus: Crossing the Chasm in the Smartphone Market
In February 2016, OnePlus co-founders Pete Lau and Carl Pei were considering how the firm
could build on its early success to become a mainstream player in the global smartphone market.
During the three years it had been operating, OnePlus had grown rapidly in the U.S., European,
and Indian markets. Its beautifully designed and aggressively priced phones had been embraced
by technology-savvy customers. The company now needed to broaden its appeal to mainstream
customers to grow and scale its business.
Lau and Pei knew that OnePlus faced a difficult task in finding a way to the mainstream
customer’s heart—and wallet. Specifically, they needed to address three challenges facing their
company: First, how could OnePlus sustain competitive differentiation as its advantage on price
and performance narrowed over time? Second, how could OnePlus “cross the chasm”1
 that
separated its technology-savvy early adopters from more mainstream customers? Third, how
could OnePlus transition from its social-media intensive “guerrilla” marketing strategy to a more
mainstream marketing strategy, given its limited financial resources? Forming a growth strategy
that met these three challenges would be essential for the continued success of OnePlus in the
brutally competitive smartphone market.

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