The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.
Kanika Manocha, MBA 2015-17, Vinod Gupta School of Management, IIT Kharagpur
Capturing the limelight globally, Ringing bells launched the cheapest smartphone in the world. With its jaw dropping price, it has disrupted India’s smart phone market. By creating an e-commerce marketplace, reductions in duties and flavouring on economies of scale, ringing bells based its cost cutting strategies on these factors. Grabbing the attention followed by heavy demand the question which came to my mind is- is it really an initiative for ‘Make in India’ and ‘Digital India’- An initiative devised to transform India into a global manufacturing hub.
To become an Economic powerhouse a country needs to strengthen its service quality and manufacturing sector. By producing a cheap phone overnight with millions of orders in its formative stage and technology breakdown on the first day of its launch, no country can gain the credibility and consumer confidence for a longer run. China followed a similar approach of being the cheapest producer of majority of goods which helped China in gaining success and being on top of the stack for few years. Today, China’s economy is slowing down due to its cheap products and low quality. As the device is not assembled in India, tagging it along the make in India mission is contradicting. As the government has clarified that the onus rests on the company and make in India Initiative does not back or support ‘FREEDOM 251’.
Surrounded by many allegations and controversies, millions of eyes are waiting on how they go about fulfilling the customer orders. Will the bells continue to ring? With its rock bottom pricing, let’s be hopeful that it meets the target and enthused get their smartphones.