Accounting Cost Systems and Cost Behavior: Analysis of Oppo's Installment Payment Product Strategy
Overview
This paper analyzes Oppo's proposed installment payment plan for smartphone purchases, examining the company's background as a leading global smartphone manufacturer and the product concept designed to increase market accessibility. The paper describes Oppo's strategy to allow customers to purchase devices through twelve-month interest-free installments, targeting low-income earners globally while maintaining cost control and revenue optimization.
What this coursework covers
- Product Background: Overview of Oppo's establishment in 2004, market position surpassing Samsung, global expansion to 50+ countries with 200,000 retail outlets and 40,000 employees
- Product Idea: Introduction of installment payment system requiring no interest, enabling customers to purchase smartphones in twelve monthly payments
- Product Description: Customer qualification requirements, registration process with bank account verification, software integration for payment enforcement, warranty coverage, and minimum income threshold of $15 monthly
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Accounting Cost Systems and Cost Behavior
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Accounting Cost Systems and Cost Behavior
Product Background
Oppo is a Chinese corporation established in 2004, the leading smartphone maker that surpassed Samsung in 2016. It was initially registered in China in 2001 and officially launched in 2004. Currently, the company is the leading smartphone brand in China and the top 5 brand globally. Since its launch, it has expanded to over 50 countries globally, with more than 200,000 retail outlets (Wang, 2019). The company has risen to be among the best-renowned smartphone manufacturers globally. It has more than 40,000 workers who strive to produce the best products and experience for their customers. As the company continues to grow globally, the goal is to introduce products and services that meet the needs of customers. There is a need to create proper incentives that allow clients to own smart devices without spending heavily. In this regard, the idea described below outlines these approaches and how Oppo can optimize on this to continue dominating the market. With the 40,000 workers, the company is creating proper measures to create products and services that meet the customers expectations.
Product Idea
With an increase in technological innovation around the globe, it has become necessary for the company to introduce new smart devices that customers can buy and pay in installments. The payment plan is for the customers to register and pay for the smartphones in twelve months installments at no interest rates.