Study on Competitiveness of Shanzhai Cell Phone Industry Based on Industrial Cluster Theory

The newly-emerged Shanzhai cell phones in recent years sell very well both in China and other developing countries. In this article we focus on the current situation of the development of the Shanzhai phones and a deep analysis of its industrial chain has been conducted. Based on the analysis of distribution and characteristics of the Shanzhai cell phones, we can judge that the Shanzhai mobile phones belong to the category of Industrial Cluster, therefore the traits of an Industrial Cluster could be employed to analyze the Shanzhai mobile phone industry. Based on a GEM model, the analysis proves that, the Shanzhai mobile phone industrial chain is domestically competitive, but not so well in markets. Hence we propose some suggestions.