Yes in one week once again the activity related to Google+ communities has come back. Today I would like inform all India related Google+ communities the strategy of Freedom 251 Smartphone. It started online bookings. The page reports say 30,000 phone were book at 251. So the revenue collected is Rs. 75,00,000. While there are protests and doubt, the company at least spelt some strategic ways in which it can supply these phones. One of the them is to operate a ECommerce Site that will fund the sale of these phones.
Strategy to Sell Freedom Smart Phone at Rs. 251
How will the company manage to sell it at that price?
Ringing Bell claims it will be able to achieve this feat through four strategies.
Rs 2,500, is present cost of the device.
One, the benefit excise duty cuts by assembling handsets domestically would be Rs 400 or 16 per cent of Rs 2,500.
However, they are expecting from the government, which is at 13.8 per cent or Rs 55 lower than Rs 400.
Two, as it starts manufacturing in huge quantities (at least 500,000 units a month), it would be able to cut costs by a further Rs 500 a unit.
Three, online sales will help it cut costs by another Rs 500.
Four, it will have a specialised online platform, and earn additional revenue which is going fund the sales of Freedom 251.