Farid Jafarli

Strategic Management

Short Paper 1

Meizu Trademarks “MEIZU Watch” and “Flyme For Watch” for Its Upcoming Wearable

According to the news of “gizmochina.com”, Meizu Technology Co., Ltd, a famous Chinese
consumer electronics company, targets to release 2 watch-related trademarks “MEIZU Watch”
and “Flyme for Watch” in order to capture more market share in Smartwatch industry. Basically,
while “MEIZU Watch” is trademarked as a good, “Flyme for Watch” will stand responsible as its
system. Even though this is not first wearable product (Meizu Smart Watch Mix), this differs
from “Meizu Smart Watch Mix” in several factors such as design, system and target audience. It
seems that Meizu has been possessed those resources and capabilities which first movers have
already got. Otherwise, the company would not compete for a competitive parity in the market.
I am personally of the opinion that Meizu will be able to temporarily get some certain amount
of profit with producing “MEIZU Watch” rather than sustainable profitability. The paper stresses
on supporting my view with highlighting strengths as well as explaining them and analyzing with
framework of “VRIO”. With analyzing the strengths that can put Meizu in a competitive
advantage in front of its competitors, cost of producing comes to the mind first. Because all
needed inputs in order to produce the good are cheaper in China than other most countries, it
puts China to competitive advantage against its global competitors. In addition, Meizu has the
easy access to its suppliers who are able to provide with more quality inputs while prices stay
same with other suppliers who produce in a poor quality. Also, high level of economies of scale
helps the company to possess those inputs in diminished costs due to more units. So,
manufacturing will be cost-friendly to Meizu. Another strength is brand image that while there
are full of local competing products of Xiaomi, the main competitor, for upcoming smartwatch
of MEIZU Watch such as “Little Genius”, “Mitu” and “Amazfit”, Meizu is well-known with its
products of smartphones in global arena thanks to their qualities and features as well as
affordable prices. This will ease the sales of the product in the market. In order to support the
opinion, it needs to be analyzed from framework of VRIO.

1. The question of Value – I hold the view that thanks to resources and capabilities which
were mentioned some of them above, the company seems to have an increase in net
revenue which is one of best indicators to find an answer to the question of value.
2. The question of Rarity – even though there are lots of giant competitors in globe, only
few companies still have been able to possess those resources and capabilities.
Moreover, the system of “Flyme for Watch” can provide its users with some rare
specifications that support the rarity of the smartwatch. As a result, the product can be
considered as rare.
 3. The question of Imitability – from my point of view, because of the fact that numbers of
smartwatch manufacturers are rising day-by-day, thereby, drives the direct duplication
easy for others who plan about entry to the market. In addition, there are some
substitution products such as series of MI Band which is a smart bracelet. To conclude,
the company is expected to have a temporary competitive advantage rather than
sustainable one.
4. The question of Organization – with looking up the formal reporting structure, its formal
and informal management control systems and its compensation policies, it can be
stated that the company have complementary resources and capabilities.

Taking everything into consideration, it seems beneficial to release the product due to capture
temporary advantage in the market with trusting advantages on cost of producing and brand
image. Otherwise, the product will not be able to provide Meizu with a sustainable advantage
because of easy imitability.

The website link of news - https://www.gizmochina.com/2020/09/08/meizu-trademarks-meizu-

watch-flyme-for-watch/