ECONOMIC analysis

DJI:THE RISE
OF THE DRONE
GIANTS
Cui Zhen I52003
K e y i Wa n g I 5 2 0 2 3
 CONTENT

De fine Th e Ma rket

In trodu ction o f D JI

H ow to De t e r m i n e D J I I s a M o no p o lis t?

Wh y DJ I Won The M ark et a nd B e c om e M ono polis t

Po ten ti al Compet itors an d DJI 's R e spo nse

DEFINE THE DRONE MARKET
• Classification of drones

• Global Drone Market Size

Civilian drones are expected to continue the high growth trend. The global civilian drone market size
is expected to grow to $59.39 billion by 2024, with a five-year CAGR of 32.31% from 2015 to 2019
(Frost & Sullivan.)
More than 80% of DJI’s sales comes form overseas
(YANG YANG, DJI SEEKS NEW ROUND OF FINANCING WITH COMPANY VALUE OF $15B, 《中国日报》 , 2018, 03, 21.)
ABOUT DJI
FROM A "WAREHOUSE WORKSHOP" TO A SUPER
"UNICORN"

• ENTREPRENEURIAL SPIRIT

• JUMPING OUT OF THE TRADITIONAL

PATH OF INTERNATIONALIZATION

• NETWORK WORD-OF-MOUTH
MARKETING
THE FOUNDER OF DJI: TAO
• Independent research and development WANG
system
 DEVELOPMENT HISTORY
2006 2012 2015 2017

Founded Seize the Start of transformation Achievements

DJI launched its most iconic In June, DJI was named to the MIT
Tao Wang founded DJI opportunity
product, the Phantom. Opened
Began to venture into the
Technology Review's annual list of the
with two classmates field of industrial-grade
and soon moved to up the civilian market and drones world's 50 smartest companies, and on
Shenzhen seized the opportunity to November 8 DJI was selected as one
overtake the drone industry. of the top 30 business cases in China.
HOW TO DETERMINE THAT DJI IS A MONOPOLIST?
Based on China's 《 anti-monopoly law 》
If an operator occupies a share of 1/2 of the market
means a certain market dominance, it can be determined that the
operator has a market dominance.

DJI's annual sales （ Unit: 100,000 US dollars ）

Resource: Drone Industry Insights,2021; AP Analysis,2021

Why DJI WON the market and became monopolist?

1, Government-granted monopoly ❌

2, Monopolies of resources ❌

3, Natural monopoly ❌
Why DJI WON the market and became monopolist?
From The Name :Dajiang Innovation

As of November 2021, DJI has

applied for more than 18,022
patents in total, including more
than 5,000 PCT international
applications, and has been among
the top 10 domestic PCT patent
applicants for five consecutive
years. Covering 65 countries and
regions, in the drone market,
more than 1,800 patents have
been granted in the U.S., EU,
Japan and other countries and
regions.
Why DJI WON the market and became monopolist?
• GPS systems

• Lightbridge transmission system

• Equip with stabilized 3-Axis gimbal system

• Self-diagnosing software

• Longer mileage and battery life

• Obstacle avoidance system

DJI focused on combining both design and technology to create

advanced, high-quality, and user-friendly products.
Potential competitors and DJI's Response
Existing competitors:

Focus on: Entry Level product/not that

professional
 Potential competitors and DJI's Response
Future competitors:

Traditional camera manufacturers:

Sony, Canon, and Nikon...

Focus on: Flagship product/ more

Sony Airpeak S1 (9000$)
professional
 Potential competitors and DJI's Response
For entry level market, they released more entry-level
products.
• Better after-sales service
• Newbie friendly features
• lighter weight: allow it to bypass drone FAA registration
regulations

For flagship market, they made progress in image quality,

optical quality.
• DJI acquires majority stake in Hasselblad, and get the
advantage in camera, lens, image quality, optical technology
.
Thanks
For Your
Attention
!