A supply chain model with a diversified product line, and a focus on R&D, are just a few of the critical factors in DJI’s success. The company also invests aggressively in R&D, with hundreds of engineers and thousands of employees managing the company’s R&D activities. The company executes a multi-channel business model, moving through B2C and B2B channels.
Supply chain model
The DJI Drone supply chain is part of a more extensive value system, including downstream and upstream companies. As a result, the managers at Da Jiang Innovations (DJI) need to consider the impact of their activities on the value chain. The value chain has two general categories: primary and supporting activities.
Drones can provide deliveries and enhance the capabilities of supply chains. The technology allows logistics managers to monitor routes and check for construction slowdowns and other obstacles that could impact delivery. This can help them quickly select alternative shipping routes. This will improve the supply chain’s efficiency. Furthermore, the company can use drones to reconfigure boxes and load trucks at outbound docks.
DJI drones have three factories in Shenzhen, China, just a short drive from its headquarters. This proximity helps the company develop prototypes and launch products quickly. The three factories are also located within easy reach of each other, making it easier for the company to test new products before they go into production.
Supply chain disruptions have impacted virtually all industries. The EU’s Brexit was a self-inflicted wound for the supply chain. Meanwhile, tighter border controls and COVID-19 have changed consumer buying habits in many countries. Supply chains have become increasingly clogged with bottlenecks, affecting virtually every industry. According to some economists, these problems will get worse before they improve.
The drone industry is increasing. The United States now accounts for over 15% of the global commercial drone market. China has subsidized drone crop spraying, which has helped the industry grow. It is now a significant industry in Southeast Asia.
Founded in 2006, DJI has experienced tremendous growth and success in the drone market. Its founder, Frank Wang, first developed his passion for UAV systems while studying at the Hong Kong University of Science and Technology. In 2007, he took his entrepreneurial vision to a different level and moved to Shenzhen, China, to establish his company. He then marketed his products to a niche market of UAV enthusiasts.
The company’s success is partly due to its partnerships with major technology companies. For example, DJI has worked with Apple, Sony, Frost and Sullivan, and others to develop drones. Furthermore, DJI has built its manufacturing facilities in Shenzhen, which gives it an advantage over its American competitors. Its nearby manufacturing facilities allow engineers to test new drone prototypes.
Aside from building unique aerial vehicles, DJI also offers software to operate them. It offers FlightHub Software Plans for as little as $99. It has strong relationships with the drone filmmaking community. Additionally, DJI maintains a strong presence on social media. However, its content is primarily company-generated and does not interact with customers on a personal level. DJI also leverages artificial intelligence to forecast consumer demand and streamline its processes.
As the market grows, DJI will continue to expand its business. The company is pursuing various new ventures, including professional camera gear and consumer drones. It has the potential to dominate the drone industry. DJI has also made significant investments in professional drone product lines. For instance, the company’s Inspire series focuses on film and television, while the Matrice series is geared toward commercial monitoring.
The company has made considerable investments in research and innovation. These investments have led to more consumer-friendly and commercially-focused Matrice 200 series drones. Meanwhile, its investment in innovation has prompted DJI to extend its drone technology beyond the consumer drone sector and into the realm of public safety, energy, and infrastructure. These improvements have helped DJI expand its dominance of the consumer UAV market.
DJI is one of the most successful drone companies in the world, and for a good reason. Its consumer-oriented drones have been prevalent, and they are now making much more expensive models for commercial use. Recently, DJI held an Airworks conference in San Francisco to engage commercial customers. According to Gartner, the drone market is projected to double by 2020.
While most drone companies are selling their products for thousands of dollars, DJI has managed to keep their prices down to a reasonable level. They can do this by investing heavily in research and development and consistently releasing the highest-quality products at lower prices.
The Phantom series, launched in 2013, was DJI’s breakthrough. At around $1,000, it was possible to shoot professional-grade, stabilized aerial video. It wasn’t the first drone to make such a claim, but DJI’s success in the drone market is the product of several savvy moves.
Other companies have tried to compete with DJI but were unsuccessful. Yuneec, a Chinese company focusing on the consumer electronics industry, had a selfie drone with a price range of $100-$130. Meanwhile, GoPro delayed its Karma drone’s release for two years, damaging its reputation.
DJI is investing heavily in the camera industry. The Ronin series, for example, was aimed at professional filmmakers and promoted gimbals and cameras as the critical components of its drones. This has led to DJI becoming a leader in the aerial imaging industry.
DJI is arguably the best-known commercial drone company, with an 80% market share in the consumer drone market. But Washington’s drone restrictions are reducing its market share. But other companies, including Chinese rival XAG, have started to catch up to DJI in the commercial drone market.
The DJI product line offers a wide variety of drones. DJI is known for its countless improvements and has considered consumers’ feedback. It also constantly updates its firmware and user interface. Many businesses fall short when it comes to customer satisfaction and experience. But DJI has set the bar for drones.
The company started by offering a DJI M200 series drone with a range of up to 7 km and 35 minutes of flight. It was also the first drone to come with a camera. This camera had a gimbal that would stabilize the camera and allow for smoother footage. The M200 series had an IP43 classification rating.
In addition to drones, DJI also manufactures gimbal equipment for professional filmmakers. Its first single-handed gimbal system was the Ronin-S. It also has a companion gimbal, the Ronin 2. The DJI Ronin-S is the perfect drone for shooting videos with a professional camera.
In 2013, DJI released the Phantom 4 series. This model brought the company to the mainstream and was an instant hit. Its three versions offered significant improvements to previous models. The Phantom 3 Standard drone had a redesigned integrated camera with 2.7K video at 30 frames per second and a 12-megapixel still camera. It also had a range of up to one kilometer and 20 minutes of flight.
The Mini lineup is also slated for an upgrade in 2022. The DJI Mini 3 will bring nice improvements while still being under 250 grams.
DJI has made a significant commitment to the commercial space. The company has partnered with Apple, Sony, and Frost and Sullivan. They also have manufacturing facilities in Shenzhen, China, which enables them to test prototypes in the same facilities as other companies. This way, they can provide more comprehensive solutions to their customers and reach a broader audience.
DJI also has an impressive supply chain model that enables them to design and produce drones much faster than its competitors. The Chinese government has been encouraging startups to develop drones, and DJI benefited from this by locating its manufacturing hub in Shenzhen. This provides DJI with access to various manufacturing resources and highly skilled talent. Furthermore, it can develop products and build partnerships faster than competitors.
The company also has an impressive track record of innovation. For example, the Phantom series introduced in 2013 was one of the first drones to feature professional-grade stabilized aerial video for less than $1,000. While this innovation alone has made DJI an industry leader, it is not enough to explain the company’s continued success.
Beyond consumer drones, DJI has also branched out into the professional drone market. While consumer drones remain largely user-friendly, their enterprise drones are built for professional use. These drones can perform tasks such as aerial monitoring, aerial surveying, and even rescue missions. The company has also invested significantly in professional drone products such as the Matrice series.
Drones are a huge market. By 2020, sales are predicted to be $11.2 billion worldwide. DJI has been aggressively cutting prices. A former competitor of 3DR has stopped making drones as a result. But despite the competition, it remains the market leader, controlling more than ninety percent of the consumer drone market.