The DJI business model can be described as Direct-to-Consumer (D2C), as it sells its manufactured drones directly to its customer through its own channels. Not so long ago, drones, at least the ones that are common nowadays, were seen as a curious hobby. Currently, this technological device has been used all over the world, in better, faster, smaller, safer, and cheaper versions. DJI (which stands for Da-Jiang Innovations) is the leader of the industry on the planet. The drone manufacturer is based in Shenzhen, the “Silicon Valley” of China, and encompasses approximately 70% of the drone market, which allows DJI to steadily innovate its production.
Contents
As with most startup stories, DJI’s history goes back to its founder’s university dorm room. Frank Wang started to develop his passion — which would later become his empire — in 2006, when he studied at the Hong Kong University of Science and Technology. After graduating, he moved the startup to Shenzhen, by investing his remaining scholarship money.
But his first commercial drone, Phantom 1, would be released only in 2013. With heavy investment in software and hardware components, an advanced GPS system, and the creation of its Lightbridge transmission system, DJI was able to deliver a faster, better, and even easier-to-fly product, when compared to its competitors. Its GPD system could finally determine the precise position of the drone in the air, giving the pilot more control.
And the Lightbridge technology would permit footage to be recorded at long distances, benefiting the photography and videography industries. The footage could be followed live, in HD quality, from a smartphone.
With the Phantom 2 series, DJI extended the range and battery life, avoiding so frequent landings. Later on, the Phantom 3 series would integrate GLONASS, the Russian version of GPS, enabling drones to connect to more satellites, improving position accuracy, and also introduced the DJI Go App, which provided access to the drone’s camera settings and flight controls.
Phantom 4, in its turn, introduced a new gimbal that supported the camera on both sides, ensuring more stability, providing vibration-free footage, and also an obstacle avoidance system, to make the drone stop or move around objects in its path. Besides the Phantom series, DJI also released Mavic Pro, a foldable and compact drone, that would become the most popular consumer drone in the world and, afterward, the smallest drone ever, the 300-gram Spark.
All over its history, DJI has released innovative drones, with better range, camera, battery life, flight performance, and pilot control. Its latest release was Mavic Air, a powerful, accessible consumer drone that would solidify its leading position as a dominant empire in the industry.
DJI is 100% owned by the iFlight Technology Company Limited and has the founder Wang Tao — better known as its occidental name, Frank Wong — as the CEO of the company.
To be a technology company that continues to promote human progress, a pioneer in the era of space intelligence, and to let the beauty of technology exceed imagination, since life without reflection and progress is not worth living.
First things first: Manufacturing drones is not a simple task. It actually demands deep knowledge and mastery over the production, which includes processes that require precision machining, and high-degree engineering and tooling. DJI was able to achieve a high level of quality while keeping low costs, especially due to the fact that the company has been able to find skilled labor and use the same technology platform both for consumer and enterprise solutions, resulting in cheaper and faster launching.
Besides that, it is important to highlight that DJI has indeed invented its own market. Because DJI developed every feature of its solutions: stabilization mechanisms, flight control systems, motors, cameras, software, etc. Industries that have never used drones — and maybe have never thought of doing it — found out they actually needed those brand-new solutions that they have not even known of.
Filmmaking, photography, anthropology, rescuing, military, real state, agriculture, and zoology, among others, are now able to check and/or register their focuses of attention remotely. DJI’s product range includes drones, cameras, camera stabilizers, gimbals, accessories, systems, and software. Its revenue comes from all the markets in the globe, distributed as 30% from Asia, 30% from the USA, 30% from Europe, and the last 10% from Latin America and Africa. In the early years, DJI saw its sales increase around 3 or 4 times every year. Its annual sales are estimated at $3 mi and its valuation is over $8 bi.
The DJI Business Model can be explained in the following business model canvas:
DJI’s customer segments consist of:
DJI’s value propositions consist of:
DJI’s channels consist of:
DJI’s customer relationships consist of:
DJI’s revenue streams consist of:
DJI’s key resources consist of:
DJI’s key activities consist of:
DJI’s key partners consist of:
DJI’s cost structure consists of:
Below, there is a detailed swot analysis of DJI:
Despite its weaknesses and possible threats, DJI has shown no signs of slowing down. On the contrary, with countries like India allowing commercial drone operations associated with DJI’s investments in UAV technology and camera gear, the tendency is for us to watch the evolution of drone technology and the consequent expansion of the leader’s presence in the world.
The Duolingo Business Model revolves around creating an interactive language-learning platform accessible to people worldwide.…
Johnson & Johnson, a pharmaceutical and consumer goods company established over a century ago, prides…
Caterpillar, a renowned global manufacturing company, has dominated the industry for decades. With its extensive…
Instacart, founded in 2012, has quickly become a leading online grocery delivery platform. It offers…
The Quora Business Model revolves around creating a platform where users can ask questions, share…
Who owns Dollar General? A prominent discount retailer, Dollar General is not owned by a…
This website uses cookies.