Case Study of Xiaomi

4934 Words May 21st, 2014 20 Pages
1. Executive Summary

The report was conducted to analyze from marketing strategies perspective why Xiaomi has made such a big success in smart phone business since it was founded in 201, and to make some recommendations for its further success.

The methods used in the report include external analysis (customer analysis, competitor analysis, market analysis and environmental analysis), internal analysis (performance analysis and determinants of strategic options) and analysis of strategic outputs. In addition, a survey which can be found in Appendix part was conducted in a focus group to help on the analysis.

The results from the analysis tell that Xiaomi has attracted a large number of very loyal customers by very accurate
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Xiaomi sells most smartphones online, in limited quantities and by batch to batch. Pursuant to the founder of Xiaomi, Lei Jun, the company is focusing on long-term moneymaking potential among Mi owners who watch, shop and surf on their handsets, in other words, they focus on the future Internet business, not Mi sales . The company is currently valuated at over USD10 billion and has over 3,000 employees . “Just for fans” is the slogan of Xiaomi as every step of the way is led by Xiaomi’s hardcore fans . Xiaomi constantly refine and enhance what makes the best user experience possible . Our action learning project will focus on Xiaomi Phones - a high quality and performance Android devices.

3. Strategic Analysis - Internal Analysis

3.1 Determinants of Strategic Options
Strategic Strengths:
3.1.1 Innovative Target Customers
Instead of focusing on the mass smartphone customers, Xiaomi choose to target on those users that are fanatical about mobile devices, tend to be opinion leaders and like to suggest to their friends. Like Xiaomi’s co-founder and president, Bin Lin said “Those users like the software, they like the experience, they like how they get onto the internet and browse the web, how they download the APKs…”6 With good hardware and software, as well as customer-focused services, Xiaomi has successfully built up a group of loyal fans. Xiaomi provides a platform to interact with these loyal fans every week, embraced their user feedbacks and upgrade

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