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Pest Analysis Of Xiaomi

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• Below is Xiaomi’s external environment assessment using the following two analysis methodologies i.e. the PESTLE (Political, Economic, Social, Technology, Legal and Environment (PESTLE) Analysis; and Porter’s Five Forces Analysis. 2.1 PESTLE Analysis Using PESTLE, Xiaomi is cognizant of the following macroeconomic situations that will affect its business and appropriate measures have to be addressed accordingly in its business and marketing plans and strategies. • Political • Generally, Malaysia enjoys a stable political climate. Lately however, there are some negative political ramifications arising from high profile controversies regarding the RM2.8 billion political donation from the Saudi royals into the personal accounts of the Prime …show more content…

• Focused environmental issues include deforestation, wildlife protection, waste disposal, clean water, climate change, pollution etc. 2.2 Porter’s Five Forces Analysis • Upon analyzing and assessing its immediate surrounding mobile phone industry environment using Porter’s Five Forces Model, Xiaomi recognizes the following important factors to its business. • Rival Firms • There are quite a substantial number of mobile phone vendors in Malaysia and Xiaomi has been quite succesful with largest market share with about 18% of total, based on the top 10 most popular brands, followed closely by Samsung, the lesser known Oneplus, Asus and Lenovo (see Figure 1 below). • Competition amongst the vendors is very intense as the Malaysian market is rather small and fans of the make are usually young teenage people who are largely first time users of smartphones, who would move on to more expensive brands once they are . • Buyers (Customers) • With the pervasiveness of the Internet, bank customers are well informed about market information such as comparative offerings of other competing brands (including pricing, product features, free software, discounted accessories

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