RE Module Essay

2185 Words9 Pages
1.1 Explain strategic contexts and terminology – missions, visions, objectives, goals, core competencies with respect to Xiaomi Inc. (AC 1.1 : Explain strategic contexts and terminology – missions, visions, objectives, goals, core competencies)
Introduction:
XiaoMi is a smartphone company which is a rage in China: its Mi branded its handsets which sports a highly and customized in which the Android deployment (called MIUI), which are linked to a range of cloud services provided on top of the handset, as they have their own market (as opposed to Google’s play store), and have around 200,000 pieces of content, including customized themes (similar to Go Launcher). The MI2 handset is priced at RMB 1999. It is the most intuitive and usable
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As the company is seeing some very explosive growth coming in Xiaomi’s latest numbers, which come from its talkative CEO Lei Jun. Xiaomi sold 7.2 million smartphones in 2012, its first year of major sales, and was on track to sell more than 15 million units in 2013. A major component of the 2014 growth could come from international sales, with Xiaomi now negotiating a deal with one of the world’s top private cellphone distributors.

Xiaomi Inc. Core competencies:
Core competencies are the combination of pooled knowledge and technical capacities that allow a business to be competitive in the marketplace. Theoretically, a core competency should allow a company to expand into new end markets as well as provide a significant benefit to customers.

Earlier, Lei stated that Xiaomi’s core business approach does not lie in the sale of its smartphones (unlike Apple), since it subsidizes each phone sold. It has three core business competencies: e-Commerce i.e. the sale of goods on its website, deals with telecom operators, and the sale of “Internet services”, such as games.

1.2 Review the issues involved in strategic planning in Xiaomi Inc. (AC 1.2 : Review the issues involved in strategic planning)
Meaning of Strategic planning:
Strategic planning is a review and planning process that is undertaken to make thoughtful decisions about an organization’s future in order to ensure its success.
Strategic planning
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