Xiaomi's Strengths And Weaknesses At The Time Of The Case

SUPPLIERS-Huawei doesn’t have control over suppliers but suppliers have control over the success of a business because they are the one who supply materials to

Shanzhai (“Bandit”) Mobile Phone Companies: The Guerrilla Warfare of Product development and Supply Chain Management. By: John Rediehs, Malini Seelan, Rama Paidi 1 Table of Contents Introduction Page. 2 Case Analysis Page. 2 Suggestion/Implementations Page. 4 Conclusion Page. 5 References Page. 6 2 Introduction Shanzhai (“Bandit Cell Phone”) is shaping the entire thought process of development, marketing, and technology in the largest cell phone market in the world. A market that has long been dominated by the corporate players like Nokia, Samsung, and Sony now face a tenacious domestic threat defined by a grassroots culture spreading within China. Shanzhai companies as they are referred to in this case study have gained a steady market

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In today’s society the cell phone market is a huge competitive industry for cell phone companies. There have been studies that show that half the world has cell phone accounts. One attribute that defines the cell phone market is the idea of consumers is giving up their land line phones. This has caused a large influx of customers into the market for cell phones. As technology continues to advance, a variety of cell phones are developed and marketed to different areas across the nation. Cell phones are available for business and

Motorola, famous amongst mobile phones, and one of the top cellular phone companies in the world till late 1990, later it was captured by the company Nokia. While writing this case we have thrown light on the challenges and problems faced by Motorola around 2006-2007. One of the ideas incorporated in order to recapture the market in the year 2006 was to slash the prices of almost all the cell phones which impacted the returns of the company. Motorola did announce in the year 2007 that they will revive shortly and would have the market share back.

There was a time when people having Chinese mobile phones were dreaming about smartphones. But nowadays, Chinese mobiles are offering much better smartphone experience at much lesser cost than those expensive ones. Xiaomi is one of the brands that made this possible. While considering a Chinese phone, Xiaomi has became the first choice of many Indians.

Lenovo Group Ltd. (Lenovo) is a Chinese multinational technology corporation that founded in Beijing in 1984. Specifically, Lenovo is one of the top enterprises that produces and sells consumer electronics and computer hardware, with a focus on producing personal computer (PC). Currently, the headquarter of Lenovo is in Beijing, China, with a second headquarter that located in Morrisville, North Carolina, United States. As a multinational enterprise, Lenovo currently have operations in more than sixty countries and has its products sold almost all over the world.1 Becoming a multinational enterprise especially making it to the top of the industry is not an easy thing for any company due to numerous predictable and unforeseen challenges. However, Lenovo has successfully expanded its business and reached to the top. Therefore, the present paper aims to analyze Lenovo’s operational/managerial strategies and provide a better sense of what has Lenovo done for reaching to the current position in the global market.

Xiaomi has been facing the threat of new entrants. The market sizing and promising technology panorama has brought many competitors to try and grab market share in China. Other companies like Lenovo and HTC are also follow the same strategy as Xiaomi to make economical and productively designed phone models for entrants. And this is the one of the reason to become a threat for Xiaomi. The entry barrier is high, as new competitors would need to have more expense to build the necessary factory and infrastructure for development, but this is definitely viable for other well-known companies such as Lenovo and HTC. Xiaomi would need to

China is also scaling the technological arc in refined sectors such as mobile processor chips. It was absent in this sector where its competitors such as Qualcomm Inc. and Nvidia Corp. are a bit far. China 's Allwinner Technology Co. and Fuzhou Rockchip Electronics Co. are boosting their existence in the fast-developing market for chips that are utilized in low-end tablets and smartphones. The government of China has plans to expend about $5 billion to develop a fund for innovations in the microchip industry (Osawa, 2014). In terms of consumer products, very few Chinese varieties have become successful globally. Personal-computer Company Lenovo Group Ltd last year overhauled Hewlett-Packard Co. to be the

However, across all its international marketplaces, Apple offers standardized iPhone models. The company authentically patents the technological features used in iPhone. These Smartphone’s manufactured by the company are run through Apple’s own customized software, iOperating System (Apple Inc. “Financial Information”). iPhone is well known all over the market for its bigger screens, strong battery life and unique design. No other market rivals of the company can exactly imitate the internal and external features of iPhone. Product differentiation strategy helps to augment the brand value of Apple Inc. in the global forum. Consumers prefer to purchase iPhone because of its rare features and non-comparable applications. Apple provides its consumers the iPhone with premium quality in the technology market while is done by other competitors. So, Apple should maintain this to differentiate its self among its competitors. But the premium price strategy should be changed.

people’s life deeply. With the high technology, now the mobile phone not only can call friends and families but also can surf the Internet, do almost all what you want to do. In the past, Apple, Samsung, BlackBerry occupy a large part of mobile phone market, all the Chinese use the foreign mobile phones. Face this serious situation; few advanced Chinese try to set up Chinese brands of smartphones. Then, they just do it with their intelligence. The most famous of Chinese brands of smartphones are MI, Meizu, Huawei, and Lenovo.

Nonetheless, competition in this medium-/low-end market is actually quite high. Many local or even some international brands are now selling their smart phones for thousands of RMBs. Obviously Xiaomi has won a good debut through this pricing strategy.

In 2012 quarterly report, Samsung, known as the major player in mobile phone industry, stood as the fourth in world phone sales and its profit have smashed for the fourth quarter. Following this, the 2014 quarterly report still showed a decline in revenue and sales, as BBC News states that the net profit dropped to 23.4 trillion won, which is a 27% fall from 30.5trillion won in 2013. On the other hand, Samsung’s competitor Xiaomi marked itself as the top smartphone company of the year 2014 in China with a 12.5 percent market share, beating Samsung that had positioned itself the first in sales. Xiaomi put out low-mid range priced phone as a strategy with a fairly high quality specs and design for its price, threatening all other competitors.

Lenovo Group Limited is today the largest information technology enterprise in China and the third largest computer company in the world which is has an 8.6 per cent share of the PC market, after Hewlett-Packard at 15 per cent and Dell of the US at 16.8 per cent. During its first 20 years, Lenovo evolved from a small distributor of imported computers into China’s leading computer firm and in 2005, it purchased IBM’s division. Lenovo has been the market leader for seven consecutive years, commanding a 27 per cent share of the domestic PC market. It is also the market leader in the Asia Pacific region (excluding Japan), with a market share of 12.6 per cent.

Established in 1988, Huawei Technologies is a high-tech enterprise which specializes in research and development (R&D), production and marketing of communications equipment, providing customized network solutions for telecom carriers in optical, fixed, mobile and data communications networks (Chinese Embassy, 2017). As of 2016, Huawei boasts of 180,000 employees, which includes upward of 50,000 foreign employees. Huawei currently stands at number 83 on the Fortune 500 Forbes list as it continues its meteoritic rise as a global company.