case study of XiaoMi

* The fast shift of the mobile device industry and the fierce competition (especially from Samsung) may force a company out of business in a few years.

- The Threat of Substitutes is high, since mobile product-life cycles are short. For example, Motorola is currently

It is important to pay attention to those manufacturers that are working with android (Not only concentrate marketing activities in apple or RIM), because the potential growth of the Google’s brand could be an opportunity to grow in smart phones sales, increasing the market share.

The decision whether to take faster, more aggressive brand promotion approach to heighten brand awareness was closely tied to another issue; find ways to achieve greater economies of scale. In a HTC sponsored survey, it shows that 80% of the customers would like to buy phones for less than 200 dollars. HTC believe they don’t have the necessary scale to drive the cost reduction. This is because HTC lacked significant intellectual property right

Today, they are combining that pioneering spirit with Google’s vision and a renewed commitment to consumers. That’s why, the cell phones offered by them run on Android which is the world's most popular operating system. Android brings the openness that

“We always keep on pace with the demand of our end customers, delight them through continuing maintain a close relationship between manufacturing, ongoing Research and Development as well as working closely with supply chain and outsourcing partners, to provide cost-effective, high-quality Smart phone, wireless devices and software to our customers, internationally. Constant Training and Development program and strong culture practices are held to motivate the employees, also, to ensure infinite innovation and creation come out from them. Most importantly, offer attractive

In my research, I found and article that discussed the launch of Apple’s Iphone which was created in America, but manufactured in China. Instead of trading internationally, China has made a competitor product called Xiaomi. The Xiami is smartphone that is almost just like an Iphone with all

The approach to an internal analysis of the company is proposed in five steps. An analysis of the value proposition will allow us to better define the company’s offer that will be later compared with the business strategy adopted. In the following parts of this section a brief study of the marketing strategies and an analysis of the financial state of the company will give us the last insight to propose a swot analysis.

The third place belongs to the promotion of the product by their relatives and friends thus act as a variable in promotion factor in their buying decision. The Fourth, which is the physical appearance of the product, this variable is particularly prominent especially to the majority of the females as it drives them into the purchase of the product but not for males. Afterwards, the convenient purchase of Xiaomi through online is also important variable in the place factor but however is only important to males, females do not. Lastly, attributable to the quality of the product and durability of the product, though rated as an insignificant consideration but however acts product variables that exert little impact and attention on the consumer buying behavior.

China is the world’s largest mobile phone market. Due to the large size of the Chinese cell phone market and its potential for long-term continual growth, competition for access to China’s consumer markets is intense. For the first ten years after entering China, Motorola had no competition but now competitive threats from other multinational companies like Nokia, Siemens, Samsung, and local producers like TCL are a cause for concern within Motorola.

Business analysis tools are different techniques investors use to assess a company’s operations. In most cases, the purpose of the analysis is to determine how effective or efficient a company is in the overall market locally, nationally and globally. A scan of the internal and external environment is an important part of this strategic planning process. A few different tools are commonly used such as SWOT, PESTEL, Comparative and Porter’s Five Forces. Each one takes a different approach when reviewing the company’s financial and nonfinancial aspects.

Bargaining power of suppliers is very low because MediaTek produces the chipsets themselves and therefore they are the suppliers in the mobile phone industry. MediaTek is a very well established company, which means they are quite rare in regards to the supplier industry.

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.

Xiaomi has never believed in ‘old-fashioned’ advertising, shuns the concept of retail stores and decides to do all selling, online. This inevitably leads to a significant reduction in its cost price as “the price on e-commerce is essentially just fulfillment and shipping cost” (Kumar, 2014). E.g. while the average selling price for iPhones is very high, Xiaomi could offer its advanced smartphone at 30-60% lower from even other

It quickly became apparent that the best way to sell its firmware was to incorporate it into a smartphone. One year later it created the Mi One phone which was “a top spec phone with a great price way ahead of its time, this has remained Xiaomi’s philosophy from day one.” (Ahmad, 2014) The following year the MI-2 was launched on August 2012 with a revolutionary chip from Qualcomm called Snapdragon, which had unmatched performance at the time. “The device sold close to 10 million units within the first 11 months of its inception, thus allowing Xiaomi to gain a foothold in markets such as Australia, United States, Europe and New Zealand.” (Success Story) From there it began to constantly evolve its product line and make improvements from direct customer feedback, something that Lei Jun was adamant about incorporating into all of the designs.