case study of XiaoMi
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 segment target positioning, establish very concise brand image with very user friendly UI system, high performance hardware and very efficient on-line selling channel. On the other hand, more and more powerful bargaining power from its suppliers, heavy dependency on single marketing channel (online) and difficulties in establishing technical differentiation are the major threat or weaknesses Xiaomi is facing.
Xiaomi has become a very successful smart phone producer and seller. It created a phenomenon in the market and now is the paradigm many market players try to copy. Therefore, to overcome its weaknesses and tackle the threats and to gain sustainable development of business, in the report, the following recommends have been discussed:
Enhancing Internal Control to Minimize the Risk of Customer Personal Data Leakage
Forming Alliance with Local Retail Operators/Distributors
Well Diversified Product Lines
Business development in oversea market
2. Company Overview
Xiaomi is a Chinese mobile phone company founded by Lei Jun in 2010. Mi phone was the first Smartphone Xiaomi Tech developed and launched to market in September 2011. The company also developed MIUI, a custom firmware for mobile phones, based on Android system.
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 segment target positioning, establish very concise brand image with very user friendly UI system, high performance hardware and very efficient on-line selling channel. On the other hand, more and more powerful bargaining power from its suppliers, heavy dependency on single marketing channel (online) and difficulties in establishing technical differentiation are the major threat or weaknesses Xiaomi is facing.
Xiaomi has become a very successful smart phone producer and seller. It created a phenomenon in the market and now is the paradigm many market players try to copy. Therefore, to overcome its weaknesses and tackle the threats and to gain sustainable development of business, in the report, the following recommends have been discussed:
Enhancing Internal Control to Minimize the Risk of Customer Personal Data Leakage
Forming Alliance with Local Retail Operators/Distributors
Well Diversified Product Lines
Business development in oversea market
2. Company Overview
Xiaomi is a Chinese mobile phone company founded by Lei Jun in 2010. Mi phone was the first Smartphone Xiaomi Tech developed and launched to market in September 2011. The company also developed MIUI, a custom firmware for mobile phones, based on Android system.