Xiaomi is the third largest smartphone brand in the top 30 cities in India. E xperts say for multinationals to succeed in India the key is learning to do business the Indian way, rather than dumping global business models and practices on the local market. With a market share of 8.
Making its way to the top three brands within two years of operations in India, it appears to have played the price card to perfection. Not long ago, Micromax and Intex disrupted the market with smart pricing. They offered high-end smartphones at affordable prices, posing serious challenges to established brands like Apple and Samsung. And will it be able to sustain the growth momentum in the long run and take a serious shot at the numero uno position?
For Xiaomi, globally as well as in India, the business pitch revolves around a strong belief that high-end technology should not cost a fortune and be available to all.
For instance, increased capacity of battery in Xiaomi devices is attracting users in huge numbers as they want longer battery life. To begin with, it offers its own operating system OS MI - which reportedly has more features than others. Xiaomi started off as an OS developer and as the platform became popular it got into manufacturing smartphones.
It passes on this cost advantage to end buyers by offering high-end yet affordable phones. It does indulge in advertising but in an innovative way. It leverages social media and word of mouth to build brand image. For instance, prior to launching Redmi Note 3 in March this year, the company started an explorer programme.
It chose Mi fans who were most active on the Mi community one month before the launch and handed out Redmi Note 3 as a beta-testing device. The content that the users generated on social media helped the brand attract more thanengagements.
A business-to-customer model helps Xiaomi cut costs by bypassing the traditional distribution model including stakeholders like master, regional, micro distributor and retailer.
Many brands end up losing from five to 20 per cent margin as they follow the traditional retail model. Xiaomi also manufactures its devices locally. It helps save costs because of a friendly tax structure that the company enjoys vis-a-vis imports. In terms of cost, local sourcing reduces the lead time in getting the products quickly to the market in comparison to imports from China which require advance planning of two to three months. The working capital which is stuck in the system is lower when one is manufacturing locally as against imports.
For instance, Redmi 2 and Redmi Prime launched in but continue to sell as they remain competitive devices in terms of features and price.
Xiaomi Case Study
The prices also go down, but not in the same ratio. What this implies is that competitive brands are playing catch-up with Xiaomi which leads the market by bringing cutting-edge products to buyers. Interestingly, unlike other brands which launch about 30 to 40 models per year, Xiaomi rolls out only four models. Xiaomi is playing the volumes game. The lower segment of smartphones in the sub-Rs 10, category is its biggest market.
Redmi Note clocked sales of about 1. Jain admits a section of the population would always consider buying a device that they can flaunt. Jain asserts that the growth potential which the Indian smartphone market offers is big enough for everyone to co-exist. But as India becomes more digital, more and more people will read reviews, blogs and compare brands. And people will discover that Xiaomi will easily beat any established brand on specifications and price points, he says. A game of innovation: N Chandramouli.
Therefore, volume is the only metric on which they can hedge their bet. The brand is packing a punch in the sub-Rs 10, category, the largest selling smartphone segment. This target audience will continue to grow and offer brands like Xiaomi an opportunity to expand. Xiaomi is treading on thin ice.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 inand 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 analysisinternal analysis performance analysis and determinants of strategic options and analysis of strategic. On the other hand, some previous study shows there are different ways that economic risks can affect investment decisions through different ways.
For instance, exchange rate risk, inflation risk and currency risk are all affect FDI organisation very much Resmini Start with the exchange. The data collection methods have two and can be categorized into qualitative and quantitative methods. Qualitative method provides data in the form of words or perhaps visually, while quantitative method generates numerical data.
Qualitative research embraces the collection and studied use of a various empirical materials such as interview, life story, personal experience and case study.
Thus, as our group is conducting interview, the. Introduction It is common practice to implement a low pricing strategy in order to gain a competitive advantage. Companies like Samsung and Xiaomi, both smartphone manufacturers, offer similar features in their smartphones but the prices of their products vary significantly.
Most consumers might opt for the Samsung smartphone over Xiaomi due to the brand value. Higher brand value. Introduction 2. Industry Analysis Porters 5 Forces 6. Performance Management 7. References 1. The venture will be focused on sharing technologies. But I think the low price is an aspect of success, but not the whole. Xiaomi was established.Xiaomi is a mobile Internet company that focuses on independent research and development of high-end smartphones.
Three years after being founded, Xiaomi now has more than Xiaomi knew that in order to succeed in the competitive smartphone industry, the company needed to differentiate itself in two ways: by providing content services for its users and building a sustainable, global business. According to Yongbin Li, IT Infrastructure Manager at Xiaomi, content services have become an important driver for consumer satisfaction, along with excellence in product design, hardware configuration, and pricing.
Launching an app store became a top priority for the company. Inthe smartphone provider launched a global business plan to introduce Xiaomi mobile devices to a worldwide audience. Xiaomi wanted to deliver fast download speeds for customers and build a reliable infrastructure that would allow the company to scale up quickly as it grew.
To do that, Xiaomi began evaluating cloud computing providers. To run its app store, Xiaomi deploys a Linux-based virtual server machine on Amazon Elastic Compute Cloud Amazon EC2 that provides the company with the flexible computing resources it needs.
AWS also provides Xiaomi with a simple and user-friendly web interface for configuration and management. The company achieves reliable data storage, access, and search by storing smartphone app resource packages, configuration files, and related content in Amazon Simple Storage Service Amazon S3. Xiaomi also uses Amazon CloudFront to reduce latency and deliver content quickly. Five months after the app store launched, Xiaomi exceeded million user downloads.Mi Part 4: @Xiaomi Vs BBK Electronics 🔥- 4 अलग Brands @Xiaomi India के ? 😮- Mi Vs Oppo Vs Vivo...
By using the AWS Cloud, Xiaomi has been able to satisfy the download speed that global users require and quickly launch a new online business. The mature services provided by AWS enable us to save time on deployment and testing, and helped us launch the app download center very quickly. Running on the AWS Cloud also allowed Xiaomi to launch its app download center without a large upfront capital investment. Amazon Elastic Compute Cloud Amazon EC2 is a web service that provides secure, resizable compute capacity in the cloud.
It is designed to make web-scale cloud computing easier for developers. Amazon CloudFront is a fast content delivery network CDN service that securely delivers data, videos, applications, and APIs to customers globally with low latency, high transfer speeds, all within a developer-friendly environment. Amazon Simple Storage Service Amazon S3 is an object storage service that offers industry-leading scalability, data availability, security, and performance.
Companies of all sizes across all industries are transforming their businesses every day using AWS. Contact our experts and start your own AWS Cloud journey today. Xiaomi Case Study With AWS, we were able to cut our capital expenditure to zero. The Challenge Xiaomi knew that in order to succeed in the competitive smartphone industry, the company needed to differentiate itself in two ways: by providing content services for its users and building a sustainable, global business.
About Xiaomi Xiaomi is a mobile Internet company that focuses on independent research and development of high-end smartphones. Benefits of AWS Supported million user downloads Increased download speeds by 30 percent Rapidly deploys computing resources Reduced capital expenditure to zero. Amazon CloudFront Amazon CloudFront is a fast content delivery network CDN service that securely delivers data, videos, applications, and APIs to customers globally with low latency, high transfer speeds, all within a developer-friendly environment.Xiaomi, the Chinese smartphone company founded inhad quickly become an industry leader in the Chinese market.
By it had started to expand internationally, and this case lays out the company's globalization strategies and challenges moving forward. Hugo Barra, a top Android executive, had left Google a few years earlier to lead Xiaomi's international growth. Xiaomi's founder and CEO, Lei Jun, said the company's ultimate goal was "making good but cheap things," a low pricing strategy that had succeeded in China. The company sold over 70 million mobile phones in while aggressively building out a robust ecosystem.
However, Xiaomi had expected to sell 80 to million units that year; it was facing a declining domestic market and increased competition.
Xiaomi Case Study
Therefore, international expansion had become an important part of the company's overall strategy. But expanding to other countries would be a challenging road.
For one, it would take considerable time and effort to tailor the company's Android-based MIUI operating system for diversified markets-and obtain market-access qualifications.
Xiaomi's patent portfolio was thin compared to those of large competitors, and it ran the risk of lawsuits from companies that held patent rights in the countries it wanted to enter. Other challenges included building out sales channels, output capacity, and cross-culture management development.
Xiaomi's international plan included ten countries in Asia, Europe, and Latin America. The next year or two would be critical for Xiaomi-and it needed to make the right strategic decisions to succeed in its globalization efforts. Even before you start reading a business case study just make sure that you have brushed up the Harvard Business Review HBR fundamentals on the Global Business.
Brushing up HBR fundamentals will provide a strong base for investigative reading. Often readers scan through the business case study without having a clear map in mind. This leads to unstructured learning process resulting in missed details and at worse wrong conclusions. Reading up the HBR fundamentals helps in sketching out business case study analysis and solution roadmap even before you start reading the case study.
It also provides starting ideas as fundamentals often provide insight into some of the aspects that may not be covered in the business case study itself. To write an emphatic case study analysis and provide pragmatic and actionable solutions, you must have a strong grasps of the facts and the central problem of the HBR case study.
Begin slowly - underline the details and sketch out the business case study description map. In some cases you will able to find the central problem in the beginning itself while in others it may be in the end in form of questions. Business case study paragraph by paragraph mapping will help you in organizing the information correctly and provide a clear guide to go back to the case study if you need further information.
My case study strategy involves. Once you are comfortable with the details and objective of the business case study proceed forward to put some details into the analysis template. You can do business case study analysis by following Fern Fort University step by step instructions. Once you finished the case analysis, time line of the events and other critical details. Focus on the following.
In our live classes we often come across business managers who pinpoint one problem in the case and build a case study analysis and solution around that singular point. Business environments are often complex and require holistic solutions.
You should try to understand not only the organization but also the industry which the business operates in. Porter Five Forces is a strategic analysis tool that will help you in understanding the relative powers of the key players in the business case study and what sort of pragmatic and actionable case study solution is viable in the light of given facts.To browse Academia. Skip to main content.
Log In Sign Up. Srinivas Publication. Safiyah Hanson Mrimou. Analysis of Business Strategies of Xiaomi. Type of Review: Peer Reviewed. Disclaimer: The scholarly papers as reviewed and published by the Srinivas Publications S. The S. Safiya H. The company has really challenged the brick and mortar model and sell online, thereby cutting down the intermediaries and keeping the costs down for the company.
The company sells smartphones almost on the cost price. The profit margin is very thin, and the company believes that they will make money by selling accessories and other complementary things. The problem which ascends now is that how Xiaomi would be able to adjust to the increased competition from other players like Huawei and ZUK from Lenovo who have imitated the same model.
The second issue which has come to time light is that would this business model be sustainable over the long period. The third issue is how the company would react to the decline in the smartphone sales in China which has been one the main driving forces responsible for companies growth.
Industry Analysis is a tool that facilitates a company's of its position relative to the companies that provides alike Services or Products. After identifying the problem, analyze and reduce the problem. A good Paper includes all such elements. Xiaomi has a vision of becoming a global company with a focus on creating user experiences from all aspects and has the mission of designing, developing, selling smart phones, cellular and electronic applications.
Xiaomi's initial goal is to provide additional functionality that has not been offered on ordinary Android and provide an easy-to-use user interface. The goal developed according to the company's vision and mission so that inXiaomi decided to enter the mobile market, not just limited to making software.
Xiaomi Marketing Strategy: hunger marketing in action
The first product was named the Mi One, a high spec phone in its time but it was tilted. Xiaomi seems to have been consistent with the formula from the start. The goal of Xiaomi is Xiaomi fans and users who want high-quality products with slanted prices so Xiaomi makes smartphones that are expected to keep up with technological developments for the next 18 months.
In addition, Xiaomi also sells other smartphone accessories power banks, earphones, etc. For the long term, Xiaomi sees that hardware sales are only meaningful as an intermediary tool for users to be able to feel the software and services . Like Xiaomi's own slogan, namely: "We are a company that is more focused on the internet and software than just a hardware sales company.To browse Academia.
Skip to main content. Log In Sign Up. Jinkyung Kim. Compare the automobile consumers between developed and emerging markets. The automobile industry has been steadily expanding all around the world. Even a poor rural area has at least an automobile, showing that the automobile have become necessary goods. As the market expands, the automobile companies should well acknowledge the difference between the automobile consumers of developed and emerging markets in order to survive.
First, consumers of emerging market are characterized by its large numbers, such as Brazil, China and India. Fast emergence of middle class consumers also shows that the number will keep grow, whereas the automobile consumers in developed markets are already stabilized. That is why there are many first time buyers in emerging companies, and the automobile companies want to be their first car brand. In addition, the consumers in developed markets are exposed to many multinational corporates compared to those in emerging markets.
This implies the intensity of competition is relatively high in developed markets and therefore the consumers in developed countries are more exposed to more information, which leads to a strong brand preference. Although a strong brand preference clearly exists for a highly educated group in emerging markets, the majority is less likely to have it.
Moreover, the purpose of purchasing automobiles differs between consumers in developed and emerging markets. What are the characteristics of Indian automobile consumers? What business implications do those characteristics bring to automobile companies in India?
Like the automobile consumers in emerging markets, Indian automobile consumers also share common characteristics. The number of Indian automobile consumers keeps growing, which means the market gets bigger and the automobile companies in India should be prepared for the growth. For example, it is important to divide the market into several segments and apply appropriate strategies for each segment. Indian automobile consumers are largely divided into low-income, mid-income and high- income classes.
The low-income consumers give emphasis on price, discount and promotion, whereas the high-income class put more emphasis on quality and brand image. Due to heavy rain and poor road condition, Indian automobile consumers would like to have better after service of their cars.
Moreover, Indian automobile market has relatively higher number of first time buyers and their repurchasing period is longer, compared to the consumers in developed markets. Major buying motivations include commuting to work and fulfilling general family needs. Also, they usually collect information about automobiles from family members and friends and this shows that a recommendation word of mouth from family and friends is very important. This implies that automobile companies in India need to have an effective way of interacting with consumers in person, on SNS and internet.
Lastly, reflecting the culture and road conditions in India, Indian drivers enjoy short distance driving and average speed is comparably lower. And most of Indian consumers get a loan to make a purchase for automobiles. These characteristics imply that automobile companies in India should deeply understand the Indian culture and consumer preference when they manufacture and promote their products.
The companies also need to prepare the effective installment plans and well established loan system for automobile purchases of Indian consumers. Discuss the several success factors of HMI? There were two big obstacles to overcome for Hyundai when entering in the Indian market. First competitors as Maruti dominated the market and second Indians are very brand loyal. Hyundai Motors recognized that challenges at an early stage and tailored their market entry to the needs of the Indians.
Firstly they came up with a car placed in the booming mini-car segment, which was less expensive than the competition. Due to their mega dealer system they could maintain a profitable margin although the price was low and they were new entrants without economies of scale and network effects.
Essential for the success of Hyundai was to raise the brand awareness.The report was conducted to analyze from marketing strategies perspective why Axiom has made such a big success In smart phone business since It was founded Inand to make some recommendations for Its further success.
The methods used in the report include external analysis, internal analysis 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 Axiom has attracted a large number of very loyal customers by very accurate segment target positioning, establish very concise brand Image with very user friendly II 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 and difficulties In establishing technical differentiation are the major threat or weaknesses Axiom is facing.
Axiom has become a very successful smart phone producer and seller. It created a honeymoon in the market and now is the paradigm many market players try to copy. Axiom sells most smartness online, in limited quantities and by batch to batch. Pursuant to the founder of Naomi, Lei Junk, the company is focusing on long-term moneymaking potential among Mi owners who watch, shop and surf on their handsets, In other words, they focus on the future Internet business, not MI sales.
Slalom constantly refine and enhance what makes the best user experience possible. Our action learning project wall Touts on Slalom phones — a null quality Ana performance Narrow evolves. Strategic Analysis — Internal Analysis 3. Axiom provides a platform to interact with these loyal fans every week, embraced their user feedbacks and upgrade their systems, handset and software accordingly.
With zero advertising cost, these loyal fans helped to advertise for Axiom for free. By collecting customer order first and manufacturing the corresponding number of handsets accordingly, Axiom is able to meet the zero-inventory-cost need. Also, instead of working with operators and distributors, Axiom use its official website as the main sales channel for all its products.
This zero-cost sales channel enables Axiom to sell high-end smartness at a relatively affordable price. There is no other way to purchase Axiom handsets except its online website, which resulted in more people rushing to Join the line-up because they are afraid of failing to get one. Strategic Weaknesses and Constraints: 3. Supplier Bargaining Power Since Axiom is still a small scale company as compared to those large players in the current smartened market, it is difficult for Axiom to bargain with those large suppliers for a lower price.
With current increasing heat of Axiom smartened, can the company still be able to meet its future market demand?
Also, this marketing strategy is easy to be imitated. No matter the company is deliberately to do this strategy or not, in the long run, some customers may be disgusted with such strategy and turn to other similar smartened providers with more supply.