2. Introduction to Xiaomi
Xiaomi Inc. headquartered in Beijing China, is a privately
owned electronics company that designs, develops, and sells
smart phones, mobile apps, and other technology products.
Began its operation in August 2010 with Android based
firmware MIUI (pronounced as “Me You I”).
Expanded into other consumer electronics including tablets,
wifi network routers, Smart TV, Set-top box, cloud storage and
cloud computing service, instant messenger, and power bank.
3. Continued..
International headquarter in Singapore for its global
expansion activities.
Six storage centers
18 flagship stores
436 after service outlets in China
4. What is
Internationalization?
The designing of a product in such a way that it will meet
the needs of users in many countries or can be easily
adapted to do so.
It is a process of increasing involvement of enterprises in
international markets.
For example, an internationalized software program
would need to localized to display the date as Nov’14 for
use in USA and as 14 Nov for use in England.
5. Strategies Adopted by Xiaomi
The Triathlon Model
The Aggressive Pricing Policy
Focus on Social Media and Hunger Marketing Tactics
“Customer-obsessed” strategy
The Limited inventory concept
An eco-system of Smart products
Joint Ventures
6. The Triathlon Model
It is an integration of software, hardware and internet service.
The three pillars to its strategy are:
Hardware as a service strategy
An e-commerce sales model
Focus on software, services and content
Xiaomi has a different business model than Apple or Samsung. Apple makes
its profit on the hardware, while Xiaomi makes their profit on services.
7. Aggressive Pricing Policy
Differentiation by Cost Leadership
“Offering products at prices as close to the cost, rather
‘Bill of Material’ as possible.”
The Mi3 handset from Xiaomi sells for $327, whereas
products having similar specifications, from Apple or
Samsung are sold at around $870.
8. Focus on Social media and Hunger
marketing tactics
Xiaomi relies basically on internet to market its products and
fuel sales.
It leverages social media and word of mouth marketing to
create a viral effect among the internet acquainted youth.
“Customer obsessed” strategy: Taking customer feedbacks to
keep improving.
It runs frequent events such as ‘fan festival’ online shopping
event with discounts and coupons.
9. The limited Inventory concept
Huge cost- Carrying cost inventory
When Mi3 were launched initially, the first batch of 1
lack units sold out in less than 2mins and the company
took another 7 days to release 1 lakh more units, which
where then immediately sold out again
Xiaomi undercuts inventory cost by maintaining a very
low inventory
10. An eco-system of Smart products
Smartphone Industry is expected to saturate in coming
few years
Smart Family: A service platform for better potential for
growth
Xiaomi provides an integrated model of hardware and
software.
11. Joint Ventures
Partnered with telecom carriers such as Hutchison
Whampoa Ltd and PCCW Ltd in Hong Kong.
Flipkart in India
Starhub in Singapore
Online venture with Jabong.com
12. Arenas
Vehicles
Differentiators
Staging
Economic
Logic
Republic of China, Philippines,
India, Indonesia, Thailand, Vietnam,
Russia, Turkey, Brazil, Mexico
Smart phone, Smart TV, Wi-Fi
router, set-top box, cloud storage,
power bank, etc.
Innovative MIUI interface
Internal Development: MIUI
Strategic Alliances: Hutchison
Whampoa Ltd, PCCW Ltd,
Flipkart, Starhub, Jabong.com,
Tmall.com
Pricing Policy
E-Business Capability
Promotional activities
Image: Apple of China
Aggressive design and
marketing strategies
Joint ventures and alliances
with several telecom
companies and e-commerce
websites
Premium pricing over accessories.
Volume selling
Preferred company due to innovative
technology at low price
Notes de l'éditeur
Take the example of Mc.donnalds
Hardware as a platform to provide services to the people
E-commerce time barrier (Limited Time)