BUSINESS STRATEGY

XIAOMI

Cristina Martí
 THE COMPANY

2010 2011 2014 2015 2016 2018 2020

STRATEGY

Cost Leadership Diversification

● High-quality technology ● Wide variety of

at an affordable price. technological products.

● Similar products ● Versatile and its able to

between competence. adapt easily and softly to
changes on people tastes.
● Price wars.
● Risky.

3
● Differentiation ● Cost leadership
STRATEGY
● Cost leadership
strategy. strategy. strategy. COMPARISON
● Strong sales ● Not many ● Less affordable.
strategy. investment in
publicity. ● Aggressive
marketing
campaign.
TARGET CLIENTS AND USERS

- Its products are targeted towards the budget

conscious consumer.

- Positioned for some new clients. The new

consumers of emergent countries like India
will look for an affordable first device.

- Middle and low class offer.

IS THEIR BUSINESS STRATEGY ALIGNED WITH
THEIR TARGET?
COMPETITIVE ADVANTAGE

● Research and development work.

● Customer centricity & care.

 - 5G

- Continuous - Legal issues in

- Equality grow the past;
invests in
between offer copyright
innovative
and demand. laws.
technologies.

P E S T E L

- Protectionism - Increasing
policy of China desire to own - Circular
government. a personal economy.
mobile phone.
- Tensions between - Responsible
China and USA - ‘’Made in business and
since Trump China’’ label. ethical
became the behaviour.
president.
 S W

PROBLEMS & ● Skilled and experienced workforce ● ‘’Made in China’’ prejudice.

OPPORTUNITIES .
● Providing quality components ● Word of mouth advertising.

● Word of mouth advertising.

● Explore new markets while

● Strict government regulations.
expanding.

● Being the first to launch

● Cost leadership competitors in
smartphones with 5G incorporated the same market.

● Use Xiaomi forum for new launches .

O T
THANKS FOR YOUR ATTENTION