APPLE VS XIAOMI

TABLE OF CONTENT
Value chain of Xiaomi Inbound Logistics Operations Outbound Logistics Service Sales and marketing

Value chain of Apple Inbound Logistics Operations Outbound Logistics Service Sales and marketing

Apple vs Xiaomi Core competency Target market

 VALUE CHAIN OF XIAOMI

Inbound Logistics
Strategic relationships with Taiwan-
based manufacturers of various
components is one of the main
sources of value. Outbound Logistics
Taiwan Semiconductor Manufacturing
Xiaomi outbound logistics practices
Corporation (TSMC) is the main
were limited to the shipment of
processor supplier for the company
products directly to end-users via
couriers.
In Vietnam, Xiaomi distributed the
Operations products through 2 main offline

Refer to the processes of transforming channels: Key retailer stores and

raw materials into ready products. Xiaomi’s flagship stores - Mistore

Location of manufacturing units in

China and India is one of the main
sources of value in Xiaomi operations
SALES & XIAOMI
MARKETING Little margin to retailer, Xiaomi focuses on C2B community
community e-commerce, which is also a community fan -
operated business, and assisted by the dealer agency
mechanism

COST LEADERSHIP BUSINESS STRATEGY

Initially selling its products using only online sales

channels and later adapted traditional offline sales
channels as well by partnership with big retailers

Lately, Xiaomi also opened some

flagship stores for the sake of
exhibiting and increasing
offline distribution
 SERVICE
Xiaomi post-sale service was often criticized as POOR.
Reason: the company's cost leadership business strategy.

SHOULD PAY GREATER ATTENTION TO THE

CUSTOMER SERVICE ASPECT OF THE BUSINESS.
VALUE CHAIN OF APPLE
Operations
Apple does not own any manufacturing facilities and
prefers to outsource manufacturing of its hardware
Outsourcing to locations with lower costs of resources
is the main source of value operations
Inbound logistics
Benchmark for efficiency for global businesses
Main sources of value: economies of scale due to
massive scope and scale of business operations
Exercises an immense bargaining power > able to
secure cost advantage
Outbound logistics
Keep minimum inventory since the depreciation
rates of technology items are very high
Ship finished products to Apple Stores, facilitate
deliveries to the warehouses of wholesalers and
retailers
Massive source of value: E-commerce sales (more
cost effective)
Market penetration into Asia in general and China
 VALUE CHAIN OF APPLE

Marketing and Sales

Apple has multiple marketing channels and seven
distinguished sectors that mainly focus on sales.
Apple sales regularly go up due to its direct and
indirect channels

Services
Apple services are highly responsible for customer
loyalty and the best experience with Apple products
because the company tries its best to provide the
best pre-purchase, during-purchase, and after-
purchase customer services
 CORE COMPETENCY
XIAOMI APPLE Rapid innovation
Low prices

High - end, most updated Ecosystem of

technology complementary products

TARGET MARKET
Apple's target customers include
• Tech savvy customers, who are in age
WELL-OFF INDIVIDUALS
group of 18 to 35 years;
willing to spend more on technology
• And are from working/middle class;

• Want good quality and impressive specs products and services with advanced

in affordable price; capabilities, functions, and designs.

 REFERENCE

https://research-methodology.net/apple-segmentation-targeting-and-positioning/

https://research-methodology.net/apple-value-chain-analysis/

https://www.studysmarter.co.uk/explanations/business-studies/strategic-analysis/core-

competencies/#:~:text=Apple%20is%20a%20very%20successful,the%20hardware%20and%20software%20side.

Xiaomi Value chain analysis. (2018, May 26). Research-Methodology. https://research-methodology.net/xiaomi-

value-chain-analysis-2/

Sun, L., & Fah, C. T. (n.d.). Xiaomi -transforming the competitive smartphone market to become a major player.

https://www.researchgate.net/publication/344944477_XIAOMI_-

TRANSFORMING_THE_COMPETITIVE_SMARTPHONE_MARKET_TO_BECOME_A_MAJOR_PLAYER