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Xiaomi Smartphone
小米智能手机
Members : Calsy/LS1508221
Linda/LS1508222
Suntoso/LS1508223
Sangma/LS1508225
Nguyen Tuan Hung/LS1408211
Vu Thi Thu Hien/LS1508226
年
2016 年 01 月 11 日
ABSTRACT
This Marketing Plan provides a marketing report on Xiaomi Inc. a multinational corporation
based in Beijing, China. Xiaomi is privately owned Chinese Electronics Company founded by
Lei Jun and several partners in 2010, and which has now grown to be the world’s third largest
smartphone distributor. The report begins with an introduction Xiaomi and briefly highlights the
company’s background and history, highlights of the key market trends, customers’ trends to
Smartphone, Xiaomi’s competitor’s, competitive position and SWOT analysis, as well objectives
and strategy. The report concludes with a proposal on the key strategies and plans, along with 4P
marketing categories.
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1. Introduction
Xiaomi Inc. was founded only five years ago, in April 2010, headquartered in Beijing,
China, is a privately owned electronics company that designs, develops, and sells smart phones,
mobile apps, and other technology products(their product line include phones, tablets, smart TV's
,..Etc. and wearable). It was co-founded by eight partners (Lei Jun (CEO), Lin Bin, Li Wanqiang,
Zhou Guangping, Huang Jiangji, Hong Feng, Wang Chuan, and Liu De) on June 6, 2010.
In 2011, Xiaomi announced the Mi One phone. Xiaomi was now not only making its own
software, but its Xiaomi have launched other devices such as a smart TV, Wi-Fi router and are
even looking to launch their own tablet (if rumours are to be believed). Xiaomi are without a
doubt the company to watch in 2014 as they are estimating that they can ship over 60 million
units worldwide by the end of the year. That’s more than triple the amount they shipped in 2013.
Their presence is mainly in the Asian region such as China, Malaysia, Singapore and
Philippines. Xiaomi's focus is to produce reliable, user friendly, mobile applications and
affordable phones to customers. Xiaomi is currently the third largest Smartphone producer in the
world with over 5,000 employees worldwide.
STRENGTHS WEAKNESSES
- Trusted brand in China - Difficulty to obtain loyal fan base and brand
- Innovative marketing approach advocates outside China
- Effective online business model - Low cost distribution strategy may not be
-Flexible and customizable products effective in other markets
- Lower Price compared to other brands - Quality and after sales services are weak
OPPORTUNITIES THREATS
- Expansion to retail channels - Price war from other low cost competitors
- Build a core set of hardcore fans - Large competitors moving into low cost market
- Create a strong user experience and unique (Lenovo, HTC)
branding and ecosystem - Potential loss of control over supply chain
- Over reliance on e-commerce as primary
distribution channel
The driving force behind Xiaomi’s success is its “high-performance, low price” strategy.
China has experienced an unprecedented development in the mobile phone market in recent
years. There are three main factors to Xiaomi’s success. The first is the company’s specific and
clear market positioning. The second is its excellent R&D and management team. The last factor
is its fast and effective sales model.
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XiaoMi is still in its developing period, there is so much space to grow before it enters the
maturity period.
5. Appendices
Figure I: 2015 Total Global Smartphone market share in worldwide
4
Global Smartphone Market share in 2015
Samsung; 21.40%
others; 45.70%
Apple; 13.90%
Huawei; 8.70%
Lenovo*; 4.70% Xiaomi; 5.60%
5
Total China smartphone market share in 2015
Xiaomi Huawei Apple OPPO Vivo Samsung
Meizu Coolpad Lenovo ZTE TCL Other
16.53%
1.60% 6.01%
2.40%
4.51%
7.11%
4.81% 16.13%
8.92%
12.42%
9.72%
9.82%
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Figure III: XiaoMi Smartphone Market Share in China
16.0%
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
2013 2014 2015
References