Analysis of XiaoMi

By September 5, 2016 December 3rd, 2017 Lifestyle

Xiaomi, Inc. is a popular and leading, privately held Chinese consumer Electronics Company headquartered in Beijing, China. Xiaomi designs, develops, and sells smartphones, mobile apps, laptops, and related consumer electronics.

According to Forbes, the company is the third-largest Smartphone distributor in the world. Since the release of its first Smartphone in August 2011, Xiaomi has gained market share in mainland China and expanded into developing a wider range of consumer electronics, including a smart home device ecosystem. Lei Jun who is the founder and CEO of the company is China’s 23rd richest person according to Forbes. The company sold over 60 million smartphones in 2014.

It has introduced a wide range of mobile phones and tablets which are very economical for the low income groups. This company uses the resources of social media rather than electronic or print media for the transfer of their information about its products. Through its attractive and affordable products it has got success in the local market and now it is going to target the big markets of the India, Russia, Indonesia and others to expand its business.

Strengths of the company:

As a leading brand in China, the company has a number of strengths as compared to other competitors.

  • The first and most important advantage is its good quality at affordable prices.
  • It generates high profitability and handsome revenue successfully.
  • Having skilled and experienced workforce in which the professionals from the other leading companies like Yahoo, Google, Microsoft, and others also included.
  • Offers sharpest and best display among its competitor phones
  • It has competent and experienced business units.
  • Have current distribution and sales networks to expand its business to new existing markets.
  • Having mobile internet in smartphones and added with mission impossible.
  • Use word of mouth advertising rather than other sources.
  • It adopts a ‘consumer-oriented’ strategy to draw a loyal fan base.
  • Have seven service centers in Malaysia.
  • Strong management team and has direct consumer sales.
  • Camera is one of the strongest features of Redmi smartphones with sharp and crisp pictures.


  • Can maintain their business with the maintenance of their income level at the constant speed.
  • Explore new and existing markets to explore their products.
  • Look for new and emerging global markets to expand the exhibition of their products on the new horizons of electronic technology.
  • Introduction to new specifications and applications constantly.
  • Make it more exciting and attractive with more slim size and less weight.
  • Include latest OS with regular updates.
  • Improve upon by increasing display size, and making phone lighter as compared to competitors.

Xiaomi was originally founded in 2010 to make software for mobile devices running Google’s Android operating system. In 2011, the company introduced its first smartphone in China and has continued to expand its products into other consumer electronics verticals.

Xiaomi’s high valuation is supported by its recent investment round and unique aspects of the company. The strategy of the company is to create a connected ecosystem of consumer electronics very similar to Apple. Xiaomi aims to offer hardware, software and related services to its consumers. This continues the growth of the company and supports its $45 billion valuation.





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