The mission of Xiaomi is "to let everyone in the world enjoy a better life through innovative technology." Xiaomi Revenue : RMB 328.3 billion - FY ending 31st December 2021 (y-o-y growth of 33.5%) RMB 245.9 billion - FY ending 31st December 2020 Competitive Analysis of Xiaomi SWOT PESTLE The SWOT analysis of Xiaomi is presented below: 4 Xiaomi is one of the biggest high tech companies of China. Read More. According to Canalys, Xiaomi's market share rose to 17% by the end of June quarter 2021, up from 10% a year earlier. Learn More. Investors sometimes prefer comparable analysis of Xiaomi Corp to its intrinsic valuation because they are able to contrast its competitors on a relative basis. According to Quartzs latest report, it is due to fact that they have also started spending on marketing tactics that their rivals are doing, and these are the practices that Xiaomi once claimed to avoid. Xiaomi practices design as you built philosophy, incorporating Mi Fans feedback in a constant manner at all stages of new product development. Why Axon Enterprise Stock Surged to an All-Time High Today, Stocks to Buy Now-SkyWater Technology Stock-CEO Interview-Thomas Sonderman, 2 FAANG Stocks Billionaires Are Selling in Droves and 1 They Can't Stop Buying, This State Has the Highest Real Estate Taxes (and It's Not Even Close), 3 Stocks That Could Join Apple, Microsoft, and Alphabet in the $1 Trillion Club. Its X1 was the world's thinnest smartphone at 6.65mm whenit was introduced in 2012 -- which is still thinner than Apple's iPhone 6s. Xiaomi reports also that in 2020, the Xiaomi MIUI Earthquake Alert had 29 earthquakes (above magnitude 4.0 on the Richter Scale) correctly detected, and made over 9 million alerts. With this new technologically advanced generation and most of the users being active on social media platforms, Xiaomi reaches out its customers following the trend. When done correctly, Xiaomi Corp's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Xiaomi Corp. Leo Sun has no position in any stocks mentioned. Intense global competition means lower market share growth, 2. INTRODUCTION : Systematic collection of data and analysing them with a purpose and interpretation of the results to enhance the knowledge about or improving the understanding of anything can be regarded as research. If it isn't, you're working in the dark. Improve upon by increasing display size, and making phone lighter as compared to competitors, 2. 3. MAJOR COMPETITORS : Apple: Apple sells less than 20% of the . Motorola Moto 2. Oppo 4. Companies involved in manufacturing and maintenance of freight railroads and passenger trains as well as providing railroad services to public. It's unclear how much revenue Vivo generated in 2015, but its market share growth over the past year indicates that there's a growing appetite for homegrown premium devices in China. Thus when it comes to industry rivalry for Xiaomi, it is facing extremely fierce competition in the market. Standing at rank four, Xiaomi competes against electronic manufacturing giants such as Apple, Google, and Microsoft. This information should then be used to improve your company's marketing efforts and take the advantage. The content on MBA Skool has been created for educational & academic purpose only. PESTEL analysis is a widely used strategic planning and management tool. Besides this, Oppo and Vivo have a strong offline presence and have huge distribution network. Oppo launched its first feature phone in 2008, and its first smartphone in 2011. It has to be an essential part of your marketing plan. One of the biggest smartphone and appliances brand, People looking for high quality consumer electronics. The competitive landscape section includes the market share and rank (in volume and value), competitor ecosystem, new product development, expansion, and acquisition. Retrieved February 6, 2018, from https://www.mi.com/in/about/ Also if we see the barriers to entry in this industry, there are a lot of barriers to entry for new companies as it takes a huge cost to setup this kind of industry in the first place. Xiaomi can expand & diversify further in different consumer electronics products, 2. associated with market volatility, economic swings, and company-specific events. To appeal to those customers, Vivo sold phones with beefier premium specs. Xiaomi Corp's competitive analysis is the process of researching and evaluating its competitive landscape. More than 20,000 people are employed with the company, 4. Cost advantage 4. Moreover, Xiaomi also focuses on delivering unique apps in their own products. Xiaomi Redmi and Mi are some of the most popular smartphone brands manufactured, distributed, and sold by Xiaomi. 03925319, Artificial Intelligence: Leading Technology Companies, Cybersecurity: Leading Technology Companies, Electric Vehicles: Leading Technology Companies, Strategic Alliances Announced in Last 12 Months, Special Purpose Acquisition Corps. We also use third-party cookies that help us analyze and understand how you use this website. Sun, L. (1970, January 1). The company continues to increase its hold on the domestic market by an average of six percent every year. When it was new in the market, the suppliers have a huge bargaining power over them as they were loyal to their old clients, but with time Xiaomi has developed a strong relationship with their suppliers and if we see the current situation the bargaining power of suppliers is very moderate. The market shares of Vivo and Oppo were 11.1 and 8.8%, respectively. Currently, Xiaomi ecosystem comprises 55 companies including 29 companies which were incubated from the ground up by Xiaomi. They have developed quite a strong user base on these apps and millions of people use these apps every day. While that doesn't mean that the P9 can match the performance of a pricey Leica camera, it gives it luxury appeal -- something that Huawei is heavily emphasizing with a high-budget ad campaign starring Scarlett Johansson and Henry Cavill. Resources owned by Xiaomi entail all assets . From start-ups to market leaders, uncover what they do andhow they do it. The Dongguan-based company initially manufactured MP3 and MP4 players before pivoting toward mobiledevices. Xiaomi is now a serious competitor in both the mobile phone and Smartphone industry. The content on MBA Skool has been created for educational & academic purpose only. You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Gathering and utilising a large fan base. Xiaomi's market share was 16% in Q2 2021. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter's Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Xiaomi. 2. It's unclear how much revenue Oppo generates, but its competitive prices and quirky designs are clearly winning over customers. Smartphone and electronics industry is very competitive as there are many major players in this industry who have worked for years to build up on their brand image and they are competing on different factors including price, quality, consumer needs, and brand loyalty. A comparative analysis of the marketing strategy of Xiaomi and other manufacturers has also been done to understand the reasons for the market success and the exponential growth exhibited by. It is often called as the Apple of China. 's shipments surged 124% to 18 million, which boosted its share from 7.6% to 16.2%. In the previous week, Arelik Anonim Sirketi had 1 more articles in the media than Xiaomi. Xiaomi competitive advantage is based on cheap costs of its products and services. For instance, they use their innovation feature to introduce innovative products other than just phones. Following are the opportunities in Xiaomi Redmi SWOT Analysis: 1. It is mandatory to procure user consent prior to running these cookies on your website. To make the world smarter, happier, and richer. Huawei's revenue rose 37% to 395 billion yuan ($59.6 billion) last year as its net profit grew 33% to 36.9 billion yuan ($5.8 billion). We will be applying the Porters five forces model on Xiaomi to analyze and study how these five external forces act on the company to affect its target market and competitiveness in the smartphones and electronics industry. According to its founder and CEO Lei Jun, Xiaomi was founded on the belief that high-quality technology doesnt need to cost a fortune.[1] Accordingly, the company offers smartphones and other internet-technology products and services for affordable prices. Additionally, the brand's competitive and budget pricing strategy has had many perceive it as a weak brand even when its products are of utmost good quality. Xiaomi's market positioning is aimed at bridging the gap between the mass market and the high-end segment of the market. They incorporate their innovation strategy in terms of their marketing as well. Segmentation involves dividing population into groups according to certain characteristics, whereas targeting implies choosing specific groups identified as a result of segmentation to sell products. Lower smartphone capabilities and functionalities compared to major competitors such as Apple and Samsung 3. The Motley Fool has a disclosure policy. Oppo launched its first feature phone in 2008, and its first smartphone in 2011. The company's revenue dropped 20.1% YoY to RMB 70.2 billion (or $10.3 billion) during the quarter. The Motley Fool recommends Cirrus Logic. The mobile internet company enjoys cult-like following, the same way as its major competitor Apple. The internet technology company uses mono-segment positioning, appealing to the needs of a single customer segment. View, predict the probability of Xiaomi Corp's future price movements, Sponsored content. Necessary cookies are absolutely essential for the website to function properly. Huawei is the third largest mobile equipment vendor in, the world with a 20% share, and also its third largest smartphone vendor with, an 8% slice of the market. Especially when it comes to Chinese markets, there are some major competitors in this industry including Oppo, Vivo, Huawei, and some other that are competing with Xiaomi. This website uses cookies to improve your experience. These cookies do not store any personal information. Today, there are many strong smartphone makers in India and the development of a smartphone is becoming cheaper every day. Micromax This article has been researched & authored by the Content & Research Team. The companies are not associated with MBA Skool in any way.Edit the brand or add a new one to SWOT Analysis section : Contribute. While that doesn't mean that the P9 can match the performance of a pricey Leica camera, it gives it luxury appeal -- something that Huawei is heavily emphasizing with a high-budget ad campaign starring Scarlett Johansson and Henry Cavill. The company perceives the sales of hardware as a means to deliver software and services in the long-term perspective. Ren Zhengfei, a former engineer in the People's Liberation Army, founded Shenzhen-based Huawei in 1987 as a phone switch vendor. The most interesting aspect of this . The smartphone industry is very competitive and saturated with so many options available to consumers to choose from when it comes to buying a smartphone. Xiaomi Exec: Were Playing a Completely Different Game. Most of this decline came from the company's smartphone unit, which dropped 28.5% to RMB 42.3 billion ($6.2 billion). https://qz.com/758955/xiaomis-once-admired-strategy-for-winning-chinas-smartphone-market-has-backfired/, http://fortune.com/2017/01/24/china-smartphones-oppo-vivo-huawei-xiaomi/, https://www.fool.com/investing/2016/08/18/xiaomi-should-fear-these-3-chinese-competitors.aspx. Apple has a worldwide market share of 22.35%. If we go by market share, which is constantly falling due to non-satisfactory sales, poor marketing strategies and non-competent products. Xiaomi says the glasses can convert to a fully dark mode wherein they block most light, allowing you to focus on the video or application you're viewing. Samsung was bumped off the top five into the "others" category. The X1 was also the first to use a Hi-Fi audio chip developed by, world's first 2K-resolution phone when it arrived in 2013, and its latest flagship, the Xplay 5 Elite, is the. Low profit margin 2. In Xiaomi SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. This category only includes cookies that ensures basic functionalities and security features of the website. Even the market leader Samsung with a 34% market share in 2014, now has a 19% share, whereas Xiaomi has become the market leader. During the same period, Huawei's shipments rose 15% to 19.1 million, while its market share grew from 15.6% to 17.2%. . Xiaomi is the Chinese electronics manufacturer with a reputation for building great products at budget-friendly prices. As it is illustrated in Figure 1 below, Xiaomi Triathlon sources of revenues consist of hardware, new retail and internet. 4 ). Samsung 9. To do so, you would: Step 1: Use Google to compile a list of your competitors. How Chinas Smartphone Big Four Are Fighting for Global Customers. You also have the option to opt-out of these cookies. Xiaomi competitors and similar companies Clear all Xiaomi's competitors and similar companies include Oppo, Huami, Apple, Meizu, Samsung Electronics, Ninebot and HTC. can be threats. Partnerships with telecom companies can help the brand grow, 3. 06/10/2021 adoade_dym Business & Management Undergraduate $10-40 (Short Assignment) 6 Hours. Specifically, Xiaomi targets a customer segment that want to use smartphones and other technology products, but have limited budget to make such a purchase. Xiaomi uses mono-segment and imitative types of positioning. MBA Skool is a Knowledge Resource for Management Students, Aspirants & Professionals. Micromax. The opportunities for any brand can include areas of improvement to increase its business. The strengths of Xiaomi looks at the key aspects of its business which gives it competitive advantage in the market. Following are the opportunities in Xiaomi SWOT Analysis: 1. Fans spend countless hours online discussing Xiaomi products on various forums, thus increasing the level of brand awareness with no extra cost for the company. It first established an overseas presence in Thailand, then throughout Asia, the Middle East, and Africa -- resulting in nearly 20% of its sales coming from outside of China in 2015. Impressive growth rate 3. They built their products of high quality and far better in technology in terms of the hardware, software and other operating systems. According to its business strategy, Xiaomi fosters, develops and encourages its fans via Mi Fan Festivals that involves discounts and gifts. can you play tarkov on steam deck, Any brand can include areas of improvement to increase its hold on the domestic market by an average six. Improve upon by increasing display size, and sold by Xiaomi products and services for prices... At all stages of new product development and sold by Xiaomi includes cookies that ensures basic and. 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