- 1 Xiaomi Inc – At A Glance
- 2 About Xiaomi
- 3 SWOT Analysis of Xiaomi
- 4 Strengths In The SWOT Analysis Of Xiaomi
- 5 Weaknesses In The SWOT Analysis of Xiaomi
- 6 Opportunities In The SWOT Analysis of Xiaomi
- 7 Threats In The SWOT Analysis Of Xiaomi
- 8 Limitations Of SWOT Analysis for Xiaomi
- 9 Weighted SWOT Analysis of Xiaomi
- 10 Key considerations To Writing A Good Xiaomi SWOT Analysis
- 11 References Books on Xiaomi SWOT Analysis
- 12 SWOT Analysis of Xiaomi: Final Thoughts
This Mi.com (Xiaomi) Profile and Strategic SWOT Analysis report will provide you with a thorough SWOT assessment of the Mi.com (Xiaomi) website that highlights the major strengths as well as weaknesses, opportunities, and threats to the company along with its properties on the internet.
To give an understanding of the SWOT strategy to provide context, the property profile contains an overview of Mi.com (Xiaomi) and the main services and products; a description of its business model as well as a list of technology utilized; the top competitors on the market, as well as an overview of the most important employees of the company.
The report also focuses on the internet-based sentiment of social media about the company and its image and compares it against competitors in the marketplace.
Xiaomi Inc – At A Glance
|Chief Executive Officer (C.E.O.)||Will Shu|
|Headquarters||Haidian District, Beijing, China|
|Type of Corporation||Public|
|Year Founded||6 April 2010|
|Revenues||US$43.36 billion (2020)|
|Key Products/Services||Mobile phones, IoT products|
|Key Competitors||Apple, Samsung|
Xiaomi Corporation, often known as Xiaomi Inc. throughout Asia is a Chinese multinational electronics company based in Beijing that was established in April of this year.
The company produces and is invested in a diverse assortment of items, including smartphones, mobile applications laptops, computers as well as household appliances, purses and shoes, consumer electronics, and many more.
In August of 2011, the company unveiled its first smartphone. it rapidly grew the market’s share in China and eventually became the biggest smartphone manufacturer in the country in 2014.
It was the fourth-largest smartphone maker by the end of the second quarter of 2018 and was the leader in the biggest marketplace, China as well as the second-largest, India.
Xiaomi’s Mi and Redmi smartphone models are well-known and are well-suited for the market. The SWOT analysis of Xiaomi is available below.
SWOT Analysis of Xiaomi
SWOT analysis provides the foundation to evaluate internal capabilities and weaknesses as well as external threats and opportunities.
It considers all factors, both positive and negative, that influence the company’s performance as well as outside the business.
An ongoing study of the conditions in which a firm operates can aid in the forecasting of shifting patterns and also its consideration in making decisions.
Below is a brief summary of four factors: Strengths, Weaknesses Opportunities, and Threats.
Strengths In The SWOT Analysis Of Xiaomi
❤️ The largest smartphone maker and manufacturer Xiaomi are among the biggest smartphone makers around the globe. It was reportedly the 5th largest manufacturer of smartphones at the time of writing in the year 2017. The company is based in China It is believed that Smartphones are made in massive numbers and are widely acclaimed all over the world.
❤️ The most popular smartphone the REDMI Note 4 became the top-selling handset across India as well as China and was able to be found in more than half in the Asian market. This proves that Xiaomi is rapidly growing within the market for smartphones and has already beat numerous giants.
❤️ Large China as well as Asia market Another benefit of Xiaomi is the entire Asian market serves as its home. Because China is part of Asia and Chinese mobile companies are well pervasive in Asian marketplaces, Xiaomi still has plenty of territories to explore.
❤️ Penetrative Pricing Penetrative Pricing – Xiaomi is the most penetration pricing benefit because it typically employs directly marketing methods and does not rely on the margins of distributors and dealers.
❤️ High-Quality devices even at such a low price there is no doubt about the high-end Xiaomi phones. They are consistently highly rated across the majority of E-commerce websites – further evidence that Xiaomi doesn’t compromise on quality, even if they lower prices regularly.
❤️ Manufacturing advantage China has a massive manufacturing advantage due to the fact that the country is known for its manufacturing and exporting goods. China is also among the biggest consumers in China’s Asian market.
❤️ The rise of brand Awareness Xiaomi’s brand recognition is growing and increasing customers are learning about the brand, resulting in higher sales all over the world.
❤️ The company is growing year after year The company that began manufacturing in the year 2011 has seen its growth leaps and bounds and has been growing consistently year on year.
❤️ E-commerce benefits the Flash sale is a wildly popular model that has proved to be a huge success for Xiaomi. In this model, it is you can purchase an item that is only available in limited quantities and is sold at a low cost. The model drove consumers insane and every Xiaomi seemed to be a cost that was earned.
❤️ specifications of smartphones manufactured by Xiaomi Xiaomi smartphones are highly technologically advanced and provide higher-tech specs at a less cost. Xiaomi phones are particularly known for their camera which is said to have a high resolution and produce amazing photos.
Researchers and Development – Xiaomi invests heavily in R&D and is a market-follower, however, its main R&D expenditures are geared toward cost savings and not differentiation advantages.
Weaknesses In The SWOT Analysis of Xiaomi
❤️ Offline distribution Xiaomi mostly sold via flash sales, but sometimes it was difficult for consumers to obtain REDMI or MI model phones. It is because their distribution offline isn’t as good as it could be and Xiaomi phones are sold mostly through the internet.
❤️ Advertising and marketing expenditures The marketing and advertising budget of the brand are very minimal. The brand is able to launch ATL advertisements only when they come up with a brand new product. But, the ads are inconsistent at best, and rarely consistently.
❤️ Equity and Brand Image Due to the fact that the marketing and advertising efforts are not very effective as is the brand image, it isn’t as good for Samsung as well as Apple or similar competitors. The range of products offered by Xiaomi has also been limited, which can affect the brand’s image. Service centers are also insufficient and all of these can contribute to the poor brand’s credibility and brand equity.
❤️ Low Skimming Price While other smartphone makers survive by skimming prices, Xiaomi launches its own smartphones at a low price in flash sales. In the end, it’s not able to profit from the skimming price, or the benefit isn’t so lucrative as it could make sense with Samsung and Apple or similar premium brands.
Opportunities In The SWOT Analysis of Xiaomi
❤️ Expansion covering the emerging and developing markets should be the top priority for Xiaomi. Because it mostly follows the model of online sales, which is becoming more popular in many countries, it is essential to extend to countries where the online means of buying is established or is in the process of being established.
❤️ Distribution – In addition to distribution online, Xiaomi also needs to focus on offline distribution, if it will be able to compete with many of its biggest competitors. Offline distribution could also lead to increased costs and an increase in cost. However, it will allow the brand to create an image that lasts for a long time and create equity.
❤️ The Building of Brands Methods for building a brand like Sales promotions Trade promotions ATL campaigns, and BTL campaigns must be launched as often as you can to build an image of the brand. Xiaomi is quite a ways from Oppo and Vivo when it comes to BTL Campaigns. in the area of BTL Campaigns.
❤️ Products Portfolio The product portfolio of Xiaomi is not extensive and includes two major series that actually contribute to the total income that the business earns. The expansion of the portfolio of products will aid the brand in the development of its brand and increase revenues.
❤️ Product innovations and Differentiation Being a follower of the market is not easy and Xiaomi must take ahead of the pack by introducing phones that have unique features to it. In addition, it has to make these benefits known in order to convince more people to purchase its products.
❤️ Permeation of Smartphones across the globe smartphones as a technology is being used and users are increasingly using smartphones that combine the Internet. The market expansion of Smartphones is to the advantage of Xiaomi. The better the phones they make and sell, the more they’ll be able to capture market share.
❤️ The last necessity for expensive phones The majority of people are tired of spending every year on the latest Samsung S8 or the latest Apple iPhone. They want alternatives that are less expensive in order to replace their phones every year. Therefore, the majority of people who are in the ability to purchase top-of-the-line smartphones are buying Chinese phones due to the lower cost. This is the reason that the majority of new smartphone brands are coming originated from China and China is the source of most of them – Xiaomi being among the most popular. The shift in the consumer’s preference will benefit Xiaomi
Threats In The SWOT Analysis Of Xiaomi
❤️ Competition in HTML0 Oppo Vivo and Vivo are two of the most powerful competitors for Xiaomi since they originated from China and share similar manufacturing advantages to Xiaomi. Additionally, Oppo and Vivo have an impressive offline presence as well as a huge distribution network. Therefore, they pose an enormous challenge to Xiaomi.
❤️ Service – The deficiency of service centers comparable to the sales volume from this brand has been a worrying fact. Xiaomi has to boost its service and sales in order to keep its loyal customers.
❤️ Brand differentiation is not present The market for smartphones has grown so large that distinguishing brands has become extremely difficult. Every brand is coming out with products that are nearly identical, which makes it hard for consumers to pick one brand over another. This is especially challenging as increasing numbers of brands are from China.
Limitations Of SWOT Analysis for Xiaomi
While it is true that the SWOT analysis is extensively used to plan strategic strategies, However, the analysis has some limitations.
- Certain abilities or aspects of an organization could be both a strength as well as a weak point at the same. This is among the most important limitations in SWOT analyses. Changes in environmental regulations could be an issue for the company but as well as an opportunity in the sense that it allows the company to compete in a position to compete with its competitors or even gain an advantage over competitors when it can develop its products more quickly than its competitors.
- SWOT doesn’t provide a way to get a competitive edge It is not a strategy to gain a competitive advantage, therefore it should not be a complete solution.
- The matrix is merely an idea to begin an analysis of how the proposed strategies can be implemented. It offered an evaluation window, but it did not provide any implementation plan that is based on strategic competitiveness. Xiaomi
- It is a static analysis that analyzes the existing conditions and a small number of potential modifications. As the environment, circumstances, and threats evolve, the dynamics of the competitive landscape will not be apparent in the form of a single matrix.
- SWOT analysis can make a firm overemphasize one external or internal element in formulating strategies. There are interrelations among the most important external and internal elements that SWOT cannot reveal, but could be crucial in determining strategies.
Weighted SWOT Analysis of Xiaomi
Given the previously stated shortcomings of the SWOT analysis/ matrix, the management of the corporation is determined to give weightage to every internal strength and weakness of the business. Companies also evaluate the probability of events that will occur in the near future and the impact they can be on the performance of the company.
This technique is referred to as the Weighted SWOT analysis. It’s superior to a simple SWOT analysis since using a weighted SWOT analysis Xiaomi managers can concentrate on the most crucial elements and ignore the less crucial ones.
This also helps solve the problem of the long list, which is when organizations make lengthy lists but not addressing any is considered to be crucial.
Key considerations To Writing A Good Xiaomi SWOT Analysis
Give the proper weightage to the different elements that influence Xiaomi’s bottom line and topline growth.
What strategies Xiaomi could employ to mitigate the risks arising from organizational weaknesses and threats from the macro-environment.
Are there individuals who are important to the organization who could change the balance between the strengths and weaknesses of the business?
Find out what are the advantages and disadvantages of Xiaomi as much as you can.
– Determining which skills are necessary for the continued existence of Xiaomi in the Retail (Technology) sector.
References Books on Xiaomi SWOT Analysis
Xiaomi (2018), “Xiaomi Annual Report”, Published in 2018.
Euromonitor (2018), “Services Sector Analysis “, Published in 2018.
A. D. Chandler, Strategy and Structure (Cambridge, Mass.: MIT Press, 1962)
L. Wrigley, Divisional Autonomy and Diversification (Ph.D., Harvard Business School, 1970)
M. E. Porter, Competitive Strategy(New York: Free Press, 1980)
O. E. Williamson, Markets and Hierarchies(New York: Free Press, 1975)
R. E. White, Generic Business Strategies, Organizational Context and Performance: An Empirical Investigation, Strategic Management Journal7 (1986)
SWOT Analysis of Xiaomi: Final Thoughts
In the end, Xiaomi is in a quite good position. Its high-end products at excellent pricing and making money while doing it is a good base for any business. However, Xiaomi has a relatively unremarkable brand.
This presents new opportunities for Xiaomi to focus on like green branding or brick-and-mortar shops.
Also, with regards to opportunities, Xiaomi might be in a position to take advantage of the new smartphone markets in less developed regions like Africa.
Like always, Xiaomi needs to be aware of its competition and could invest more cash into customer service in order to keep from a public relations disaster!