Part 1. ( Mingqiang Du )
Xiaomi was founded in 2010 by Lei Jun. who believes that high-quality engineering doesn’t need to be excessively much money. Seven people set the house up together. We can’t conceive of how fast the corporation developed. On October 30. 2014 ( Last month ) xiaomi Company already more than Lenovo and LG Company. became the world’s third-largest smart phone shaper. behind Samsung and Apple Company ( Six months gross revenues of approximately 55 billion dollars ) . Why Xiaomi company is so successful?
As is known to us. the logo of xiaomi is ‘MI’ . On the one manus. it is the abbreviation of ‘Mobile Internet’ . It’s significance that the nature of the company is the nomadic Internet company. On the other manus. if the logo is upside down. it’s the word “?”without a point. It means he wants to liberate his users from concerns. Motto:
The motto of Xiaomi is “Born to fever” . The staffs in this company are equal and free. It is average that non a stiffly hierarchal house. and they are all spouses. They advocate the creative activity and fast work environment.
Xiaomi. frequently described as China’s reply to Apple. is really rather different. “But we have ne’er compared ourselves to Apple—we are more like Amazon. ” says Lin Bin. Xiaomi’s co-founder. who one time worked for the Chinese weaponries of Microsoft and Google. Apple sells its iPhone 6 for around $ 860 in China and has the industry’s highest borders. Xiaomi offers its French telephones at or near cost: the Mi-4. its new flagship. costs 2. 000 RMB ( $ 330 ) . Xiaomi sells direct to clients online. instead than via web operators or retail shops. which besides keeps monetary values down. Crucially. its concern depends on selling services to its users. merely as Amazon provides its Kindle readers at low monetary values and makes its money on the sale of e-books. The thought is to do a net income from clients as they use the French telephone. instead than from the sale of the hardware. says Mr. Lin.
Xiaomi selling merely cell phones in the past. But now they create singular hardware. package. and Internet services for – and with the aid of – our Mi fans. We incorporate their feedback into our merchandise scope. which presently includes Mi 4. Mi 3. Mi Pad. Mi Box. Mi Television. Redmi 1S and Redmi Note. Mi Power Bank and other accoutrements. We sell direct to clients to maintain our monetary values competitory. And with more than 18 million French telephones sold in China in 2013 and merchandises launched in Taiwan. Hong Kong. Singapore. Malaysia. Philippines. India and Indonesia. we are ready to travel planetary. Our mantra: “Always believe that something fantastic is about to happen” .
Part 2. ( Hao Wang )
a. Geographical factors
MI is suited for most parts of China due to its lower monetary value. but there are different schemes in different topographic points. b. Demographic factors
MI is suited to purchase for the people who are 18 to 30 old ages old MI’s monetary value is less than $ 350. so the people who have general income can accept the monetary value. MI is really popular for immature people and its merchandises aimed at pupils and immature office workers. c. Psychological factors
MI has an affinity for clients due to its form and design MI uses many amusement characteristics to pull consumers
Hunger selling inspired consumers desire to purchase
MI Company has analyzed the consumers coming from different coevals: The people who are between 1970s and 1980s have heavy life force per unit area and they were populating economically. The people who are between 1980s and 1990s have less emphasis ; they are ever ready to bask everything and pursue manner. The people who are after the coevalss of 1990s like to accept new things. but some people do non hold the ability to purchase. So the mark consumers as follow: a. The people who normally purchase something online and are easy to accept new things B. The people who rely to the Internet and prosecute manner
c. The price-sensitive consumers and they belong to the in-between income group 3. Positioning
Central processing unit
Quad-core 2. 3GHz
Camera ( back )
Camera ( forepart )
3050mAh Li-ion Polymer battery
2GB Random-access memory
5-inch Full HD 1080p LCD touch show
1920?1080 FULL HD
Basic placement: high constellation. low monetary value
Particular placement: Students. immature office workers. nomadic phone partisans Competition placement: Merely sell their merchandises via the Internet and do merchandises have clear differences in footings of some characteristic or property. which allows MI avoids viing with competitory endeavor.
MUIU System: Android ROM
Lower monetary value
Middle and low-end market
Current Selling Scheme
1. Let go of new merchandise in a high profile. low-price scheme Before a new merchandise is traveling to be released. MI Company normally place the information of new merchandise on the Internet. However. MI Company merely provides clients with a limited figure of tickets ( merely 1000 tickets. $ 33 per ticket ) . Tickets are ever sold out within 5 proceedingss.
2. Hunger selling scheme
3. Network selling scheme
MI Company uses societal package that is really popular in China to distribute the information of new merchandise. such as Sina Microblog. Wechat. QQ and so on. In 2012. MI Company organized a synergistic activity through Sina Microblog. it have reached about 1. 5 1000000s for the figure of participants.
4. viva-voce selling scheme
Target market: The people who want to utilize a smartphone but think the monetary value of cellular telephone in market is excessively expensive. They are nomadic phone partisans. MI Company organized runs and increase their exposure.
5. Chain-like selling scheme
MI Company cooperates with the radio bearer. such as China Unicom and China Telecom. Release cellular telephone with a contract.
Strong squad. a batch of endowments
Higher constellation. lower monetary value
Get downing late. lower repute
Many bugs in the initial phase of merchandise
Lower production efficiency
Iphone has a higher monetary value
Many people who are between 17 to 18 old ages old are fans of MI The development of e-business
Smartphones are in high demand
Keen competition in the nomadic phone market
Technology is still limited by Android
High costs. low net incomes. high force per unit area
Part 3. ( Hao Zhou )
As we know. MI usage its difficult driver and suited monetary value to pull the consumers. So when Chinese consumers recall a national phone trade name. the first profile they come up is high price-performance ratio. Because its sale scheme is hungry selling. consumers are willing to have a MI phone.
Consumer consciousness. cognition. trade name designation. “share of mind” Customers consciousness refers to a consciousness of client consume goods in the long-run shopping environment and activities in the signifier of purchase. The image of MI Company is simple and easy to retrieve. a “M” plus “I” . And the under colour is ruddy. fiting its slogan “Born to be fevered” and demoing the creative activity and engineering. This image besides shows in the screen of phone. it makes people place the trade name in a long distance. When you mention the national phone trade name. most of people may remember MI Company. Because clients can non purchase the phone on the Internet. and there is no retail shop. so they keep the funny about this merchandise. In other word. if you get a new MI phone when it publishes. you catch the manner at premier clip. Beside that. MI phone represents high price-performance ratio. Although Apple and Samsung is international trade name. sometimes it is excessively expensive for pupil and workers after graduation. In the industry where the rhythm life is one for two old ages. MI use low monetary value but good quality to win the most portion of clients mind.
Brand elements. properties. perceived instrumentalities
The MI Company is concentrating on costumier experience. Technology and creative activity is their purpose. so the hardware and package is the first of import consideration for them. Every clip they publish new phone. the first thing they want to present to consumer is processor. So we think MI Company wants to pay more attending to the processor. and that is the most of import property in their trade name. In the after-sale service. they besides do a good occupation. They can roll up the feedback of users instantly. rapid comprehending what market demand and what clients want.
Difference and sustainable competitory advantage
Because MI focuses on the hardware creative activity. they do less in the organic structure design. For illustration. in MI 1. it uses white screen and black surface. but in the MI 3. it is all black. Although creative activity is good. client may confound about the colour and signifier. Without an unvarying design on visual aspect and looking the logo at first glimpse. people would non easy to place which trade name its. Different from others cellphone makers. MI begin to bring forth other electronic merchandises. such as Television. radio router. tablets. and some accoutrements such as bag. plaything. It can be seen that MI Company is turning their trade name consciousness and go oning to upgrade their hardware to vie in the phone market.
Marketing support plan
The chief selling scheme of MI Company is the Internet. It can barely happen their advertizement in the Television or other traditional media. and it still celebrated and popular in China. So I think their selling scheme is buzz selling. The consumers of their merchandise give a high repute for the company and urge the phone to their friends. Companies merely need to catch their purpose consumers. and so utilize customers’ “mouth” to assist them publicize. And now. MI company add more engineering and colour elements into
their merchandise ( phone screen. playthings and cup ) . all this things can act upon trade name enlargement. doing the trade name deep into people day-to-day life.
Brand leverage and trade name extensions
As we mention above. MI company has produce some other electronic merchandises. This is one point for the trade name extension. These merchandises has assist them increase market coverage and heighten the parent trade name. all of their extension merchandises show that MI company focal point on the Internet and electronic industry. But in other position. the company expands their market to digital and contraption may increase their cost but can non acquire the net income as outlook.
Part 4. ( Hao Wang. Hao Zhou )
1. Harmonizing to the analysis above. Myocardial infarction does good in hardware. It invariably upgrading merchandises in hardware. but MI’s engineering is still limited by Android. There are still no particular public presentations in package. even some bugs. which has a strong impact on the user experience. The defects of China-made nomadic phones are still at that place. 2. MI company sell merchandises merely via Internet ; so gross revenues channels are excessively individual. 3. No warrant for after-sales service
4. Their purpose consumers prefer to the immature. so it means their loss a portion of other older consumers. Their smartphone normally with colourful screen. and the amusement package occupy most of their package. Businessman or our parents would non take this sort of phone because it is non functional plenty. 5. The chief market of MI Company is China. and it has a good repute in mainland of China. But these are a national trade name. non a international trade name. Although ingestion of Chinese is immense. If they want to do more net income and acquire the acknowledgment of universe. they should spread out their market oversea.
Proposal for development
1. To increase portion of market and pull more different age people. MI Company should pay more attending to their design and package development.
They can alter the colour and add more day-to-day package such as conditions prognosis or wellness guideline into the package. In decision. they should supply more services. 2. Mi Company has been a great success in mainland of China. if they want to go on to spread out their success ; the lone manner for them is develop international market.
Proposal for merchandises
1. It should develop its ain nucleus systems and personalise its ain merchandises 2. Develop an operating system that consumers can custom-make. 3. Expand gross revenues channels
4. After sale service should be perfect
1. hypertext transfer protocol: //www. myocardial infarction. com/en/
2. hypertext transfer protocol: //wenku. baidu. com/
3. Chao-Ching Shih. Tom M. Y. Lin. Pin Luarn. Fan-centric societal media: The Xiaomi phenomenon in China [ J ] . Business Horizons. 2013 4. Anonymous. EMERGING COMPANY PROFILE ; Xiaomi. com [ J ] . Interfax: TMT China Weekly. 2011