EXERCISE 1: MARKET RESEARCH (0137467 VANESSA ANAK EDWIN)

EXERCISE/TUTORIAL WEEK 1

 

 

E. The mission and vision of Xiaomi’s brand.

1.     What is the mission of Xiaomi’s brand?
- To relentlessly build amazing products at honest prices to let everyone in the world enjoy a better life through innovative technologies. (Xiaomi Linkedin) Initially, their mission was to upgrade China’s manufacturing sector by adopting “internet thinking” and the “methodology of the internet”.

2. What are some of the initiatives Xiaomi undertakes to support its mission in “to let everyone in the world enjoy a better life through innovative technologies”?
   - Xiaomi sells its product at the lowest price and at the same time providing the best quality.

3. What is the vision of Xiaomi’s brand?
   - “Make friends with users and be the coolest company in the users’ hearts”

4. When was the vision and mission of Xiaomi’s brand first introduced?
   - Xiaomi Corp. was founded in April 2010.

 

 

5. Who created Xiaomi’s brand vision & mission?
   - Lei Jun, founder & CEO of Xiaomi.

 

 

6. What does “MI” in Xiaomi’s logo stand for and who created it?
   - “Mobile Internet”, another meaning is “Mission Impossible” as Xiaomi faced various challenges that had seemed impossible to defy in their early days. It was designed by Kenya Hara.

 

 

F. SWOT analysis of Xiaomi

 

Strengths

7. What is Xiaomi's main brand strength?
   - Xiaomi’s products are affordable compared to the top 2 smartphone manufacturers, Apple and Samsung.
   
   
   
8. What makes Xiaomi leading the smartphone industry in terms of distribution channel?
   - Xiaomi uses both direct and indirect ways to distribute their products such as online selling and retail stores hence it improved and optimized the sales/payment effectiveness (Sun & Fah, 2020).

9. Why did Xiaomi choose to optimize both direct and indirect distribution channels?
   - Xiaomi will be able to reach a broader audience by emphasizing and utilizing distribution channels. 
   
   

 

10. What benefit does Xiaomi get by utilizing online distribution channels?
    - Xiaomi is able to reach a broader audience and attract more customers from different regions as customers nowadays prefer online shopping as a convenient way. By having a strong online presence, it enables Xiaomi to direct-to-customer sales.

 

 

11. What benefit does Xiaomi get by utilizing retail stores as distribution channels/How does operating its own stores benefit Xiaomi?
    - Xiaomi is able to attract more customers & enhance their personal experience as Xiaomi usually locate their retail stores in high traffic locations such as shopping malls & shopping districts. Hence, Xiaomi gained a strong customer base (Sun & Fah, 2020).

12. How does the battery capacity of Xiaomi smartphones compare to mainstream smartphones?
    - Xiaomi smartphones use a large battery of 2930 mAh which exceeds the battery capacity of mainstream smartphones by nearly 30% (Russell, 2017).

13. What sales method does Xiaomi primarily use?
    - Xiaomi primarily uses online sales to save costs and because online shopping is a fashionable way of consumption (Sun & Fah, 2020). 

14. Who is Xiaomi mobile phones spokesperson and how does his personal brand influence Xiaomi?
    - Lei Jun, CEO of Xiaomi is a successful person and investor hence his struggle history, personal experience & success stories influence the younger generation and eventually strengthen the brand (Sun & Fah, 2020).

15. What can Xiaomi benefit through the influence and popularity of the founder?
    - Xiaomi is able to publicize their product through media platforms and achieve a publicity effect with extremely low operating cost, which greatly reduces the publicity cost of Xiaomi Company. (Siam) 

16. What is Xiaomi's current market share?
    - 11.44% which made it the third largest smartphone manufacturer after Apple and Samsung.

17. What selling strategy does Xiaomi use and is it effective?
    - Xiaomi adopts a strategy of assembling high-quality parts by purchasing components from major mobile phone manufacturers worldwide. This approach meets the performance requirements of mobile phone enthusiasts while reducing costs and ensuring high-quality smartphones at lower prices.

 

 

Weaknesses

18. What are some of the weaknesses found in Xiaomi products?
    - Some of the common issues reported by Xiaomi users are curved screens, peeling paint, and severe body heating. These problems highlight a gap in the quality control compared to competitors (Zhu & Gao, 2022).

19. How does Xiaomi’s after-sales services compare in small and medium-sized cities?
    - Xiaomi after sales support services, known as “Mi Home '' are significantly lacking in small and medium-sized cities worldwide. The coverage of after-sales terminals is insufficient which leads to a gap in support services compared to more established brands (Zhu & Gao, 2022).

20. What challenges does Xiaomi face in terms of enhancing its brand visibility/reputation internationally?
    - Negative perceptions associated with Chinese products (Made in China) can affect its reputation and market expansion efforts.

21. How does Xiaomi’s customer base compare to its competitors?
    - Xiaomi’s customers might be less brand-loyal and more likely to switch to other brands that offer better deals.

22. Is Xiaomi’s promotion strategy effective in attracting customers?
    - Xiaomi’s promotion strategy that mainly focuses on online marketing has proven effective in attracting price-conscious customers. However, this strategy may not be effective for customers that prefer traditional shopping.

23. What are the weaknesses in Xiaomi’s distribution channels that might limit its ability to efficiently reach customers in various regions?
    - Xiaomi has inconsistent after-sales services which can negatively impact customer satisfaction and brand reputation. Xiaomi also has fewer physical stores compared to its competitors which likely limits its ability to provide hands-on experiences.

24. What is the customer's perception towards Xiaomi data security?
    - Some users are sceptical about the security and privacy of their data with Xiaomi due to political issues and worries towards Chinese tech companies.

25. What is customer feedback/ brand perception on Xiaomi company?
    - Xiaomi might be experiencing reputation defects as compared to international brands such as Apple which has established their brand image & reputation, Xiaomi started late and lacks brand reputation. (Zhu & Gao, 2022)

26. How does Xiaomi’s pricing strategy affect its brand image/ perception?
    - The cheaper price of products compared to its competitors make it seems like Xiaomi is less classy to people who seek for high-end products.

 

Opportunities

27. What partnerships/ collaboration Xiaomi can pursue in order to enhance its product visibility?
    - Xiaomi has engaged in international partnerships & collaboration with influencers, fashion brands, manufacturers.
    
    
    
28. Who are the partnerships/ collaboration Xiaomi has pursued?
    - Xiaomi X Swarovski, Xiaomi X Bambam

29. What benefits does Xiaomi get from their previous collaboration/campaigns?
    - Xiaomi's most recent highlighted collaboration/partnership is with Leica. Xiaomi has expanded its global reach as well as elevated its camera capabilities.

30. How can Xiaomi enhance its brand visibility globally?
    - Xiaomi usually collaborates with idols, stars and partners up with other brands.

31. Where does Xiaomi do their campaign to promote their product?
    - Xiaomi usually promote their products through e-commerce.

32. How has the competitive industry created opportunities for Xiaomi?
    - In the Android phone market, Xiaomi’s MIUI system and good performance at the same price point attract a large number of phone enthusiasts, particularly in the middle and low-end market segments (Zhu & Gao, 2022).
    
    
    
33. What is the potential market trend that could benefit Xiaomi in the future?
    - The trend of mobile phones potentially replacing PCs indicates that market demand and smartphone requirements will continue to increase (Zhu & Gao, 2022).

 

Threats

34. Who are Xiaomi's major competitors in the industry?
    - Apple, Samsung electronics, Lenovo (Safiya et al, 2019)

35. How do social factors affect Xiaomi brands reputation?
    - Many western consumers perceive Chineses products as inferior compared to other options which made Xiaomi hard to break into the US market.
    
    
    
36. What will cause the increase of the number of competitors in the industry?
    - Xiaomi Company will attract some Internet companies to grab market shares, such as 360, Alibaba and other internet giants with abundant funds and a huge user base that will pose a certain threat to Xiaomi. (Siam)

37. What is the possible threat to Xiaomi's supply chain?
    - The uncertainty of economic downturns can be a possible threat to Xiaomi’s supply chain such as suppliers.

38. What are some examples of economic downturns that have impacted Xiaomi’s business?
    - Covid-19, Global smartphone market downturns.

39. What technical challenges does Xiaomi face with its MIUI system?
    - Although MIUI is well-suited for Chinese users, it is only made in China and developed under the Android framework, hence limits the development of some applications.

40. How does international relations affect Xiaomi production?
    - Due to the cooling down of China and US relations in recent years, it can be predicted that Chinese enterprises in the smartphone and other technology industries will lack international technical and product support to a certain extent in the future. (Zhu & Gao, 2022).

 

Short Summary

    

    Xiaomi is one of the leading smartphone manufacturers which is ranked third globally after Apple and Samsung. The company’s mission is to build amazing products at honest prices and ensure every user experiences a high-quality user experience. Xiaomi’s main brand strength lies in offering its products at the lowest possible prices which makes them highly competitive in the market. In order to enhance its brand visibility and product quality, Xiaomi has formed numerous partnerships and collaborations including notable ones with Leica for advanced camera technologies. Despite these strengths and opportunities, Xiaomi also faces challenges such as economic downturns and intense competition. To address product weakness such as the quality issues and brand perception, Xiaomi also collaborates with other manufacturers to improve its offerings and brand visibility.

 

Personal Reflection

 

    I gained a lot of new information and deep insights after conducting research on Xiaomi brand. This research taught me many things I never knew before about Xiaomi and gave me a batter understanding of the smartphone industry market. To be honest, creating 40 Q&A was challenging at first, but it helped me learn and enhance my skills using the Kipling method. I was also able to complete my Exercise 1 thanks to my supportive group members as they are very cooperative and helped each other throughout the process.

 

 

REFERENCES

 

Bush, T. (2019). PESTLE Analysis of Xiaomi. PESTLE Analysis.

https://pestleanalysis.com/pestle-analysis-of-xiaomi/

 

Counterpoint. (n.d). Decoding Xiaomi and Leica’s Co-engineering Partnership. https://www.counterpointresearch.com/insights/counterpoint-conversations-decoding-xiaomi-leica-co-engineering-partnership/#:~:text=This%20co%2Dengineering%20partnership%20benefits%20both%20brands%3A&text=Leveraging%20Leica's%20optical%20expertise%2C%20Xiaomi,to%20elevate%20its%20camera%20capabilities.&text=The%20camera%20differentiation%20strategy%20is,to%20a%20wider%20smartphone%20audience.

Counterpoint. (n.d). Xiaomi Updates: Q3 2022. https://www.counterpointresearch.com/insights/xiaomi-quarterly-updates/#:~:text=Global%20Smartphone%20Market%20Downturn%20Impacts%20Xiaomi%20Numbers&text=Xiaomi's%20latest%20financial%20numbers%20fully,%2410.3%20billion

H. M., Safiya, & S., Shylesh. (2019). Analysis of Business Strategies of Xiaomi. International Journal of Case Studies in Business, IT, and Education (IJCSBE), 3(1), 1-8. DOI: http://doi.org/10.5281/zenodo.2574499. 

 

Luan, Z. (2022). The Marketing Strategy of Xiaomi Company from the Perspective of Brand Value Research. https://e-research.siam.edu/wp-content/uploads/2022/09/IMBA-2022-IS-The-Marketing-Strategy-of-Xiaomi-Company.pdf

 

Nagarajan, S. (2024, May 22). Xiaomi partners with Chain Reaction to revamp regional brand strategy. Campaign Middle East. https://campaignme.com/xiaomi-partners-with-chain-reaction-to-revamp-regional-brand-strategy/

South China Morning Post. (2024). Xiaomi’s internet business sees rapid growth in overseas markets with added services. https://www.scmp.com/native/business/topics/building-internet-ecosystem/article/3255306/xiaomis-internet-business-sees-rapid-growth-overseas-markets-its-growing-suite-services

 

Sun, L. & Fah, C. T. (2020). Xiaomi - Transforming the Competitive Smartphone Market To Become A Major Player. Eurasian Journal of Social Science, 8(3), 96-110. https://eurasianpublications.com/wp-content/uploads/2021/02/EJSS-8.3.2.pdf 

 

Verma, N. (2023, October 13). SWOT Analysis of Apple & Xiaomi. Medium. https://medium.com/@2021c2r033/swot-analysis-of-apple-xiaomi-c200f1c1eedf#:~:text=Affordable%20Pricing%3A%20Xiaomi's%20products%20are,in%20emerging%20markets%20like%20India.

Xiaomi Global Home. (n.d). Xiaomi.
 https://www.mi.com/global/discover/article?id=3038