EXERCISE 1: MARKET RESEARCH (0136999 PERAVIN A/L JAYAKUMAR)

 

Exercise 1: Market Research

 

B. The brands evolution journey + fast food industry evolution journey

Brands evolution journey

 

1. What marked the foundation of Xiaomi and when did it happen?

A: Xiaomi was founded on April 6, 2010, by Lei Jun and a group of partners. The company was established with the vision of creating innovative and high-quality technology accessible to everyone.

 

2. When did Xiaomi introduce its MIUI operating system and what was its significance?

A: Xiaomi introduced its MIUI operating system on August 16, 2010. MIUI was significant because it provided a user-friendly interface and frequent updates, which quickly attracted a loyal user base.

 

3. Where did Xiaomi launch its first smartphone and in what year?

A: Xiaomi launched its first smartphone, the Mi 1, in China in August 2011. This device marked Xiaomi's entry into the highly competitive smartphone market.

 

4. What was Xiaomi's strategy for expanding internationally and when did this expansion begin?

A: Xiaomi's international expansion began in 2014, with its entry into the Indian market. The company employed a strategy of offering high-spec devices at competitive prices, which helped it gain a significant market share rapidly.

 

5. How did Xiaomi's business model evolve with the launch of its IoT products and when did this shift occur?

A: Xiaomi expanded its business model to include Internet of Things (IoT) products in 2014. This shift allowed the company to diversify its product portfolio and create an ecosystem of interconnected devices, enhancing user experience and brand loyalty.

 

6. What was Xiaomi's innovation in smart home technology and when was it introduced?

A: Xiaomi introduced its first smart home product, the Mi Smart Home Kit, in 2015. This innovation marked the company's entry into the smart home market, aiming to provide integrated solutions for a connected lifestyle.

 

7. Where and when did Xiaomi open its first physical retail store?

A: Xiaomi opened its first physical retail store in Beijing, China, in May 2015. This move was part of its strategy to enhance customer experience and provide a direct point of contact for its products.

 

8. What milestone did Xiaomi achieve in the global smartphone market in 2017?

A: In 2017, Xiaomi achieved the milestone of becoming the world's fifth-largest smartphone manufacturer. This was a significant achievement, highlighting the brand's rapid growth and global influence.

9. When did Xiaomi go public and what was the impact of this event on its brand?

A: Xiaomi went public on July 9, 2018, with an initial public offering (IPO) on the Hong Kong Stock Exchange. This event raised $4.7 billion and helped solidify Xiaomi's financial stability and credibility in the global market.

 

10. How did Xiaomi's brand perception change with its entry into the high-end smartphone market and when did this occur?

A:  Xiaomi's brand perception changed significantly with the launch of the Mi 10 series in February 2020. Entering the high-end smartphone market, Xiaomi demonstrated its capability to compete with established premium brands, thereby elevating its brand image.

 

Fast food industry evolution journey

1. Who is credited with opening the first fast food restaurant?

A: The first fast food restaurant is generally credited to White Castle, which was founded by Billy Ingram and Walter Anderson in 1921 in Wichita, Kansas.

 

2. When did the first drive-in restaurant open?

A: The first drive-in restaurant, Pig Stand, opened in 1921 in Dallas, Texas, by Jessie G. Kirby and Reuben Jackson.

 

3. What innovation did McDonald's introduce to the fast food industry?

A: McDonald's introduced the "Speedee Service System" in 1948, which revolutionized the fast food industry by standardizing food production and reducing service times.

 

4. Where did Burger King originate?

A: Burger King was founded in 1954 in Miami, Florida, by James McLamore and David Edgerton.

 

5. How did the introduction of the drive-thru window change the fast food industry?

A: The introduction of the drive-thru window, popularized by Wendy's in 1970, transformed the fast food industry by increasing convenience and efficiency, allowing customers to order and receive food without leaving their cars.

 

6. Who launched the first fast food breakfast menu?

A: McDonald's launched the first fast food breakfast menu in 1977, introducing items like the Egg McMuffin.

 

7. Why was the introduction of the Happy Meal significant?

A: The Happy Meal, introduced by McDonald's in 1979, was significant because it specifically targeted children, combining food with toys, thereby fostering brand loyalty from a young age.

 

8. What impact did the introduction of the Value Menu have?

A: The introduction of the Value Menu by Taco Bell in 1988 significantly impacted the fast food industry by promoting affordability and attracting cost-conscious customers.

 

9. When did Subway become the largest fast food chain?

A: Subway surpassed McDonald's in the number of global outlets in 2010, becoming the largest fast food chain in the world.

 

10. How has the fast food industry adapted to the rise of health-conscious consumers?

A: The fast food industry has adapted to health-conscious consumers by introducing healthier menu options, such as salads, grilled chicken, and low-calorie meals, and by providing nutritional information to customers.

 

 

G. A SWOT analysis on the fast food & the industry.

 

Strengths

1. What operational advantage do fast food chains have over traditional restaurants?

A: Fast food chains benefit from streamlined operations, allowing them to serve food quickly and efficiently, reducing wait times for customers.

 

2. How do fast food restaurants capitalize on brand recognition?

A: Strong brand recognition helps fast food chains attract a loyal customer base and expand globally with a consistent brand image.

 

3. In what way do economies of scale benefit fast food companies?

A: Economies of scale enable fast food chains to purchase ingredients in bulk at lower prices, reducing overall costs and increasing profit margins.

 

4. How does menu standardization contribute to the success of fast food chains?

A: Menu standardization ensures consistency in taste and quality across all locations, enhancing customer satisfaction and trust.

 

5. What role does technology play in strengthening fast food chains?

A: Technological advancements in ordering systems, such as mobile apps and self-service kiosks, improve customer convenience and operational efficiency.

 

Weaknesses

1. Why are fast food chains often criticized for their menu offerings?

A: Fast food menus are frequently criticized for being unhealthy, high in calories, fats, and sugars, contributing to public health concerns.

 

2. What operational challenge do fast food restaurants face regarding labor?

A: High employee turnover rates in the fast food industry lead to increased training and recruitment costs, affecting operational stability.

 

3. How does the competitive nature of the fast food industry serve as a weakness?

A: Intense competition requires constant innovation and marketing expenditures, which can strain financial resources.

 

4. In what way can franchise management be a weakness for fast food chains?

A: Inconsistent management and operational practices across franchises can lead to variations in service quality and customer experience.

 

5. How can reliance on a limited product range be a vulnerability for fast food chains?

A: A limited product range can make fast food chains susceptible to changing consumer preferences and market trends, reducing their appeal over time.

 

Opportunities

1. How can fast food chains leverage the trend towards healthier eating?

A: By introducing healthier menu options and transparent nutritional information, fast food chains can attract health-conscious consumers.

 

2. What growth opportunity exists for fast food chains in emerging markets?

A: Expanding into emerging markets with growing middle-class populations presents significant growth opportunities for fast food chains.

 

3. How can fast food restaurants benefit from advancements in food technology?

A: Innovations in food technology can help fast food chains create new menu items that cater to diverse dietary preferences and improve food quality.

 

4. In what way can fast food chains capitalize on the rise of digital marketing?

A: Utilizing digital marketing strategies, such as social media advertising and online promotions, can enhance brand visibility and customer engagement.

 

5. How does the increase in demand for delivery services present an opportunity for fast food chains?

A: Partnering with delivery platforms and optimizing logistics for home delivery can expand customer reach and increase sales.

 

Threats

1. What regulatory changes pose a threat to the fast food industry?

A: Increasing regulations related to health standards, nutritional labeling, and environmental sustainability can impose additional costs and operational challenges.

 

2. How does the growing awareness of health issues threaten the fast food industry?

A: Rising health consciousness among consumers can lead to a decline in demand for traditional fast food products perceived as unhealthy.

 

3. In what way can economic downturns impact the fast food industry?

A: Economic downturns can reduce disposable income, leading consumers to cut back on discretionary spending, including dining out at fast food restaurants.

 

4. How do environmental concerns pose a threat to the fast food industry?

A: Increasing environmental concerns and the demand for sustainable practices can require significant changes in sourcing, packaging, and waste management, affecting profitability.

 

5. What competitive threat do fast casual restaurants pose to the fast food industry?

A: The rise of fast casual restaurants offering higher-quality ingredients and healthier options can attract customers away from traditional fast food chains.

 

Short Summary

Xiaomi, a Chinese electronics company founded in 2010, has rapidly grown to become one of the world's leading smartphone manufacturers. Known for offering high-quality devices at competitive prices, Xiaomi's strategy combines advanced technology, sleek design, and affordability. Their product range includes the flagship Mi series, the budget-friendly Redmi series, and the innovative Mi MIX series. Xiaomi also emphasizes an ecosystem approach, integrating their smartphones with various smart home devices and other tech products. This, coupled with strong online and offline sales strategies, has allowed Xiaomi to build a robust global presence, particularly in markets like China, India, and Europe. Despite facing challenges such as intense competition and regulatory issues, Xiaomi continues to innovate and expand, maintaining a strong position in the global smartphone market.

Personal Reflection

Conducting a brand analysis of Xiaomi has been an enlightening journey that has deepened my understanding of how a company can rise rapidly in a highly competitive market through strategic innovation and adaptability. From conducting market research to understanding the evolution of the Xiaomi brand as well creating a mind map to gain a better insight of the development and process of the Xiaomi brand as a whole, I have been able to develop my critical thinking and creative skills as well as my research skills. I would also like to thank my groupmates for their kind and helpful nature as well as the guidance they have given me throughout this exercise. I could not have done it without them. I also hope that the knowledge we have gained throughout this exercise will be carried forward with us moving on to the next exercise. 

References

Guillén, S. (2024, April 22). Xiaomi’s global strategy: From Local Hero to international giant. Accelingo. https://www.accelingo.com/xiaomis-global-strategy/

Presthitha, H. (2023, May 1). Xiaomi Success Story - Xiaomi founder, history, funding, revenue, business model, growth. StartupTalky. https://startuptalky.com/xiaomi-success-story/

Story of Xiaomi - article - HistoryDraft. (n.d.). 
https://historydraft.com/story/xiaomi/article/555

Sun, L., & Fah, C. T. (2020). XIAOMI – TRANSFORMING THE COMPETITIVE SMARTPHONE MARKET TO BECOME a MAJOR PLAYER. Eurasian Journal of Social Sciences, 8(3), 96–110. https://doi.org/10.15604/ejss.2020.08.03.002

Tabassum, R., & Ahmed, S. (2020). Xiaomi invades the smartphone market in India. Decision, 47(2), 215–228. https://doi.org/10.1007/s40622-020-00242-w

Taha. (2023, August 30). Evolution of MIUI: From MIUI 1 to MIUI 14 - Xiaomiui.Net. Xiaomiui. https://xiaomiui.net/from-miui-v1-to-miui-13-the-history-of-miui-7634/

Yang, H. (2021, April 27). How Xiaomi became an Internet-of-Things powerhouse. Harvard Business Review. https://hbr.org/2021/04/how-xiaomi-became-an-internet-of-things-powerhouse

Zhao, W., & Yi, L. (2022). Research on the evolution of the innovation ecosystem of the Internet of Things: A case study of Xiaomi(China). Procedia Computer Science, 199, 56–62. https://doi.org/10.1016/j.procs.2022.01.008