Keerthika Priyadarshini Pushpagarajan
MBA 540: Management of Information Systems
Ohio Dominican University
This paper is an insight over Xiaomi’s secret over its success and its idea to expand internationally. In order to give a clear picture over this week’s wall street journal article – Xiaomi : The Secert to the World’s Most Valuable Startup the paper has aimed to answer the following questions:
1. (Advanced) Smartphones are a true commodity. Yet Xiaomi is able to convince consumers otherwise, however. By what means does Xiaomi add appeal and subjective value to its smartphones? Xiaomi, a five-year old company is today the world’s fifth largest smartphone maker and recently accounted for a 108.5 million units of international shipments that accounts for almost 37% of global shipment. (Flannery R, 2015). For any company to reach such heights in a short span of time has got to have very strong strategy to make it possible. According to Eva Dou (April 2015), Xiaomi approached their consumers with inevitable costs and also made them strongly feel for the need of their products by giving their fans offers in an exclusive club every few weeks. The history also says that Xiomi could get such a huge response in china, as they were one of the Chinese companies who manufactured locally and that also enabled them to serve their customers very effectively. Also they started their marketing only through word-of-mouth and took over the advantage of social media where even the top officials of the company took time to talk to their customers in responding to any issues they had online through blogs and ended up having a huge fan following. This kind of a strong relationship between the company itself and the consumer was a key to success for Xiaomi.
2. (Introductory) Now Xiaomi wants to roll out its strategy beyond China. How does Xiaomi intend to appeal to non-Chinese consumers? Now that Xiaomi has completely seen its success in china, it would be a bas idea to establish to the non-Chinese consumers. In fact in India, Xiaomi established itself only in the late 2014 with Flipkart (an online has already seen between 2 out of 10 people with good reviews spreading across and that seems to be a growing ratio. I would say it is a challenge to Xiamoi to see its success only in developed countries. According to Eva Dou (April 2015), the marketing head of Xiaomi, Amanda Chen said that “ In terms of success formula, some things are universal”, which may be true. Many times it is only the product that steals attention rather than where it is from. If Xiamoi could continue to give such excellent products with aggressive pricing model it can certainly go beyond China. The only challenge for Xiaomi could be to build its international brand and localize its services offering