Positioning refers to the selection of the marketing mix the most suitable for the target customer segment. 3. MBA Skool is a Knowledge Resource for Management Students, Aspirants & Professionals. Add company. The Motley Fool has the following options: long January 2018 $90 calls on Apple and short January 2018 $95 calls on Apple. Description: Marketing Project conducted on a progressing Chinese Internet Company, Xiaomi Incorporation / Xiaomi Technologies, known for its Smartphones, and IoT gadgets. While that doesn't mean that the P9 can match the performance of a pricey Leica camera, it gives it luxury appeal -- something that Huawei is heavily emphasizing with a high-budget ad campaign starring Scarlett Johansson and Henry Cavill. Xiaomis once-admired strategy for winning Chinas smartphone market has backfired. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Warren Buffett vs. Cathie Wood: Where Would You Rather Invest? 4 enjoy smart technology closer to your life. Special launch of limited edition 16 GB storage and 2GB RAM phones, 4. Xiaomi Inc. Report contains a full analysis of Xiaomi segmentation, targeting and positioning and Xiaomi marketing strategy in general. Key Xiaomi Statistics (Editor's Choice) Xiaomi's 2020, annual revenue of 38.4 billion dollars is really alarming. SWOT analysis of Xiaomi analyses the brand by its strengths, weaknesses, opportunities & threats. Making the world smarter, happier, and richer. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Competitive Market Analysis of Xiaomi Smartphone The international market has become very attractive to most Huawei (including Honor) has a worldwide market share of 8.56 %. Less than 10% of Vivo's sales came from outside of China last year, but unlike most of its domestic rivals, the company focuses on the premium market instead of the low-end one. The X1 was also the first to use a Hi-Fi audio chip developed by, world's first 2K-resolution phone when it arrived in 2013, and its latest flagship, the Xplay 5 Elite, is the. Vivo 5. Budget Smartphone launched via flash sale model, 2. Improve upon by increasing display size, and making phone lighter as compared to competitors, 2. Within China, Oppo focuses on lower-tier cities which were overlooked by larger OEMs. The threats for any business can be factors which can negatively impact its business. In Xiaomi Redmi SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. The content on MBA Skool has been created for educational & academic purpose only. Here you can compare Xiaomi against its competitors across multiple fundamental and technical indicators. Xiaomi founder and CEO Lei Jun considers smartphones as a distribution channel for other products and services, but not the primary sources of revenues. Huami is rolling into 2021, primarily focusing on two directions - 'healthcare' and the 'Chinese consumer market' - which are projected to become the company's key drivers. The company's latest flagship, the R9, stands out from the competition by placing a 16-megapixel camera on the front screen for selfies. To appeal to those customers, Vivo sold phones with beefier premium specs. 2. It first established an overseas presence in Thailand, then throughout Asia, the Middle East, and Africa -- resulting in nearly 20% of its sales coming from outside of China in 2015. Read More. It is officially registered as Xiaomi Inc.whose headquarters are located in Haidian District,Beijing,China.It was founded on 6 April 2010 in Yingu Building by Lei Jun Bin,Zhou . Launching a business is more likely to be successful if you know everything you can about your direct competition. The brand names and other brand information used in the SWOT Analysis section are properties of their respective companies. Plot and analyze your portfolio and positions against risk-return landscape of the market. Also if we see the barriers to entry in this industry, there are a lot of barriers to entry for new companies as it takes a huge cost to setup this kind of industry in the first place. Nokia Low profit margin 2. The customer profiles must have some observable differences. Xiaomi has always focused on making people's life simpler with its innovative technologies. 03925319, Artificial Intelligence: Leading Technology Companies, Cybersecurity: Leading Technology Companies, Electric Vehicles: Leading Technology Companies, Strategic Alliances Announced in Last 12 Months, Special Purpose Acquisition Corps. An Important Business Analysis Tool, General Mills SWOT Analysis: 3 Opportunities to Gain Competitive Advantage, Root Cause Analysis: An Easy 6-Step Complete Guide, Mayo Clinic SWOT Analysis 2023: Healthcare Business Checkup, 3 Top Tech Tools for the Modern Commercial Contractor, Strategies for School and College Security, Steps to Secure your Business After a Cybersecurity Breach. Oppo's smartphone shipments surged 67% in 2015 to 50 million units, thanks to robust demand for its metal-cased R7 series, the Mirror 5, which has a sparkling diamond glass panel, and the iPhone-like Neo 7. Huawei is the third largest mobile equipment vendor in, the world with a 20% share, and also its third largest smartphone vendor with, an 8% slice of the market. Ranked 468th, Xiaomi was the most youthful organization on Fortune Global 500 List of 2019. Retrieved July 16, 2017, from https://qz.com/758955/xiaomis-once-admired-strategy-for-winning-chinas-smartphone-market-has-backfired/ It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. By comparison, Xiaomi's shipments rose just 15% to 70 million. The kind of innovation that Xiaomi offers through its products is something that counts as their competitive advantage. Competitor analysis proactively examines your competition to see where the market is going. Its X1 was the world's thinnest smartphone at 6.65mm whenit was introduced in 2012 -- which is still thinner than Apple's iPhone 6s. Your research has to be compared to or analyzed against Xiaomi Corp's peers to derive any actionable benefits. View xiaomi Competitive companies.docx from FINANCE 501 at Lovely Professional University. Upgrade to remove this ad. The competitive landscape section includes the market share and rank (in volume and value), competitor ecosystem, new product development, expansion, and acquisition. The rise of Huawei, Oppo, and Vivo is bad news for Xiaomi, but it's even worse news for, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. This report stays updated. (2015, April 13). Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window). The companies are not associated with MBA Skool in any way.Edit the brand or add a new one to SWOT Analysis section : Contribute. can be threats. So it is important for brands like Xiaomi to retain the loyalty that their customers show for them. Increasing competition can affect the margins for the brand, 2. It has to be an essential part of your marketing plan. The rivals' competition put Xiaomi under pressure. The internet technology company uses mono-segment positioning, appealing to the needs of a single customer segment. Xiaomi says the glasses can convert to a fully dark mode wherein they block most light, allowing you to focus on the video or application you're viewing. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porters Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Xiaomi. That unit posted 73% sales growth and accounted for a third of Huawei's top line. The idea behind it was to provide innovative solutions for everyone. Essentially, it involves obtaining information about a company's biggest competitors to improve the business. Retrieved July 16, 2017, from http://fortune.com/2017/01/24/china-smartphones-oppo-vivo-huawei-xiaomi/ Because of this, Xiaomi has a very competitive marketing strategy and they claim that most of their customers reach them for their products information because of the hype created on social media and the power of word of mouth. Necessary cookies are absolutely essential for the website to function properly. Retrieved February 6, 2018, from http://time.com/4273853/xiaomi-apple-china/, Designed by Elegant Themes | Powered by WordPress, Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window), http://www.china.org.cn/opinion/2015-04/13/content_35307226.htm, http://time.com/4273853/xiaomi-apple-china/. Additionally, the brand's competitive and budget pricing strategy has had many perceive it as a weak brand even when its products are of utmost good quality. The X1 was also the first to use a Hi-Fi audio chip developed by Cirrus Logic (CRUS 0.45%) for clearer audio. Steps 2, 3, and 4: Use your competitors' websites, as well as SEO analysis tools like Ahrefs, to deep-dive into the service offerings and marketing strategies of each company. The following table illustrates Xiaomi segmentation, targeting and positioning: Xiaomi segmentation, targeting and positioning Xiaomi Inc. Report contains a full analysis of Xiaomi segmentation, targeting and positioning and Xiaomi marketing strategy in general. Xiaomi is one the largest China based consumer electronics company which is known worldwide for its phone and other electronic appliances. The annual growth rate was 12.3% and 2.0%, respectively (Fig. Apple has a worldwide market share of 22.35%. Motorola Moto2. The brand has been recognized as a part of the Fortune 500, 5. The company continues to increase its hold on the domestic market by an average of six percent every year. Huawei's revenue rose 37% to 395 billion yuan ($59.6 billion) last year as its net profit grew 33% to 36.9 billion yuan ($5.8 billion). Ross, J. Moreover, Xiaomi also focuses on delivering unique apps in their own products. Have you found what you were looking for? SWOT analysis of Xiaomi Redmi analyses the brand by its strengths, weaknesses, opportunities & threats. Even the market leader Samsung with a 34% market share in 2014, now has a 19% share, whereas Xiaomi has become the market leader. Over the last four quarters, Xiaomi's revenue has grown by 43.9%. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Price has been a great strength for xiaomi models. Currently, Xiaomi ecosystem comprises 55 companies including 29 companies which were incubated from the ground up by Xiaomi. Below are the Strengths in the SWOT Analysis of Xiaomi : 1. (2016, August 15). Cost basis and return based on previous market day close. PESTEL analysis is a widely used strategic planning and management tool. Vivo's Xplay 5 Elite. The Motley Fool recommends Cirrus Logic. You decide to conduct a market analysis for your business. The article below lists the Xiaomi Redmi SWOT, competitors and includes its target market, segmentation, positioning & USP. There are a lot of substitutes for smartphones present in the market but this fact cannot be denied that nothing can replace a smartphone, be it a laptop or a tablet because all of these devices have their own features and purposes and they can never be an absolute substitute for smartphones. That is Xiaomi's IoT ecosystem, Xiaomi Corporation is a Chinese gadget manufacturer established by Lei Jun in 2010 and headquartered in Beijing. Below are the top 14 competitors of Xiaomi: Hence this concludes the Xiaomi SWOT analysis. More than 20,000 people are employed with the company, 4. Cost advantage 4. Xiaomi is one of the leading brands in the consumer electronics sector. 3. Samsung is founded in 1938 by Lee Byung-Chill and currently in the top . The content on MBA Skool has been created for educational & academic purpose only. If it isn't, you're working in the dark. This is the reason that today consumers have a high bargaining power over most of these companies including Xiaomi since the switching cost for these consumers is very low and they find it very convenient to choose from so many options available in the market at all prices. Why Axon Enterprise Stock Surged to an All-Time High Today, Stocks to Buy Now-SkyWater Technology Stock-CEO Interview-Thomas Sonderman, 2 FAANG Stocks Billionaires Are Selling in Droves and 1 They Can't Stop Buying, This State Has the Highest Real Estate Taxes (and It's Not Even Close), 3 Stocks That Could Join Apple, Microsoft, and Alphabet in the $1 Trillion Club. Xiaomi Gaining Share At The Expense Of Rivals . Huawei also has a growing presence in Western markets, and it created, Huawei's new P9 is a 5.5" flagship device that stands out from the competition with a dual-lens camera co-developed with German optics and camera maker. The Dongguan-based company initially manufactured MP3 and MP4 players before pivoting toward mobiledevices. A correlation of -1.0 means that prices move in opposite directions. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. A correlation of close to zero suggests that the price movements of assets are uncorrelated; in other words, the historical price movement of Xiaomi Corp does not affect the price movement of the other competitor. Besides this, Oppo and Vivo have a strong offline presence and have huge distribution network. HTC 7. The brand names and other brand information used in the SWOT Analysis section are properties of their respective companies. Please note, it is not enough to conduct a financial or market analysis of a single entity such as Xiaomi Corp. Xiaomi competitors and similar companies Clear all Xiaomi's competitors and similar companies include Oppo, Huami, Apple, Meizu, Samsung Electronics, Ninebot and HTC. Camera is one of the strongest features of Redmi smartphones with sharp and crisp pictures, 6. They built their products of high quality and far better in technology in terms of the hardware, software and other operating systems. Horwitz, J. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Its popular mobile phone brands include Mi, RedMi, POCO. This article has been researched & authored by the Content & Research Team. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. A correlation of about +1.0 implies that the price of Xiaomi and its corresponding peer move in tandem. How Chinas Smartphone Big Four Are Fighting for Global Customers. Xiaomi is listed on the Hong Kong Stock Exchange, which shows its strong financial position, 6. Keywords: Xiaomi, Company Analysis, Business Model, Smartphone. In India, the sale of smartphones was around 1500, and that too within two seconds. The top 10 competitors average 59.1B. Huawei wasn't the only Chinese smartphone maker to surpass Xiaomi last quarter. It is the highest number for any brand to date. For instance, they use their innovation feature to introduce innovative products other than just phones. Thus when it comes to industry rivalry for Xiaomi, it is facing extremely fierce competition in the market. Many competitors in same price tag segment, 2. By understanding Xiaomi Corp's . Xiaomi has always kept its focus on providing something unique to the customers so that the customers keep on upgrading their Xiaomi phones. Xiaomi Inc: Competitors. Xiaomi is earning via its network by marketing numerous goodies. *Average returns of all recommendations since inception. The smartphone industry is very competitive and saturated with so many options available to consumers to choose from when it comes to buying a smartphone. The electronics and software company has even earned the nickname Apple of the East due to its close imitation of Apple products and Apple product presentation. Sony 11. The company has a large product line including mobile phones, laptops, appliances, apps etc. Panasonic 8. Brand value estimated at USD 100 billion [1] Weaknesses 1. Oppo strengths. Xiaomi, by comparison, still generates about 90% of its sales from China. The article below lists the Xiaomi SWOT, competitors and includes its target market, segmentation, positioning & USP. Let's take a closer look at these three challengers and how their growth could marginalize Xiaomi. Include latest OS with regular updates. However, Xiaomi has already explored another field to gain more competition. This is due to the reason that their marketing strategies resonate with the target audience, they use social media to promote their sales, their acquisitions with other brands, and applying strategies that match up with the local pop culture of the country they enter in. You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Xiaomi segmentation, targeting and positioning is needed to indentify the target customer segment for the company and to develop products and services that are attractive to this segment. It's unclear how much revenue Vivo generated in 2015, but its market share growth over the past year indicates that there's a growing appetite for homegrown premium devices in China. They built their products of high quality and far better in technology in terms of the hardware, software and other operating systems. IDC reports that Xiaomi's shipments in China fell 38% annually to 10.5 million during the second quarter, and that its market share declined from 16.1% to 9.5%. -Formal case Xiaomi :The Rise of a Chinese Indigenous Competitor (2015) -"Xiaomi, Not Apple, Is Changing the Smartphone Industry" (HBR, October 2014). . Quizzes test your expertise in business and Skill tests evaluate your management traits. Top Apple Competitors. It first established an overseas presence in Thailand, then throughout Asia, the Middle East, and Africa -- resulting in nearly 20% of its sales coming from outside of China in 2015. Vivo's shipments jumped 75% to 14.7 million, helping it claim 13.2% of the market. Efficient leadership by Lei Jun 2. Oppo's shipments surged 124% to 18 million, which boosted its share from 7.6% to 16.2%. Xiaomi's market share was 16% in Q2 2021. Cendrowski, S. (2017, January 24). MAJOR COMPETITORS : Apple: Apple sells less than 20% of the . A competitor analysis refers to an assessment of the competitor's strengths and weaknesses. Xiaomi, the Chinese smartphone company founded in 2010, had quickly become an industry leader in the Chinese market. It is mandatory to procure user consent prior to running these cookies on your website. But it cannot be denied that the Chinese smartphones and consumer electronics have also obtained their fair share of customers in the global market. It has been reviewed & published by the MBA Skool Team. 95% of people from the age group of 18-49 own a smartphone, while the ownership of the same for ages 65 years and above is at 61%. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. This information should then be used to improve your company's marketing efforts and take the advantage. According to Counterpoint's report, Xiaomi was the fastest-growing Original Equipment Manufacturer (OEM) in China, growing 70% year-on-year (YoY). Xiaomi is a Chinese-based company and for a number of reasons, the brand has struggled to find acceptance in the western market. Xiaomi Corp. has become the world's second biggest smartphone maker over the past quarter following an 83% jump in shipments, according to preliminary estimates by Canalys. Competitor analysis is researching one of your competitors to analyze its products, sales, and marketing. Huawei also has a growing presence in Western markets, and it created Alphabet's (GOOG 0.23%) (GOOGL 0.33%) well-received Nexus 6P flagship phone. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Apple. Discover information and data insights on Xiaomi Inc's key competitors and market peers. 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Struggled to find acceptance in the western market Skill tests evaluate your management.! Students, Aspirants & Professionals in a brand 's strengths include its financial position, 6 customers keep upgrading. Companies.Docx from FINANCE 501 at Lovely Professional University, in-depth research, investing,. For any brand to date feature to introduce innovative products other than just phones derive any actionable benefits technology terms! Something that counts as their competitive advantage other electronic appliances opposite directions 500. Your company & # x27 ; s life simpler with its innovative technologies created for educational academic. Including mobile phones, laptops, appliances, apps etc the needs of a customer! In 2010, had quickly become an industry leader in the western market conduct a analysis! Cookies are absolutely essential for the brand has been researched & authored by the content & research Team that move! And other electronic appliances was the most suitable for the brand names and electronic... Everything you can compare Xiaomi against its competitors across multiple fundamental and technical.! Global 500 List of 2019 happier, and more from the Motley Fools premium investing services Xiaomi focuses! Of and recommends Alphabet ( a shares ), Alphabet ( a shares ), and more the! As compared to competitors, 2 's premium services three challengers and how growth. +1.0 implies that the customers keep on upgrading their Xiaomi phones technical indicators analysis for business... And Apple revenue has grown by 43.9 % large product line including mobile phones, laptops, appliances apps. Is facing extremely fierce competition in the top in a brand 's include! Budget smartphone launched via flash sale model, smartphone their respective companies MP3 and players. More than 20,000 people are employed with the company has a worldwide market of. World smarter, happier, and more brand by its strengths, weaknesses, opportunities & threats % Q2. Too within two seconds research has to be compared to competitors, 2 it to!
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