Xiaomi Essay

Recent years, consumer electronic market has reached a development peak. Because of this golden age of electronic and the boom of the Internet, a lot of companies keenly seize the opportunities according to Multipolarity the New Global Economy 2011 Report: “A number of innovative and dynamic emerging-market firms are on a path toward dominating their industrial sectors globally—much in the same way that companies based in advanced economies have done over the past half century.” Under this situation, customers are facing an overwhelming variety of products. Some emerging-market firms rack their brains trying to figure out the customers’ needs. Xiaomi is one of them and successfully satisfies customer’s need by delivering high-quality products

Haydn Shaughnessy comments that: “It was the smartphone industry that made the business ecosystem a must-have, a matter of significant, embedded competitive advantage.” From Xiaomi’s various products, we can find that Xiaomi is not just focusing on smartphone market, but also want built its whole ecosystem. But as so many companies want to create their own ecosystems, is that mean they can succeed in building business ecosystem definitely? Haydn Shaughnessy mentioned in his article: “But for most companies, the process of attracting and managing a valuable external resource is a total mystery.” It seems like many companies may be lost on the way to build their ecosystem. Furthermore, Xiaomi, a company supposed to be profitable, still do not have its core point of profit because of the limit of low-price strategy. Developing ecosystem in other words is helping Xiaomi to figure it

Xiaomi succeeded because of its creative model, which has the lowest inventory to minimize cost. This model sometimes took user experience at the expense. The new products are always out of stock, which is at the risk of customers’ patience run out as BOBBY SITUKANGPOLES stated, “However, limited availability has been plaguing the release of these devices. Posts where people vent their anger for not being able to purchase the phone they wanted are a familiar sight following their launch events.” With rapid expansion in developing countries and the establishment of mature ecosystem, production capacity will become Xiaomi’s key threat. The whole market is already convinced that Xiaomi can produce high-quality and low-price products, but it will make no sense when the capacity of supply chain and production line cannot meet customers’ need. In order to achieve the first two trends, Xiaomi needs to consider how to make the supply of components and production capacity keep pace with the growth of company at