Xiaomi Pestle Analysis Essay

Analysis of the General Environment

PESTLE Analysis is used to evaluate Xiaomi’s external marketing environment but for the purpose of this report, only factors that are most relevant for its continued growth as follows, will be highlighted.

2.1.1 Economic

• Malaysia’s macroeconomic fundamentals remain relatively strong with a projected 5.1% increase in private consumption in 2016, amid expected lower inflation rate of 2.2% (BNM, 2015). The GST has resulted in dearer selling prices for goods and services, especially superior items like premium smartphones. While average selling prices for Apple, Samsung and Huawei top-notch smartphones would be out of reach to larger group of consumers, Xiaomi could take this opportunity to fill the vacuum by offering its

However, its competitors who saw its tremendous achievement within just a short span of time, quickly emulated its success formula and now begin to venture into affordable range but with the options of both online and purchases at retail

The challenge for Xiaomi now is to open-up its marketing model to include physical stores to arrest its declining sales. New (first-time) customers would not mind buying Xiaomi as their budgets are insufficient to afford brands with premium prices. But as smartphones are considered ‘luxury’ which customers don’t buy often (and prefer personal touch at physical stores), customers will feel more appreciated if they are ‘met’ in person rather than machine. Thus, customers who have a little extra to spend, will tend to buy slightly expensive brands during their shopping walkabouts as long as their purchase experience is