Swot Analysis Of Xiaomi

1698 Words7 Pages
Xiaomi’s Success Analysis

Extened Research Project
Dongwook Seo
Grade 12
Mr. Doyle
November 9th, 2015
Word Count: 1698

Today mobile phone market is one of the huge markets in the world. Whenever companies announce their new mobile phone consumers prepare to buy it and pay their attention on its quality. Because of two big companies, Samsung and Apple, in the mobile phone market it is difficult to earn money out of the mobile phone market. It is considered Red Ocean since there are over 10 companies making mobile phones. Major mobile phone companies are Samsung, Apple, Lenovo, Huawei, LG, Xiaomi. Among major mobile phone companies, over 30% of market share belongs to Samsung and Apple. In spite of this harsh condition
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In other words, they targeted a lot of consumers. A lot of consumers who don’t owned smartphones before. This was a huge advantage for Xiaomi because people who are not used to smartphones will be easily attracted especially when it’s cheap and high-quality. Xiaomi is currently expanding their markets in Asia, countries like Thailand and Indonesia. The reason why Xiaomi is not expanding to Western world explains that Xiaomi’s products are not suitable to Western consumers preferences. Western consumers prefer more of sophisticated phones than middle-class phones because it does not differentiate himself or herself from other people. Uniqueness in Western world is important and here are the cultural differences from Asia and Western…show more content…
For example, Samsung has several reasons that led to collapse. There are mainly 5. First, Samsung’s brand value was significantly decreasing due to its delinquent and monotonous selling strategy and product. Second, Chinese’s smartphone companies are dominating with cheap prices. One of the huge markets for Samsung is China so losing Chinese market share means losing profit. Third, nowadays, western markets are saturated. There aren’t many people without phones in the western markets but Samsung is still making new product so deficit is increasing. Fourth, all phones have same system and hardware. Samsung’s hardware and android system doesn’t differentiate itself from other phones. Thus, Samsung is developing its own operating system but it will not be likely to be completed. Even though it is completed it won’t bring a lot of money. Finally, Samsung is not a phone company. It also sells computer, TV and works on other sections too. Samsung is not focusing mainly on phones but on other sectors too so it needs to narrow down its

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