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
Popularity of Phone is seeing a steep rise. It is a communication gadget which can be used for different purposes. One basic reason is that iPhone has a huge storage capacity which allows storage of audio, contacts, photos, videos, and all other important information. Further it can be connected to the internet too. With all these features iPhone has gained prominence globally as a hi-tech mobile phone.
Political Forces: The political stability is very important for the business to grow and last, according to that if the business has been operated in a politically unstable area, or in a country that is under a threat of wars that will lead to a loss for the business. Politics and governmental interferes is an important issue that is facing businesses and became a barrier in many situations. GAP Inc.
This agreement opened for Apple a new widow to sell their products to the Chinese market. Instead of making cheaper products for the new market, Apple chose to wait until Chinese disposable income increased to levels where Chinese consumers could afford Apple’s main products. Mobile phones are ubiquitous in China. Not only are they a communications device, but more and more, they are becoming an entertainment device. The App Store provides an endless assortment of new apps to play with.
Because Xiaomi´s products are so much more affordable, the market for high-end phones have changed. With their convenience and affordability, Xiaomi basically created a new mass market for smartphones in the emerging countries they´ve expanded
Threat of new entrants (Low) When looking at the threat of entry it would be considered to be relatively low. To enter into an industry that specialises in electronics requires high capital and it can be difficult to compete against current companies. Samsung Electronics have been able to maintain profitability through the differentiation in their products. Within their mobile industry the company often promote this with the release of the Samsung Galaxy S5 being offered as a “fitness phone” with the addition of “a growing range of smart wearables” being an example of
The external business environment consists of a set of external factors, such as economic factors, social factors, political and legal factors, demographic factors, technical factors amongst others, which are not controllable in nature and affects the business decisions of a firm. The external environment includes opportunities and threats which can impact on the marketing strategy of Huawei. As mentioned, marketers cannot control the factors of the external environment. However, they should try to understand the changes in the external environment and assess the impact of those changes on the target market. In fact, a proper understanding of these factors helps organizations to identify potential business opportunities and threats in the international market (Baines et al., 2011).
Q1a. MARKET STRUCTURE OF APPLE INC Apple Inc. operates different types of market structure in terms of their different products. In the smart phone business, they happen to be one of the major players with their different models of the “iphone” which makes them operate in an oligopolistic market. Oligopoly arises when there is an imperfect competition in which there are just few firms producing similar products. As a result of high competition, monopolies, interdependence among firms there are just a few big players having the market power and making it very difficult for new firms to penetrate the market with their products.
As from the research found, Samsung are originally from South Korea. This means it is around the world. Hence, there will be a change in many aspects of global operations according to the local conditions. Samsung has also had to change its products to match the rapidly changing consumer preferences in certain markets. Samsung is
Apple Inc. runs a mobile device business that largely dominates the mobile phone industry. The
However, in China, there are a lot of people whose income are low, they absolutely will not buy those products. It reduced the market share. Promotion strategy and
Apple on the hand arguably is considered to be the mother of modern smartphones. On June 29, 2007, the cofounder of Apple Inc Steve Jobs announced the release of iPhone, a technology they had been working on for about five years. It was the first of its kind compared to the other players in the market like Blackberry, Motorola and Palm who were already making pocket personal computers. The new tech had a bigger screen, multi-touch interface and the mind-boggling on-screen keyboard was met with a lot of excitement. With these new ideas Apple dominated the phone market and during the Macworld Expo keynote speech, Jobs reported that the Apple iPhone had a 28% market share in Q4 2007 this represented significant growth in the second full quarter that iPhone has been on sale and translated to a
Monthly Market Pulse, “Apple has significantly increased its lead over Samsung in the premium smartphone market ($400+) since the launch of the iPhone 7. Over the summer, Apple was selling just over 50% of the global premium smartphones, and Samsung was selling just under 25%. By December 2016, those numbers had grown to 70% and 17%, respectively” (Mills,2017).
The company is coming up with the wide varities of range and also with a great option. • Demographic Segmentation : In these the micromax mobile are being used by the lower middle class so that they cant afford expensive instruments like Apple and Samsung. The micromax is having wide varities with many features unloaded in them which are there in the expensive cells they cant buy. Many youngster age 16 to 30 are using micromax who cant afford the cell phone which are too expensive.
Transnational strategy Huawei has already passed the international strategy and multinational strategy. Now it is in the global strategy. At the moment, Huawei is entering into the field of transnational strategy through continuous reform. This will help Huawei to establish a brand image, integrate capital, and closely align its service and business models with the local market Specific requirements provide a solid foundation. Strategic alliances, cooperation and joint ventures Since 2007, Huawei has cooperated with these international companies in a variety of forms, ranging from simple product sales (NEC sells Huawei data communications through the OEM market in Japan).
Today, almost every person caries a smart phone with them and some can’t survive the day without it. There are many companies and manufacturers who build smart phones like the popular ones such as Htc, Nokia, Samsung, Apple, Huawei, Motorola, Sony and many more, but what makes those companies not alike are the phones they release through the years, but are they that different? To compare, let us take an example of two leading rival companies in the field of smart phones, Samsung and Apple, who newly released their flagship devices, the Samsung Galaxy Note 4 and the Apple iPhone 6 plus. The Samsung Galaxy Note 4 features a 5.7 inch Super Amoled touch screen, a 16 megapixel back facing camera, an octa core processor with 3 gb of Ram and a 3220 mah battery whereas the Apple iphone 6 plus comes with a 5.5 inch retina display touch screen, an 8 megapixel back facing camera, dual core processor with 1 gb of Ram and a 2915 mah