Xiaomi is one of the leading brands in the consumer electronics sector. Low profit margin 2. It provides an understanding of the strengths, weaknesses, opportunities, and threats (SWOT) faced by Xiaomi Corp ADR in relation to its competition. Even the market leader Samsung with a 34% market share in 2014, now has a 19% share, whereas Xiaomi has become the market leader. Xiaomi News See all articles associated with market volatility, economic swings, and company-specific events. There are several brands in the market which are competing for the same set of customers. 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. Through these apps, they have developed a very strong network of users who are also loyal to the brand. COMPETITIVE ANALYSIS XIAOMI (7.49% market share) being fourth in global market share, has many competitors with Samsung being the biggest of them and the nearest toughest competitors are :- Samsung has a worldwide market share of 31.49%. Competitive Analysis. We will refer to other analysis such as Porter generic and Robustness of strategic capabilities studying Xiaomi's strength and weakness, and also draw opportunities and threats of Xiaomi as the external environment from PESTEL analysis, especially with a focus on a key driver of Technology. With the kind of success that Xiaomi have had in just a few years, it is clear that it has been successful in its industry and there are many reasons for why Xiaomi stands out in such a competitive technology world. 2. Xiaomi, by comparison, still generates about 90% of its sales from China. Xiaomi Oppo Huami Apple Meizu Samsung Electronics Ninebot HTC For sources of this data, please see the company profile View company profiles Oppo HQ Dongguan, CN INTRODUCTION : Systematic collection of data and analysing them with a purpose and interpretation of the results to enhance the knowledge about or improving the understanding of anything can be regarded as research. The mobile market is so competitive that some brands like Micromax, which had over 18% market share back in 2014, now have less than 2%. Here are the weaknesses in the Xiaomi Redmi SWOT Analysis: 1. 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. Here are the weaknesses in the Xiaomi SWOT Analysis: 1. can be threats. Keywords: Xiaomi, Company Analysis, Business Model, Smartphone. Below are the Strengths in the SWOT Analysis of Xiaomi Redmi : 1. Moreover, the report contains analyses of Xiaomi leadership, organizational structure and organizational culture. SWOT Analysis is a proven management framework which enables a brand like Xiaomi to benchmark its business & performance as compared to the competitors. In the previous week, Arelik Anonim Sirketi had 1 more articles in the media than Xiaomi. Below are the Strengths in the SWOT Analysis of Xiaomi : 1. The Railroads theme has 43 constituents at this time. 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/. GUANGZHOU, China Chinese smartphone maker Xiaomi was the second-largest smartphone maker in the second quarter, overtaking Apple, according to analyst firm Canalys. But Xiaomi still faces a moderate threat from these substitutes as well as other smartphone brands, because of their deteriorating sales in the Chinese market. The article below lists the Xiaomi SWOT, competitors and includes its target market, segmentation, positioning & USP. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Retrieved July 16, 2017, from https://qz.com/758955/xiaomis-once-admired-strategy-for-winning-chinas-smartphone-market-has-backfired/ A correlation of about +1.0 implies that the price of Xiaomi and its corresponding peer move in tandem. . These cookies will be stored in your browser only with your consent. Impressive growth rate 3. Dual SIM 4G support , powered with 1GB RAM and 8GB onboard storage, 3. Nevertheless, currently around 80% of the companys revenues are generated from selling smartphones. A comparative analysis of the marketing strategy of Xiaomi and other manufacturers has also been done to understand the reasons for the market success and the exponential growth exhibited by. Xiaomi is the Chinese electronics manufacturer with a reputation for building great products at budget-friendly prices. Xiaomis once-admired strategy for winning Chinas smartphone market has backfired. On a wider perspective, Xiaomi business strategy is based on the following four pillars: 1. Its X1 was the world's thinnest smartphone at 6.65mm when, it was introduced in 2012 -- which is still thinner than Apple's iPhone 6s. 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. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. The brand has been recognized as a part of the Fortune 500, 5. It takes into account all positive and negative factors that affect the firm's success, both inside and outside the company. HTC 7. 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. Lenovo3. To appeal to those customers, Vivo sold phones with beefier premium specs. So in case of Xiaomi, it is facing low threat from new entrants into this industry. Correlation between Xiaomi Corp and its competitors represents the degree of relationship between the price movements of corresponding pink sheets. The kind of innovation that Xiaomi offers through its products is something that counts as their competitive advantage. Lava4. 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. Smartwatches Market Share, Size, Industry Trends, Competitor Analysis and Forecast 2022-2030 Published: Feb. 21, 2023 at 5:34 a.m. 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%. Philips 12. Whirlpool 10. Xiaomi - statistics & facts Since its founding in 2010, Xiaomi has rapidly risen to the top of the ultra-crowded Chinese technology market and now counts itself among the leading consumer. 2. Xiaomi Inc: Competitors. Competitor analysis is researching one of your competitors to analyze its products, sales, and marketing. Besides this, Oppo and Vivo have a strong offline presence and have huge distribution network. But opting out of some of these cookies may have an effect on your browsing experience. 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. The threats for any business can be factors which can negatively impact its business. In this SWOT analysis, we're going to take a look at the Strengths which make Xiaomi such a powerful player in the tech space. Quizzes test your expertise in business and Skill tests evaluate your management traits. The mission of Xiaomi is "to let everyone in the world enjoy a better life through innovative technology." Xiaomi Revenue : RMB 328.3 billion - FY ending 31st December 2021 (y-o-y growth of 33.5%) RMB 245.9 billion - FY ending 31st December 2020 Competitive Analysis of Xiaomi SWOT PESTLE The SWOT analysis of Xiaomi is presented below: Brand value estimated at USD 100 billion [1] Weaknesses 1. 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. Some factors like increased competitor activity, changing government policies, alternate products or services etc. More than 20,000 people are employed with the company, 4. Oppo's shipments surged 124% to 18 million, which boosted its share from 7.6% to 16.2%. Ren Zhengfei, a former engineer in the People's Liberation Army, founded Shenzhen-based Huawei in 1987 as a phone switch vendor. Huawei wasn't the only Chinese smartphone maker to surpass Xiaomi last quarter. Intense global competition means lower market share growth, 2. Partnerships with telecom companies can help the brand grow, 3. These cookies do not store any personal information. Panasonic 8. 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. The report also comprises discussions of Xiaomi business strategy, ecosystem and addresses issues of corporate social responsibility. Both devices run on an Octa-Core processor and an Adreno 650 GPU for the graphics. It has been reviewed & published by the MBA Skool Team. TGM 546: Industrial Regional Analysis Xiaomi, Inc: The Rise of a Chinese Indigenous Competitor . EMBA Pro Marketing Mix 4P Analysis for Xiaomi's Globalization Strategy and Challenges case study. 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. Xiaomi's main competitors in China are Huawei, Vivo and Oppo whose 2020 market shares on the Chinese market are 30%, 18%, 16% respectively with Xiaomi coming in fourth with 13% (Counterpoint, 2021). Top Apple Competitors. To do so, you would: Step 1: Use Google to compile a list of your competitors. Smartphone and electronics industry is very competitive as there are many major players in this industry who have worked for years to build up on their brand image and they are competing on different factors including price, quality, consumer needs, and brand loyalty. 4 ). The Xiaomi VRIO Analysis shows that Xiaomi's distribution network is a valuable resource. Salesforce (CRM) Q4 2023 Earnings Call Transcript, Splunk (SPLK) Q4 2023 Earnings Call Transcript. Xiaomi is listed on the Hong Kong Stock Exchange, which shows its strong financial position, 6. Xiaomi is one of the biggest high tech companies of China. From start-ups to market leaders, uncover what they do andhow they do it. The Motley Fool has a disclosure policy. The brand can continue focusing on geographic expansion. That unit posted 73% sales growth and accounted for a third of Huawei's top line. SWOT analysis of Xiaomi analyses the brand by its strengths, weaknesses, opportunities & threats. 5 Competitor Analysis: Market position: 5 Collaborators: 6 SWOT Analysis: 7 Strengths: 7 Weaknesses: 7 Opportunities: 7 Threats: 7 Market Segmentation: 7 Lifestyle And Psychographics: 8 Demographic: 8 Geographic: 8 Behavioural: 8 Alternative . Xiaomi had a 17% share of. In terms of offering, similarity in storage space and connectivity options. Designing great products at a reasonable price. Constant optimization of products through eco-chain. 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. Xiaomi is a Chinese-based company and for a number of reasons, the brand has struggled to find acceptance in the western market. The company has also focused on investing in electric cars, 7. 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%. Xiaomi has a large fan base involving millions of people across the globe. . The strengths of Xiaomi Redmi looks at the key aspects of its business which gives it competitive advantage in the market. Motorola Moto 2. Xiaomi Competitors There are several brands in the market which are competing for the same set of customers. 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. As of Q2 2021, its adjusted net gain increased by more than 87% YOY. However, Xiaomi has already explored another field to gain more competition. This Super AMOLED display has a max refresh rate of 90Hz. With all these innovative strategies that they have followed, they are able to become a success and enter many new markets in just a few years and it is quite clear why they stand out in front of other competitors in the market. The threats for any business can be factors which can negatively impact its business. Xiaomi Gaining Share At The Expense Of Rivals . Following recent investment, Xiaomi is valued as the fourth largest tech company in the world, so they're clearly doing a lot of things right.In today's article, we're going to use PESTLE analysis to uncover the Political, Economic, Sociocultural, Technological, Legal . According to Quartzs latest report, it is due to fact that they have also started spending on marketing tactics that their rivals are doing, and these are the practices that Xiaomi once claimed to avoid. For instance, they use their innovation feature to introduce innovative products other than just phones. Apple 2. Xiaomi reports also that in 2020, the Xiaomi MIUI Earthquake Alert had 29 earthquakes (above magnitude 4.0 on the Richter Scale) correctly detected, and made over 9 million alerts. Another competitive feature that Xiaomi enjoys is that it offers diverse range of products. Horwitz, J. Xiaomi or Apple two innovation strategies for China. Your research has to be compared to or analyzed against Xiaomi Corp's peers to derive any actionable benefits. Segmentation involves dividing population into groups according to certain characteristics, whereas targeting implies choosing specific groups identified as a result of segmentation to sell products. Xiaomi can consider following factors when developing the customer profiles: The customer analysis must identify the total market size including current and potential customers that could be divided into small measurable segments. Xiaomi, by comparison, still generates about 90% of its sales from China. It is a company focused on developing new-generation smartphone software, and Xiaomi operated a successful mobile Internet business. Sophisticated investors, who have witnessed. Indian market is a cash bleeding battleground for brands. Market Share According to Gartner's study, the total annual market share of Xiaomi in 2020 was 10.8%, and it achieved a growth of 15.7% compared to 2019. Oppo 4. The Samsung S20 Ultra uses a 6.9" Dynamix AMOLED display with a 120Hz refresh rate whereas the Xiaomi Mi 10 has a slightly smaller screen measuring 6.67". Analyzing Xiaomi Corp competition allows you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. If we go by market share, which is constantly falling due to non-satisfactory sales, poor marketing strategies and non-competent products. This category only includes cookies that ensures basic functionalities and security features of the website. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. It has been reviewed & published by the MBA Skool Team. We'll assume you're ok with this, but you can opt-out if you wish. Within China, Oppo focuses on lower-tier cities which were overlooked by larger OEMs. In Xiaomi SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. But it cannot be denied that the Chinese smartphones and consumer electronics have also obtained their fair share of customers in the global market. 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. 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. Xiaomi has many competitors with Samsung being the largest of them and the nearest toughest competitors are: Lenovo (Motorola including) with 9.6%, Micromax (with 7.5%). In simple terms, cheap costs of Xiaomi products and services is the main reason for consumers buying those products and services. A correlation of about +1.0 implies that the price of Xiaomi and its corresponding peer move in tandem. 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. Fans spend countless hours online discussing Xiaomi products on various forums, thus increasing the level of brand awareness with no extra cost for the company. 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