PART 1.(Mingqiang Du)
Xiaomi was founded in 2010 by Lei Jun, who believes that high-quality technology doesn't need to cost too much money. Seven people set the firm up together. We can’t imagine how fast the corporation developed. On October 30, 2014(Last month) xiaomi Company already more than Lenovo and LG Company, became the world's third-largest smart phone maker, behind Samsung and Apple Company (Six months sales of about 55 billion dollars). Why Xiaomi company is so successful?
As is known to us, the logo of xiaomi is ‘MI’. On the one hand, it is the abbreviation of ‘Mobile Internet’. It’s meaning that the nature of the company is the mobile Internet company. On the other hand, if the logo is upside down, it’s the word “心”without a dot. It means he wants to free his users from worries. Slogan:
The slogan of Xiaomi is “Born to fever”. The staffs in this company are equal and free. It is mean that not a rigidly hierarchical firm, and they are all partners. They advocate the creation and fast work environment.
Xiaomi, often described as China’s answer to Apple, is actually quite different. “But we have never compared ourselves to Apple—we are more like Amazon,” says Lin Bin, Xiaomi’s co-founder, who once worked for the Chinese arms of Microsoft and Google. Apple sells its iPhone 6 for around $860 in China and has the industry’s highest margins. Xiaomi offers its handsets at or near cost: the Mi-4, its new flagship, costs 2,000 RMB ($330).Xiaomi sells direct to customers online, rather than via network operators or retail stores, which also keeps prices down. Crucially, its business depends on selling services to its users, just as Amazon provides its Kindle readers at low prices and makes its money on the sale of e-books. The idea is to make a profit from customers as they use the handset, rather than from the sale of the hardware, says Mr. Lin.
Xiaomi selling only cell phones in the past. But now they create remarkable hardware, software, and Internet services for – and with the help of – our Mi fans. We incorporate their feedback into our product range, which currently includes Mi 4, Mi 3, Mi Pad, Mi Box, Mi TV, Redmi 1S and Redmi Note, Mi Power Bank and other accessories. We sell direct to customers to keep our prices competitive. And with more than 18 million handsets sold in China in 2013 and products launched in Taiwan, Hong Kong, Singapore, Malaysia, Philippines, India and Indonesia, we are ready to go global. Our mantra: “Always believe that something wonderful is about to happen”.
PART 2.(Hao Wang)
a. Geographical factors
MI is suitable for most parts of china due to its lower price, but there are different strategies in different places. b. Demographic factors
MI is suitable to buy for the people who are 18 to 30 years old MI’s price is less than $350, so the people who have general income can accept the price. MI is very popular for young people and its products aimed at students and young office workers. c. Psychological factors
MI has an affinity for customers due to its shape and design MI uses many entertainment features to attract consumers
Hunger marketing inspired consumers desire to buy
MI Company has analyzed the consumers coming from different generation: The people who are between 1970s and 1980s have heavy life pressure and they were living economically. The people who are between 1980s and 1990s have less stress; they are always ready to enjoy everything and pursue fashion. The people who are after the generations of 1990s like to accept new things, but some people do not have the ability to buy. So the target consumers as follow: a. The people who usually purchase something online and are easy to accept new things b. The people who rely to the Internet and pursue fashion
c. The price-sensitive consumers and they belong to the middle income group 3. Positioning
References: 1. http://www.mi.com/en/
3. Chao-Ching Shih,Tom M.Y. Lin,Pin Luarn. Fan-centric social media: The Xiaomi phenomenon in China [J]. Business Horizons, 2013
4. Anonymous. EMERGING COMPANY PROFILE; Xiaomi.com[J]. Interfax : TMT China Weekly,2011
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