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Xiaomi is one of the largest smartphone makers in the world due to its large manufacturing capabilities in China and low prices. However, it lacks brand awareness and a strong offline presence compared to competitors like Oppo and Vivo. While Xiaomi has opportunities to expand globally and improve its distribution and branding, threats include increased competition from other Chinese smartphone brands and difficulty differentiating its products.

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350 views12 pages

Mini Project Presentation

Xiaomi is one of the largest smartphone makers in the world due to its large manufacturing capabilities in China and low prices. However, it lacks brand awareness and a strong offline presence compared to competitors like Oppo and Vivo. While Xiaomi has opportunities to expand globally and improve its distribution and branding, threats include increased competition from other Chinese smartphone brands and difficulty differentiating its products.

Uploaded by

Marshal ji
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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MINI PROJECT

SWOT ANALYSIS OF XIAOMI


SWOT analysis of Xiaomi

 China is without a doubt one of the strongest manufacturers in the world. This
is due to cheap labour and due to the technology built over time. Xiaomi is a
company from Beijing in China which manufactures Smartphones. Its Mi and
Redmi range of smartphones are famous and well adapted to the market.
Here is the SWOT analysis of Xiaomi.
Strengths in the SWOT analysis of
Xiaomi

 One of the Largest Smartphone maker – Xiaomi is one of the largest


smartphone makers in the world. It is said to be the 5th largest smartphone
manufacturer as of 2017. Originating from China, the Smartphones are
manufactured in huge quantities and have wide acceptance across the world.
 Highest selling Smartphone – The REDMI Note 4 became the highest selling
smartphone in India and China and practically in 50% of the Asian market. This
shows that Xiaomi is strongly rising in the smartphone market and has already
beaten several giants.
 Huge China and Asia market available – Another benefit to Xiaomi is that the
whole Asian market is their playground. As China lies within Asia and as
Chinese mobile brands are highly penetrated in the Asian markets, Xiaomi still
has a lot of ground to explore.
 Penetrative Pricing – Xiaomi has the strongest penetrative pricing advantage
because it generally uses direct marketing techniques and avoids dealer and
distributor margins.
 Good Quality products – Even at such low prices, no one can doubt the quality
of Xiaomi phones. The smartphones are regularly rated high on all E-
commerce portals – a further proof that Xiaomi does not compromise on quality
even if lowers the price regularly.
 Manufacturing Advantage – China has a huge manufacturing advantage
because the country in itself is known for manufacturing and exporting the
products. China is also one of the largest consumers in the Asian market.
 Rising Brand Awareness – Xiaomi’s brand awareness is rising and more and
more peopleare getting to know about the brand thereby resulting in higher
sales across the globe.
 Growing year on year – The company which started manufacturing in 2011
has grown by leaps and bounds and is regularly growing year on year.
 E-commerce advantage – The Flash sale model is a very popular model
which has worked wonders for Xiaomi. In this model, the productis made
available only in limited quantities and sold at a very low price. This model
made the consumers crazy and each Xiaomi looked like a price which was hard
earned.
 Specifications of the smartphones produced – Xiaomi smartphones are
technologically advanced as well and they give higher tech specs at lower
price. Xiaomi phones are especially renowned for their camera which is said to
be very high resolution and gives excellent photos.
 Research and Development – Xiaomi invests heavily in R&D and it is
a market follower but its major R&D expenses are towards cost advantage and
not differentiation advantage.
Weaknesses in the SWOT analysis of Xiaomi

 Offline Distribution – Xiaomi mainly sold through the flash sale but at times, it
was difficult for customers to get their hands on a REDMI or MI model phone. This
is because their offline distribution is not upto mark and Xiaomi phones sell mainly
via E-commerce.
 Advertising and Marketing spends – The advertising and marketing spends of
the brand is very low. The brand launches ATL campaigns only when coming up
with a new product. However, the advertising is erratic at best and is never
consistent.
 Brand Image and Equity – Because the advertising and marketing efforts
are poor, the brand image is not so good as Samsung or Apple or other
such competitors. The product portfolio of Xiaomi is also limited which
further effects the brand image. Service centers too are limited and all
these factors contribute to the low brand equity and reputation.
 Low Skimming price – While other smartphone manufacturers survive on
skimming price, Xiaomi launches its own phones at low prices in the flash
sales. As a result, it cannot take advantage of the skimming price or the
advantage is not as profitable as it would be for Samsung or Apple or
other such high end brands.
Opportunities in the SWOT analysis of
Xiaomi

 Expansion – Covering the developing countries and the emerging markets should be the priority
for Xiaomi. As it mainly follows online sales model, which is becoming popular in many countries,
it should expand to countries where E-commerce mode of purchase is well established or in the
process of establishment.
 Distribution – Besides online distribution, Xiaomi also needs to concentrate on offline distribution
if it ever wants to be consistent like some of its top competitors. Offline distribution would also
mean higher expenses and therefore a rise in price. But it will help the brand to create a long term
image and equity.
 Brand Building – Brand building methods such as Sales promotions, Trade promotions, ATL
campaigns and BTL campaigns should be launched as regularly as possible to build a better
brand image. Xiaomi is far behind Oppoand Vivo where BTL Campaigns are concerned.
 Product Portfolio – Product portfolio of Xiaomi is limited and it has 2 major series which actually
contribute to the complete revenue of the brand. Expanding the product portfolio will help the
brand in brand building as well as in getting higher revenues.
 Product innovations & Differentiation – Being a market follower is tough and Xiaomi
needs to get a step ahead by introducing highly differentiated phones which have
innovative touches to it. More over, it needs to advertise these advantages to get more
and more customers to buy their products.
 Penetration of Smartphones – Across the world, the smartphone as a product is
being adopted and people are using more and more smartphones with combination of
Internet. This market penetration of Smartphones is for the benefit of Xiaomi. The
better phones they manufacture, the more they will be able to capture market share.
 The dying need for expensive smartphones – People are tired of spending money
every year on a Samsung S8 or the latest Apple Iphone. People want cheaper
alternatives so that they can change their phone every alternate year. As a result, most
potential customers who have the potential to buy high end smartphones are also
buying chinese smartphones for their lower prices. This is why majorly all rising
smartphone brands are from China – Xiaomi being one of them. This shift in consumer
preference is to the benefit of Xiaomi
Threats in the SWOT analysis of Xiaomi

 Competition – Oppo and Vivo are 2 of the biggest competitor for Xiaomi because
they are themselves from China and have the same manufacturing advantages like
Xiaomi. Besides this, Oppo and Vivo have a strong offline presence and have huge
distribution network. Thus, they are a huge threat to Xiaomi.
 Service – The lack of service centers equivalent to the number of sales by the
brand is a worrying statistic. Xiaomi needs to increase its sales and service centers
both if it wants to retain its customers.
 Brand Differentiation is absent – The smartphone segment has become such
that brand differentiation is becoming very difficult. Each brand is coming up with
products which are almost similar, thereby making it difficult for the customer to
choose one brand over other. This will become especially difficult when more and
more brands come from China.

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