Xiaomi Incorporated a mobile & Internet company founded in 2010 grew steadily in the newly minted e-commerce platform called Mi Market. Today it is the fourth largest company in mobile phone industry and busy swallowing up market dominance in Asia. Xiaomi follows time tested Sun Tzu’s Art of War principles of entering, surviving and succeeding in business competition:
In the Art of War, Chapter One on Laying Plan Sun Tzu says: “Now the general who wins a battle makes many calculations in his temple ere the battle is fought. The general who loses a battle makes but few calculations beforehand.”
In crafting business strategy to succeed well competing and dominating in fiercely fought-out mobile instrument segment Xiaomi just followed the master strategist Sun Tzu and did lot of homework as regards to understand the market and make all the calculations regarding foray into the market, how the completion would unravel and how to transform the initial entry into ultimate market dominance.
Understanding the entry with a brand new product, Xiaomi realized that it must have definitive advantage on two pronged leadership in terms of cost & technology. This done the next is to bring in different type of models under the umbrella of Xiaomi name. The idea is to create differentiation not only in terms of price but to cater to different consumer segments that crave for different aspects including design, user friendliness, heaviness of the instrument and accompanying colours and features.
There are three brands: Mi, Redmi, and Poco earmarked In order to cater to diverse audiences looking for very different things from their phones. Mi was targeted for premium segment, being the flagship of Xiaomi. Redmi on the other hand looked at the budget buyers, to be sold at affordable price and facilitated moving out in large quantum due to its expected deep penetration in the market. Poco fits in between, fairly a high end performance product that is fairly priced neither cheap nor expensive according to the pricing levels prevailing in the retail market.
To support all these three brands and the segments that are being catered to Xiaomi stressed three factors that could work for them: one is all their products are user-friendly and conform to android technology and alternatively may be used with Huawei Harmony OS2. Secondly the mobile instrument as well as any replaceable parts are available in plenty at anywhere and anytime. In addition to logistics the company assures prospective consumers seamless service as regards to the continuation of supporting software.
After market share is obtained Xiaomi extended its arch in order to get more transactions taking place in a wide spread manner so that along with the volume goes up customer loyalty to Xiaomi and to the respective brands Mi, Redmi and Poco. Distribution of mobile products is coordinated in such manner that retailors have sufficient quantum at hand to be displayed and delivered within short notice.
Finally with the up-tick in the market share the revenue to the retailors go up in leaps and bound assuring repeat orders coming out from them on daily basis. Regional supply centres are to work 24/7 to ensure supply lines operate without being interrupted.
Well. Xiaomi achieved market dominance using the right business strategy and following Sun Tzu dictum to the letter!
Cheers!
Muthu
Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business Strategist
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