Case Study for International Pricing And Performance of Xiaomi

Questions: 1: Main competitors of Xiaomi in the markets of China, India and United States? 2: Main strategy of Xiaomi in the market segments? 3: Explaining Xiaomis Advertisement Approach? 4: Key Measures of Success for Xiaomis Strategy? Answers: Introduction The modern business organizations have become global and the range of the products and services of all the organizations have increased by a large extent. This assignment will highlight about the organization Xiaomi and their marketing and pricing strategy around the whole world. It will also highlight about the overall performance of the organization in terms of its marketing and financial performance. 1: Main competitors of Xiaomi in the markets of China, India and United States The organization Xiaomi has a global presence in the major markets of China, India and United States. China- In case of Chinese market, the main competitors of the smart phone organization is Samsung, Hauwei, Lenovo and Apple. In case of market share of the market share of the competitors, it can be seen that the market share of Apple is 14.7 percent, Samsung is 19.9 percent, and Lenovo is 10.5 percent, whereas Xiaomi has a market share of only 9.2 percent. In case of sale volumes, Samsung has a sales volume of 9.6 million; Apple has a sales volume of 14.5 million whereas Xiaomi has a sales volume 13.5 million for the 1st quarter of 2015 (Lee, 2014). India- In the market of India, the major competitors of Xiaomi are Samsung, Micromax, Apple, Microsoft, Lenovo, etc. Samsung has a market share of 25 percent, whereas Micromax has a market share of 20.4 percent. In case of sales volumes, the sales volume of Samsung is 8 millions, Micromax is 7 millions in case of sales volume in Indian Smartphone market. United Kingdom- In the smart phone market segment of United Kingdom, the primary competitors of Xiaomi are Apple, Samsung, HTC, Microsoft, LG and others. In case of market share of the organizations, it is seen that, Samsung is the market leader with 31.8 percent market share and is closely followed by Apple with 22.9 percent of market share. Xiaomi is lagging behind in case of obtaining some portion of market share in United Kingdom (Xie and Liang, 2013). Figure 1: Graphical presentation of global handset makers market share in smart phone segment (Source: dazeinfo.com, 2014) In case of competitive positioning of the organization, the organization lies in the category of low price and low quality segment among the wide range of competitors in the given markets. 2: Main strategy of Xiaomi in the market segments The primary strategy of the organization Xiaomi is market penetration and cost effective strategy. The organization sells cost effective products which are cheaper in price among the competitors in the market. The pricing strategy is designed by the organization to penetrate the market and surpass its competitors effective. However, the organization implies word of mouth marketing other than any forms of advertising. The market share of the organization is lagging behind due to ineffective means of advertising. The main strategy of the organization is to create a viral marketing process by minimizing the prices of their products in terms of their competitors. They can easily penetrate the market and create effective word of mouth marketing among a wide segment of customers through the market of China, India and United Kingdom (White, 2010). 3: Explaining Xiaomis Advertisement Approach Xiaomi has come into the mobile market in just 5 years earlier with aim of marketing smartphone and other electronic gadgets. But it is needed to be stated that when the company stepped in the market, it has already gone populated and almost acquired by the mobile and technical giants like Samsung, Nokia, Apple, Blackberry and others (Shih, Lin and Luarn, 2014). Henceforth, application of the strategical advertisement policies seemed to be literally necessary. On the other hand, promotion and advertisement has helped Xiaomi to reach to a large number of people in China. At the same time, its slow stride to the doors of the common people stating the versatility of its products and pointing to the distinction with the other potential but similar products of other organisations of the market lead the people feel extremely fascinated for the products. As the company is marketing its products extensively by suggesting the point of similarity and dissimilarity with the other products available in the market, people feel more exquisite. It is quite sure that the organisation has expends a lot after advertisement and promotion, it also appears to be a booster for increasing of the sale of the products. According to Hettne (2010), the advertisement is literally proved to be quite significant for the strategical development of the organisation. Xiaomi has enabled itself in the extensive organisational development. But it is needed to be stated that Xiaomi seemed to have applied a complete shift from non advertising to extensive advertisement. Application of the advertising and promotion strategy has proved to be literally successful for the organisation which has enabled the organisation in acquiring the market place. It also treats to be a strategical approach for the congenial development of the organisation intrinsically. 4: Key Measures of Success for Xiaomis Strategy Advertisement appears to be the most intrinsic and successful strategy that Xiaomi has applied so far. It is also a unique approach that determines intrinsically that approach of Xiaomi in the market is sophisticated. Both in television and digital media advertising, Xiaomi stood to be the top. In the past 2 years, a report of Denning (2014) projects, Xiaomi has received a market growth of 19.24% internationally along with China. Mostly people prefer these devices because Xiaomi has availed its marketing approach by applying better marketing orientation. It also provides products extensively technology in their products with a limited range which can be paid easily by the customers. Figure 2: Growth rate of smart phone (Source: www.idc.com, 2015) In comparison with the other international companies of gadgets, Xiaomi has joined the race ads has claimed the ladder intrinsically in the past year. Sales have also received a consecutive boost. A research of Srivastava (2010) projects every year it receives a 7% development. Approach of organisational development has proved to be a marker for the organisation which leads to attain to be the most intrinsic approach for the conditional development. Conclusion: The researcher so far has stated the process of marketing development with the advertisement approach. The research has also identified the issues which are quite essential and potential in this approach which attains to be intrinsic aspect. References White, M. (2010). Information anywhere, any when: The role of the smartphone.Business Information Review,27(4), 242-247. Xie, W.and Liang, H. (2013). A case study: Innovation strategy assessment of the leading smartphone companies. InInnovation Conference (SIIC), 2013 Suzhou-Silicon Valley-Beijing International, pp. 121-126 An, X., Xu, S., Mu, Y., Wang, W., Bai, X. Y., Dawson, A., and Han, H. (2012). Emerald Article: Meta-synthetic support frameworks for reuse of government information resources on city travel and traffic: The case of Beijing.information systems,46(1), 5-20. Lee, Y. F. L. (2014). When Google Meets Xiaomi: Comparative Case Study in Western and Eastern Corporate Management.Journal of International Technology and Information Management,23(3-4), 75. Denning, S. (2014). 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