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. Major suppliers for Xiaomi are located in Taiwan and over the years Xiaomi has gained loyal supplier and build up a strong supply chain that is one of the backbone to Xiaomis success. Intense global competition means lower market share growth, 2. 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. Necessary cookies are absolutely essential for the website to function properly. Much of that growth was fueled by its consumer device business, which sells smartphones and tablets. Much of that growth was fueled by its consumer device business, which sells smartphones and tablets. It is often called as the Apple of China. Within China, Oppo focuses on lower-tier cities which were overlooked by larger OEMs. What is a competitor analysis? The report also comprises discussions of Xiaomi business strategy, ecosystem and addresses issues of corporate social responsibility. In simple terms, cheap costs of Xiaomi products and services is the main reason for consumers buying those products and services. 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. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Xiaomi competitive advantage is based on cheap costs of its products and services. Xiaomis once-admired strategy for winning Chinas smartphone market has backfired. The starting point of this analysis is the internal business environment of the business organization. You also have the option to opt-out of these cookies. The idea behind it was to provide innovative solutions for everyone. The market shares of Vivo and Oppo were 11.1 and 8.8%, respectively. The opportunities for any brand can include areas of improvement to increase its business. can be threats. You decide to conduct a market analysis for your business. Below are the top 4 competitors of Xiaomi Redmi: 1. Impressive growth rate 3. Retrieved July 16, 2017, from https://qz.com/758955/xiaomis-once-admired-strategy-for-winning-chinas-smartphone-market-has-backfired/ Retrieved July 16, 2017, from http://fortune.com/2017/01/24/china-smartphones-oppo-vivo-huawei-xiaomi/ It also ensures that promotion activities translate into sales as the products are easily available. The primary goals of a competitor analysis . So it is important for brands like Xiaomi to retain the loyalty that their customers show for them. Samsung was bumped off the top five into the "others" category. The motto of the company is Just for Fans and the company is also known to recruit its new employees among Mi Fans. The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. (SPACs), Transportation, Infrastructure & Logistics. Samsung market share was 23% with a negative annual growth of 1.6%. Xiaomi has always kept its focus on providing something unique to the customers so that the customers keep on upgrading their Xiaomi phones. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Some factors like increased competitor activity, changing government policies, alternate products or services etc. Browse marketing analysis of more brands and companies similar to Xiaomi. There are several brands in the market which are competing for the same set of customers. According to its business strategy, Xiaomi fosters, develops and encourages its fans via Mi Fan Festivals that involves discounts and gifts. 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. consumer electronics, semiconductors, telecommunication equipment, home appliances, automotive and many more. This marks the first . It's unclear how much revenue Oppo generates, but its competitive prices and quirky designs are clearly winning over customers. Efficient leadership by Lei Jun 2. The most interesting aspect of this . [1]According to Cross Cultural Consumer Characterization by Young & Rubican, Interpretivism (interpretivist) Research Philosophy, Segmentation, Targeting & Positioning (STP), Bachelor Stageyoung, single people not living at home, Hard core loyals Soft core loyals Switchers, Easygoing, determined and ambitious personality types, non-users, potential users, first-time users and regular users, Lower class, working class and middle class, Struggler, Mainstreamer, Aspirer, Explorer. Following are the opportunities in Xiaomi Redmi SWOT Analysis: 1. Macroaxis can help you discover thousands of investment opportunities in different asset classes. 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. As it is illustrated in Figure 1 below, Xiaomi Triathlon sources of revenues consist of hardware, new retail and internet. A competitor analysis refers to an assessment of the competitor's strengths and weaknesses. Samsung 9. Horwitz, J. *Average returns of all recommendations since inception. How they compare to your brand. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Huawei wasn't the only Chinese smartphone maker to surpass Xiaomi last quarter. Xiaomi Exec: Were Playing a Completely Different Game. 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. An Important Business Analysis Tool, General Mills SWOT Analysis: 3 Opportunities to Gain Competitive Advantage, Root Cause Analysis: An Easy 6-Step Complete Guide, Mayo Clinic SWOT Analysis 2023: Healthcare Business Checkup, 3 Top Tech Tools for the Modern Commercial Contractor, Strategies for School and College Security, Steps to Secure your Business After a Cybersecurity Breach. Here are the weaknesses in the Xiaomi SWOT Analysis: 1. Here are the weaknesses in the Xiaomi Redmi SWOT Analysis: 1. The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. MBA Skool is a Knowledge Resource for Management Students, Aspirants & Professionals. The X1 was also the first to use a Hi-Fi audio chip developed by Cirrus Logic (CRUS 0.45%) for clearer audio. GUANGZHOU, China Chinese smartphone maker Xiaomi was the second-largest smartphone maker in the second quarter, overtaking Apple, according to analyst firm Canalys. Xiaomi always had a way to check all the products of these competitors. 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. The companies are not associated with MBA Skool in any way.Edit the brand or add a new one to SWOT Analysis section : Contribute. 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. The brand names and other brand information used in the SWOT Analysis section are properties of their respective companies. This year the Xiaomi 13 is sold in green, black and white colors. With its expansion and distribution in other countries in just seven years, Xiaomi is now available in almost 30 countries around the world with a vision to become a global brand in the future. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Quizzes test your expertise in business and Skill tests evaluate your management traits. Micromax. Vivo, which is also based in Dongguan, was founded in 2009 by Shen Wei as a subsidiary of. Offers sharpest and best display among its competitor phones, 5. Brand value estimated at USD 100 billion [1] Weaknesses 1. There are a lot of substitutes for smartphones present in the market but this fact cannot be denied that nothing can replace a smartphone, be it a laptop or a tablet because all of these devices have their own features and purposes and they can never be an absolute substitute for smartphones. Samsung held a 18% market share, with Apple making up the top three with 14%. 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. In Xiaomi Redmi SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. Xiaomi has three core products: Mi Chat, MIUI and Xiaomi . 3. These cookies will be stored in your browser only with your consent. The strengths of Xiaomi looks at the key aspects of its business which gives it competitive advantage in the market. Vivo 5. Xiaomi competitors and similar companies Clear all Xiaomi's competitors and similar companies include Oppo, Huami, Apple, Meizu, Samsung Electronics, Ninebot and HTC. Huawei's revenue rose 37% to 395 billion yuan ($59.6 billion) last year as its net profit grew 33% to 36.9 billion yuan ($5.8 billion). Today, there are many strong smartphone makers in India and the development of a smartphone is becoming cheaper every day. For instance, they noticed the selfie fever rising all around the world and cashed on that by improving their selfie camera and marketed it. 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 competitor analysis. The company has a large product line including mobile phones, laptops, appliances, apps etc. The threats for any business can be factors which can negatively impact its business. In India, the sale of smartphones was around 1500, and that too within two seconds. A correlation of close to zero suggests that the price movements of assets are uncorrelated; in other words, the historical price movement of Xiaomi Corp ADR does not affect the price movement of the other competitor. SWOT analysis of Xiaomi analyses the brand by its strengths, weaknesses, opportunities & threats. This category only includes cookies that ensures basic functionalities and security features of the website. . Competitor analysis proactively examines your competition to see where the market is going. Learn More. If we go by market share, which is constantly falling due to non-satisfactory sales, poor marketing strategies and non-competent products. This article has been researched & authored by the Content & Research Team. Xiaomi Corporation is a Chinese gadget manufacturer established by Lei Jun in 2010 and headquartered in Beijing. Xiaomi had a 17% share of. 95% of people from the age group of 18-49 own a smartphone, while the ownership of the same for ages 65 years and above is at 61%. Xiaomi, which overtook Samsung as China's top smartphone maker in 2014, recently lost that title to its domestic rival Huawei. Xiaomi's IoT and lifestyle products roughly made 25 percent of revenue generation in 2018. Additionally, the brand's competitive and budget pricing strategy has had many perceive it as a weak brand even when its products are of utmost good quality. 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. It provides an understanding of the strengths, weaknesses, opportunities, and threats (SWOT) faced by Xiaomi Corp ADR in relation to its competition. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. This just keeps their product portfolio increasing and their customers constantly involved in following up with the latest products that they offer. Some factors like increased competitor activity, changing government policies, alternate products or services etc. Oppo strengths. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. https://qz.com/758955/xiaomis-once-admired-strategy-for-winning-chinas-smartphone-market-has-backfired/, http://fortune.com/2017/01/24/china-smartphones-oppo-vivo-huawei-xiaomi/, https://www.fool.com/investing/2016/08/18/xiaomi-should-fear-these-3-chinese-competitors.aspx. 's shipments surged 124% to 18 million, which boosted its share from 7.6% to 16.2%. The threats in the SWOT Analysis of Xiaomi are as mentioned: 1. Steps 2, 3, and 4: Use your competitors' websites, as well as SEO analysis tools like Ahrefs, to deep-dive into the service offerings and marketing strategies of each company. 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