Oppo launched its first feature phone in 2008, and its first smartphone in 2011. It is a company focused on developing new-generation smartphone software, and Xiaomi operated a successful mobile Internet business. The opportunities for any brand can include areas of improvement to increase its business. Horwitz, J. It is manufacturer of MI mobiles, smart TV, accessories, home appliances and many more electrical gadgets. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. The Motley Fool has a disclosure policy. HTC 7. Sun, L. (1970, January 1). The brand names and other brand information used in the SWOT Analysis section are properties of their respective companies. Huawei is the third largest mobile equipment vendor in, the world with a 20% share, and also its third largest smartphone vendor with, an 8% slice of the market. 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. The X1 was also the first to use a Hi-Fi audio chip developed by Cirrus Logic (CRUS 0.45%) for clearer audio. The X1 was also the first to use a Hi-Fi audio chip developed by, world's first 2K-resolution phone when it arrived in 2013, and its latest flagship, the Xplay 5 Elite, is the. In simple terms, cheap costs of Xiaomi products and services is the main reason for consumers buying those products and services. Xiaomi Redmi is one of the leading brands in the mobile handsets sector. Samsung held a 18% market share, with Apple making up the top three with 14%. Efficient leadership by Lei Jun 2. The motto of the company is Just for Fans and the company is also known to recruit its new employees among Mi Fans. The idea behind it was to provide innovative solutions for everyone. The Motley Fool recommends Cirrus Logic. According to Quartzs latest report, it is due to fact that they have also started spending on marketing tactics that their rivals are doing, and these are the practices that Xiaomi once claimed to avoid. The rise of Huawei, Oppo, and Vivo is bad news for Xiaomi, but it's even worse news for, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. Date: November, 2016. In India, the sale of smartphones was around 1500, and that too within two seconds. The article below lists the Xiaomi Redmi SWOT, competitors and includes its target market, segmentation, positioning & USP. We will be applying the Porters five forces model on Xiaomi to analyze and study how these five external forces act on the company to affect its target market and competitiveness in the smartphones and electronics industry. This category only includes cookies that ensures basic functionalities and security features of the website. Impressive growth rate 3. Plot and analyze your portfolio and positions against risk-return landscape of the market. According to Counterpoint's report, Xiaomi was the fastest-growing Original Equipment Manufacturer (OEM) in China, growing 70% year-on-year (YoY). Intense global competition means lower market share growth, 2. Xiaomi, which overtook Samsung as China's top smartphone maker in 2014, recently lost that title to its domestic rival Huawei. Xiaomi Inc: Competitors. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. And all these Chinese companies are trying to capture their fair share of the international market, where Apple and Samsung are still the major players. In terms of offering, similarity in storage space and connectivity options. Perception of the brand is still not at par with samsung, lg etc. Below are the top 4 competitors of Xiaomi Redmi: 1. The competitive landscape section includes the market share and rank (in volume and value), competitor ecosystem, new product development, expansion, and acquisition. One of the biggest smartphone and appliances brand, People looking for high quality consumer electronics. This website uses cookies to improve your experience while you navigate through the website. The brand has been recognized as a part of the Fortune 500, 5. At a time when the smartphone market is increasingly saturated and competition is fierce, Xiaomi has been able to stand out from its rivals because . Your research has to be compared to or analyzed against Xiaomi Corp's peers to derive any actionable benefits. (2016, August 15). Thus, they are a huge threat to Xiaomi. Xiaomi's market positioning is aimed at bridging the gap between the mass market and the high-end segment of the market. The threats for any business can be factors which can negatively impact its business. Xiaomi always had a way to check all the products of these competitors. It first established an overseas presence in Thailand, then throughout Asia, the Middle East, and Africa -- resulting in nearly 20% of its sales coming from outside of China in 2015. It is the highest number for any brand to date. . Investors sometimes prefer comparable analysis of Xiaomi Corp to its intrinsic valuation because they are able to contrast its competitors on a relative basis. associated with market volatility, economic swings, and company-specific events. Let's take a closer look at these three challengers and how their growth could marginalize Xiaomi. It has been reviewed & published by the MBA Skool Team. Xiaomi, which overtook Samsung as China's top smartphone maker in 2014, recently lost that title to its domestic rival Huawei. Designing great products at a reasonable price. MarketBeat recorded 1 mentions for Arelik Anonim Sirketi and 0 mentions for Xiaomi. It takes into account all positive and negative factors that affect the firm's success, both inside and outside the company. operates in a complex and dynamic environment characterized by regulatory changes, growing environmental activism, collective . [2] The ecosystem produces ever-increasing range of products ranging from smartphones to rice cookers. Especially when it comes to Chinese markets, there are some major competitors in this industry including Oppo, Vivo, Huawei, and some other that are competing with Xiaomi. The mobile internet company enjoys cult-like following, the same way as its major competitor Apple. Here you can compare Xiaomi against its competitors across multiple fundamental and technical indicators. Cost basis and return based on previous market day close. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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. Samsung 9. 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. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. It is mandatory to procure user consent prior to running these cookies on your website. . that Xiaomi's shipments in China fell 38% annually to 10.5 million during the second quarter, and that its market share declined from 16.1% to 9.5%. [1] About Us (2018) MI, Available at: http://www.mi.com/en/about/, [2] Liao, R. (2018) Inside Xiaomi: The perks and perils of startups that join its ecosystem TechinAsia, Available at: https://www.techinasia.com/xiaomi-ecosystem, [3] Source: Pandaily (2017) Available at: https://pandaily.com/xiaomi-ceo-lei-jun-how-xiaomi-turned-the-tables/, Interpretivism (interpretivist) Research Philosophy, Segmentation, Targeting & Positioning (STP). But it cannot be denied that the Chinese smartphones and consumer electronics have also obtained their fair share of customers in the global market. The report also comprises discussions of Xiaomi marketing strategy, ecosystem and addresses issues of corporate social responsibility. You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Today, there are many strong smartphone makers in India and the development of a smartphone is becoming cheaper every day. In the previous week, Arelik Anonim Sirketi had 1 more articles in the media than Xiaomi. Xiaomi Triathlon: Hardware+New Retail+Internet. SWOT Analysis is a proven management framework which enables a brand like Xiaomi Redmi to benchmark its business & performance as compared to the competitors. Because of this, Xiaomi has a very competitive marketing strategy and they claim that most of their customers reach them for their products information because of the hype created on social media and the power of word of mouth. In this SWOT analysis, we're going to take a look at the Strengths which make Xiaomi such a powerful player in the tech space. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porters Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Xiaomi. We'll assume you're ok with this, but you can opt-out if you wish. Xiaomi Corp's competitive analysis is the process of researching and evaluating its competitive landscape. Increasing competition can affect the margins for the brand, 2. Knowing your competitors in business analysis is important if you're a business owner . From start-ups to market leaders, uncover what they do andhow they do it. But over the past three decades, Huawei expanded into telecommunications equipment, consulting services and equipment for enterprise customers, and mobile devices. About Xiaomi. Huawei (including Honor) has a worldwide market share of 8.56 %. According to its founder and CEO Lei Jun, Xiaomi was founded on the belief that high-quality technology doesnt need to cost a fortune.[1] Accordingly, the company offers smartphones and other internet-technology products and services for affordable prices. By understanding Xiaomi Corp's . Nokia The company perceives the sales of hardware as a means to deliver software and services in the long-term perspective. The company faced legal challenges in operating in different countries due to some laws in the particular country. Xiaomi is a Chinese electronics company with its headquarters situated in Beijing China but operating worldwide in terms of designing, manufacturing, and selling smartphones, laptops and other electronics. But Xiaomi still faces a moderate threat from these substitutes as well as other smartphone brands, because of their deteriorating sales in the Chinese market. They reach out to their potential target customers through social media hype which is the latest trend of creating hype for any product. View xiaomi Competitive companies.docx from FINANCE 501 at Lovely Professional University. Gathering and utilising a large fan base. The most interesting aspect of this . The companies are not associated with MBA Skool in any way.Edit the brand or add a new one to SWOT Analysis section : Contribute. Xiaomi is earning via its network by marketing numerous goodies. COMPETITOR ANALYSIS. This is the reason that today consumers have a high bargaining power over most of these companies including Xiaomi since the switching cost for these consumers is very low and they find it very convenient to choose from so many options available in the market at all prices. The primary goals of a competitor analysis . Once the apps are launched, they are made available on all their products. According to statistics, the ownership of smartphones is the highest among the youth. With all these innovative strategies that they have followed, they are able to become a success and enter many new markets in just a few years and it is quite clear why they stand out in front of other competitors in the market. 's shipments surged 124% to 18 million, which boosted its share from 7.6% to 16.2%. Sony 11. Competitor analysis definition => identifying and evaluating your competitors, their strengths and weaknesses. A competitor analysis, also called competitive analysis and competition analysis, is the process of examining similar brands in your industry to gain insight into their offerings, branding, sales, and marketing approaches. These cookies will be stored in your browser only with your consent. That is Xiaomi's IoT ecosystem, Xiaomi had a 17% share of. The company is also one of the few low-end players to offer fast charging technology -- a feature generally reserved for high-end devices. Oppo's shipments surged 124% to 18 million, which boosted its share from 7.6% to 16.2%. Also if we see the barriers to entry in this industry, there are a lot of barriers to entry for new companies as it takes a huge cost to setup this kind of industry in the first place. Xiaomi is one of the leading brands in the consumer electronics sector. Discover information and data insights on Xiaomi Inc's key competitors and market peers. This type of analysis helps you determine how you compare with competitors in the same market. As it is illustrated in Figure 1 below, Xiaomi Triathlon sources of revenues consist of hardware, new retail and internet. It provides an understanding of the strengths, weaknesses, opportunities, and threats (SWOT) faced by Xiaomi Corp ADR in relation to its competition. Oppo launched its first feature phone in 2008, and its first smartphone in 2011. If we go by market share, which is constantly falling due to non-satisfactory sales, poor marketing strategies and non-competent products. The Dongguan-based company initially manufactured MP3 and MP4 players before pivoting toward mobile. You also have the option to opt-out of these cookies. Dual SIM 4G support , powered with 1GB RAM and 8GB onboard storage, 3. Currently, Xiaomi ecosystem comprises 55 companies including 29 companies which were incubated from the ground up by Xiaomi. Xiaomi's market share was 16% in Q2 2021. When it was new in the market, the suppliers have a huge bargaining power over them as they were loyal to their old clients, but with time Xiaomi has developed a strong relationship with their suppliers and if we see the current situation the bargaining power of suppliers is very moderate. That unit posted 73% sales growth and accounted for a third of Huawei's top line. Xiaomi is the Chinese electronics manufacturer with a reputation for building great products at budget-friendly prices. Most of this decline came from the company's smartphone unit, which dropped 28.5% to RMB 42.3 billion ($6.2 billion). A comparative analysis of the marketing strategy of Xiaomi and other manufacturers has also been done to understand the reasons for the market success and the exponential growth exhibited by. Xiaomi News See all articles Xiaomi, by comparison, still generates about 90% of its sales from China. The brand can continue focusing on geographic expansion. This just keeps their product portfolio increasing and their customers constantly involved in following up with the latest products that they offer. Through these apps, they have developed a very strong network of users who are also loyal to the brand. The threats in the SWOT Analysis of Xiaomi Redmi are as mentioned: 1. Much of that growth was fueled by its consumer device business, which sells smartphones and tablets. We also use third-party cookies that help us analyze and understand how you use this website. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. The article below lists the Xiaomi SWOT, competitors and includes its target market, segmentation, positioning & USP. 1.Target audience- Oppo has set the untapped younger generation as a target audience for selling their smartphones. (2015, April 13). Typically, diversification allows investors to combine positions across different asset classes to reduce overall portfolio risk. Xiaomi has always kept its focus on providing something unique to the customers so that the customers keep on upgrading their Xiaomi phones. Xiaomi has three core products: Mi Chat, MIUI and Xiaomi . The company's latest flagship, the R9, stands out from the competition by placing a 16-megapixel camera on the front screen for selfies. Xiaomi also uses imitative type of positioning by closely imitating the products of market leaders such as Apple and Samsung. Xiaomi reports also that in 2020, the Xiaomi MIUI Earthquake Alert had 29 earthquakes (above magnitude 4.0 on the Richter Scale) correctly detected, and made over 9 million alerts. 06/10/2021 adoade_dym Business & Management Undergraduate $10-40 (Short Assignment) 6 Hours. Apple 2. Xiaomi should analyze the labour demand and supply trends to understand how workers with the required skills set could be successfully recruited. 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. Companies involved in manufacturing and maintenance of freight railroads and passenger trains as well as providing railroad services to public. This section covers SWOT Analysis, Competitors, Segmentation, Target Market, Positioning & USP of more than 2500 brands from over 20 industry sectors. For instance, they use their innovation feature to introduce innovative products other than just phones. The Dongguan-based company initially manufactured MP3 and MP4 players before pivoting toward mobiledevices. Especially when it comes to Chinese markets, there are some major competitors in this industry including Oppo, Vivo, Huawei, and some other that are competing with Xiaomi. Typically, diversification allows investors to combine positions across different asset classes to reduce overall portfolio risk. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Making the world smarter, happier, and richer. Its popular mobile phone brands include Mi, RedMi, POCO. What is a competitor analysis? Xiaomi segmentation, targeting and positioning is needed to indentify the target customer segment for the company and to develop products and services that are attractive to this segment. The threats in the SWOT Analysis of Xiaomi are as mentioned: 1. The Utilities theme has 30 constituents at this time. These cookies do not store any personal information. When Xiaomi started offering the same quality of luxury brands to ordinary people, it helped the company compete at a lower cost level. Areas of improvement to increase its business better communication etc labour demand and supply trends understand... In following up with the required skills set could be successfully recruited doesnt need cost! Competitors, their strengths and weaknesses also loyal to the brand, 2 company also. & intangible assets like brand value the first to use a Hi-Fi audio developed. Xiaomi products and services mobile handsets sector & published by the MBA Skool in any way.Edit the brand was the... In 2008, and mobile devices cookies will be stored in your only... Product uniqueness & intangible assets like brand value companies involved in following up with the latest trend creating... 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