Case Study Of Xiaomi

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XIAOMI was marking its global prints and how it is embarking its presence can be seen. Current value of Xiaomi is $45 billion, this Chinese smart phone maker is taking the mobile industry by storm and becoming a serious competitor to global rivals like Apple and Samsung. As early this year The firm may take part in an overseas IPO. Xiaomi, it is a privately owned Chinese electronics and software company headquartered in Beijing. It was co-founded by eight partners on 6 April 2010. The Xiaomi Mi1 smart phone was announced in August 2011 and over 300,000 pieces were sold in that fiscal year. In the first round of funding, institutional investors included Temasek Holdings, a Singaporean government-owned investment company, the Chinese venture…show more content…
By the year end of 2013, there was addition of flagship models with improved features at stunningly low costs, the sales soared exponentially and Xiaomi was valued at $10 billion. In 2014, Xiaomi almost took the smart phones world by storm by introducing flash online sales and sleek marketing strategy. Alone in India, Xiaomi claimed to have sold 1 million smart phones by partnering with Indian e-commerce giant like Flipkart. Its success was attributed to its innovative e-commerce tactics that gave it a kind of first mover advantage, and then there was rise in the demand for smart phones. Some of these marketing tactics were a huge success, as Xiaomi sold over 61 million phones in 2014; they earned the 3rd spot on the list of biggest smart phones makers on a global scale. Xiaomi was then valued at 45 billion dollars making it the most valuable start up in the world by the end of 2014. As other organizations then also started using the same tactics and rolled products with similar feature and price range so the success party didn’t last…show more content…
If they wanted to soar higher in consumer electronics market, they needed to expand beyond China, especially in the USA. Before reaching its top position, Xiaomi had already forayed into other Asian markets including, Malaysia, Singapore, Philippines, Taiwan, India Indonesia and Hong Kong with the plans to expand to other international markets as well. On June 30th of 2015, Xiaomi made its first attempt into the international market by expanding their operations to Brazil, with the launch of new series of phone Redmi2. When the second quarter reports of 2015 emerged, they made an attempt to chase the number 1 spot; Xiaomi’s co-founder Bin Li went vocal about its global expansion plans encompassing the US as well. The company had slowed down its global expansion plans in order to learn more about each market it enters. But that was no longer the case as Xiaomi entered into the swift expansion mode. In November 2015, they expanded sales to African continent specifically Nigeria, South Africa and Kenya. Xiaomi even succeeded in penetrating European as well as in the US markets via its online Mi store limiting sales to smart phone accessories and activity

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