Xiaomi is the fastest growing IT firm in the world. Today, the firm is valued at over $10 billion yet the firm was but a startup four years ago. Xiaomi initially started with design of smart phones before moving into tablet manufacturing. The firm products are high end but are low cost due to the ability of the business to optimize operations and cut premiums on products. Xiaomi, is a Chinese firm with china being its home market. The China home market provided a sufficient base for the firm’s growth whereby Xiaomi products were rapidly sold in the market. More than 17 million handsets sold in year 2013 in China (Xiaomi, 2014). With the success in China, Xiaomi over the past two years has pursued international expansion. First, it sought to expand within the Asian region; today it has a presence in India, Singapore, the Philippines and Malaysia among other Asian countries. Today, Xiaomi is pursuing expansion in Europe, north and South America. The paper focuses on the expansion of Xiaomi into Sri Lanka (Wang, 2014).
2.0 SELECTION OF MARKET ENTRY MODE
2.1 Internal factors
2.1.1 Company size and resources
The company size directly impacts the availability of financial resources to invest in foreign trade. SME…show more content… The role of the store is to enhance the user experience and the buzz around a product. Further, it provides a point of provision of information of the products available such as pricing and functionality as well as the provision of customer service. Operations of stores across markets are mainly through a wholly owned subsidiary or joint venture. In such cases, the subsidiary or joint venture is instrumental towards the developing of contracts with major networks as well as distributorship to retailers. However, the strategy takes a long period of time to achieve success due to the length of time to set up and then engage with