Xiaomi case
What does Xiaomi`s rapid ascent mean for Apple and Samsung in China and globally?
Rapid growth of market share of Xiaomi should worry such giants as Apple and Samsung as it will lead to decrease of sales respectively. Moreover, company offers nice-looking smartphones of correspondent quality for price that is half of Apple`s or Samsung`s alternative.
How are Apple and Samsung likely to react?
Given the history of Samsung vs Apple rivalry, it can be expected that those companies will try to slow down company`s expansion. Due to the fact that Xiaomi was accused of copying design from Apple gadgets, the company is vulnerable to continues litigations and trials upon this fact. Possibly, Apple and Samsung will try to stop company from entering European and US markets where they still hold top spots.
What capabilities would Xiaomi need to develop to compete head-to-head with industry giants?
The company needs to focus solely on smartphones in order to compete with Apple and Samsung. From the reviews it can be established that tablets are of lower quality than the alternatives. Therefore creating its own niche is a good option.
Should Xiaomi be focused on competing with Apple and Samsung or should be more focused on competition with local Chinese rivals?
Taking into account financial statements of the company and the rapid growth of sales, Xiaomi has a great starting point for global expansion. The experience of the expanding to India proved that there is a great demand for company`s product beyond the China. What is more smartphone market in China is far more competitive than in other countries. So if to choose expansion countries correctly, Xiaomi will for sure benefit more from going globally.
How Xiaomi will fare in the global market? What obstacles they are likely to face? What capabilities will Xiaomi need to develop to expand globally?
On the global market, the prices for Xiaomi`s gadgets will not increase significantly. This is due to the fact that company relies heavily on online preorder business model. However due to the difficulty of managing delivery and service around the world, recently agreements with few retailers and dealers were established. Senior management of the company should remember about cultural differences and peculiarities of buying habits between Asian and Western customers. Therefore they may face some obstacles in gaining the audience, as most of it is already inclined to buy Apple or Samsung products. Moreover, Europeans and Americans are more demanding in terms of quality of the gadgets, so company is likely to have numerous complains at the beginning and it is worth to be prepared in order to react timely and properly. To reach a success on global scale, Xiaomi needs to improve further the quality of product, differentiate its products from competitors, show its unique positioning and establish strong relationships with retailer and service agents in different countries.
