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Xiaomi Swot Analysis

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Xiaomi swot analysisStrength1. Excellent entrepreneurial team member, e.g. Hugo Barra has joined to xiaomi to expand oversea business, take in charge of oversea business development, and strategic cooperation with google android.Involve users' participation in mobile phone R&D can better meet consumers' needs, and draw their attention when new products released. Gained fans loyalty.Cost-effectiveness mobile phone, priced from 500-2000Miui: xiaomi phones’ operational system/ mChat/ Xiaomi phones5. Lower marketing cost than other mobile brands. Launch events and microblog marketing. 6. Cultivating brand loyalty with fans groups, online flash sales, glitzy apple-style launch events and high-specification products sold at low pricesLow stocking cost8. Cooperate with China Unicom and China TeleCom to create new sim card, which is much cheaper than other sim card brand.9.Sells model: consumers book and pay for the phone first, so that XIAOMI has enough finance to purchase inventory.----zero inventory. lower stocking cost. Good cash flow.Weakness:Service cannot meet customers' satisfication。 。No self PlantsDistribution channel is easy to be copied by competitors4. Xiaomi has relatively few patents and little R&D spending, sourcing most of its components commercially.Many company claimed that xiaomi copied their products. Therefore if xiaomi enter into oversea market, it will face very high patent fees.The fans groups, business mode(online flash sales, glitzy apple-style launch events) is difficult to be used in oversea marketThe pre-installment app is vancle, UC web etc. products which are belongs to Leijun, Xiaomi company cannot earn profits from the pre-installment. For xiaomi such a low-profit products, this make the company lose more profits.The cash flow is not sufficient enough to support a high volume order from suppliers. And its...

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