Pestle and Swot Analysis of Xiaomi 2017

By: Prudence K Magezi

In 2015, Xiaomi was the biggest smartphone maker in China ahead of household names including Apple, Samsung and local rivals such as Huawei. A year later in 2016, its valuation stood at $45bn, a massive achievement for an upstart technology firm launched in 2010, the same year Apple released the IPhone 4. But fast forward to 2017, Xiamo had fallen from 1st all the way to 5th rank in the Chinese smartphone market alone, behind Chinese rivals Huawei, BBK (which offers the Oppo and Vivo brands) as well as Apple and Samsung. Its valuation has fallen drastically to just $4bn in 2017, from $41bn less in just one year. From being the bestselling smartphone brand in China to fifth. What happened to Xiaomi?  As will be looked at shortly using Pestel and Swot, many factors both macro and micro have contributed to Xiaomi’s fall from grace. While some are internal weaknesses due to poor strategic decisions, certain macro threats haven’t favoured the Chinese smartphone maker.

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