Xiaomi Porters Five Forces and BCG Matrix Analysis 2018

By: Prudence K Magezi

Xiaomi has not been performing well since 2016, falling from top position in the Chinese smartphone market in 2015 to number 5 in 2017. Things are however beginning to look up for Xiaomi. The company’s market share picked up in the first quarter of 2018, rising to 13% from 8% in 2017. Using Porters five forces and BCG matrix or growth share analysis, this report looks at how the five competitive forces – buyer power, supplier power, threat of entry, threat of substitutes and rivalry between existing smartphone firms have shaped the structure of the Chinese smartphone industry. The report also uses the BCG/growth share matrix to look at some “cash” generators and “star” product categories Xiaomi can further invest in as well as possible “dogs” the company should divest as a way of rebranding and repositioning itself after a tumultuous 2016 and 2017 period.

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