The year 2020 wasnt a good year for Xiaomi. The US Department of Defence added Xiaomi to a list of Chinese companies that are not allowed to receive any American investment and are to be faced with tough restrictions to their businesses. The US accuses the companies of having ties to the Chinese military and/or being Communist Chinese Military companies. Xiaomi also faces intense competition from both high-end smartphone manufacturers like Apple and Samsung who unlike Xiaomi, charge premium prices but have managed to command a large market share due to their quality and strong brand names. It also faces intense competition from its fellow low price smartphone category competitors like Huawei, Vivo and Oppo who have achieved dominance in markets like China. Infact, Oppo rose for the first time in January 2021 to become the leading smartphone in China with a market share of 21%, followed closely by Vivo with 20% while Xiaomi, Apple and Huawei ranked third each with 16%.
In this comprehensive strategy analysis, we analyse Xiaomi's external and internal business environment using Pestle and Swot in order to understand the existing and future trends in the smartphone industry and their effect on Xiaomi, that is to say, whether they present opportunities that can be harnessed or threats that need to be mitigated.
Peyton, Mariam (2021) "Pestle and Swot Analysis of Xiaomi 2020-2021" 123 Writing [Online] at https://www.123writing.com/sample/pestle-and-swot-analysis-of-xiaomi-2020-2021
Peyton, M. 2021. Pestle and Swot Analysis of Xiaomi 2020-2021. 123 Writing. Retrieved from https://www.123writing.com/sample/pestle-and-swot-analysis-of-xiaomi-2020-2021
XIAOMI STRATEGIC ANALYSIS Case Study
Key Learning Outcomes
- Understand the broad macro-environment of Xiaomi and the Chinese smartphone industry in terms of political, economic, social, technological, environmental and legal factors (PESTEL/PEST/STEEPLE).
- Use our swot analysis example to gain an overall understanding of Xiaomi's strengths and weaknesses and strategic options arising from the opportunities and threats that have been identified from the Pestle analysis example on it's business environment.
- To apply strategy business models and frameworks such as Pestle/Pest/Steeple, Swot etc to real company cases.
Analyse the internal and external environment of Xiaomi and the Chinese smartphone industry using Pestel and Swot.
Xiaomi was founded in April 2010 by Lei Jun and a decade later, the company bumped Apple down the ranks to become the world’s third largest smartphone maker and its products are sold in over 90 markets around the world (Mi, 2020). Part of its growth was a result of the downward spiral of Huawei whose sales begun to fall after the US sanctions (Ting-Fang et al, 2020).
By the end of 2020, Xiaomi’s global market share was 13% ahead of Apple’s 11% and only surpassed by Samsung and Huawei whose markets shares were 22% and 14% respectively (MacMillan, 2021). The company operates in business segments like Hardware, internet services, e-commerce and new retail selling smartphones, laptops, headphones, televisions and other smart devices like electric scooters, smart bands, and power banks among others (Forbes, 2020). Some of countries in which Xiaomi is the leading smartphone vendor include India, Belarus and Ukraine with market shares of 26%, 31.95% and 31.17% respectively.
Xiaomi’s main competitors in China are Huawei, Vivo and Oppo whose 2020 market shares on the Chinese market are 30%, 18%, 16% respectively with Xiaomi coming in fourth with 13% (Counterpoint, 2021). In the third quarter of 2020, Samsung raised revenue of KRW 66.96 trillion (about $59 billion) and made a profit of KRW 12.35 trillion (about $10.6 billion), Apple reported revenue of $59.7 billion and profit of $11.25 billion and Huawei made CNY 671.3, a 9.9% increase in revenue. Xiaomi raised RMB 72.2 billion (about $10.9 billion) in revenue and RMB 4.1 billion (about $622 million) in profit. Revenue growth for Samsung, Apple and Xiaomi was 8%, 11% and 34.5% respectively.
Using PESTLE and SWOT framework, we will examine all these factors in the Chinese external macro environment as well as internationnally, that are affecting Xiaomi including the American ban. We end the analysis with examining how Xiaomi is mitigating these issues and recovering some ground on rivals.
Not a Subcriber?
GET UNLIMITED ACCESS
TO ALL OUR FREE SAMPLESFOR FREE
GET UNLIMITED ACCESS
TO ALL OUR FREE SAMPLESFOR FREE
Services We are Offering
We are more than a free study and revision tool.
We also provide on demand research and custom writing services.
With over 1,000 free strategy case studies and reports covering a wide spectrum of companies and industries, revising for your strategy assignment and coursework has never been easier. Use our strategy samples to study and revise on your own. Lacking inspiration? Struggling to meet deadlines? Try our on-demand custom research service.
Use our free coursework samples written by expert writers and professional tutors, to study and revise on your own. Lacking inspiration? Struggling to meet deadlines? Worried about low grades? Order our on-demand custom research to have our professional tutors and expert writers write a custom written coursework assignment on your behalf.
Struggling with your dissertation? Use our free study samples written by expert writers and professional tutors, to study and revise on your own. Struggling to meet deadlines? Worried about low grades? Lacking inspiration? Need extra help with your dissertation? Order our on-demand custom research to have our professional tutors and expert writers write a custom written dissertation on your behalf.
Use our free assignment samples written by expert writers and professional tutors, to study and revise on your own. Lacking inspiration? Struggling to meet deadlines? Worried about low grades? Order our on-demand custom research to have our professional tutors and expert writers write a custom written essay assignment on your behalf.
123 Writing is the #1 exam revision and assignment study platform in the UK.
Get unlimited access to answered student essays, assignments, past exam questions and sample coursework written by qualified academic writers & tutors.
Our Standard subscription typically retails for £299.88 a year.
Today, you can join at 80% discount.
Here’s a full breakdown of everything you get as a Standard or Premium subscriber...
» Get access to our database of more than 5,770 answered premium strategy case studies
Get unlimited access to a robust database of premium business strategy case studies including more than 5,770 fully answered sample strategy frameworks and tools such as pestle, value chain, value matrix, porters five forces, Ansoff’s matrix, etc., authoritatively written and tailored for student revision, assignment preparation and transformative business research. Our strategy case studies are especially suited for university students wishing to apply strategic frameworks to real-world situations, company cases or simulations. All our strategy case studies come with teaching notes and learning outcomes, making them effective as coursework revision, and essay study help tools.
» Free access to past exam & assignment answers
Revise and prepare for exams and coursework with our fully answered exam notes and sample assignment papers. Furthermore, get quick on-demand answers to past exam question and assignment questions from our writers. Exam answer notes come with personalized lesson plans, and detailed study notes complete with detailed explanations of each answer, for maximum exam revision and assignment preparation. This tool is perfect for readers struggling with exam preparation & assignment study.
» Get extra assignment related help from our writers & tutors
Achieve high grades with a little extra assignment related support. Get extra help with your essays, assignments and general coursework, from our knowledgeable writers and tutors who will provide extra assistance when required for all academic related tasks including proofreading, grammar editing & correction, citations, referencing, etc. at no extra cost for standard and premium subscribers. All our standard and premium subscribers receive free proofreading services, which will include a check for punctuation, grammar, sentence formation, typographical errors, formatting, errors and other consistency issues (broadly).
» Get free assignment & essay writing help worth up to 7K words
Commission an on-demand essay, or assignment title from our knowledgeable writers and tutors on any subject matter. Get up to 7,000* words in on-demand custom assignment help from our writers who can assist with difficult topic in classical business literature. (* 7,000 free word credit exclusive to premium members).
» Fast & speedy answers to on-demand case solutions & assignment questions
Make use of your available free word credit (up to *7,000words) to commission on-demand custom case solutions, case study assignments and receive fast & speedy personalised answers. Receive timely and fast plagiarism-free answers to assignment questions or case solutions in as little as 1-2 business working days. Topics include Strategic Management, Marketing, Business Management, Economics, Operations Management, Organization Studies, International Business & Management, Human Resource Management and more. (* Exclusive to premium members).
» Get exclusive Q&A sessions with our subject matter writers
Ask our qualified, vetted and knowledgeable writers up to *12 essay, assignment and coursework related questions annually and receive accurate, clear, and detailed answers including step-by-step explanations briefs that are easy to follow. (*Exclusive to premium members).
» Free access to test bank questions & answers, study notes and practice quizzes
Test your knowledge on any subject with our quick quizzes and test banks for maximum retention after revision and studying. Test Bank contains questions in a variety of formats including multiple choice, true/false, short answer, and essay questions.
» Free access to video tutorials & study packs
Get free access to exclusive video tutorials to common subject topics. Our subject matter video tutorials, study notes and study packs have been created to help students learn and understand basic course module materials, as well as prepare students for their coursework assignment questions, essays and exams. Our video tutorials, study notes and study packs can be organized by topic, textbook or Question &Answer.
» Access to textbook chapter reviews and answer solutions
Get access to chapter reviews of popular business books, broken down in easy-to-understand simple concepts with simplified English. If English is not your first language, this service will make revising for essay assignments and exams as easy as 123 (Exclusive to premium members).