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.
Xiaomi Strategy Case Study
Key Learning Outcomes
- Analyse the smartphone industry and how the five forces have affected Xiaomi, as well as global rivals and the impact on industry structure, attractiveness, and profitability.
- Understand how Xiaomi has managed to defend against intense competition from major players such Huawei, Samsung, , ZTE etc. and the strategies it uses to create 'blue oceans' that are defensible, helping it capture and maintain top position.
- Analyse the various strategic business units in Xiaomi's portfolio and assess which ones are the stars and cash cows generating the most value, or the question marks, and dogs that may need further investment or divesting to achieve a balance of the portfolio.
- To apply strategy business models and frameworks such as Porters five forces, BCG matrix etc. to real company cases.
Analyse Xiaomi in China's smartphone industry using Porters five forces and BCG matrix 2018.
- See also, Xiaomi Pestle and Swot 2017.
- See also, Huawei Porters five forces 2018.
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