Analyse Xiaomi in China's smartphone industry using Porters five forces and BCG matrix 2018 

• For Xiaomi Pestle and Swot analysis, see Xiaomi Pestle & Swot.
• For Huawei Pestle and Swot analysis, see Huawei Pestle & Swot.
• For Huawei Porters analysis, see Huawei Porters five forces.

1.0 Introduction

Xiaomi is a Chinese privately owned electronics technology multinational currently engaged in the design, manufacture and retailing of smartphones, tablets, mobile apps, smart electronics as related software, accessories and third party applications. Key products include the Mi, Redmi and Mi Note series smartphones as well as Mi Pad series tablets. Launched in 2010, Xiaomi expanded exponentially in such a short period of time to become one of the fastest growing technology firms in the world, at one point overtaking both Samsung and Apple as number one in the Chinese smartphone market in 2014, less than 5 years after it was founded (Gilbert 2016).

Xiaomi has not been performing well since, falling from top position in the Chinese smartphone market in 2015 to number 5 in 2017. As this chart from Statista shows, 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 analysis and BCG matrix or growth share analysis, this report looks at how the five competitive forces have shaped the structure of the Chinese smartphone industry and how the company can use potential “star” product categories to rebrand and reposition itself more towards the premium market rather than continually focus on the low end market which is fiercely competitive and unprofitable.

2.0 Xiaomi Porters five forces

2.1 Threat of entry

In China’s smartphone industry, barriers to entry are very high considering the fact that there are already established companies ahead of Xiaomi including, Huawei, BBK (which offers the Oppo and Vivo brands) as well