Assessment 2 PART A
MGF5961 S1-2020
ASSESSMENT VERSION: ASSESSMENT 2 PART A
NAME: VISHAL KAMLESH PATEL
STUDENT ID: XXXXXXXXXX
SEMINAR DAY & TIME: THURSDAY, 09:00 HRS
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Xiaomi Corporation, headquartered in Beijing is a Chinese consumer electronics company
founded in April 2010. On July 9, 2018, It was listed on the ‘Hong Kong Stock Exchange’
Main Board. Xiaomi’s vision and commitment is towards building a better life in the world
through developing innovative technology at honest prices with a steady focus on quality
and efficiency (Mi Global Home, XXXXXXXXXXThe company mostly leads its business through
four segments, namely - Smartphones, Internet of Things & in-house lifestyle ecosystem
products which includes smart TV/smart set-top, network routers, laptops, smart webcam,
obotic vacuum, etc, The provision of internet services, and finally, Investment business.
As of now, Xiaomi distributes its products domestically and internationally in more than 90
countries around the globe with a main solid footing in numerous business sectors. Xiaomi
is at present the world's fourth-biggest cell phone
and, and has set up the world's
iggest shopper IoT stage, with more than 213.2 million shrewd gadgets (ba
ing cell
phones and PCs) associated with its foundation.
Xiaomi’s core product comes from its popular smartphones segment. Xiaomi produces
smartphones in various categories of MI series. Where “MI” stands for ‘Mobile Internet’ or
interpreted as ‘Mission Impossible' because the company believes it has achieved some
emarkable feats as a young startup. The different range of smartphone series Xiaomi
offers are Mi Series, Mi Note Series, Mi Max Series, Mi Mix Series and Redmi Series. Out
of which ‘Redmi’ smartphone has been the company’s core flagship product. Redmi
phones utilise the Xiaomi MIUI user interface on Android. The most huge contrast in
Redmi from other Xiaomi smartphones is that it utilises more affordable components and
in this manner have lower costs while holding higher specs.
Xiaomi focuses on the youngsters in quickly developing middle class who try to purchase
items close to top
ands at a reasonable cost and constantly desires to have up-to-date
experience by tweaking their phones to the most newest features. This gathering turned
into Xiaomi's huge client base that filled its development. They became an asset as well as
energetic sales reps for Xiaomi, promoting their products to loved ones for nothing.
Xiaomi suppliers include Sharp, Foxconn, and Wintek one of the world’s most profoundly
touted hardware manufacturers. Xiaomi’s demand-driven strict manufacturing policy is
acked by its ecosystem of suppliers and reliable manufacturing partners, designed to
keep the inventory and up-front production costs as low as it could reasonably be
expected. Xiaomi costs the phone nearly at bill-of-material costs, without compromising the
component quality and performance compared with other premium cell phones by keeping
its products in the market longer, eighteen months instead of the half year standard
followed by numerous cell phone
ands (Treadgold, Alan; Reynolds, Jonathan, 2016).
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In order to create customer value the main determinants are product quality, service
quality and price which are measured on the value dimensions of Reliability, Assurance,
Responsiveness, Tangibles, Empathy. A company uses any one of the determinant
strategy or all of three determinants simultaneously to deliver
eakthrough customer
value. Mobile phone ventures have been seeing a fast development and especially in this
last decade that have seen mobile phones getting more smarter and stylish than its initial
days when the idea of having a mobile phone was absolutely misjudged by the majority.
The long established
ands such as Apple & Samsung and the home grown Chinese
ivals like Oppo & Huawei are there, it was very difficult for Xiaomi to make an entry in the
market. For which Xiaomi decided to use Product quality, Service quality and a Low-price
approach to create its customer value.
This strategy of winning combinations of product and service benefits and price emerged
from a precise evaluation of the target market’s needs and desires (outside-in approach)
(Duchessi, XXXXXXXXXXXiaomi first centered around making a functioning mobile phone
community called "MI Talk", in which individuals could examine their user experience, how
to tweak their android system, and what capacities they truly need in their next smart
phone. A half year after the community was propelled, there were more than 3 million
active users in the network. Once enough customer feedback was generated, Xiaomi built
up a specialised group to profoundly redo the Android framework, and distribute its
improved portable working framework as MIUI on line. Thus, building on trust & reliability
amongst its users by being responsive to their expectations. In the first month itself, more
than 300 thousand customers downloaded MIUI. Four months later, Xiaomi officially
launched its smartphone series “Redmi”. Thus, assuring customers of quality product at
low price by demonstrating true knowledge and dependance. Xiaomi exclusively sells most
of the Redmi smartphones on virtual stores i.e. on the internet through its famous limited
availability online flash sales. It helps Xiaomi to ensure that supply never outstrips demand
and promote its products heavily on social media. Apart from this Xiaomi keeps ‘Mi Fan
Festivals’ which proved to be the co
ect way for the company as nurturing of the fan
community meant more customer retention and loyalty. Also, “Orange Fridays” are weekly
eleases of developer software updates where Mi fans get an opportunity of dialogue with
the company and can provide suggestions or feedback, thus, showing empathy towards
customers.
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References:
• Mi.com XXXXXXXXXXMi Global Home. [online] Available at:
www.mi.com/global
about>.
• Treadgold, Alan; Reynolds, Jonathan XXXXXXXXXXNavigating the New Retail Landscape: A
Guide for Business Leaders. Oxford: Oxford University Press. p. 128.
• Duchessi, P., 2002. Crafting Customer Value. West Lafayette, IN: Purdue University
Press, pp.81-91.
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