Profitable Strategy of XIAOMI Company

The market for cell phone has also become very competitive. In this context, the purpose of the following paper is to illustrate how modern companies make money and how they compete with others. Based on the research of Xiaomi, Inc., the paper will investigate how well the company positioned itself in such an industry. It will also give the management of the company’s performance evaluation and show whether its current strategy is sufficient to guide the company into its future.
According to Prasad and Sahoo (2011), China, India, USA and Russia are among the top countries where people use mobile phones and this number is increasing as the users are interested in having more than one device at a time.
That fact gives many local and international companies to be interested in setting their business in such promising markets (Prasad &amp. Sahoo, 2011). Thus, Xiaomi, a Chinese company, worlds 3rd largest smartphone distributor focused on selling its low-cost phones with its flash sales, which have helped Xiaomi to get the top position in both 2014Q4 and 2014 in China. Apple, its main rival, placed the second position in 2014Q4 since its iPhone 6 and 6 Plus were only launched in China. Huawei takes the third place in&nbsp.terms of smartphone shipments because it had many models in the low-end and mid-range segment (The China Smartphone Market Picks Up Slightly in 2014Q4, IDC Reports, 2015). The success of Xiaomi is explained by smart people once collected from Google, Kingsoft and Microsoft in order to create hardware, software and internet devices. It is now the international company that satisfies customers’ needs in Taiwan, Hong Kong, Singapore, Malaysia, Philippines India and Indonesia (About Xiaomi, (n.d.).&nbsp.Reid (2014) states that in its desire to overtake its main rivals, Samsung and Apple, Xiaomi successfully uses Chinese and Indian markets with their economic superpower to blaze the company’s trail in such industry.