Xiaomi Company
Xiaomi plans to expand into ten countries in Latin America, Asia, and Europe. Xiaomi’s strategy chooses India as the center for business and as a plan to grow and develop into other markets globally. The decision to settle for India’s market is because of consumer behavior and the standard of living. In India, online selling stores work well because most of them use smartphones to communicate and do business online. Moreover, India’s consumer behavior consists of middle-class individuals and the rich who would prefer high quality and affordable products. The Indians are price sensitive individuals, which plays a vital role in the selling of smartphones in the country. The government policies in India remain favorable for Xiaomi to work and expand into other markets.
Xiaomi Company plans to sell more than 9 million smartphones in the country. It is in an increase from its sale of 10,000 smartphones in the year 2014. The right tool for Xiaomi to use is to understand the demand for customers in the Indian market. Provide the right product at the right time. Moreover, provide affordable products with high quality. Besides, Xiaomi can collaborate with popular platforms such as Amazon and Flipkart to enable more sales to smartphone lovers in India and the rest of the world. Another plan that Xiaomi should consider using is creating more of situation scarcity that will enable the need of consumers to buy products. However, the company should prepare for stiff competition from companies like Huawei, Apple, and Samsung. The company has expected to sell 80-100 million units, but the declining domestic market will make everything complicated. Time and effort is a factor they need to put into consideration when expanding globally. Moreover, Xiaomi has a thin patent portfolio compared to other larger competitors, which provides the risk of a lawsuit into new markets.