Xiaomi is one of the biggest high tech companies of China. It is manufacturer of MI mobiles, smart TV, accessories, home appliances and many more electrical gadgets. It is officially registered as Xiaomi Inc.whose headquarters are located in Haidian District,Beijing,China.It was founded on 6 April 2010 in Yingu Building by Lei Jun Bin,Zhou Guangping ,Wong Jiangji,Liu De and Hong Feng.Curently 35000 are employed in Xiaomi. Let us know What are the ‘Xiaomi SWOT Analysis’.
Xiaomi SWOT Analysis: What is SWOT Analysis?
It is basically a tool of measuring strengths, weakness, opportunities and threats of a company. It is very helpful to any organization so that they can come up new opportunities to eradicate all their weakness and to be prepare such a business plan which will harm less due future uncertainties or threats. It helps a company to analyse its internal strengths and weaknesses as well as external opportunities and threats. It helps a company to find its realistic position where they stand in present and to utilise all internal and external factors to build more strong networks across the countries.
SWOT Analysis Of Xiaomi
- Xiaomi offers their customers electrical gadgets with high quality within low prices. Its products are more pocket friendly as compared to other tech companies
- It has already created a dominance over other tech companies like Samsung and Apple as it is very expensive as compare to Xiaomi gadgets
- MI has created dominance in markets of many countries rather than USA within very short span of time. It holds more than shares of market as compared to its rival companies
- Xiaomi has been seen continuously growing and expanding their channels across India and over. It has created widespread channels, it regesters in increase in growth of 24% as compared with last years.
- Xiaomi is able to make great profit margins even though of low and affordable prices, it earns great and sufficient profit margins.
There are no such weaknesses of Xiaomi .There are only few weakness which incurred
- They spent lot of their funds on advertising their gadgets rather than focusing on their quality and expanding their channels of distribution across the Asia
- Secondly, I gadgets seems with low prospective by people even they provides good quality within minimal prices as Chinese products holds the low perspective or inferior as compared to other countries products. People think that Chinese products are of low quality.
- Even though it have affordable price gadgets but many people cannot be able to make reach to their products because it adapts the model of e commerce, there are very few authentic stores of Xiaomi located due to which many people cannot reach to its electronic gadgets as they are not well versed with technology .
- They have made use of brick and mortar services even many brand companies do not use. Also, it marked their products as green product, that did not harm environment
- Xiaomi should focus on its authentic distribution channels so that many possible people can purchase their gadgets.
- Xiaomi has potential of market growth as it has large and widespread distributions channels. It is estimated that it has capacity to expand its growth by nearly 30% and within next four years it will show a remarkable success
- Xiaomi can overcome up with many more new opportunities and can develop many more new electrical gadgets or household appliances
- Xiaomi should not made itself limited or restricted towards its products but has to diversify in its products. It can come up with many more new innovations and products and also it have potential to do the same
Xiaomi should expand their business across many different countries beyond USA, it should try to reach at various countries as much as possible
- There is intense competition; Oppo and Vivo are its biggest rival companies. Customers can be easily influenced by the policies of discount by another companies, they started moving to other company.
- It does not have appropriate customer structure infrastructure, they did not meet to customer’s complaints even after so many requests and efforts of customers
- Changes in climate of business that can be policies related to it or changing periods that can be boom, recession and inflation can cause a great threats to many companies.
- Imitation of one company’s model by other is a big threat to any company. There has been seen imitating Xiaomi’s model by many other companies which are giving it a stiff competition
Hence, the overall perception we can conclude up by SWOT analysis of Xiaomi is that , products of it is budget friendly and affordable and can be smoothly used for many years and the company is making pretty good profit ,margins even selling their electronic gadgets prices are very low as compared to other brands of high tech companies. We got a overview that it is grabbing new opportunities which made them so successful over many parts of Asia like India and china but they need to be careful from the competition of newcomers in the market
Frequently asked questions
- Can we rely on SWOT analysis to be versed with any company?
NO, there can be many limitations of Swot analysis it can miss out some opportunities and also a company does not shares its confidential information. Therefore, Swot analysis cannot be much reliable to be versed with any company
- How to get proper information about company to make SWOT analyse?
A candidate can go through their website and get information through investopedia .Job description can give an overview about company and if it satisfies you than you can apply
- How to write a personal SWOT Analysis?
- First of all, a company have to list all its strengths
- Secondly, a company have to review all its weakness which they have to work upon it
- Third, a company have to define its opportunities which they can successful grab for company’s better performance and to build a more strong base
- Fourth, a company have to understand any potential threats if any so that they can develop business plans to overcome uncertainties that might occurs in future
- And lastly, it have to make an informed decisions