CKGSB Professor Teng Bingsheng’s case study about Xiaomi’s strategic advantages and disadvantages has been published in the Dong-A Business Review, Korea’s equivalent of the Harvard Business Review.
A case study about Chinese smartphone manufacturer Xiaomi by CKGSB Professor of Strategy Teng Bingsheng was recently published in Korean journal, Dong-A Business Review. The following is a translated summary of the original Korean article.
Focus, Ultimate, Speed, Word of Mouth…The Growth Power of Xiaomi Is Its Philosophy of the Internet
In his case study, Professor Teng takes an in-depth look at Xiaomi, which has grown into a giant smartphone company, with 31.6 billion yuan in annual sales since its founding in April 2010. He also examines how it came into being, the secret of its success and the issues that Xiaomi should pay attention to.
Xiaomi founder Lei Jun at a recent product launch
Lei Jun, Xiaomi’s founder, has compared himself to Sisyphus from ancient Greek mythology, the man who rolled a huge boulder up a hill. The ‘Philosophy of the Internet’ is a key theme of Lei Jun’s success story after the boulder story.
Four main reasons for Xiaomi’s growth are as follows:
Xiaomi’s products are successfully promoted through social marketing, which is a key reason for their popularity. However, some threating factors exist:
Not content with its current lot, Xiaomi’s future strategy has been to turn towards overseas markets and to build a smart ecosystem. If customers experience a synergy with Xiaomi’s various smart products, the power of Xiaomi’s networking could expand further.
To read the original Korean article in Dong-A Business Review, please click here.