Chapter 3

Xiaomi mobile phone profile and its SWOT analysis

3.1 Xiaomi mobile phone profile

Xiaomi mobile phone is Beijing Xiaomi Technology Limited Liability Company

developed a high-performance smart phone. Xiaomi mobile phone adhere to the

"enthusiastic fan" design concept, the world's top mobile terminal technology and

components applied to each new mobile phone. August 16, 2011 Xiaomi mobile

phone M1 officially released. Mi 1 appears immediately caused a sensation in the has

been choppy mobile phone market. And this is not only because of its powerful

configuration, but also because of its attractive price, so that the popularity of Xiaomi

rapidly rising. Almost overnight, "Xiaomi" has become a hot topic on concern mobile

phone enthusiasts. Followed by a series of listed M2, M3 and Redmi pushed Xiaomi

phone on the front of the domestic mobile phone.

As of the end of April 2014, Xiaomi mobile phone has jumped to the Chinese

market mobile phone brand ranked No. 7, beyond Lenovo, ZTE, HUAWEI, ranking

first in the domestic mobile phone brand.

In China, Apple iphone is the champion, other foreign company share the mobile

phone market, Xiaomi mobile phone is like a lion into the wolves, disrupting the

traditional sense of the mobile phone marketing model; Like a shining star, the release

of their bright brilliance, writing and guiding the future of domestic mobile phones, at

the same time, Xiaomi mobile phone super high cost performance also makes each

product become the most worthy of the year looking forward to smart phones. On

March 13, 2014, in the sale of 8 minutes and 4 seconds 5000 mobile phone were sold

out, enough to see its popularity.

Lei Jun introduced the origin of Xiaomi name, Xiaomi logo is a "MI" shape, is the

abbreviation of Mobile Internet, on behalf of Xiaomi is a Mobile Internet Company;

The second is mission impossible, Xiaomi to complete the can't completed task; of

course, he want to use Xiaomi and rifles to conquer the world. Finally, hope

"Xiaomi" this lovely name to become everyone's friend. In addition, Xiaomi logo

inverted is a Chinese heart word, less a point, which means that Xiaomi to allow users

to save a little heart. Figure 3.1 shows the Xiaomi logo .

Fig.3.1 Logo of Xiaomi

3.1.1Mitalk

Mitalk is Xiaomi production of a mobile phone terminal free instant messaging

tool, it can not only cross iPhone, Android, Symbian mobile phone platform, can also

cross China Mobile, China Unicom, Telecom so on different operators. As long as

through the mobile phone network (WiFi, 3G, GPRS),can communicate with the

relevant contacts for real-time information communication, send and receive pictures

and audio, it is important to consume only network traffic.

(1) Free message: receiving the message to save money and effort, convenient

communication;

(2) Information on the status and feedback in a timely manner: know when is typing ,

can know whether the message is received by the other party, whether to see;

(3) The file free of charge to send: don't need hard typing, directly use Mitalk upload

the figure to watch for free;

(4) Three network interworking: convenient and safe , bold communication with

around the world ;

(5) friends to share: to share the interesting gossip, walking in the front line of the

fashion trend.

3.1.2 MIUI

MIUI officially released on June 1, 2010, it is Xiaomi company depth

customization of an Android mobile phone operating system, MIUI aim at native

Android system for a number of improvements to optimize, its user covers in 23

countries, by the majority of mobile enthusiasts highly sought after. MIUI original

features MIUI interface system, is committed to providing smart phones in the most

extreme calls and text messages comfortable experience ,for Chinese users use habits

are perfect match, Xiaomi technology is China's first use of Internet development

model for mobile phone operating system development team , reference MIUI

Community enthusiasts feedback to improve, weekly updates iterations, always give

users the latest experience. And MIUI has the world's largest mobile phone wallpaper

theme library, personalized themes and lock screen mode, as well as a wealth of

custom methods.

3.2 Introduction to SWOT analysis method

SWOT analysis method is a kind of enterprise strategy analysis method, which is

based on the enterprise's own inherent conditions to analyze, find out the advantages,

disadvantages and core competitiveness of enterprises. The internal factors: S

represents strength , W represents weakness; The external factors: O represents

opportunity, T represent threat.

3.3Xiaomi mobile phone SWOT analysis

3.3.1 Strength

Xiaomi mobile phone can win the hearts of the people, its advantages are mainly

summarized as five aspects: the enterprise internal advantages, mobile phone itself

advantage, price advantage, sales channel advantage, unique promotional strategy.

Enterprise internal advantages

1. Leader 's personal charm

Xiaomi technology leader is Kingsoft chairman and famous angel investors-Lei

Jun, he by virtue of the industry for many years of achievement influence, gather

industry top elite, formed the Xiaomi seven ultra-luxury joint founding team; At the

same time rely on personal good personal connections, success and Vancl logistics

cooperation, to achieve full-line sales; and through their powerful celebrity effect,

Xiaomi successfully fired the first shot.

2. The strength of the creative team

Behind so proud achievements in Xiaomi, is the co-founder of Xiaomi company

strength team, which is responsible for Xiaomi industrial design and supply

chain management team Liu De graduated from the world's top design school

ArtCenter, responsible for the MIUI operating system is Li Wanqiang ,before was

PowerWord general manager, responsible for hardware and BSP, Zhou Guangping is

the original Motorola R & D center chief engineer in Beijing , responsible for Mitalk

Hon Feng is the original Google senior engineer, including former Google vice

president of Engineering Research Academy in China -Lin Bin, former chief

engineer of Microsoft Engineering Institute- Huang Jiangji. The co-founders have the

international and domestic first-class enterprise with an average of over 15 years of

experience. Except the seven founders, Xiaomi company have hundreds of engineers,

in their passion collision, Xiaomi phone appeared on the dual core 1.5G CPU,

running speed is referred to as "fighter" in the mobile phone."

Mobile phone own advantage

1 China's first dual-core 1.5G smart phone

Xiaomi mobile phone is considered to be the world's fastest processor

manufacturer of Qualcomm MSM8260, provides reliable technical support for the

performance of the Xiaomi mobile phone. In the overall system fluency, screen

resolution and video camera function, Xiaomi phone has reached the top level.

2 Miflash ----- Over-The-Air technology upgrade

Compared with other mobile phone manufacturers, Xiaomi technology to

encourage people to flash. Through the flash, and then can achieve the purpose of

improving Xiaomi phone performance. Every Friday, Xiaomi official website will

update a new software upgrade package, and then repair before system vulnerabilities

and add some new features.

3 Reshape Xiaomi mobile phone's "CSP"

C is the Contacts; S is the SMS (refer to SMS and MMS); P is the Phone (phone

calls, voice calls).

In recent years, with the Apple mobile phone system ios, Android development,

the rapid development of smart phones, but also makes the smart phone slowly began

to spread. At the same time the birth of the application software is also more and

more, application software has become also increasingly rich, but weakened the cell

phone signals, batteries and other fundamental performance, deviated from the

original intention of communication tools. And Xiao phone is equipped with a large

battery of 1930 milliampere(mA), beyond the smart phone battery capacity nearly

30%, can support network standby time up to 450 hours, continuous talking 15 hours.

And, no matter how to grip, do not affect the Xiaomi phone reception signal, formed

a Xiaomi phone's unique advantages.

4 High-end work and comfortable feel

Xiaomi phone production process has been at a very high level, compared with

Samsung and other international brands . In addition, the Xiaomi phone's overall

manufacturing process, including the operating system MIUI are also converted to

production and design for Chinese people .

5 MIUI interface suitable for Chinese people to use

Xiaomi technology own research and development MIUI operating system, the

purpose is to create a more suitable for Chinese people's operating habits of the

system. So it is particularly impressive in the domestic machine.

The survey reflects the Xiaomi mobile phone accounted for 65.91%, followed by

price is cheap accounted for 59.09%, high hardware configuration accounted for

27.27%, MIUI system easy to use accounted for 13.64%, the good corporate

image accounting for 4.55%, 13.64% think that there are other reasons

Corporate image 4.55%

Cost performance 65.91%

High hardware configuration

27.27%

Price is cheap59.09%

MIUI system easy to use 13.64%

others 13.64%

Fig.3.1 The analysis of Xiaomi competitive advantage

Price advantage

Using the cost pricing model, gross profit margin only about 15%, from the initial

Xiaomi series 1999 yuan to the present Redmi series 799 yuan, with China

Unicom, Telecom jointly launched part of the contract machine, the direct deposit to

hundreds to two thousand telephone fee you can use it for free. At the same time in

the price of Xiaomi to achieve the highest quality configuration, compared to other

domestic smart phone, Xiaomi phone price advantage is particularly obvious, high

cost performance.

Sales channel advantages

(1) "Electronic business model"

Xiaomi phone only online sales, such as the E-commence under Xiaomi

technology, Xiaomi.com. This model not through mobile phone dealers, to take

the way of online sales, not only save the cost, but also save time. Make full use of

the characteristics of fast and convenient online shopping .

(2) The Xiaomi mobile phone logistics and inventory to the Vancl to do, take the e-

commerce channel + logistics cooperation distribution channel model, did not take

the traditional marketing model, eliminates the need for expensive promotion and

channel costs.

(3) Xiaomi mobile phone using online booking first, then reproduction mode, that is

produced products are sold, to achieve a zero inventory, saving a lot of cost.

(4) After-sales service guarantee policy

Want to buy and have purchased Xiaomi phone consumers, will be worried about

Xiaomi phone after-sales problem. About Xiaomi mobile phone after-sales,

Xiaomi technology has made commitments and has implemented the national

provisions of the three guarantees service. In addition, Xiaomi phone also

provides consumers with door-to-door pickup, returns and exchanges ,

maintenance hardware and software and other services, more convenient for

consumers to solve their online sales after faced after-sales problem.

Unique publicity strategy

1.High-profile conference publicity

Use the appearance is similar to the Apple Company conference, pocketed the

people's attention, Xiaomi mobile phone conference publicity strategy, is also an

innovative domestic mobile phone brand sales, is the first time in China. Has gained

wide attention from consumers and the media. Followed by Xiaomi again and again to

attack, the network Xiaomi is overwhelming. And then for its subsequent sales has

laid a solid foundation.

2.The Use of online advertising promotions

Mainly through micro-blog ,forums and other issued a variety of messages of Xiaomi.

3. The use of social media mode

Use of word-of-mouth marketing, the use of cost-effective features, so that Xiaomi mobile phone consumers to stimulate their potential consumers to buy their products, thereby further reducing the cost of marketing, so also make up for the problem of production cost is too high.

3.3.2 Weakness

Xiaomi phone shortcomings are: mobile phone itself defects , lack of credibility,

after-sales service has been questioned.

Mobile phone itself defects:

1.There are many hardware problems

The screen become warped foot problem ○1

The phone off the paint problem ○2

The back cover closing cracks imprecise problems ○3

Phone body shaking have a sound problem ○4

In the original accessories without headset ○5

Battery heating problem ○6

In the Xiaomi phone official forum, has been buying Xiaomi phone consumers

continue to complain about the problems of Xiaomi phone, there are tens of thousands

of feedback on the problem. Including the question of Xiaomi mobile phone delivery

speed, often crashes so on more than a dozen problems, there are some users apply for

return and replacement machine, these problems cannot be underestimated, will affect

the future development of Xiaomi.

2.Lack of credibility

Xiaomi is a rising star, established only three years, in the HTC, Samsung, iphone and

other smart phone occupy most of the market share, Xiaomi was born , the occupation

rate is obviously insufficient in market share, and no good reputation is built in the

public mind. With Xiaomi phone frequently exposure light leaked, off the paint ,

battery heating problem, system bug and inadequate after-sales service, to the

credibility of Xiaomi is a blow, but also a test of public patience.

3.After-sales service has been questioned

Xiaomi phone to provide customers with the main customer service channels

have online customer service, micro-blog customer service, telephone customer

service three kinds. But it has caused a strong consumer dissatisfaction: such as

telephone customer service often can not get through, online customer service, micro-

blog customer service no response and other issues. Xiaomi technology itself also said

that in the current circumstances, the return is need three to five days. Is to go through

a lot of processes, including delivery time, mobile phone testing, you have to spend at

least a week's time. This also makes Xiaomi mobile phone advertised maintenance is

completed within five days become a dead letter.

So many cities in China, only 29 cities have a "the house of Xiaomi " service

station, and that in Beijing and Shanghai so popular cities have only one maintenance

point, so few service stations is difficult to ensure timely processing of customer

service quality problems .

Worry about the system stability and the quality of the product workmanship of

people each accounted for 63.64%, worry about after-sales service and battery heating

problem respectively accounted for 63.36%, 43.18%, and 9.09% are worried about

other issues.

61.36% 63.64%

43.18%

63.64%

9.09%

After-sales service can or

can't guaranteed

System stability Battery heating problem

The quality of the product

workmanship

Others0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

Fig.3.2 Choose Xiaomi mobile phone concerns

3.3.3Opportunity

1. Competitors to weaken

Jobs's death to the Apple Corp faced a huge challenge, to a certain extent, weakened

the competitiveness of the Apple Corp, to other relatively weak mobile phone

companies to bring opportunities.

2.Mobile phone computerized trend

Convenient mobile phones will replace the cumbersome and inconvenient PC. So the

market demand for smart phones will be far greater than before. there are 78

companies to do RMCPU in China, the cost will be a qualitative decline, to promote

the entire smart phone computing power, and cost optimization. This will drive the

entire mobile phone industry.

3.The development of future mobile terminal

With the construction of the communication network terminal and the invasion of the

application program on the network, 3G era has come . Xiaomi smart phones in the

mobile market also has a certain weight , and achieved better development.

4. China market advantage

China's large population, and most consumers will have more than two smart

phones, then most of Chinese consumption concept are biased high quality and

cheap, Xiaomi phone just to meet this demand.

3.3.4Threat

1. Fierce competition in the smart phone industry

Now the world economic depression, the wave of financial crisis affected all

walks of life, but the mobile Internet market is only good scenery. The field of mobile

terminal in mobile phone, Apple iPhone and Samsung occupy the high-end

market, while the domestic mobile phone brands such as Lenovo through the

cooperation with network operators to launch a variety of civilian-level smart phone

to win the public eye. Xiaomi technology and other Internet companies can not wait

to join the war situation, the rising of war to make smart phone market to form a multi

-polarization. Set up three years of Xiaomi, although the performance is not low,

occupy a place in the domestic smart phone, but there are still many unsatisfactory

places. In the fierce competition smart phone market is still weak, ,want to jump into

the international market even exercise.

2.The independent property rights is not high

Xiaomi hardware application interconnection, in addition to Qualcomm, like

Sharp, Samsung, TPK, Wintek and DESAY and other top-level components suppliers

are Xiaomi partners. There are gains and losses, in the support of these first-class

suppliers, Xiaomi mobile phone independent property rights is not high also is a

defect, it will be an obstacle to Xiaomi future.

3. Pressure from public opinion

Anti-fans of Xiaomi tried to fabricate a variety of negative new to damage

Xiaomi's image ,due to itself problems and users questioned its customer service,

causing the most of people and the media a hot discussion on the Xiaomi mobile

phone, the public opinion has enormous pressure on the future development of

Xiaomi mobile phone.