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EAST WEST UNIVERSITY

Course Title: Supply Chain Management

Course Code: MKT418

Section: 01

Submitted to:

Dr. Salma Akter

Assistant Professor

Department of Business Administration

East West University

Submitted by:

Sadman Shihab Choudhury

2016-3-10-124

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Contents

Executive summary.....................................................................................................................................6
Methodology...............................................................................................................................................6
Introduction.................................................................................................................................................6
1.1 History of Xiaomi mobile...................................................................................................................6
2.0 Xiaomi company overview.....................................................................................................................7
2.1 Management of Xiaomi.....................................................................................................................7
2.2 Board of the director of Xiaomi.........................................................................................................8
2.2 Organogram of Xiaomi company.....................................................................................................10
2.3 Value chain analysis of Xiaomi mobile.............................................................................................10
2.4 Marketing strategies of xiaomi mobile............................................................................................11
2.5 Cost..................................................................................................................................................11
2.6 Scattering.........................................................................................................................................12
2.7 Market penetration.........................................................................................................................13
2.8 Xiaomi McKinsey 7S Model..............................................................................................................13
2.9 Target market..................................................................................................................................15
2.10 Market Analysis: Xiaomi Porter's Five Forces Analysis:..................................................................15
3.0 Products of xiaomi company...............................................................................................................17
MI Wi-Fi game plan:..............................................................................................................................17
Mi cloud:................................................................................................................................................18
Mi talk:..................................................................................................................................................18
Mi power bank......................................................................................................................................18
Pc’s........................................................................................................................................................19
Smartwatches and Smart bands and other accessories.........................................................................20
4.0 Problems..............................................................................................................................................21
5.0 Recommendations:..............................................................................................................................22
6.0 Conclusion:..........................................................................................................................................23
References.................................................................................................................................................24

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Acknowledgement

It is my concession to thank Dr. Salma Akter Assistant professor of Department of Business


Administration, East West University for rendering us his expertise knowledge and giving the
opportunity of practical experiences through this term paper. Practical Knowledge is
fundamental for the application of theoretical intelligence. Being this in mind the course teacher
assigned to prepare this assignment to the students of the course “Strategic Marketing”. I
cordially thank the honorable teacher to provide us the opportunity to apply class room learning
practice. This term paper bridges the gap between them. I hope these types of term paper will
help me a lot in professional life.

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Letter of Transmittal:

November, 2019

Dr. Salma Akter


Assistant Professor
Department of business studies
East West University

Subject: submission of individual assignment on Xiaomi Bangladesh

Dear madam, with due respect and great pleasure I am submitting my MKT 430 report on
“Xiaomi Bangladesh” The report is prepared for Business Administration Department and I
respectfully acknowledge my supervisor’s guidance and help. The report attempts to describe the
knowledge that I have gained during the study. Despite several constraints, I gave my full effort
to make this report a meaningful one. However, there may be shortcomings. I would be grateful
if you consider those excusable. I have tried sincerely to comprehend and translate our
knowledge in writing this report. Although I enjoyed the work very much. Moreover, gladly
attend any of your call to clarify on any point if necessary.

Sincerely yours

Sadman Shihab Choudhury (2016-3-10-124)

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Executive summary

This individual term paper is based on the company which operates their business inside
Bangladesh. In my case, I selected Xiaomi Bangladesh for this assignment. In this term paper
and assignment, I further discuss about Xiaomi company and how it operates business in
Bangladesh. And in mean time I discuss about their competition and their industry analysis
strategies. By doing this individual assignment I can practically understand their business and
relates to my text book and the course named MKT 430. It will help me in future.

Methodology

For doing this research I am trying to collect information from various websites. Due to COVID-
19 it is not possible to physically visit the company headquarter and take an interview of their
manager. So, I take help from different websites to further research about this company. I am
mentioning this reference and source at the end of the report.

Introduction

1.1 History of Xiaomi mobile

Xiaomi deals with a vertically-consolidated model that enables the association to move gear at
cost or underneath in order to attract customers and obtain money by moving substance. Hugo
Barra, a past Google official who served Xiaomi's VP from 2014 to 2017, depicted the
relationship as "an Internet and an item association generously in excess of a gear association".
Xiaomi furthermore keeps its costs low or close "bill-of-material" by keeping most of its things
in the market longer, eighteen months instead of the half year standard sought after by various

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Smartphone associations.” c.mi.com” This strategy grants Xiaomi to abuse esteem diminishes in
the expenses of key parts of its things. It engages the association to offer hardware with points of
interest like top notch devices at a little measure of the cost. association's drive for market care.
This natural framework is a gigantic wellspring of salary as appeared in 2015, when bargains
from the stage came to $750 million. Four years have passed, after they enter India. And many
competitors set their business in India and set local plants in India to compete with xiaomi. In
Bangladesh, 20 percent of people using smartphone. And from this 20 percent only 4 percent
people using Xioami mobile. But this company trying to set up local plant in Bangladesh and
reduce tax and cost. Samsung already built their local plant in Bangladesh. This plant they make
flagship to budget, every sector of phone. 5 other company also set their plant in Bangladesh. So,
it would be a great competition for xiaomi to stay active in Bangladesh.

2.0 Xiaomi company overview

2.1 Management of Xiaomi

Xiaomi Inc. is a restrictive contraptions and Software Company built up in 2010 by consecutive
business visionary Lei Jun, close by 7 supporters. The versatile web association has set up its
quality in 70 countries and regions and it is among the best 5 of each 16 markets. Xiaomi starting
at now uses around 18,000 people. In 2017 Xiaomi delivered more than RMB 100 billion
earnings and expected to get recorded in the Fortune Global 500 once-over in not all that
removed. Xiaomi business framework relies upon cost advantage. What's more, the association
gathers and uses its significant fan base beneficially with positive implications on customer
commitment and the essential worry for the business. A powerful augmentation of natural
arrangement of things and organizations is in like manner put at the focal point of Xiaomi
business method. Everything thought of it as, is essential for Xiaomi to keep up its dimension

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progressive structure in order to remain versatile, with the objective that the compact web
association can acclimate to visit changes in the overall business focus.

2.2 Board of the director of Xiaomi

Name Designation Company

LEI JUN Founder, Chairman, CEO

LIN BIN Co-Founder, President

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LI WANQIANG Co-Founder, Senior Vice President,

Chief Brand Officer

HONG FENG Co-Founder, Senior Vice President

LIU DE Co-Founder, Senior Vice President,

Minister of Group Organization

Department

WANG CHUAN Co-Founder, Senior Vice President,

Minister of Group Strategy

WANG XIANG Senior, Vice – President

QI YAN Senior, Vice – President

CHEW SHOUZI Senior, Vice – President, CFO

SHANG JIN Vice – President

ZHANG FENG Vice – President

Manu Jain Vice – President and Managing

Director

WANG LINGMING Vice – President

YAN KESHENG Vice – President

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2.2 Organogram of Xiaomi company

2.3 Value chain analysis of Xiaomi mobile

Xiaomi post-bargain advantage was much of the time denounced as poor. This issue was built up
on association's cost specialist business system, in light of the fact that the adaptable web
association was looking for opportunities to save costs wherever includin2g in customer
organizations and post-bargain organizations. Regardless, in light of increasing test in home
market and abroad, Xiaomi had no genuine choice but to give watchful thought to customer

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advantage some portion of the business. For example, nowadays in India "95 percent of all fix
occupations at affirmed organization centers are dealt with inside multi day, with 86 percent
arranged inside four hours of the customer giving over the contraption to the organization
center."

2.4 Marketing strategies of xiaomi mobile

Xiaomi mobile phone bargains assemble is generally away for aficionados and energetic
customers. The inside moving point is principally high game plan, staggering cost execution, for
fans. Gear and writing computer programs are commonly unsurprising with the Chinese
inclinations. Regardless, its arranging can be said to be a "pseudo" arranging, tolerably, Xiaomi
phone is primarily for a segment of the adolescents have two mobile phones, the central
occupation is to replace the more affordable that two phones. This unusualness of a fundamental
thing practices, makes some potential customers to keep up a delay - and-see attitude, and thusly
lose these potential customers. The early Xiaomi wireless is generally relying upon fans vivify
bargains, anyway in spite of the way that the standard arrangements target is the sweethearts and
brand dedication isn't high of youths, yet not proportionate to state "Xiaomi phone is the fan
phone".

2.5 Cost

a comparative cost accessible of cutting-edge cell phones, Xiaomi game plan high structure
hardware, can be said to bid and stunning cost execution. Xiaomi phone cost is one of the
standard elements affecting the market demand and purchase direct, clearly related to the benefit
of the endeavor. Xiaomi mobile phone thing cost system use unimaginably productive, legitimate
courses, to propel the offers of Xiaomi wireless, in like manner makes the Chinese bit of the
general business extended, enhance its picture care and power of endeavors. As demonstrated by
the audit: A little bit of the purchaser can recognize 1,000 yuan of mobile phones. Can recognize
1000 ~ 2000 and 2000 ~ 3000 the number of customers is moderately same, and 22.7% of
purchasers can recognize more than 3,000 yuan of PDAs. Enough to illustrate. At present, buyers
center around the survey of mobile phones.

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2.6 Scattering

Chinese handset maker Xiaomi today said it expects to expand its disengaged dissemination
coordinate in the country and is centering around 25 percent of its turnover from this area. "Till
now, our consideration was on online arrangements. By and by, we will focus both on the web
and disengaged appointment. We anticipate that our offer from disengaged should create from
current 10 percent to 20-25 percent before the present year's finished. This is our longing,"
Xiaomi India Head Manu Kumar Jain said "We will jump profound and we will have
significantly further penetration in urban networks like Delhi, Bengaluru, Chennai and
Chandigarh," he said. To a request, Jain expressed, "eventually in time, we may open our own
special stamped outlets. Nevertheless, not right now." Currently, Xiaomi,

Xiaomi Ansoff Matrix Inside the degree of Ansoff Matrix, Xiaomi uses every one of the four
advancement frameworks coordinately.

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2.7 Market penetration

While using market entrance, associations base on pitching existing things to existing customers.
Xiaomi viably uses exhibit invasion strategy in its home market in China. According to Q1, 2018
wireless arrangements results in China, Mi mobile phones situated third with the area bit of the
general business of 12,8% after Huawei (20,8%), Oppo (18,5%), iPhone (18,2%) and Vivo
(14,6%) This procedure elective incorporates developing new things to pitch to existing markets.
Xiaomi has routinely extending thing portfolio running from PDAs to water purifiers and tooth
brushes. Thing enhancement system is most likely going to be continued by Xiaomi. This is in
light of the fact that Xiaomi positions itself as Thing headway

2.8 Xiaomi McKinsey 7S Model

Xiaomi McKinsey 7S exhibit speaks to the habits by which seven segments of associations can
be balanced with the objective that general reasonability can be extended. According to the
structure strategy, structure and systems are hard segments, however shared characteristics,
aptitudes, style and staff are considered as sensitive parts. McKinsey 7S show centers around the
closeness of strong associations between segments with the end goal that an alteration in one
segment causes changes in others. As it is sketched out in figure underneath, shared
characteristics are arranged at the focal point of Xiaomi McKinsey 7S show, since shared
characteristics control laborer direct with proposals in their execution.

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Figure 1Xiaomi McKinsey model

Philosophy: Xiaomi business method relies upon cost activity. Association's business approach
in like manner joins amassing and utilizing a broad fan base and powerfully growing nature of
things and organizations. Also, Xiaomi positions itself as a web and Software Company rather
than a hardware association. As necessities be, the offers of gear are viewed as an approach to
pass on programming and organizations in the whole deal perspective.

Structure: Xiaomi has a system legitimate structure. The contraptions and programming
association has distinctive claim to fame units that are supervised unreservedly. Xiaomi
legitimate structure can in like manner be moreover designated dimension. Despite its
considerable size using more than 18000 people in 70 countries, the association has only two or
three layers of the board.

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Systems: Xiaomi's business depends upon a wide extent of structures, for instance, agent
selection and assurance structure, assemble enhancement and presentation system and trade
dealing with structures. Furthermore, there are on a very basic level basic structures for the
association, for instance, customer relationship the official’s system, business understanding
structure, and data the board structure. The compact web association intends to assemble the
adequacy of these and distinctive systems through the fuse of online information propels.

2.9 Target market

The going with table frameworks Xiaomi division, concentrating on and arranging: Kind of
segmentation Segmentation criteria Xiaomi target customer section The web advancement
association uses mono-segment arranging, drawing in the necessities of a lone customer divide.
Specifically, Xiaomi centers around a customer area that need to use phones and other
development things, anyway have obliged spending intend to make such a purchase. Xiaomi also
uses imitative kind of arranging by eagerly copying the consequences of market pioneers, for
instance, Apple and Samsung. The equipment and programming association has even earned the
moniker "Apple of the East" as a result of its close-by pantomime of Apple things and Apple
thing presentation.

2.10 Market Analysis: Xiaomi Porter's Five Forces Analysis:

Guard's Five Forces is an illustrative structure made by Michael Porter Xiaomi Porter's Five
Forces includes five individual powers that shape a general level of contention in the business.
These forces are appeared in Figure 1 underneath:

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For instance, "all items having a place with Apple biological system are exceptionally perfect
with one another and the buy of one item having a place with the brand's portfolio frequently
prompts the buy of different items. Bit by bit, it will get to the meaningful part that buyers just
offer inclination to gadgets that work best in the biological system where they live. The present
biological community cautiously developed by Apple is a groundbreaking client maintenance
procedure."

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3.0 Products of xiaomi company

MI Wi-Fi game plan:

The Xiaomi MI WIFI is a game plan arrange switches at first moved on 23 April 2014. The latest
in the game plan is a corporate-class switch with understood limit of up to 6 TB. It is said to have
a PCB twofold gathering mechanical assembly show supporting 802.11ac Wi-Fi standard, a
Broadcom 4709C twofold focus 1.4 GHz processor and 512 MB of gleam memory. The switch
can be used as a remote hard drive for movies and photos, couple with Xiaomi's applications that
feature remote downloads, modified fortifications, remote access to records and diverse features.

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Mi cloud:

MI Cloud is a dispersed stockpiling and disseminated figuring organization made by Xiaomi.


The organization empowers customers to store data, for instance, contacts, messages, photos and
notes on remote PC servers for download to different contraptions running MIUI working
structure. The organization moreover joins a component that empowers customers to pursue the
territory of their MIUI contraption and furthermore caution, jolt or reset it.

Mi talk:

Mi Talk is an electronic cross-arrange minute conveyance individual adaptable application open


for Android and iOS impelled in 2011.

Mi power bank

Mi Power Bank is a battery charger with a certain inside battery and charges devices by USB.
The chargers have an aluminum case. The batteries assessed at
5000/5200/10000/10400/16000/20000 mAh.The 16000 and 20000 mAh have two USB ports.
Silicone sleeves are available for all, except for the 20000 mAh adjustment

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Pc’s

Mi Notebook:

Air in August 2016, Xiaomi impelled two ultra-books, 12.5" and 13.3". The 2016 12.5" PC had
an Intel focus M3 (6th period) processor, 4 GB DDR4 RAM and a 128 GB SDD. The expense is
RMB 3,499 and formally is simply sold in landscape China. The 2016 13.3" workstation had an
Intel i5/i7 processor, 8 GB DDR4 RAM and a 256 GB SSD. It weighs 1.07 kg and is 12.9mm
thin. The expense is RMB 4,999 and formally is simply sold in landscape China. In March 2017,
the new 12.5" PC had an Intel focus M3 (seventh period) processor and a 256 GB SDD. In
February 2018, Xiaomi released its Mi Notebook Air in Spain

Mi Notebook Air:

4G Xiaomi released the Mi Notebook Air 4G with inborn 4G LTE by a SIM card. The 12.5"
workstation is controlled by an Intel Core m3 processor with 4 GB of RAM and a 128 GB SSD.
The 13.3" workstation is controlled by an Intel Core i7 processor with 8 GB of RAM and a 256
GB SSD. The two workstations support USB Type-C.

Mi Gaming Laptop

Conclusions - 15.6" wide-shading cluster ultra-thin bezels - NVIDIA GeForce GTX 1060 -
seventh gen Intel Core i7 processor - 256GB SSD + 1TB HDD - Professional gaming console

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Smartwatches and Smart bands and other accessories

Mi Band: The Mi Band was accounted for in August 2014. It has a 30-day battery life, can go
about as a morning clock and tracks your wellbeing and rest. The band also can open your phone
reliant on closeness. With 2.8 million Mi Band shipments in the important quarter of 2015,
Xiaomi transformed into the world's second-greatest wearables maker, speaking to 24.6% of the
overall bit of the pie. Xiaomi revealed the Mi Band 2 in June 2016. Mi Band 2 features PPG
sensor for correct heartbeat following. It furthermore uses an upgraded pedometer count for get-
together better wellbeing and rest data. The Mi Band 2's hotel was assessed for IP67 water
obstacle. The Mi Band 3 was released July eighteenth 2018. It has a greater battery, greater
screen and improved water check. Note that items discharged by Xiaomi Smart Home are results
of organizations joined forces with Xiaomi rather than Xiaomi themselves.

Mi Drone:

The Mi Drone has a 1080p camera and a 4K camera. It has a scope of 2km while ready to keep
up a 720p video stream

Mi Scooter:

Mi scooter introduced in 2020. Globally. It is fully electric green product. Totally safe for the
environment and city. it recently introduced in Bangladesh. it is a substitute of regular scooter.
And substitute of regular bicycle.

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4.0 Problems

Problems Identified:

 Product: This thing has faster battery exhaust rate. Phone gets used to 38– 39 degree Celsius
while 3G examining. Also, while charging temperature rises to 44– 45 degree Celsius.
Nonattendance of additional parts.

 Price: Price is higher than nearest contender differentiates and their setups. For instance,
Samsung, Huawei, Vivo, Symphony and Walton.

 Promotion: Lack of satisfactory restricted time development. They don't run satisfactory
constrained time development as like as their adversary.

 Distribution: Their assignment system isn't smooth since they have nonattendance of sufficient
showroom.

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5.0 Recommendations:

 They ought to update their advancement with the objective that the warming issue can reduce
and spare parts should make open for each kind of things.

 hey should diminish the esteem level from their thing with the objective that their target client
may viably eat up their things.

 They should assemble their constrained time development for keeping pace with their
adversaries.

 They should fabricate their affirmed showroom with the objective that the spread method may
straightforward.

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6.0 Conclusion:

Xiaomi takes a shot at a vertically-planned model that engages the association to move hardware
at cost or underneath in order to attract customers and gain money by moving substance. Xiaomi
similarly keeps its costs low or close "bill-of-material" by keeping most by far of its things in the
market longer, eighteen months rather than the half year standard sought after by various
Smartphone associations. This framework grants Xiaomi to misuse esteem diminishes in the
expenses of key parts of its things. It enables the association to offer hardware with judgments
for all intents and purposes indistinguishable to top notch devices at a little measure of the cost.

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References
Business Research Methodology, 2019. Xiaomi Inc. Report. [Online]
Available at: https://research-methodology.net/xiaomi-inc-report/
[Accessed 24 11 2020].

Mi Community , 2020. Mi Community. [Online]


Available at: https://c.mi.com/
[Accessed 23 11 2020].

Mi.com, 2020. mi global. [Online]


Available at: https://www.mi.com/global/
[Accessed 24 11 2020].

The Daily Star , November 26,2020. Xiaomi enters Bangladesh. [Online]


Available at: https://www.thedailystar.net/business/smartphone-xiaomi-enters-bangladesh-maker-
officially-1607209
[Accessed 26 11 2020].

The Daily Star, 2020. Xiaomi. [Online]


Available at: https://www.thedailystar.net/tags/xiaomi
[Accessed 24 11 2020].

The Daily Star, 2020. Xiaomi now 3rd largest smartphone manufacturer, surpasses Apple. [Online]
Available at: https://www.thedailystar.net/bytes/news/xiaomi-now-3rd-largest-smartphone-
manufacturer-surpasses-apple-1987017
[Accessed 26 11 2020].

Wikipedia, 2020. Xiaomi. [Online]


Available at: https://en.wikipedia.org/wiki/Xiaomi
[Accessed 23 11 2020].

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