NAME: LONDEKA NCAMA

STUDENT NUMBER: ST10123335

MODULE : STRATEGIC COMMUNICATION

QUESTION 01

Q.1.1.

1. Brand communication is a powerful tool for any brand to build up the desired brand image.
With the advent of smartphones, the cell phone market, dominated by Apple, Samsung, etc.,
has undergone a structural change. Xiaomi, a technology company, founded in 2010, has grown
rapidly in the technology market. According to the data from IDC for worldwide top 5
smartphone company unit market share by the third quarter of 2020, Xiaomi surpassed Apple
to occupy the third market share in the world. Xiaomi’s unique market strategy is one of the key
factors of its accomplishments. However, it also suffered from poor communication strategies
in terms of building a brand image that is recognized as a low-end brand. Strategy has been
studied for years by business leaders and business theorists, but there is no definitive answer
about what it is. According to Johnson, G. and Scholes, K. (2005), they suggest that strategy
determines the direction and scope of an organization over the long term, while Michael Porter
emphasizes the need for strategy to define and communicate an organization's unique position.
Planning for success in the marketplace is important, so organizations need to take full
advantage of the opportunities open to them and anticipate and prepare for the future at all
levels. At each level, a simple definition of strategy can be "determining how we are going to
win in the period ahead." Sun, S. (2021)

CORPORATE STRATEGY- Corporate strategy is the overall strategy of an organization that is

made up of multiple business units, operating in multiple markets. It involves building strong
internal competences, developing strong relationships, developing a set of robust values,
sharing technologies and resources, raising capital from investors, and developing and
nurturing a strong corporate brand. Tools like Porter's Generic Strategies, Boston Matrix, ADL
Matrix and VRIO Analysis are used to analyse and plan this strategy. The organization's design is
also important, as it affects competitive advantage and can support strategic goals. Strategy can
be difficult to define, but essentially it can be thought of as: "Determining how we will win in
the period ahead" (Gerry Johnson and Kevan Scholes, 2005).
BUSINESS UNIT STRATEGY- Strategy at the business unit level is concerned with competing
successfully in individual markets and must be linked to the objectives identified in the
corporate level strategy. Competitive analysis, core competencies, USP Analysis, Porter's Five
Forces, SWOT Analysis, and a clear definition of the business unit's mission, vision and values
are essential for success. People working within each unit should be able to draw direct links
between this strategy and the work they're doing to create a highly productive and motivated
workforce (Magretta, J. 2020).

TEAM STRATEGY- Team strategy must align to business unit and corporate strategies, define
purpose and boundaries, manage objectives, implement best practices, and optimize supplier
management, quality, and operational excellence.

In business there are different levels of strategy. Each of these has a different focus and needs
different tools and skills. Corporate strategy focuses on the organization, while business unit
strategy focuses on an individual business unit or market. Finally, team strategy identifies how a
team will help the organization to meet its overall goals and objectives.

(Gerry Johnson and Kevan Scholes, 2005).

2. The “affordable price” theory is only a small part of the Xiaomi success equation. A larger part
of it is communication, a part that too many of its competitors take for granted. It is one thing
to have a great product at a great price, quite another to communicate about it effectively. And
Xiaomi has done the latter with telling effect time despite sticking mainly to online channels.
With Xiaomi trying to attract youth students into purchasing their mobile cell phones, they have
leveraged into social media effectively, using both Facebook and Twitter to make
announcements and respond to comments. They post informal and approachable posts making
them more approachable and easier to engage with than other companies. Xiaomi has built a
strong following due to consistent and timely interaction with consumers, resulting in a
difference between acquaintance and friendship. Like every company crisis’s do occur and for
Xiaomi; whenever they are confronted by a controversy, be it of phones catching fire, the
Ericsson suit or the Air Force memo it has reacted with incredible speed with country head
Manu Jain providing a positive spin. Xiaomi does not use conventional advertising as much as its
rivals, but it certainly goes the extra mile when it comes to launches and other events to get the
message out, to the attendees, the public, fans and existing and new target audiences they
want to attract. Xiaomi has made it a point to compare its products with the iPhone and
Samsung’s Galaxy S range which were the most common bull’s eyes, by using a spreadsheet
with specs and prices of competing products. This has helped to create a high-quality product
perception, and many Xiaomi spokespersons are respectful of the competition, making them
appear “fairer” and more open minded than iPhone and Samsung. Xiaomi has a genuine air of
informality and good relations with the media, even when there is nothing formal to announce.
Former Googler Jai Mani is often seen sitting on the floor, working on a computer, and Manu
Jain spends a lot of time chatting with Mi Fans. This has resulted in a fanatical fan following and
a good relationship with the media.

Q.1.2. PROBLEM IDENTIFICATION- Problem identification is a simple way of defining the

obstacle at hand to better understand the goal to accomplish or issue to solve. It is important
for organizations to become better at asking the right questions and tackling the right problems
to create products and services that address real issues. It is a way for businesses to climb the
ladder and get off the treadmill. Martins, J. (2022).

*Xiaomi Corporation was founded in 2010 by ex-Kingsoft CEO Lei Jun and launched Mi 1 and Mi
2 smartphones in 2011 and 2012 respectively. It offers a unique blend of business strategies,
digital marketing strategies and social media marketing strategies. In 2015, it expanded to India
through e-commerce sites and offline retailers. It has also launched smart home products,
fitness products, TVs, laptops, drones, Wi-Fi routers, cloud services and instant messenger
services.

OBJECTIVE SETTING- This is where the magic happens where an organization needs to take
inspiration from company documents to develop a strategy, such as mission statement, vision
statement, values, competitive advantages, long-term goals, financial forecast and projection,
and new opportunities. Yang, H. et.al. (2021)

*Xiaomi's mission is on providing quality technology at affordable prices, with it capturing third
place in the Global Smartphone market. Xiaomi has achieved success by focusing on four
segments of the market: Internet of Things and lifestyle products, smartphones, internet
services, and miscellaneous services and products. It also provides services such as air purifiers,
suitcases, televisions, and paid cloud storage.

QUESTION 02
Q.2.1. SMARTPHONE QUESTIONAIRE QUESTIONS

* Which brand would you like?

* Which operating system would you find most useful?

* What RAM capacity do you need?

* What processor is ideal for you?

* What size smartphone is best for you?

* What about the Camera pixels?

* What storage capacity do you need?

* Which smartphone has the longest battery life?

* Which security and extra features does the phone have?

* What is the price you are willing to pay for the smartphone?

Q.2.2. APPENDIX A

INTERVIEWER: LONDEKA NCAMA

INTERVIEWEE: LUNGISA MAKHANYA

VENUE: ROSEBANK COLLEGE (DURBAN CAMPUS)

OBJECTIVE: ELEMENTS TO LOOK FOR WHEN SELECTING A PHONE AND DECISION-MAKING

JOURNEY WHEN CHOOSING TO BUY A PHONE

* Which brand would you like?

- Xiaomi 11T

* Which operating system would you find most useful?

 - Android 11 OS

* What RAM capacity do you need?

- Qualcomm Snapdragon 888 chipset with either 8GB or 12GB of RAM * What processor

is ideal for you?

- MT6893 Dimensity 1200 chipset

* What size smartphone is best for you?

- 6.67 Inches

* What about the Camera pixels?

- Triple Rear Camera setup with 108MP + 8MP + 5MP lenses and a 16MP front camera *

What storage capacity do you need?

- 128 gigabytes

* Which smartphone has the longest battery life?

- The device is powered by a 5,000mAh battery with support for 120W ultra-fast
charging technology

* Which security and extra features does the phone have?

- App Lock, Three Finger Slide Screenshots, Second Space

* What is the price you are willing to pay for the smartphone?

- R11 190

INTERVIEWER: LONDEKA NCAMA

INTERVIEWEE: BUHLE NYATHI

VENUE: DURBAN UNIVERSITY OF TECHNOLOGY (STEVE BIKO CAMPUS)

OBJECTIVE: ELEMENTS TO LOOK FOR WHEN SELECTING A PHONE AND DECISION-MAKING

JOURNEY WHEN CHOOSING TO BUY A PHONE
* Which brand would you like?

- iPhone 13 Pro Max

* Which operating system would you find most useful?

- IOS 15

* What RAM capacity do you need? -

A15 Bionic chip and has 6GB of RAM *

What processor is ideal for you?

-A15 Bionic chip, which has a 6-core CPU with 2 performance cores and 4 efficiency cores *

What size smartphone is best for you?

- 6.7 Inches

* What about the Camera pixels?

- 6.7-inch Super Retina XDR display with a resolution of 1284 x 2778 pixels * What

storage capacity do you need?

-128GB, 256GB, 512GB, or 1TB of internal storage and does not have a card slot *

Which smartphone has the longest battery life?

- 4,352mAh battery

* Which security and extra features does the phone have?

- Face ID

* What is the price you are willing to pay for the smartphone?

- R27 090

From the interviews I conducted, results show that Xiaomi has Low Brand Awareness and
Weakness in Research and Development (R&D) compared to Apple devices.

Low Brand Awareness- Xiaomi is different from other vendors in the oversea market due to its
young age, lack of brand strategy, and fierce competition in the smartphone industry. Xiaomi
has localized its core competence and relying on mobile internet and social media to increase
brand awareness. Lungisa was not aware of the Xiaomi brand but was interested in it and
wanted to someday buy the device as he was enticed by its features. He commented on the fact
that its brand awareness is low because other students are not aware of it just like him. Xiaomi
should use social media engagement to boost awareness of its brand and to attract intended
target audiences.

Weakness in Research and Development- Buhle is lover of life and loves expensive things.
When told about the Xiaomi brand, she didn’t seem interested in it as she is a loyal iPhone user.
She was aware of the Xiaomi devices and thought they lacked features compared to her iPhone
device. Compared with establishes international manufacturers and powerful local mobile
phone vendors in oversea markets, Xiaomi is dwarfed. As the mobile phone industry is
developing rapidly, the industrial concentration will become higher. To be specific, firstly Xiaomi
must put emphasis on technological innovation and increase investment on research. Secondly,
the company must pay attention to personnel training as the key point is to improve
independent research and development.

Q.2.3. CAMERA QUALITY AND CREATIVITY- Having a smartphone that takes perfect pictures and
videos is the "cherry on top" feature the youth look for on a smartphone because that is what
they use 99% of the times on their phones. Mobile phones are increasingly resembling digital
cameras in terms of megapixels, hybrid autofocus, imaging stabilization, manual modes, visual
effects, and peculiar selfie qualities. The megapixel count alone does not give the entire story;
it’s crucial to understand the kind of integrated sensor, lens resolution, and pixel size. Every one
of the pieces of information is included in our evaluations, but it costs nothing at all to open the
camera app and verify the quality of the images and system software for yourself while you’re
in the shop.

INTERNAL STORAGE- The youth focus more on creating content as it is the new "in thing", and
having a smartphone with a massive storage is the feature they look for. When looking for a
phone to buy, they look at the internal storage first because it will give them the benefit of
taking pictures, creating and keeping the content on their phone without the worry of running
out of space. While looking for your new iOS or Android, pay attention to the RAM and internal
storage, not simply what the label states. Examine how much space the preloaded apps
consume. Minimum 8GB of RAM and 128GB of internal memory are recommended for mobile
phones, as preloaded apps consume a lot of space. Consider how much storage you'll use it and
consider cloud services to reduce space while still having access to your information.
QUESTION 03

Q.3.1. THE DIFFERENT STAGES OF THE DECISION-MAKING JOURNEY

1. IDENTIFY
THE
PROBLEM
2. COLLECT
7. EVALUATE THE
THE RESULTS INFORMATIO
N

3. IDENTIFY
6.
THE
IMPLEMENT
ALTERNATIVE
ACTION
S

5. CHOOSE
4. WEIGH
FROM THE
THE
ALTERNATIVE
EVIDENCE
S

IDENTIFY THE PROBLEM- Identify the problem to solve, define the decision and make it
measurable and timely to achieve.

COLLECT INFORMATION- Gather information relevant to your decision, including internal and
external sources, to avoid becoming bogged.

IDENTIFY THE ALTERNATIVES- Paid social advertisements, organic social media strategies, or a
combination of the two can be used to meet a goal.

WEIGH THE EVIDENCE- Identify alternatives and weigh potential pitfalls against rewards.

CHOOSE FROM THE ALTERNATIVES- The decision-making process involves identifying and
deciding, gather relevant information.

IMPLEMENT ACTION- Develop a plan to decide tangible and achievable, align tasks to teams.

EVALUATE THE RESULTS- Take an honest look back at your decision and learn from mistakes.
Q.3.2. The consumer decision making process is important to attract more customers and
maximize profits, as many factors influence consumer behavior before making a purchase.

NEED RECOGNITION- Consumers acknowledge their need for a product or service, which
motivates a curiosity about how to fulfill it? An example of an internal stimulus might be FOMO
informing a consumer's pursuit of buying a Xiaomi smartphone, while an external stimulus
could be an advertisement that appeals directly to a particular consumer. The need, in turn,
motivates a want, which leads to a curiosity about how to fulfill it.

INFORMATION SEARCH- At this stage, people are looking for what really fit their needs.
Consumers will search for information about the Xiaomi smartphone along with its different
competitor’s offers. Research is an active pursuit of information, such as searching online for
testimonials or reviews, speaking with representatives, or testing goods.

EVALUATION OF ALTERNATIVES- After the consumers pursued research about the Xiaomi
products or services that can help them solve their problem, they assess the different options
and think about what is best for them, those being the Price, Quality, Features, Customizability,
Brand awareness, Industry trends, and Availability of that desired smartphone.

PURCHASE DECISION- After consumers pursued several research about what is existing in the
market, they finally come up with their last decision and proceed with the purchase. The
consumer determines which product or service they want. After all their research and
comparative shopping, they've decided that a specific choice is the best one for them. Having
done so, they visit an online or in-store retailer and pay for their purchase.

POST-PURCHASE EVALUATION- The consumer has received and used the product or service
they've bought. Thus, they're now able to evaluate both it and the organization from which it
came. They may ask themselves questions such as:

*Did the product or service satisfy my needs?

*Am I happy with the product or service I've purchased?

*What would I change in the product or service I've chosen?

*How do I feel about the retailer who provided the product or service?

BIBLIOGRAPHY

Sun, S. (2021). School of Business, Staffordshire University at Staffordshire, Shropshire, ST4 2DF:
United Kingdom
Magretta, J. (2020). 'What Is Strategy?: An Illustrated Guide to Michael Porter (Illustrated
edition),' Harvard Business Review Press.

Johnson, G. and Scholes, K. (2005). 'Exploring Corporate Strategy (7th edition),' Prentice Hall.

https://techpp.com/2017/08/29/xiaomi-communication-lessons/

https://asana.com/resources/strategic-planning

https://hbr.org/2021/04/how-xiaomi-became-an-internet-of-things-powerhouse
https://bscholarly.com/things-to-consider-before-buying-a-new-mobile-phone/#:~:text=1%201.
%20Budget%2FPrice%3A%20With%20many%20phones%20on%20the,store%20and%20buy%20
another%20one.%20...%20More%20items http://mery-market.com/consumer-decision-making-
process-in-the-mobile-phone-industry/