Xiaomi’s Globalization Strategy and Challenges Case Solution
Xiaomi, the Chinese mobile phone business in 2010, had rapidly end up being a market leader in the Chinese market. By 2016 it had actually begun to broaden worldwide, and this case sets out the business's globalization methods and challenges progressing. Hugo Barra, a leading Android executive, had actually left Google a couple of years previously to lead Xiaomi's worldwide development. Xiaomi's creator and CEO, Lei Jun, stated the business's supreme objective was "making great however inexpensive things," a low rates strategy that had actually been successful in China. The business offered over 70 million smart phones in 2015-- while strongly constructing out a robust environment. Nevertheless, Xiaomi had actually anticipated to offer 80 to 100 million systems that year; it was dealing with a decreasing domestic market and increased competitors. For that reason, worldwide growth had actually ended up being a vital part of the business's total strategy.
However broadening to other nations would be a tough roadway. For one, it would take substantial effort and time to customize the business's Android-based MIUI os for varied markets-- and acquire market-access certifications. Xiaomi's patent portfolio was thin compared with those of big rivals, and it risked of claims from business that held patent rights in the nations it wished to go into. Other challenges consisted of constructing out sales channels, output capability, and cross-culture management advancement. Xiaomi's global strategy consisted of 10 nations in Asia, Europe, and Latin America. The next year or more would be crucial for Xiaomi-- and it had to make the ideal tactical choices to prosper in its globalization efforts.
Knowing Goal
The goal is for trainees to find out about the chances and challenges of worldwide growth-- within this case concentrating on the fast-moving state-of-the-art area. Trainees ought to likewise have the ability to evaluate the business's service design and assess regardless if a design that was successful locally would likewise prosper globally.
This is just an excerpt. This case is about Business
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