SWOT analysis of Xiaomi Strengths in the SWOT analysis of XiaomiOne of the colossal Smartphone manufacturers – Xiaomi – one of the largest smartphone manufacturer in the world. As of now it is 5th largest smartphone manufacturer from 2017. Indigenous to China, the phones are manufactured in huge quantities and have wide acceptance across the world.Highest selling Smartphone – Xiaomi’s REDMI Note 4 has seen the highest sales in India and china and we can say that 50% of the Asian market. From which we can conclude that Xiaomi is strongly rising in the smartphone market and giving very tough competition to the existing giants. Huge China and Asia market available –Xiaomi has an advantage as the whole Asian market is open to them to play.
As china lies within Asia and brands of Chinese mobile companies are highly pierce in the Asian markets, Xiaomi can explore more, the field is open.Penetrative Pricing – Xiaomi has the strongest penetrative pricing advantage because it generally uses direct marketing techniques and avoids dealer and distributor margins. Weaknesses in the SWOT analysis of XiaomiOffline Distribution – Flash sales were mainly used by Xiaomi but at times, the costumers find it difficult to get their hands-on REDMI or MI model phone. Their offline distribution is not up to mark and Xiaomi phones sell mainly via E-commerce.Expenditure on Advertising and Marketing – The advertising and marketing expenditure of the brand is quite low. The ATL campaigns is only launched when they are coming up with a new product. However, the advertising is turbulent at its best and is never consistent.Brand image and Equity – As the advertising and marketing efforts are poor, the image of the brand is not that good as compared to Samsung or Apple or other such competitors.
Service centers too are limited and all these factors contribute to the low brand equity and reputation. The product portfolio of Xiaomi is also limited which further effects the brand image.Low Skimming price – Xiaomi launches its own phones at low prices in the flash sales, while other smartphone manufacturers survive on skimming price.
Therefore, it cannot take advantage of the skimming price or the advantage is not as profitable as it would be for Samsung or Apple or other such high-end brands. Opportunities in the SWOT analysis of XiaomiExpansion – As Xiaomi mainly follows online sales model, which is becoming well-liked in many countries, Xiaomi should try to expand to countries where E-commerce mode of purchase is well established or in the process of establishment and Covering the developing countries and the emerging markets should be the priority for Xiaomi.Distribution –Other than online distribution, Xiaomi also needs to focus on offline distribution if it ever wants to be harmonious like some of its top competitors. Offline distribution would also mean higher expenses and which results in a rise in price. But it will help the brand to create a long-term image and equity.Brand Building –Brand building mechanism such as promotion of sales, Trade promotions, ATL and BLT campaigns should be embarked as regularly as possible to build a better brand image. Xiaomi is far behind Oppo and Vivo where BTL Campaigns are concerned.
Product Portfolio – Product portfolio of Xiaomi is limited and it has two major series which actually contribute to the complete revenue of the brand. Expanding the product portfolio will help the brand in brand building as well as in getting higher revenues. Threats in the SWOT analysis of XiaomiCompetitiveness – The two biggest competitors of Xiaomi are Oppo and Vivo as these companies are also from China and have the same manufacturing advantages like Xiaomi. Besides this, Oppo and Vivo have a strong offline occupancy and really big distribution network. Thus, they are a huge threat to Xiaomi.Service –Xiaomi needs to increase its sales and service centers both if it wants to retain its customers.
The lack of service centers equivalent to the number of sales by the brand is a worrying statistic.Absence of brand differentiation – Each brand is coming up with products which are almost similar, thereby making it difficult for the customer to choose one brand over other. Especially this situation will be more complicated if more or more brands come from China.