COMPETITIVE

STRATEGIES

Rhastee P. Toroy
STUDENT

ENGR. CAROL JANE BERNABE

INSTRUCTOR
 I. COMPETITOR ANALYSIS- is the process of evaluating
your competitors' companies, products, and
marketing strategies
Xiaomi Realme
COMPANY Founded 6 April a Chinese
PROFILE Company 2010 smartphone
Highlights By Lei Jun manufacturer
in Haidian headquartered
District, Beijing, in Shenzhen.
China The company
was founded
on May 4,
2018 by Sky
Li (Li
Bingzhong).
Key Xiaomi competitive realme also
Competitive advantage is based on has its
Advantage cheap costs of its cross-hairs
products and squarely
services. In simple focused on
terms, cheap costs of the youth.
Xiaomi products and The idea is
services is the main to bring this
reason for consumers new digital
buying those products home
and services. lifestyle
closer to the
youth. To do
that, they
need to make
the products
affordable
but made with
quality. For
the most
part, they’re
on the right
track.
Target Market Market Low-budget people Youth and
Information Low-Budget
People
Market Share 11% 5%
Marketing Realme’s
Strategy Xiaomi promoted its focus has
products by selling been on the
 high specs at lower very
price to markets demanding
where technology millennials.
savvy people could Since the
not afford high spec brand was
products from Xiaomi newly
competitors. They launched in
have distinguished May, it has
themselves by come up with
building a strong many
following around attractive
their custom products with
operating system. powerful
“Just For Fans”, processor and
Xiaomi’s unique stylish
initiative where the designs.
Xiaomi loyal fans This, in
lead the development turn, is
of the product in driving
every step device
upgrades
amongst
consumers.
Realme has
seen
tremendous
growth in a
short span of
time.
Products and Product Xiaomi makes and The aspiration
services Information invests in of realme is to
provide products
smartphones, mobile with a
apps, laptops, home comprehensive
appliances, bags, superior
shoes, consumer experience for
electronics, and many the young, and
realme is
other products committed to be
a trendsetting
technology
brand.

Pricing Depends on variants Depends on

variants
Distribution Xiaomi operates in Direct to
Channels China, Singapore, Customers,
India and 27 other Financing
countries mainly in
 emerging markets of
south east Asia. It
has a huge presence
in many of these
countries but major
turnover comes from
mainland China
Strengths SWOT Low-cost  Low-cost
Weaknesses Information Sub-Branded products Service
Opportunities Europe Markets Europe
Markets 
Threats China Product A sub-brand
Reputation of Oppo 

2. Competitive Strategy -is defined as the long term plan of a

particular company in order to gain competitive advantage over
its competitors in the industry.

a. Approaches to marketing strategy

- Entrepreneurial marketing
~Xiaomi leads the marketing strategy for having a low-
cost budget giving quality products and has sub-branded products
for the people to buy variances. It has a tagline “Just for
fans”.

- Formulated Marketing
~ Realme based their marketing strategy in Xiaomi’s.It
follows some of Xiaomi’s footsteps. As a part of the Realme
Marketing strategy – it had created independent social media
profiles for Realme, creating communication specifically
around the new range, immersed with launch marketing of
Realme 1, investimg in a heavy social media mix, attempting
to reach out to audiences of various strata and interests.

- Intrapreneurial Marketing
Due to the abilities in cutting-edge technologies of
smartphones and IoT, realme brings consumers products with
trendsetting technologies, features and trendsetting
experiences that are first applied in the price segment.At
the beginning of 2020, realme announced its dual driven
strategy of “Smartphone + AIoT”.
 b. Basic Competitive Strategies
- Overall Cost Leadership
~ Both Realme and Xiaomi are increasing their profits
by reducing costs, while charging industry-average
prices. They also increased their market share by
charging lower prices, while still making a reasonable
profit on each sale.
- Differentiation
~ Xiaomi has customised the products to the
requirements of the region it operates in to
incorporate the local market and political conditions.
This shows the strong product portfolio in the
marketing mix strategy possessed by Xiaomi.
- Focus
~ Both Xiaomi and Realme based their target market more
in Asia where people needs affordable prices with
reasonable quality products.
C. Competitive Positions - is about defining how you’ll
“differentiate” your offering and create value for
your market. It’s about carving out a spot in the
competitive landscape, putting your stake in the
ground, and winning mindshare in the marketplace –
being known for a certain “something.”
- Market leader
Xiaomi uses imitative type of positioning by closely
imitating the products of market leaders such as Apple
and Samsung. The electronics and software company has
even earned the nickname “Apple of the East” due to its
close imitation of Apple products and Apple product
presentation.
- Market Challenges
~ Xiaomi’s biggest challenger in Indian Market is
Realme. They both have similar strategies, it only
depends In small things like preferences.
- Market Niche
~ Xiaomi created high-end cellphones just to attract
high-class people in first world countries like in U.S
and in Europe, where premium phones are appreciated and
low-budget phones are mostly neglected.
3. Balancing Customer and Competitor Orientation
Maintaining balance between consumer and competitor orientations
is the process by which an organization evaluates both
orientations in terms of their effects on the company's success
in order to earn more benefit in the short and long term. The
term balance does not necessarily imply equal application of both
orientations; instead, it can mean a greater emphasis on one and
less on the other. For example, competitor orientation is more
effective in developing markets, and consumer orientation is more
effective when the business is good, and resources are available.
As a result, managers should recognize both orientations because
each has an impact on the company's results, and the firm will
benefit from each.