Gokula Krishnan

20202335

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 Gokula Krishnan
20202335

BPSM Mid-Term

Q1. The following are the six principle of Sun Tzu’s principals on Strategy.
1. Capture your market without destroying it.
2. Avoid your competitor’s strength and attack their weakness.
3. Use foreknowledge and deception to maximize the power of business intelligence.
4. Use speed and preparation to swiftly overcome the competition.
5. Use alliances and strategic control points in the industry to “shape” your
opponents and make them conform to your will.
6. Develop your character as a leader to maximize the potential of your employees.

1. Eg: Some companies in the process of capturing the market, they destroy
themselves with low quality or low profit. Some companies comes under the cost
leadership position where they will earn a good amount of profit along with
capturing the market share. Xiaomi which entered India in 2014 had a market
share of 3% in 2015 and in 2021 it has market share of 28% which destroyed
brands like Micromax, Lenovo, Karbon, Lava and even Nokia.

2. Eg: Attacking the weakness is like creating business out of other’s weakness.
TATA Motors made a brilliant move on introducing a cost efficient EVs where
other companies are struggling to do so. Here the company has acquired a market
share of 77% which was not expected by any other competitors.

3. Eg: Here most of the Auto manufacturing companies will never reveal their design
of their upcoming car models and will remain safe on it. Also, people in tech
industry will try to decode the words of big tech giants to know their upcoming
technologies and strategies to pursue it.

4. Here the only example is Mc Donald’s where they are known for their speed in
delivering the food at counter and the next is the Domino’s Pizza, known for their
30 mins delivery or else free food.

5. Here Jio entered with a free data service for 3 months and that too for high speed,
made it competitors to struggle and demolished 2-3 of the telecom companies and
now there are only Airtel and VI as their competitor where their pricing is wholly
based on Jio’s price to sustain in the market.

6. Jack Ma founder of Alibaba group has inspired the world and his idea was great
and that made his employees proud and their efficiency leads to success. Tim
Cook who took over Apple after Steve Jobs death and his new concepts of
marketing and pricing strategies made Apple once of its market leaders in the
world.

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 Gokula Krishnan
20202335

Industry
Q2.
Competition

Threat of
new
Power of
Entrants Suppliers

Xiaomi

Power of Threat of
Buyers Substitutes

1. Industry Competition:
The increasing popularity of smartphones, internet and integration of
styles and unique features which make the user stand out of the crowd made a huge
impression on their personality. The global market of smartphone vendors is currently
dominated by Samsung, Apple, Huawei, Oneplus, Xiaomi, OPPO and among others
where Xiaomi is known for its mid-range and Budget friendly smartphones and
whereas Apple is know for its Premium segment smartphones. Xiaomi is one of the
best priced smartphones in India. They have sub brands named, Poco, Redmi and Mi
which all will have their own midrange, budget and premium smartphones.
2. Threat of new Entrants:
Although Xiaomi is a brand consists of all the segment smartphones
it has threat from new entrants like Techno, Realme and Micromax in their Low
budget smartphones and Realme is the sub brand of Oppo is purely formed to be the
competitor for Redmi/Xiaomi.
3. Power of Suppliers:
Xiaomi is a China origin company and China is known for its
cheapest electronic market in the world. Also, Xiaomi outsource their cameras,
displays, CPUs from other manufacturers who are already present in China and the
high quantity purchase of products made it as the cheapest pricing of smartphones.

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4. Power of Buyers:
Xiaomi has their own fan base and also has a good technical and
service providers for their customers. Xiaomi do have their loyal customers for their
premium segment smartphones such as of brand Mi where they release yearly once a
smartphone that features a premium quality at that price range.
5. Threat of Substitutes:
Xiaomi has various substitutes as form of their competitors in their
mid-range and budget categories like Realme, Vivo, Oppo and Samsung. In premium
category like Oneplus, Samsung, Apple iPhone and Vivo’s sub brand IQOO.