Professional Documents
Culture Documents
COMPANY ANALYSIS
XIAOMI
First and foremost, a special thanks to my lecturer, Dr. Shafiq Shahruddin for his
motivation, and encouragement. His guidance and support always helped me all time,
especially in writing this assignment. Besides, I would like to convey my appreciation to
Xiaomi for giving me the opportunity to choose this company for my case study report.
Last but not least, I am so grateful to my beloved family and friends for highly
supporting, motivating and helping me in completing my assignment especially during this
online distance learning. In fact, without such assistance, I would have been unable to
accomplish this case study assignment. Therefore, I pray to everybody who assisted and
cooperated with me on my case study, a long life and good health.
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EXECUTIVE SUMMARY
In this case study, MI Air Purifier 2H is a smart home appliance product from Xiaomi
corporation that will be analyzed by using SWOT analysis. Xiaomi corporation is the 4th
largest manufacturing hub, and it has continued to expand its products and services to provide
a broader range of consumer electronics as well as a smart home device platform. Besides,
the flat organizational structure of Xiaomi allows the company to make decisions faster and
efficiently because the workers will report directly to the higher-level managers. So, this factor
may influence the rapid growth of Xiaomi corporation. Next, behind the success of the
company, there are business strategy, marketing strategy and operational strategy. These
strategies help to promote Xiaomi to a broader range of customers.
Finally, an alternative solution is proposed based on the problems of the product stated
in this case study. A fantastic plantae is an eco-friendly air purifier that also has the same
functions as the other air purifier. But it is differed in terms of air purification systems in which
fantastic plantae use live plants to promote phytoremediation. Also, it is complementary with
some environment-friendly features and modifications.
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TABLE OF CONTENTS
ACKNOWLEDGEMENT ....................................................................................................................... i
EXECUTIVE SUMMARY .................................................................................................................... ii
1. INTRODUCTION .......................................................................................................................... 1
1.1 Background of The Study ................................................................................................ 1
1.2 Problem Statement ............................................................................................................ 2
1.3 Purpose of The Study ....................................................................................................... 2
2. COMPANY INFORMATION ....................................................................................................... 2
2.1 Background ......................................................................................................................... 2
2.2 Organizational Structure .................................................................................................. 4
2.3 Products/Services .............................................................................................................. 5
2.4 Technology .......................................................................................................................... 6
2.5 Business, Marketing, Operational Strategy ................................................................ 6
2.5.1 Business strategy ...................................................................................................... 6
2.5.2 Marketing strategy ..................................................................................................... 8
2.5.3 Operational strategy ................................................................................................ 10
3. COMPANY ANALYSIS .............................................................................................................. 11
3.1 SWOT Analysis ................................................................................................................. 11
3.1.1 Strengths .................................................................................................................... 11
3.1.2 Weaknesses............................................................................................................... 12
3.1.3 Opportunities ............................................................................................................ 13
3.1.4 Threats ........................................................................................................................ 14
4. FINDINGS AND DISCUSSION ................................................................................................ 14
4.1 Findings .............................................................................................................................. 14
4.1.1 Problem 1: High Levels of Noise.......................................................................... 14
4.1.2 Problem 2: High Energy Consumption............................................................... 15
4.1.3 Problem 3: Emit Harmful Substance ................................................................... 15
4.2 Discussion ......................................................................................................................... 16
4.2.1 Suggested Solution for Problem 1 ...................................................................... 16
4.2.2 Suggested Solution for Problem 2 ...................................................................... 16
4.2.3 Suggested Solution for Problem 3 ...................................................................... 17
5. RECOMMENDATION AND IMPROVEMENT ....................................................................... 18
5.1 Major Problem ................................................................................................................... 18
5.2 Alternative Solution ......................................................................................................... 18
6. CONCLUSION ............................................................................................................................ 20
7. REFERENCES ........................................................................................................................... 21
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8. APPENDICES ............................................................................................................................. 23
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1. INTRODUCTION
In this section, the background, purpose and problem statement of the study will be
enunciated.
In short, air purifiers are one of the devices that become essential in
every household. With the advancement of technology, it may provide
protection from air-borne infections.
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1.2 Problem Statement
With the development of industrialization, the problem of air pollution seems to
get worse. Air purifiers are now widely used in many institutions and
hospitalizations to get rid of the harmful chemicals from the air that may result
in a variety of disorders and potentially fatal consequences. Besides, some air
purifiers may emit ozone and consume more energy. Afterwards, it will
aggravate climate change. Thus, alteration of product needs to be taken into
consideration with this issue.
2. COMPANY INFORMATION
In this part, the background of the company will be discussed further including the
organizational structure, products and services, technology, business strategy,
marketing strategy and lastly operational strategy of the company.
2.1 Background
Xiaomi Corporation is an electrical company based in Beijing, China. It was
founded by Lei Jun in April 2010. Lei Jun is a professional software engineer,
and angel investor. He has been named as businessmen of the Year by
Forbes in 2014 and along with Alibaba Founder, Jack Ma. He was the CEO of
Kingsoft for approximately ten years before founding Xiaomi.
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Xiaomi is a smart manufacturing company that focuses on consumer
electronics with smartphones and smart hardware connected by Internet of
Things (IoT) as its fundamental. In addition, Xiaomi products have penetrated
more than 100 countries and markets around the world including
Malaysia. The uniqueness of Xiaomi is that all of the devices run the MIUI
operating system. It is designed to function with most Android-powered
smartphones and the new version of MIUI resembles iOS in simplicity (Ulusoy,
2022).
The term "xiao," which is part of the company's name, means "small" in
Chinese. In English, "Mi" refers to mobile internet (Xu, 2015). In addition, “MI”
stands for “Mobile Internet” which also indicates “Mission Impossible”. For this
reason, Xiaomi has been facing many challenges that seem impossible to
confront in our early days. The vision of this company is “Make friends with
users and be the coolest company in the users’ heart”. It portrays Xiaomi as a
company that will persistently innovate and provide a high-quality user
experience. Xiaomi constantly builds amazing goods and services with
affordable prices. Thus, every level of society will be able to enjoy a better life
through modernization technology.
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2.2 Organizational Structure
The organizational structure of Xiaomi is identified as a matrix or flat. Xiaomi's
structure of the organization is specifically decentralized, with different
business units monitored separately. Considering the company's large size,
which includes a presence in 70 countries and around 18000 employees, it has
fewer levels of management compared to other conventional businesses of
similar size (Dudovskiy, 2018). Figure below shows the Xiaomi organizational
chart with flattened structure:
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2.3 Products/Services
Brand Xiaomi
Model AC-M9-AA
Weight 5.2 kg
Recommended area 18 - 31 m2
Connectivity WiFi
Energy consumption 48 W
5
2.4 Technology
Xiaomi eagerly takes the new chances of the future digital technology
revolution and energetically develops advanced technologies that focuses on
the development of remarkable smartphones, Internet TV, and the smart home
network. In the present day, Xiaomi smartphones contribute 65 percent of
overall income. Xiaomi's unique feature is that all of their smartphones use the
MIUI operating system. It is designed to function with the majority of Android-
powered devices, and the new version of MIUI is designed to be as similar as
iOS (Ulusoy, 2022)
Furthermore, Xiaomi has invented products for the world's greatest IoT
platforms. Xiaomi might reach out to more consumers with challenges and
assist consumers further so that they can benefit from the innovation by
integrating artificial intelligence (AI) and IoT (Jun LEI GSMA Digital Declaration,
n.d.). Xiaomi's creative ideas have always aimed to make people's lives
easier. Internet cables, Bluetooth speakers, smart TVs, electric scooters,
vacuum cleaners, cameras, smart home systems, and other products are
provided by Xiaomi and can be purchased from many online platforms and
outlets.
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cheap costs of its products and services. Simply said, the low cost of
Xiaomi products and services is the main reason that consumers
purchase those goods and services.
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2.5.2 Marketing strategy
Xiaomi's marketing strategy evaluates the product in the market by
using a marketing mix model, which comprises 7Ps. Product innovation,
price strategy, promotion planning, and so on are all examples of
marketing tactics. These business strategies contribute to the growing
customer base and place the company competitively in the market and
fulfilling its business goals and objectives.
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Figure 7: Xiaomi’s retail store
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Promotion by The Flash sales gained a significant amount of
Word of Mouth interest, and everyone was talking about them. It
greatly helped Xiaomi in gaining great popularity.
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performance. Undoubtedly, the most essential thing is to create unique
and high-quality items that are also reasonably priced.
3. COMPANY ANALYSIS
In company analysis, the SWOT analysis is being used to identify the product’s
strengths and weaknesses and also the opportunities and threats. It guides the
company to maximize on the strengths, fix the weaknesses, exploit fresh opportunities,
and minimize risks. By conducting a SWOT Analysis, it will help to analyze the
organization's condition before implementing any new plan or product.
3.1.1 Strengths
Mi air purifier 2H is equipped with a high efficiency filter with triple layer
filtration with true HEPA filter. The triple layer filtration gives the best
purification results, which removes 99.97 percent of particulate matter
with a size of 0.3m or larger and creates a room full of clean and pure
air. Besides, this model is furnished with 360° cylindrical filtration that
is made up from polyethylene terephthalate (PET). The outermost layer
is three to five times more durable than comparable models. It has
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excellent mechanical properties and is resistant to folding, grease, fats,
acids, alkalis, and most of the solvents. The cylindrical design removes
dust, hair, and other bigger floating particles from every direction
compared to conventional air purifiers (Mi Global Home, n.d.). Next,
this product also has a high Clean Air Delivery Rate (CADR) which is
260. A CADR of 240 or above is considered as an excellent grade. The
greater the CADR, the quicker and more efficient the air purifier (Best
Air Purifier Buying Guide, 2022). Lastly, Mi air purifier 2H is a smart
control device which can easily be monitored through smartphones via
Mi Home apps. The consumer can switch modes and adjust speed
effortlessly.
3.1.2 Weaknesses
The weakness of Mi Air Purifier 2H is it is a bit noisy. The noise levels
on High-speed mode will be higher than Normal or Night mode. Based
on the data in figure 13, the noise level remains up for three hours
before returning to the ups and downs of auto mode. Furthermore, this
product uses more energy to operate. Thus, the consumers need to
pay high electric bills every month. Also, this issue indirectly causes
environmental problems such as climate change, pollution, greenhouse
effect and so forth. Last but not least, this device generates ozone
which is a molecule that can react with some substances to change
their chemical composition. This can lead to harmful indoor air quality.
According to research examined by the EPA, low levels of ozone which
is the major component of toxic air will not efficiently eliminate indoor
contaminants. But ozone has been associated with decreased lung
function and an increased risk of throat irritation, coughing, chest pain,
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and lung tissue inflammation, according to studies (Watt,
2016). Asthma, emphysema, and bronchitis may worsen by ozone
exposure.
3.1.3 Opportunities
The opportunities of Xiaomi air purifiers are more for health concerns
and wants a better air regulation in their home. Nowadays, COVID-19
is still a serious problem for economies around the globe. Clearly, the
society and healthcare are seeking to recover and there will be a direct
impact on air purifier market. As a result, it will open an opportunity for
a large market for Smart Air Purifiers.
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3.1.4 Threats
The presence of numerous rivals within the marketplace is Xiaomi's
biggest threat. For this reason, Xiaomi is known as a low-cost
smartphone brand and Xiaomi is a relatively new developer of
household appliances. So, many customers are not aware of product
innovation in the Appliance & Tool segment especially Mi air
purifier. The company is facing stiff challenges from international and
local competitors to market the air purifier. For instance, Honeywell
International Inc., Philips, Blue Air, Coway, Cuckoo, Whirlpool
Corporation, American Air Corporation, Sharp Corporation, and Dyson
Technology are the main players in the worldwide centralized air
purifiers industry. Moreover, competitors are starting to catch up with
research and development of new product creation. Afterwards, it has
put extra pressure on the company to produce a new model of air
purifier. Furthermore, Xiaomi's products or services are priced
competitively with those of other firms in the same market.
4.1 Findings
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when there is debris in the machine. So, the filter need to be cleaned
frequently.
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4.2 Discussion
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Development, power emissions will increase by up to 70% by 2050,
adversely contributing to climate change.
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5. RECOMMENDATION AND IMPROVEMENT
In this part of the case study, a new alternative solution for the product will be
recommended in accordance to minimize the problem.
Figure 14: Ubreath Life is the world’s first plant-based air purifier
According to figure 14, it is the world’s first plant-based air purifier that
has been invented by Ropar and Kanpur, who are scientists of Indian Institutes
of Technology, Faculty of Management Studies of Delhi University. This
product has been tested by the National Accreditation Board for Testing and
Calibration Laboratories which resulted in bringing down the Air Quality Index
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from 311 to 39 in 15 minutes of usage (Mehrotra, 2021). It showed the
efficiency of the product which has an ability to eliminate particle, gaseous, and
biological pollutants and also improving indoor oxygen levels. Ubreath life uses
breathing roots technology to boost phytoremediation processes that help
increase the volume of air at the soil-root zone and allow the root microbiomes
to interact with more air and purify at the same time (Times of India, 2021).
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6. CONCLUSION
To conclude, Mi Air Purifier 2H is an amazing product that has been produced by
Xiaomi Corporation. However, every product has its flaws. So, with the help of SWOT
analysis, the weaknesses of Mi Air Purifier 2H have been identified. The problems
encountered by the customers are high levels of noise, high energy consumption, and
emission of harmful substances. These problems also contribute to environmental
issues such as climate change. As a consequence, some solutions to alleviate each
problem have been proposed in order to fix the flaws and produce quality goods. For
instance, anti-clogged filters used to reduce noises and increase the wire size helps to
conserve energy. At the end of the case study, a new enhancement of the product
namely fantastic plantae has been properly implemented with greater technologies and
enhancements for a better quality of life.
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7. REFERENCES
1. Best Air Purifier Buying Guide. (2022, March 31). Consumer Reports.
https://www.consumerreports.org/cro/air-purifiers/buying-guide/index.htm
2. Choi, M. (2021, February 23). A Study on the Organizational Culture and
Performance of Xiaomi Corporation. Korea Science.
https://www.koreascience.or.kr/article/JAKO202111752549780.pdf
3. Dudovskiy, J. (2018, May 21). Xiaomi Business Strategy: competitive costs and
large ecosystem. Research-Methodology.net. https://research-
methodology.net/xiaomi-business-strategy-competitive-costs-and-large-
ecosysem/
4. Dudovskiy, J. (2018, May 23). Xiaomi Organizational Structure: matrix and flat.
Research-Methodology.net. https://research-methodology.net/xiaomi-
organizational-structure-matrix-and-flat/
5. J u n L E I G S M A D i g i t a l D e c l a r a t i o n . ( n . d . ) . D i g i t a l D e c l a r a t i o n .
https://www.digitaldeclaration.com/bios/jun-lei
6. King, H. (2021, September 20). PECO vs. SARS-CoV-2: What the Research
Shows. Molecule Blog. https://molekule.science/peco-vs-sars-cov-2-what-the-
research-shows/
7. M a l a y s i a : Air Pollution. (2020, April 16). IAMAT.
https://www.iamat.org/country/malaysia/risk/air-pollution
8. Mehrotra, S. (2021, September 2). IIT Ropar's startup company creates world's
first plant-based smart air purifier. Republic World.
https://www.republicworld.com/india-news/general-news/iit-ropars-startup-
company-creates-worlds-first-plant-based-smart-air-purifier.html
9. Menghani, T. (n.d.). A case study on how Xiaomi is Dominating the Global
Smartphone Market? The Marcom Avenue.
https://www.themarcomavenue.com/blog/how-xiaomi-is-dominating-the-
global-smartphone-market/
10. Mi Global Home. (n.d.). Mi Global Home. Mi Global Home.
https://www.mi.com/global/mi-air-purifier-2h/filter/
11. Rao, N. G., Kumar, A., Wong, J. S., & Goswami, D. Y. (2018, June 21). Effect
of a Novel Photoelectrochemical Oxidation Air Purifier on Nasal and Ocular
Allergy Symptoms. PubMed, 9.
https://doi.org/10.1177/2152656718781609
12. Safiya, H. M., & Shylesh, S. (2019, January). Analysis of Business Strategies
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of Xiaomi. International Journal of Case Studies in Business, IT and
Education, 3(1), 1-8.
file:///C:/Users/USER/Downloads/1.%20Xiaomi%20Formatted.pdf
13. Taiwan News. (2022, February 5). Smart Air Purifiers Market 2021-2030
14. Times of India. (2021, September 2). IIT Ropar's startup introduces first 'plant-
based' air purifier | Ludhiana News. Times of India.
https://timesofindia.indiatimes.com/city/ludhiana/iit-ropars-startup-
introduces-first-plant-based-air-purifier/articleshow/85856488.cms
15. Ulusoy, K. (2022). Wallpapers of all Android versions (Android 1 to 12) here! –
xiaomiui. Xiaomiui. https://xiaomiui.net/wallpapers-of-all-android-versions-
android-1-to-12-here-11063/
16. Watt, D. (2016, August 10). Do air purifiers add harmful ozone to your home?
Breathing Space. https://www.breathingspace.co.uk/blog/do-air-purifiers-
add-harmful-ozone-to-your-home/
17. Wilson, D. R., & Chastain, M. (2018, September 18). The Best Air-Purifying
Plants for Your Home. Healthline. https://www.healthline.com/health/air-
purifying-plants#easy-plants
18. Wong, A. (2021, October 18). Xiaomi to launch 10 new stores and offering
RM200 off on Xiaomi 11T series for one day only. TechNave. Retrieved
April 28, 2022, from https://technave.com/gadget/Xiaomi-to-launch-10-
new-stores-and-offering-RM200-off-on-Xiaomi-11T-series-for-one-day-
only-27067.html
19. Xiaomipedia. (n.d.). Xiaomi Mi Air Purifier 2H: where to buy, features and
reviews. Xiaomipedia. https://xiaomipedia.com/en/p/mi-air-purifier-2h/
20. Xu, F. (2015). A Smartphone Challenger’s Competitive Strategy: The Case of
Xiaomi. The Institute for Creative Management and Innovation, Kinki
University, 3, 90-99. https://www.kindai.ac.jp/files/rd/research-
center/management-innovation/kindai-management-review/vol3_7.pdf
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8. APPENDICES
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Figure 4: Xiaomi Air Purifier 2H
Brand Xiaomi
Model AC-M9-AA
Weight 5.2 kg
Recommended area 18 - 31 m2
Connectivity WiFi
Energy consumption 48 W
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Figure 5: Illustration of Xiaomi Business Model
Pricing The product was sold at its retail price through websites and
social media without the assistance of a distributor. For
instance, in Shoppe and Lazada.
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Figure 7: Xiaomi’s retail store
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Promotion by The Flash sales gained a significant amount of interest, and
Word of Mouth everyone was talking about them. It greatly helped Xiaomi in
gaining great popularity.
Promotion by Xiaomi's CEO, Lei Jun, did an excellent job of making his
CEO company look trendy. He brings the brand a face. In the manner
he talks about the brand, Lei Jen's is quite similar to Steve Jobs'.
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Figure 12: Mi Air Purifier 2H
Figure 14: Ubreath Life is the world’s first plant-based air purifier
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Figure 15: Illustration of Fantastic Plantae Air Purifier
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