2.

CASE STUDY ON XIAOMI

The case discusses Beijing-based Chinese electronics company, Xiaomi Inc. (Xiaom), and its
unconventionalbusiness model. Founded in April 2010 by Lei Jun (Jun), aserial entrepreneur and
investor, in association with his friend Bin Lin (Lin), a former Google and Microsoft executive,
Xiaomiwas known to produce cheap smartphones with anice build quality. Xiaomifollowed a
unique business model where it sold its smartphones at cheap prices and later took advantage
of the revenue streams generated by selling its software such as apps, cloud computing, and
games. The company sold its smartphones at US$ 200 or US$S 300 whereas smartyhones
developed by Samsung Electronics Ltd. (Samsung) and Apple cost at least US$ 600. The
company sold its smartphones online in flash sales with razor thin margins. Since there were no
retailers and distribution channels involved, it could afford to price its high-tech smartphones
lower.

The company followed an Internet-first strategy - in addition to selling its smartphones

online, it communicated with its customers through social media channels. The company
reportedly spent no money on traditional advertising. It was reported that Xiaomi developed
Smartphones in limited numbers. As soon as the product went online for sale, it was sold out
within minutes. Some industry watchers terned Xiaomi as the 'Apple of China' since it elicited
the same kindof crazy following that Apple did in the West. The company also fostered an
open, honest, and transparent relationship with its Customers. Xiaomi's customers, known as
Mi Fans, were regularly informed about the suppliers the company worked with, how it built its
products, and what it was developing. The Mi Fans were hugely appreciative of this and eagerly
awaited the next product launch from Xiaomi. Xiaoni's instant success in China encouraged
Jun and Lin to exvand the operations to other countries. Thus, in a bid to fuel its international
expansion, Xiaomi brought in Hugo Barra (Barra), formner Google executive. By June 2014.
Xiaomi hadforaved into Singapore, Taiwan, Malaysia, and Indonesia. It planned to enter other
emerging markets such as India and Brazil. Goin8 forward, by 2015, the company had ambitious
plans to enter the North American smartphone market, which was hugely dominated by
Samsung and Apple.
Issues
Xiaomi's unconventional and innovative online business model
1. Evaluate
the business model of a company amidst
2. Understand the need to reinvent
competitionand changes in the business
environment rising
success in China
3. Understand the reasons for Xiaomi's
4. Identify the challenges faced by Xiaomi and explore strategies that the company migh
adopt to overcone these challenges
whether Xiaomi can increase its dominance in the Chinese
5. Examine
market and becomne a leading player in the Chinese smartphone market
smartphoe
in
6. Examine the strategies Xiaomi should adopt to enter and make a mark the
markets it plansto ent
emerging
7. Examine the challenges Xiaomi could face in gaining a presence in the intenseh
competitive US snartphone market

3.CASE STUDY ON LENOVO

This case discusses Beijing-based multinational technology giant, Lenovo Group Limiteds
(Lenovo), success story in China and its energence as the global brand from China. In early
2013, Lenovo emerged as the clear leader in the global Personal Computer (PC) market. Industry
experts opined that the company's success was attributable to several strategies it had adopted
in China aggressive pricing in its home market - China and its acquisition strategy in
mature markets such as Germany and Japan, made it a market leader in the global PC markel.

Some analysts opined that much of the company's success was due to its 'Protect and Attck
strategy started in 2009 which gave it an edge over its competitors. Using this strategy the

company protected its China PC business and the global enterprise business while attackig
emerging markets with its PC products as well as targeting new product areas such as tablets
smartphones, and smart televisions (TVs). The new product areas, also known us
Internet devices, were part of its PC Plus strategy wherein the compay
to develop new products. innovated wrtn
Experts said that the company's decision to focus On these new

product areas was a bid to maintain its global sales momentum as the PC market ws
deteriorating due to sluggish demand.
Going forward, the company planned to positioninthe
Chinese smartphone market and become a challenge Samsung's leadership
leader bu including gaming sojru catd
smartphones. In August 2013, Lenovo rolled out several retail outlets - Len0V0 Solution
could
sitand
ohich was similar to Apple stores with
wide counters and tables where customers
try out Lenovo's tablets and phones. The retail strategy was an
attempt by Lenovo to surpass
Samsung insales in the Chinese smartphone market. The company also had ambitious plans to
launch its smartphones in the US by 2014. Some analysts felt that the move was
positive
considering the decline in the global PC industry. Others felt that Lenovo would face some
challenges while trying to make its presence felt in the US smartphone market as it lacked the
brand recognition that established players such as Apple Inc. (Apple) and
Samsung Electronics
Ltd. (Samsung) enjoyed in the country. Some experts pointed out that
Lenovo could also face
challenge in making its presence felt in the US smartphone market since it was
largely
dominated by Apple and Samsung.
Issues

1. Critically analyze the strategies to be adopted by Lenovo to

maintain its market
leadershipposition in the lucrative Chinese PC market.
2. Understand the issues and challenges faced by a
Chinese PC conmpany in growing its
business.
3. Study how Lenovo achieved a balance in
catering to global Customers while
customizing its practices tosuit the needs of its Chineseconsumers.
4. Understand the strategies to be adopted by
Lenovo to defend its
market share in the
global PC market considering the demand in the global PC
industry was decreasing.
5. Analyze Lenovo's Protect and Attack strategy.
6. Examine whether Lenovo could
increase its dominance in the Chinese smartphone
market and become a leading player in the Chinese smartphone market.
7. Exanine the strategies Lenovo should
adopt to enter and make a mark in the us
smartphone industry.
8. Examine the challenges faced by Lenovo in
gaining a presence in the intensel
competitive US smartphone market.