ABOUT MEGVII

A Chinese artificial intelligence (AI) business called Megvii, also known as Megvii
Technology Limited, focuses on computer vision technology. In 2011, Yin Qi, Wenbin Tang,
and Qi Yin launched the business. Megvii's face recognition technology has become well
known, especially because to its product Face++, which is extensively utilised in many
different applications.

Face++ is an AI-driven platform for facial recognition that offers tools and APIs (Application
Programming Interfaces) for developers to include facial recognition functionality into their
own apps. It includes a variety of characteristics, such as face comparison, age estimate,
gender recognition, face comparison, emotion analysis, and face detection. Security, finance,
retail, and healthcare are just a few of the businesses that have used Megvii's face recognition
technology.
Megvii has broadened its product line to encompass more computer vision applications in
addition to facial recognition. For instance, they have created technologies for image
identification, video analysis, and object recognition. Systems for autonomous driving, smart
shopping, and surveillance have all made use of these technologies.

Megvii has drawn attention on a worldwide scale and attracted large investments from
illustrious investors. It's important to remember, though, that the business, like many others in
the facial recognition industry, has encountered controversy and worries about privacy and
the ethical implications of its facial recognition technology.
Megvii, like many other businesses involved in the facial recognition industry, has come
under fire. Concerns have been expressed about privacy invasion, possible technological
abuse, and its effect on civil freedoms. It's important to note that Megvii has made attempts to
allay these worries and has pledged to using its technology responsibly, including according
to existing laws and regulations.

It's critical to remember that the data presented is based on knowledge that was accessible as
of September 2021. It is advised to consult official sources or news sites for the latest recent
updates in Megvii information.
INDUSTRY & MARKET OVERVIEW
Recent years have seen substantial progress and innovation in computer vision technologies.
To provide robots the ability to read and comprehend visual input, it integrates components of
artificial intelligence, image processing, and machine learning. Let’s look at the industry and
market landscape of the computer vision technology.

• INDUSTRY APPLICATIONS
➢ Automotive: In order to improve safety and provide self-driving capabilities,
computer vision is essential for autonomous cars. It offers features like object
detection, lane detection, and pedestrian recognition.

➢ Manufacturing and Industrial Automation: Manufacturing and Industrial

Automation: In manufacturing and industrial operations, computer vision is
utilised for quality control, object detection, robot guiding, and defect
identification.

➢ Healthcare: Medical imaging analysis, illness diagnosis, surgical guiding,

and telemedicine all use computer vision to provide more precise diagnoses
and better patient care.

➢ Retail: Applications like facial recognition for personalised marketing,

cashier-less retail, inventory management, and consumer behaviour research
are made possible by computer vision.

➢ Security and Surveillance: In security and surveillance systems, computer

vision is used for threat detection, object tracking, crowd analysis, and threat
recognition.

➢ Agriculture: agricultural monitoring, disease detection, yield estimate, and

automated harvesting are all made easier by computer vision, which boosts
productivity and agricultural management.

➢ Augmented Reality and Virtual Reality: Using computer vision, augmented

reality (AR) and virtual reality (VR) are made more immersive by detecting
the user's environment, comprehending it, and enabling lifelike virtual
interactions.

• MARKET GROWTH AND TRENDS

➢ Advancements in Deep Learning & AI: The development of deep learning
algorithms and AI technologies has greatly increased the precision and
functionality of computer vision systems, driving the market's expansion.

➢ Increasing Demand for Automation: The use of automation by businesses

across all industries to boost output, cut mistakes, and increase efficiency is
fueling the need for computer vision technologies.
 ➢ Development of IoT and linked Devices: As Internet of Things (IoT) devices
and linked systems proliferate, enormous volumes of visual data are produced.
Computer vision technology may make use of this data for analysis and
decision-making.

➢ Expansion of Edge Computing: The expansion of edge computing, which

brings computer vision capabilities closer to the data source, enables quicker
reaction times and lowers bandwidth needs, is a result of the demand for real-
time processing and analysis.

➢ Integration with Other Technologies: To allow more sophisticated and

complete solutions, computer vision is rapidly being merged with other
technologies including natural language processing, robotics, and sensor
technologies.

• KEY PLAYERS
➢ Google
➢ Microsoft
➢ NVIDIA
➢ Intel
➢ Amazon
➢ Apple
➢ Facebook
➢ Open AI
➢ Qualcomm

• CHALLENGES & CONCERNS

➢ Privacy and Ethical Issues: Discussions concerning privacy invasion and
possible technological abuse have erupted in response to the use of computer
vision for surveillance and face recognition.

➢ Data Quality and Bias: The calibre and variety of training data have a
significant impact on the accuracy and dependability of computer vision
systems. Biases in the training data can produce discriminating outcomes and
biased findings.

➢ Computer Resources: Developing and using advanced computer vision

models
The market share of Megvii currently in China is 21%, which is the second largest after
Sense Time with 23% of the market.

AI Market Share in China

23%
38%

21%

8%
10%

Sense Time Megvii Cloudwalk Yitu Other

SWOT ANALYSIS

STRENGTHS
• Modern technology: Megvii is renowned for its sophisticated facial recognition and
computer vision technology, which has attracted notice and acceptance on a global
 scale. The business has a competitive advantage in the industry thanks to its
knowledge of AI algorithms and deep learning.

• Strong Market Presence: Megvii has made a significant impact across a number of
sectors, including security, retail, finance, and healthcare. Customers and partners
trust it, and its solutions are extensively used.

• Brand Product Portfolio: A wide range of products are available from Megvii,
including solutions for object identification, picture detection, and video analysis in
addition to facial recognition. The organisation is now better able to meet a variety of
consumer demands because to its diversification.

WEEKNESSES
• Privacy and Ethical Concerns: Megvii, like many businesses in the facial recognition
industry, is subject to criticism and worries about privacy invasion and ethical
ramifications. These worries may harm the business's reputation and reduce available
market prospects.
• Regulatory Difficulties: As the regulatory landscape for face recognition technology
changes, Megvii may find it difficult to stay compliant. The company's operations and
market expansion may be impacted by compliance expenses and constraints.

• Competitive Landscape: The computer vision market is extremely competitive, with

both established competitors and up-and-coming entrepreneurs. Megvii must
constantly innovate and differentiate itself from its rivals to preserve its market
position. The company confronts competition from both domestic and foreign rivals.

OPPORTUNITIES
• Growing Market Demand: Demand for computer vision technology is anticipated to
increase across sectors due to automation, the Internet of Things, and the need for
better data analysis. Megvii might take advantage of this chance by broadening its
product line and focusing on fresh market niches.

• International Expanision: Megvii can look into potential for worldwide growth,
particularly in areas where the use of computer vision technology is increasing. North
American, European, and other markets in Asia are included in this.

• Strategic Partnerships: Megvii may access new markets, consumers, and resources by
working with strategic partners including technology firms, system integrators, and
industry-specific players. The competencies and competitive advantage of the
business can also be strengthened through strategic alliances.
THREATS
• Regulatory and Legal Challenges: Megvii's activities are at risk due to the changing
regulatory environment and potential legal limits around face recognition technology.
The company's expansion and market potential may be hampered by adherence to
onerous laws and regulatory requirements.

• Public Perception and Trust: Unfavourable public perceptions and worries about data
security, privacy, and moral applications of face recognition technology may prevent
acceptance and restrain business expansion.

• Technological Advancements by Competitors: Competitors may offer disruptive

technologies or ideas that might threaten Megvii's market position since Megvii works
in a field that is continually evolving. It's essential to stay on top of technical
developments and keep a competitive advantage.

PESTLE ANALYSIS

POLITICAL FACTORS
• Government Policies: Government laws and guidelines governing AI, data privacy,
and surveillance apply to Megvii's activities. The operations and market potential of
the organisation may be impacted by changes in legislation and policies.

• International Relations: The political ties between China and other nations may
have an impact on Megvii's operations. Trade limitations or geopolitical concerns may
limit the company's access to foreign markets.

ECONOMIC FACTORS
• Economic Growth and Investment: Favourable economic circumstances and
increasing technological investment may spur market expansion and open doors for
Megvii's goods and services.
 • Currency Fluctuations: Because Megvii is a worldwide company, changes in
exchange rates may have an effect on its financial performance, particularly if a
sizable amount of its sales comes from outside markets.

SOCIAL FACTORS
• Privacy and Ethical Issues: Megvii's public perception and adoption rates may be
impacted by society's rising worries about privacy, data security, and the ethical
implications of face recognition technology.

• Consumer Acceptance: The market demand and industry adoption of face recognition
technology can be affected by consumer attitudes and acceptance.

TECHNOLOGICAL FACTORS
• Technological Advancements: Rapid developments in AI, machine learning, and
computer vision might spur innovation and open up new possibilities for Megvii. The
success of the business depends on staying on the cutting edge of technology and
investing in ongoing research and development.

• Data processing and computing power: Megvii's capacity to provide effective and
precise computer vision solutions depends on the availability of high-performance
computing and scalable data processing infrastructure.

LEGAL FACTORS
• Data Protection and Privacy rules: Megvii must abide by data protection and
privacy rules on a national and international level. The company's methods for
collecting, storing, and using data may change as a result of regulatory changes like
the General Data Protection Regulation (GDPR).

• Intellectual property: In order to defend its technology and keep a competitive edge,
Megvii must protect intellectual property rights. The company's operations and
competitive position may be impacted by legal battles or infringement allegations.

ENVIRONMENTAL FACTORS
• Sustainability and energy efficiency: Megvii's product development and business
operations may be impacted by the growing emphasis on environmental sustainability
and energy efficiency. The company's reputation may be improved and new market
demands can be met by creating eco-friendly solutions and lowering its carbon
footprint.
FIVE FORCES ANALYSIS

• THREAT OF NEW ENTRANTS

There is a moderate risk of new competitors entering the computer vision business,
particularly in the face recognition sector. Although the industry is expanding, there
are entrance obstacles since they require cutting-edge technology, deep learning and
AI skills, and substantial research and development expenditures. It is difficult for
new entrants to achieve market share since existing firms like Megvii already have a
solid presence and established customer connections. If new businesses with
innovative technology or substantial financial resources enter the market, the danger
might, nevertheless, grow.

• BARGAINING POWER OF BUYERS

Across industries and clients, buyers' negotiating strength differs in the computer
vision industry. Buyers may have few options and little negotiating power in sectors
where computer vision technology is highly specialised and essential. Buyers may,
however, have greater negotiating leverage in sectors where there are several solution
suppliers and little distinction, putting pressure on pricing and contract conditions.
Megvii's capacity to deliver distinctive and personalised solutions can reduce buyer
power by providing differentiated value.

• BARGAINING POWER OF SUPPLIERS

Suppliers in the computer vision industry mostly relate to companies that make
technology, such as hardware producers, software developers, and infrastructure
companies for AI. Due to the availability of several suppliers and the relatively
standardised nature of some technological components, suppliers typically have
limited negotiation strength. Being a technology firm, Megvii may take use of its
connections with suppliers to guarantee cheap pricing and safe access to cutting-edge
technology. The operations and profitability of the organisation, however, might be
impacted by a lack of essential components or reliance on particular suppliers.
 • THREAT OF SUBSTITUTES
In the computer vision market, the danger of alternatives is quite small, especially for
cutting-edge facial recognition technologies. Although there may be other options,
including conventional surveillance systems or manual procedures, computer vision
technology has a number of advantages in terms of automation, accuracy, and
efficiency. Substitutes are less of a danger as automation and AI-driven solutions are
in more demand. The relevancy of Megvii's solutions might be severely impacted by
emerging technologies or disruptive breakthroughs, thus the company needs to be on
the lookout for these things.

• INDUSTRY RIVALRY
The market for computer vision is extremely competitive, with a number of well-
established businesses and new startups vying for market share. Both domestic and
foreign businesses that offer computer vision technologies, including facial
recognition technology, compete with Megvii. The type of industry or application will
determine the degree of competition. Megvii has a competitive edge thanks to its
established brand, advanced technological skills, and wide range of products.
However, pricing pressures, greater marketing efforts, and the need for ongoing
innovation to set oneself apart from competitors might result from fierce competition.

CUSTOMER SEGMENTATION MODEL

PSYCHOGRAPHIC SEGMENTATION
Customers are categorised using psychographic segmentation based on their attitudes,
interests, values, and way of life. Megvii can segment its clientele using the psychographic
factors listed below:
• Technological Enthusiasts: Customers that are early adopters of technology, have a
deep interest in AI and computer vision, and are willing to investigate cutting-edge
solutions are referred to as technological enthusiasts.
 • Privacy-Conscious Individuals: Customers that value data privacy and ethical issues
and seek out computer vision solutions that include robust privacy controls and
transparency are those who are privacy-conscious.
• Security-Conscious Customers: Customers that prioritise security and are prepared
to invest in reliable facial recognition and surveillance technologies to improve safety
and thwart possible attacks are known as security-conscious customers.
• Convenience Seekers: Customers that prioritise ease and look for computer vision
solutions that simplify workflows, automate repetitive operations, and boost overall
effectiveness.

GEOGRAPHIC SEGMENTATION
Customer groups are separated based on geography through geographic segmentation. To
divide up its clientele, Megvii can take the following regional factors into account:
• Regions: Grouping clients into distinct geographic areas, such as North America,
Europe, Asia Pacific, and so forth, allows businesses to customise their offers to meet
the needs of certain markets and legal frameworks.
• Nations and locations: Megvii may target marketing efforts and provide tailored
solutions to satisfy certain requirements and preferences by segmenting clients based
on particular nations or locations.

BEHAVIOURAL SEGMENTATION
The process of behavioural segmentation involves grouping clients according to their
purchasing habits, product usage patterns, and level of involvement with the business. Megvii
can categorise its clientele using the behavioural factors listed below:
• Usage Intensity: Classifying consumers into groups according to their usage patterns,
amount of engagement, and uptake of extra Megvii solutions features or modules.
• Purchase Patterns: Customer segmentation depending on the kind of transactions
they make, such as one-time purchases, subscriptions that are renewed on a regular
basis, or subsequent purchases of related goods or services.
• Loyalty and Advocacy: Customer segments should be created based on a customer's
brand advocacy and loyalty, taking into account things like past customer
recommendations, repeat business, and favourable reviews.

DEMOGRAPHIC SEGMENTATION
Customers are divided based on demographic factors including age, gender, income,
education, and employment through the process of demographic segmentation. Megvii can
segment its clientele using the following demographic factors:
 • Age Groups: By categorising clients into distinct age groups, such as millennials,
Gen X, or baby boomers, marketers may target particular demographics with
messaging and product positioning that are more relevant to them.
• Industries and Profession: Industry verticals and professions are used to segment
clients in order to offer industry-specific solutions and take into account the particular
needs of various work types.
• Income Levels: Classifying clients into groups based on their income levels to
provide price options and packages that suit their financial needs.
To identify the major categories within each category and continuously improve its consumer
segmentation model, Megvii must collect pertinent data and undertake market research. As a
result, the business may successfully target its marketing initiatives, tailor its product offers,
and provide tailored customer experiences to various consumer groups.

CUSTOMER JOURNEY MAPPING

AWARENESS STAGE
• Trigger: Customers learn about Megvii from a variety of sources, including media
coverage, industry conferences, trade shows, and internet marketing.
• Research: Customers begin investigating Megvii's goods, going to the business'
website, reading about the products, and looking for case studies to learn about the
advantages of computer vision technology.
• Information gathering: Customers want to know how Megvii's solutions can meet
their unique demands and regulatory requirements for their sector. They might
evaluate Megvii's rivals, read reviews, and look for advice from their peers or
professionals in the field.

CONSIDERATION STAGE
• Evaluation of Features: Customers assess Megvii's features and capabilities against
those of rivals to decide whether the solutions are appropriate for their use cases.
• Product Demos and Trials: Customers may request product demonstrations or trials
in order to evaluate the usability, performance, and functionality of Megvii's products
firsthand.
 • Pricing and ROI Analysis: Customers examine pricing models while taking into
account the possible return on investment (ROI) of integrating Megvii's solutions in
their corporate operations.

DECISION STAGE
• Customer choice of vendor: Customers select Megvii as their preferred supplier of
computer vision technology. They take into account things like product quality,
reputation, customer service, and cost.
• Contract Negotiation: Customers negotiate contracts with Megvii's sales staff, going
over terms, licencing, and customisation choices.
• Purchase: Customers conclude the transaction by signing the contract and paying the
required payments, which brings the purchase agreement to an end.

IMPLEMENTATION STAGE
• Integration of the solution: To integrate the computer vision solutions into their
current infrastructure or workflows, customers collaborate closely with Megvii's
implementation team.
• Training and Onboarding: Megvii offers training and onboarding sessions to
customers to make sure they understand how to utilise the solutions efficiently and get
the most out of them.
• Customization and Configuration: Megvii may offer customization and
configuration services to fit the solutions to particular demands, depending on
customer requirements.

ADOPTION & SUPPORT STAGE

• Continuous assistance: Megvii provides continuous technical assistance, fixing any
problems or difficulties users may come across while utilising the solutions.
• Updates and Upgrades: To improve the functionality and security of the solutions,
Megvii regularly releases updates and upgrades. This guarantees that clients have
access to the newest features and developments.
• Customer Success: Megvii maintains a close bond with its clients, actively
interacting with them to make sure they are realising their goals and getting the most
out of the company's products.

ADVOCACY STAGE
• Customer satisfaction and feedback: Pleased consumers may offer compliments
and testimonials about Megvii's products.
• Referrals: Customers may suggest Megvii to their coworkers and friends in the
business, praising the company's goods and services.
 • Renewals and Expansion: As customers use Megvii's solutions more extensively or
take on more modules, successful client deployments may result in contract renewals
and expansion prospects.
It's crucial to keep in mind that different sectors, consumer segments, and individual
customer experiences may have diverse customer journeys. To guarantee the greatest
experience at every level, Megvii should regularly acquire customer input, examine
touchpoints, and iterate on the customer journey mapping.

AIDA MODEL

ATTENTION
Megvii's goal in this phase is to capture the interest of its target market and raise awareness of
its computer vision solutions. Megvii may draw attention through a variety of marketing
techniques, including:
• Online advertising: Online advertising is the practise of placing targeted online
adverts on websites, social media, and search engines to attract new clients.
• Content Marketing: Information marketing is the process of producing educational
and entertaining information, such as blog posts, whitepapers, and films, to enlighten
readers about the uses and advantages of computer vision technology.
• Events & Conferences: Attending trade fairs, conferences, and industry events to
present Megvii's solutions and engage with prospective clients.

INTEREST
Megvii needs to stimulate interest in its products and show the value it offers after it has the
audience's attention. Interest-sparking techniques include:
• Product Demonstrations: Performing real-world use cases and success stories while
doing live or virtual product demonstrations to demonstrate the features and
capabilities of Megvii's computer vision products.
 • Case Studies: Sharing client success stories and case studies that highlight how
Megvii's solutions have benefited various company and industry sectors.
• Thought Leadership: Publishing thought leadership materials, such as industry
studies, professional opinions, and research papers, to position Megvii as a reputable
authority in the computer vision sector.

DESIRE
Once Megvii has generated attention, it must create a desire among prospective clients by
highlighting the distinctive advantages and benefits of its products. Various methods for
inspiring desire include:
• Benefits and Value Proposition: Outlining the main advantages and value
proposition of Megvii's products, such as increased security, increased operational
effectiveness, cost savings, and competitive advantage.
• Customization and Tailoring: Highlighting Megvii's capacity to modify solutions to
fit particular client demands and industry standards, demonstrating the adaptability
and scalability of its products.
• Reviews and testimonies: Presenting gratifying testimonies and reviews from
pleased clients who have personally experienced the advantages of Megvii's solutions.

ACTION
In the last phase, Megvii hopes to motivate prospective clients to act and make a purchase or
continue interacting with the business. Action-inspiring techniques include:
• Call to Action: Making it crystal clear to prospective clients what action they should
take, such as booking a demo, obtaining a price, or getting in touch with the sales
staff.
• Free trials or concept proofs: Allowing potential consumers to sample Megvii's
products first-hand and assess their applicability through free trials or proof-of-
concept initiatives.
• Seamless Buying Experience: Streamlining the purchasing process will ensure that
clients have an easy and seamless experience when making a purchase.
ANSOFF MATRIX

By examining their available product and market possibilities, organisations may establish
growth plans with the use of the Ansoff Matrix, a strategic framework. Market Penetration,
Market Development, Product Development, and Diversification make up its four quadrants.
MARKET PENETRATION
Increased market share with current products in existing markets is the main goal of market
penetration strategy. For Megvii, this may include
• Increasing marketing and sales initiatives in order to gain a bigger market share for
computer vision technologies.
• Increasing the number of customers within already-existing sectors and verticals by
focusing on new customers and highlighting the advantages of Megvii's products.
• To improve client retention and boost utilisation of Megvii's goods, consider
providing competitive pricing, loyalty programmes, or extra features.

MARKET DEVELOPMENT
Using an established product line, market development strategies entails accessing new
markets. This might apply to Megvii and include
• Locating fresh geographic markets or areas where usage of computer vision
technology is rising and increasing Megvii's presence there.
• Adapting Megvii's solutions to the unique requirements and tastes of clients in various
markets or professions.
• Establishing joint ventures or alliances with regional businesses or system integrators
to break into new markets and obtain access to their clientele.

PRODUCT DEVELOPMENT
The goal of a product development plan is to provide new goods or improve current ones in
order to satisfy the demands of existing markets. For Megvii, this may include
 • Research and development projects to create and introduce new computer vision
modules or solutions with increased performance or sophisticated functionality.
• Improving current goods in response to consumer input and new technological
advances.
• Extending Megvii's product line to include other industries or use cases within the
field of computer vision.

DIVERSIFICATION
A diversification strategy entails expanding into unrelated sectors or establishing new
markets with new goods. This might apply to Megvii and include
• Investigating potential uses for computer vision technology outside of the company's
current emphasis areas.
• Examining prospective collaborations or partnerships with businesses active in related
but distinct technology fields.
• Investing in R&D to investigate cutting-edge technologies that may be combined with
Megvii's products to provide new solutions.
It is crucial for Megvii to thoroughly assess each Ansoff Matrix quadrant and match its
growth strategy with consumer demands, industry trends, and internal capabilities. By
combining tactics from several quadrants depending on Megvii's strategic goals and market, a
balanced strategy to diversify risks and maximise development potential may be chosen.

BRAND EQUITY MODEL

• BRAND SALIENCE
The term "brand salience" describes how well-known and recognisable a brand is to
consumers. For Megvii, developing significant brand recognition among the target
audience in the computer vision technology sector is essential to establishing brand
salience. Effective marketing campaigns, strategic alliances, market presence, and
thought leadership initiatives may all help achieve this.
 • BRAND PERFORMANCE
Brand Performance refers to how consumers see the brand's capabilities and practical
qualities. It entails emphasising Megvii's computer vision systems' exceptional
performance, dependability, and quality. Brand performance perception may be
improved by demonstrating the efficacy and efficiency of Megvii's technology
through case studies, endorsements, and industry certifications.

• BRAND IMAGERY
The intangible and emotional connections that customers have with a brand are
referred to as brand imagery. By developing a distinctive brand personality that is
consistent with its fundamental principles and appeals to customers, Megvii may
define the image of its brand. This may be done by using consistent messaging, a
recognisable visual identity, and brand communications that inspire the right feelings,
such security, innovation, and trust.

• BRAND JUDGEMENTS
Brand judgements are consumers' assessments of the brand based on how the brand
appears and performs in their eyes. By highlighting the distinctive value proposition,
distinctiveness, and applicability of its computer vision products, Megvii may work to
build favourable brand perceptions. Positive brand perceptions may be influenced
through offering a smooth customer experience, superior customer assistance, and
resolving particular pain areas.

• BRAND FEELINGS
Customers' emotional reactions to and relationships with a brand are represented by
brand feelings. By forming emotional connections with clients through tailored
experiences, captivating storytelling, and brand interactions, Megvii may promote
good brand sentiments. Brand sentiments may be improved by utilising emotional
appeals that are consistent with client values, such as privacy, safety, and
convenience.

• BRAND RESONANCE
The degree of a customer's engagement and loyalty to a brand is measured by brand
resonance. For Megvii, developing a solid and durable relationship with customers is
essential to increasing brand resonance. Fostering customer loyalty programmes,
obtaining feedback and insights, offering consistent value-added services, and
cultivating a network of brand champions and influencers are all ways to do this.

Megvii may build a strong customer-based brand equity by proactively controlling these
elements, improving brand recognition, perception, and loyalty in the computer vision
technology market.
McKINSEY 7S FRAMEWORK

• STRATEGY
The strategy component of Megvii's business plan focuses on the company's long-
term goals, objectives, and strategies for gaining a competitive edge in the computer
vision technology sector. It contains elements like product portfolio, growth strategy,
market positioning, and innovation projects. To promote sustainable growth, Megvii's
strategy should be in line with its vision, purpose, and market prospects.

• STRUCTURE
The organisational structure and reporting connections within Megvii are discussed
under the Structure aspect. The distribution of roles, duties, and decision-making
power are all included. Megvii's organisational structure should be created to promote
efficient communication, teamwork, and flexibility in reaction to market conditions.
Additionally, it need to encourage an innovative culture and facilitate resource
allocation that is efficient.

• SYSTEM
The formal and informal processes, practises, and workflows within Megvii are
included in the Systems aspect. It consists of crucial systems including performance
management, IT, knowledge exchange, and quality control. Megvii should put in
place reliable systems that provide effective resource utilisation, smooth operations,
data-driven decision-making, and continual development.

• SHARED VALUES
The basic values, tenets, and culture that direct the behaviour and actions of Megvii's
workers are represented by shared values. It comprises elements like moral principles,
collaboration, client-centeredness, and innovation. Megvii should cultivate a solid and
uplifting culture that supports its strategic goals, fosters teamwork, and emphasises a
client-centered mentality.
 • SKILLS
The workforce of Megvii's Skills portion includes the workforce's talents,
competences, and expertise. It involves technical expertise, subject-matter expertise,
leadership qualities, and flexibility. Megvii has to make an investment in learning and
obtaining the skills required to spur innovation, remain at the forefront of technical
developments, and successfully satisfy client expectations.

• STYLE
The Megvii management team's leadership style and behaviours are reflected in the
Style aspect. It covers things like decision-making, communication, and management
strategies. To excite and engage workers, Megvii's executives should exhibit visionary
leadership, promote open communication, cultivate a culture of learning, and
champion a customer-centric attitude.

• STAFF
The human resources available to Megvii are the focus of the Staff aspect.
Recruitment, talent development, performance management, and employee
engagement are some of its components. Megvii has to find and keep top people,
make sure that its team is diverse and inclusive, offer chances for continued training
and development, and foster a positive work environment.

Megvii may improve organisational effectiveness, promote strategy alignment, and develop a
cohesive and high-performing organisation within the computer vision technology sector by
analysing and balancing these seven components.

VALUE CHAIN ANALYSIS

In order to find areas of value creation and possible competitive advantage, value chain
analysis looks at both core and supporting operations inside an organisation. The value chain
may be examined in the context of Megvii, which is involved in the computer vision
technology sector:
• INBOUND LOGISTICS
Megvii's inbound logistics entail the acquisition and administration of essential
resources and inputs needed for its operations. This involves maintaining supplier
relationships and procuring parts, hardware, and software. The availability and quality
of inputs for the creation and delivery of Megvii's computer vision solutions may be
helped by effective inbound logistics.

• OPERATIONS
The procedures used in creating and delivering Megvii's computer vision technology
solutions fall under the operations stage. This covers the creation of algorithms and
software, as well as testing and quality assurance. Delivering consumers with high-
performance and dependable computer vision solutions requires ensuring efficient and
productive operations.

• OUTBOUND LOGISTICS
The distribution and delivery of Megvii's goods and services to clients is referred to as
outbound logistics. Order processing, packing, and shipping are included in this.
Megvii may make use of alliances with logistics companies to make sure that its
computer vision products are delivered promptly and securely to clients all around the
world.

• MARKETING & SALES

To advertise its computer vision products and draw clients, Megvii must engage in
marketing and sales efforts. This comprises lead generation, market research,
advertising, brand positioning, and sales operations. Megvii can use a variety of
marketing strategies to reach its target market and increase sales, including internet
marketing, industry events, and collaborations.

• SERVICE
To guarantee client pleasure and retention, the service stage include offering customer
assistance, training, and maintenance services. To help clients get the most out of
Megvii's computer vision solutions, the company may provide technical support,
software upgrades, and training programmes. Good customer service may increase
client loyalty and good word-of-mouth advertising.

• PROCUREMENT
The procurement process entails finding and controlling the materials needed for
Megvii's operations, such as hardware parts, software licences, and technological
alliances. To guarantee the accessibility of cutting-edge technology and the
availability of high-quality inputs, Megvii may get into strategic collaborations and
supplier connections.

• TECHNOLOGY DEVELOPMENT
A crucial link in Megvii's value chain is technology development. This involves
initiatives to increase hardware performance, develop new applications, and expand
computer vision algorithms through research and development (R&D). To be on the
 cutting edge of technical developments and keep its competitive edge, Megvii needs
spend in R&D.

• HUMAN RESOURCES
Top talent must be attracted, developed, and retained for Megvii to succeed. This
entails finding qualified candidates, offering training and development courses, and
promoting a supportive work environment. Employees at Megvii are important in
fostering innovation, client happiness, and operational excellence.
Megvii may find possibilities for cost optimisation, process improvement, and differentiation
by examining each stage of the value chain. Megvii can improve its value offer and provide
superior computer vision technology solutions to clients by using this study to better identify
the origins of its competitive advantage and prioritise strategic activities.

CONCLUSION
In conclusion, Megvii is a pioneer in computer vision technology and provides a wide range
of cutting-edge solutions that have found widespread adoption across several sectors. The
industry overview, market analysis, SWOT analysis, PESTLE analysis, customer
segmentation, customer journey mapping, AIDA model, Ansoff matrix, brand equity model,
McKinsey 7S framework, value chain analysis, and more have all been covered in this study
on Megvii.
Megvii competes in a market that is expanding quickly because to the increased need for
computer vision applications in sectors including security, retail, healthcare, and automotive.
Through the use of cutting-edge technology, a wide range of products, and tactical alliances,
the firm has effectively established itself as a major player in this market. Megvii's solid
financial results and global presence further emphasise its capacity for competition.
Megvii does, however, confront several difficulties, including as fierce competition, shifting
regulatory environments, and worries about data security and privacy. To keep up with
technical changes and keep its market dominance, the corporation must continually engage in
research and development. Long-term success also depends on sustaining consumer
confidence and happiness via first-rate customer service and continual innovation.