Strategy As Practise

How Xiaomi Became An IoT Powerhouse

Ameed Ahmed
16853
M/W 3rd Slot
Xiaomi is currently one of the largest smartphone maker, surpassing even Apples and Samsung, with a revenue of
$15 billion, as well as the world’s largest IoT consumer with revenue of +$37 billion and +210 million IoT devices.

Operational Strategy: Xiaomi’s operational strategy was promising “high value at a reasonable price”

> Chose malls for its anchor stores and focused on value seeking consumer segment

> Started launching IoT products that gave rise to synergy between its’ smartphones and IoT products, hence
surrounding customers even in their homes and persuading them to purchase other Xiaomi’s IoT products as well

> Invested in partner firms to expand into categories outside company’s expertise both in financial terms and Human
Resources

>Company leveraged its’ brand power to ensure that these partner firms got the best raw materials at the right price to
ensure that Xiaomi’s brand wouldn’t suffer

> Adopted a cost leadership strategy and differentiated via innovation on multiple fronts by partnering up with both
the consumers and the suppliers.

> Made use of analytics to capture immediate purchases from customers or move them along a decision journey

> In essence, Xiaomi made use of the Value Sensing, Value Delivery and Value Capture Principles