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SMMCG1[TP1]_Xiaomi corporation ([3] Industry boundary (Why to "…
SMMC
G1
[TP1]_Xiaomi corporation
[3] Industry boundary
smart hardware industry
「With the purpose of "always maintain 5% gross profit margin" and "create cost-effective products".」
Internet industry
mobile phone industry
How
to connect with each other?
Explosive Strategy
bring flow
make efficient sales
word of mouth / revenue
the hardware explosives will bring sales to Internet services.
more product assortment
higher consumption
customer unit price
Taiwan stores are higher than the general 3C store.
repurchase rate
conversion rate
Why
to "investing in a group of companies"
only develop mobile phones
unable to keep up with the market
form a market by "investment plus incubation"
[4] Market Structure
Oligopoly
Mobile phone industry
only a few large firms have a market capitalization of over 50%
have similar product but differ by unique features
barriers to entry is very high
market price is formed by tacit agreement between large companies.
Smart hardware industry
world’s largest IoT platform for smart hardware
only small number of companies
many barriers to enter
information is limited due to compeitiveness
Internet industry
risen to the top of the ultra-crowded Chinese technology market
services provided have differentiation
barriers to entry are extremely high
Each firm is affected by the decisions of its rivals
information in the industry is limit
[5] entry barriers
Smart hardware Industry
the research, development and capital-intensive production times are longe
high cost and harder for hardware than for software
The information in an oligopoly market is also very limited
Internet Industry
high investments in R&D, building gigantic datacentres
making the information in the industry limit
Each firm is affected by the decisions of its rivals and must take those decisions into account in determining its own price and output.
Mobile phone Industry
high customer switching costs
strong customer loyalty
patents
control over essential raw materials and market
[2] Porter's Five Forces Framework
Bargaining power of
buyers
is
weak
.
Buyer price sensitivity
The price advantage of the Xiaomi mobile phone is quite obvious.
Customer Value
strong connection with users
Mi fans community
Bargaining power of
suppliers
is
weak
.
For smartphones
suppliers are mainly large companies ex:Sharp and Sony
Xiaomi does not own any manufacturing plants
once had a considerable position in the mobile phone market but are currently declining
the bargaining power of their suppliers will not be very strong
chooses different suppliers
It also guarantees that it will not be constrained by a single supplier.
maintained the originality
open OEMs which does not involve technical property rights
manufacturer will not have too much technical property value
Threat of
substitutes
is
strong
.
Relative price performance of substitute
Traditional mobile phones, tablets, and laptops have similar functions.
The threat of tablets is the greatest.
Perceived level of product differentiation
personal identity
mobile phone industry
Samsung, Sony and Apple
hardware
Lenovo, Dell
entertainment electronic products
Samsung, Sony, Lenovo
software
Windows system of Microsoft
ios systems of Apple
product features and value
Competitive
rivalry
is
strong
.
Diversity of competitors
smartphones
Apple, SAMSUNG,OPPO, HUAWEI, VIVO, and ASUS
smart hardware
PHILIPS, LG, and Panasonic.
Entry barriers - patent rights
other established companies have many patent rights in the field of mobile phone
Threat of new
entrants
is
weak
.
Customer loyalty to established brand
customer loyalty
a comprehensive layout
Access to distribution channels
sales channel has been perfected
marketing sales model has been accepted
[1] PESTEL Analysis
Sociocultural
Changes in consumption habits
Online shopping and play mobile phones
Products of Xiaomi can be ordered online
Technological
5G is soon to be implemented in new devices
Xiaomi may be able to leverage its capabilities to use 5G
Economic
Powerful position
Targeted towards the consumer need high CP value
China economic growth ,people income increase, more demand for smart phone
Legal
Patent and copyright law
Data privacy regulation more strict
Affect software providers more than hardware providers
Political
Xiaomi have close ties with Chinese political system
Chinese government have restriction the import to the limit number of foreign
Home-field advantage in the domestic market
Environmental
Pollution getting worse
Xiaomi wants to push itself as one of the greener manufacturers
Group member
國企三 郭儀中 Eva
國企三 姜依伶 Elain
國企三 吳育修 Amy
國企三 葉冬婷 Teresa
國企三 王煒絢 Sharon
國企三 羅修銓 Chuan