The competitive strategies adopted by Xiaomi are as follows.
Slim profits: As a private company, Xiaomi refuses to disclose its specific costs and benefits, only stating that the company is profitable. The 61 million mobile phones sold in 2014 generated approximately $12 billion in marketing revenue. But many question how much of that is profit. ? Always imitated: This last point quickly became one of the main problems facing Xiaomi. A number of manufacturers such as Huawei, Meizu, Lenovo, ZTE, and LeTV have launched online direct sales sales models and lower-priced product lines. Recently, even Qihoo has been trying to get a piece of the mobile phone market. ?Threats from competitors If the above five problems are placed on Huawei, Xiaomi's situation will be even more serious. First of all, after years of hard work in the US and European markets, Huawei has sufficient licenses and patent accumulation. It has three sales channels: online purchase, physical store operation and contract machine binding. Huawei is using actions to prove that its Honor product line can catch up with or even surpass Xiaomi. Huawei also has the ability to use the strategy of loss-making sales in high-end product lines to suppress Xiaomi. ?All these competitors have the ability to drive prices even lower. However, if they use money-burning methods to attract more users, such mobile phone companies will eventually perish. ?Expanding into other device fields? Xiaomi may use crowdfunding to raise funds and expand its product line. Xiaomi already has many products such as bracelets, power banks, cameras, TVs, headphones and even air purifiers. Xiaomi's marketing methods and distribution may be transformed into a long-term development model, not just dependent on the performance of smartphone hardware. cost market.