International Business Strategy : Assignment
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Added on 2020-07-23
International Business Strategy : Assignment
Added on 2020-07-23
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International BusinessStrategy
Table of Contents1. The Purpose.................................................................................................................................32. The Scope.....................................................................................................................................33. The Disadvantage.........................................................................................................................34. The Summary...............................................................................................................................35. Geographical area selection.........................................................................................................55.1 Selected countries.............................................................................................................56 Overview of Poland market..........................................................................................................77 Critical analysis on Poland............................................................................................................87.1 External environment analysis.........................................................................................87.1.2 Porters 5 forces............................................................................................................117.2 Resource competency analysis.......................................................................................127.3 Key success factor..........................................................................................................137. 4Xiaomi SWOT in Poland................................................................................................138. RECOMMENDED STRATEGIES ..........................................................................................148.1 BASIC STRATEGY......................................................................................................148.2 GENERIC STRATEGY.................................................................................................148.3 ENTRY STRATEGY.....................................................................................................159 RECOMMENDED TACTICS....................................................................................................15RECOMMENDATION ................................................................................................................15CONCLUSION..............................................................................................................................15REFERENCES..............................................................................................................................17
EXECUTIVE SUMMARYWith the development of smartphone market in China :China is considered as an important part of Xiaomi's journey as they are having theirown production plant their and team work there is also considered very effective. But due toincrease in no. of smart phone companies in China, competition of Xiaomi has increasedimmensely because of which their growth in China's market has stopped. With the launch ofOppo and Vivo smartphones, Xiaomi has came down. Thus it has been advised to Xiaomi thatthey should start expanding themselves at other countries as well so that they can maintain theirposition in he market and gain profits as well. Xiaomi is has gained success in market of china and India because of good supply chainand Manpower. Both these services are easily available in both the countries so Xiaomi was ableto supply its products at a faster rate and people were liking it also. In India, Xiaomi is amongthe third largest smartphone brand in the top 30 countries in India. They are giving strongcompetition to Samsung.Now, It has been suggested that Xiaomi should be launched in Ukraine as after tastingsuccess in India and China, it is said that Xiaomi will be a success in Ukraine as well. It isassumed because every third Ukrainian is considered to be using a smartphone and with thisdevelopment Xiaomi can easily place themselves in market of Xiaomi. Xiaomi's Low cost and High feature product benefits:Ukraine country is situated in Eastern Europe. This country is very developed intechnology. People residing there are very techno friendly and very smart phones for theirworking. Every third person posses smartphone. Initially there is vast market of iPhone. Xiaomi is a mobile manufacturing company whose plant is situated in China. As labourin China is cheap and resources are available easily it proves to be beneficial for company. Thisgenerates good revenue for Xiaomi. Xiaomi can easily track the market of Ukraine as these days there people are more attracttowards android. Xiaomi provides phone at lower price and with good quality as comparison toLenovo, Samsung. Operating system of Apple phones are ios, which is not much liked byconsumer in Ukraine. To establish in Ukraine market company can launch its mobile with discount orexchanges offers. As people are dynamic they will try new company. Company have to provide3| P a g e
good after sales services so that it increases the goodwill. Xiaomi can advertise by showing goodbattery battery back, camera feature, storage, etc at reasonable price. Company can launchphones by special discount for college going people or professionals as they require phonesmore. Company should give good discounts to distributors so that they also insist consumer tobuy Xiaomi phones.CONCLUSION:This is the time when Xiaomi have to advertise in the market of Poland. As there are fewcompany of mobile phones such as Simplus, Virgin Mobile Polska, T-Mobile Polska, etc. hencethere is monopoly of these companies in the market. Xiaomi can launch there mobiles in marketof Poland with discounted or reduced price. It provides them benefit of create existence in the market. If this company company doesnot enter in market there are chances that Oppo, Vivo, Huawei can grab the opportunity. It is lossof opportunity in the market for Xiaomi. At this time it is easy to create interest for the brand inmind of public. But if Vivo, Huawei, Oppo enter and create existence in Poland than it is toughfor Xiaomi and it requires more fund for advertisement.4| P a g e
1. The PurposeThe objective of given study is to facilitate information to Xiaomi administration for itsdevelopment in Europe potential market.2. The ScopeThis report has wide scope as a number of research tools has been utilised such as Porters5 force model, External auditing tool and various other frameworks that provide immenseinformation on the subject matter (Astrachan, 2010).3. The DisadvantageIn order to gather information, use of already available data is done which limits its quality dueto absence of any primary content which is more reliable.4. The SummaryIt is analysed from the sales slump that took place in October 2017 that Xiaomi might comeacross a close rivalry in order to hold total increased revenue in market. It was identified whenthe total digital sales of the referred organisation reduced by 10% and due to which company hasto do compromise with the phone components.If Xiaomi is compared with other organisations in the same field than it falls on third positionwith having business of USD 46billion. It has achieved this value due to its effective strategy ofproviding quality services at reduced cost. In year 2014 it experienced a massive growth 2275%and therefore it become a part of top five tech – companies.Apart from this the referred organisation also use the technique of promoting income throughflash sales which resulted into purchases of more that 2 million smartphones by customers in asame day. Its expansion in the total market share was a result of great efforts taken by HugoBarra's who is the vice chief of the business taking place at global level. In Indian market it fallsat the 2nd position in the same industry (Birkinshaw, Brannen and Tung, 2011).Given beneath is tabular presentation of smartphones at international level:5| P a g e
There was tough competition in the technology industry due to expansion in applications andresources still Xiaomi manage to survive and maintain its top five position since 2014.However due to close rivalry given by OPPO in 2016 the refereed business enterprise lost itsfourth position and experienced downfall in its entire market share with reduction of 1.3% intotal part of potential market. A scandal took place in Samsung which positively effected OPPOand other company but Xiaomi failed to grab this opportunity too as it does not found anypositive change in its revenue likewise other in the same field (Cantwell, Dunning and Lundan,2010). When total change in the revenues of different companies was compared than statisticsshowed that both Huawei and OPPO were successful in increasing their sales by raise in theirtotal market share.Figure 4.2 Revenue of different organisation dealing in smartphonesAccording to the above table profit generated by distinct telecom operators varies fromone another. It is observed that although the total market coverage of Xiaomi was less it wascapable of resecvng equal benefits like that of Huawei and OPPO. It received 0.128 incomeaccording to profit ratio which is 3rd best in ratio in same.6| P a g e
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