Business Development: Xiaomi Case Study and Expansion Strategy

This case study analyzes Xiaomi, a Chinese multinational electronics company, examining its success factors and potential for international expansion. The study focuses on Xiaomi's business model, including its innovative approach to product design, marketing, and distribution, particularly in the Chinese market. It then proposes Ghana as a suitable country for expansion, supported by a detailed PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) analysis. The analysis highlights Ghana's stable political environment, emerging digital economy, favorable demographics, and technological advancements. The conclusion summarizes the findings, emphasizing Ghana's suitability for Xiaomi's expansion due to its alignment with Xiaomi's low-cost strategy and the country's focus on technology and development.

Case Study Analysis

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Analysis of Case Study................................................................................................................3
Expansion of Xiaomi...................................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
This study will involve analysis of case study of Xiaomi, it is a Chinese multinational
electronic company. It was founded in 2010 by Lei Jun and headquarter of company is situated at
Beijing, China. Company operates in consumer electronics and computer hardware industry. On
the basis of analysis of case study of Xiaomi suggestion will be made about country in which
company can expand its business.
MAIN BODY
Analysis of Case Study
Case study of Xiaomi outlines success of Xiaomi in few years and reasons behind success
of Xiaomi. Xiaomi was a tech start-up and was started in 2010 and in very limited time it has
managed to succeed and outperform many of the competitors including both national and
international competitors (Cao and et.al., 2020). Products of Xiaomi include mobile phones and
Internet of Things products. In this international competitors of Xiaomi include Apple and
Samsung and national competitors include HTC, Huawei and ZTE, Coolpad and TCL. Case
study outlines that reason behind immense success of Xiaomi in Chinese market is its products in
which it offers Android like operating system MIUI and made its operating system using creative
design and more user friendly for Chinese customers. Along with its product, business model of
Xiaomi was also a element to contribute in success of Xiaomi. It used suppliers of Apple and
Samsung to build reputation and its business model to reach consumers was also innovative.
Xiaomi build online marketing and distribution channels and targeted tech-savvy information
technology engineers and students while its online Xiaomi forum and its website was its main
sales channel. Case study further outlines that product of Xiaomi may not be true source of
success and its true source of success is its fans’ community (Liu and Rieple, 2019). However,
being highly successful in China and acquiring major portion of market share, international
success of Xiaomi remained limited.
Expansion of Xiaomi
Xiaomi has its presence in around 100 countries in the world and this is why in all major
countries it has its presence. Now company can expand its business in Ghana formally known as

Gold Coast, is situated along the Gulf of Guinea in West Africa. Ghana is a developing country
and its capital is Accra and official language is English. Population of Ghana is 31,072,940 and
this makes it one of the reason that Xiaomi can advantage from population in Ghana (Donkor,
Donkor and Kwarteng, 2018).
Pestle Analysis of Ghana
Political Factor- This is concerned with how political elements and government of the country
affect operations of multinational company in country. Ghana’s government system is unitary
presidential constitutional democratic system. On the basis of fragile state Ghana rank 5th in the
list of, least fragile African country. This means that Ghana’s political environment is very stable
and this is why political environment of Ghana is favourable for expansion of Xiaomi.
Economical Factor- Concerned with economic environment, Ghana is a developing is country
and a suitable country for expansion by Xiaomi (Ahmed and et.al., 2020). Ghana is a country
that has average natural resource and possesses several precious metals and natural resources
useful for industries. Along with this, Ghana is emerging as emphasis on digital economy and
mixed economy and hybridisation. Other than this, Ghana is an emerging market and its target ed
plan for economy is known as ‘Ghana Vision 2020’. According to this, Ghana aims at becoming
first country in Africa to become a developed nation within the year 2020 and 2029 and an
industrialised nation within 2030 and 2039.
Social Factor- In terms of social environment Ghana has one of the highest rate of school
enrolment in Africa. In Ghana people aged between 15-64 years make of around 57.8 percent.
This suggests that demographic characteristics of Ghana are favourable for Xiaomi to expand its
business. Per capital income of population in Ghana on the basis of purchasing power parity is
$8,343 and on the basis of nominal GDP it is $4,266.
Technological Factor- Ghana was first Southern-Saharan African country that launched
network for cellular mobile and was 1st nation in Africa to get connected with internet, this
suggest that Ghana is also at forefront in terms of technology development compared to other
nations in Africa. Along with this, in terms of technological environment of Ghana, it is
emerging as digital-based mixed economy (Osabutey and Croucher, 2018). Ghana is increasing
primary manufacturing and export of goods required for digital technology. Information and

communication technology is one of the important industries in Ghana and along with this, there
are industries working towards manufacturing of smartphones, computers and other products for
consumer electronics.
Legal Factor- Ghana intends to become hub for information technology in West Africa and
because of this Ghana’s government enacted laws for cyber crime to improve quality of practices
of cyber security. Ghana also has passed act for electronic communications and electronic
transactions and these are certain legislator frameworks on the basis of which information
technology and related actions are governed by Ghana’ government. This requires that Xiaomi
needs to follow different rules and regulations regarding information technology in Ghana.
Along with this, consumer protection laws cover common issues.
Environmental Factor- Environment has become prime consideration by many organisations,
countries and citizens and in this Ghana is also included. Ghana has included sustainable
development goals into Ghana’s development agenda and its budget (Welbeck, 2017). There are
several ways through which sustainable development goals are being enforced in Ghana and this
suggests that environmental sustainability in Ghana is very important. This requires that when
Xiaomi operates in Ghana environmental impact should be considered by it.
CONCLUSION
On the basis of above discussion, it can be summarised that Ghana is an appropriate
country to be considered by Xiaomi for expansion. Ghana is a country that has kept information
technology and technology at centre and this is an opportunity for Ghana. Ghana also being
developing and low-income country is suitable for Xiaomi, because it is also selling its phones at
low rate. Along with this, on the basis of political environment Ghana is stable and in terms of
economic environment Ghana is not only suitable for commercial business but can also be
considered for manufacturing by Xiaomi.

REFERENCES
Books and Journals
Ahmed, A and et.al., 2020. City profile: Wa, Ghana. Cities. 97. p.102524.
Cao, X and et.al., 2020. The Role of Managerial Cognitive Capability in Developing a
Sustainable Innovation Ecosystem: A Case Study of Xiaomi. Sustainability. 12(17). p.7176.
Donkor, J., Donkor, G.N.A. and Kwarteng, C.K., 2018. Strategic planning and performance of
SMEs in Ghana: The moderating effect of market dynamism. Asia Pacific Journal of Innovation
and Entrepreneurship.
Liu, S. and Rieple, A., 2019. Design management capability in entrepreneurship: A case study of
Xiaomi. International Journal of Design. 13(3). pp.125-138.
Osabutey, E.L. and Croucher, R., 2018. Intermediate institutions and technology transfer in
developing countries: The case of the construction industry in Ghana. Technological Forecasting
and Social Change. 128. pp.154-163.
Welbeck, E.E., 2017. The influence of institutional environment on corporate responsibility
disclosures in Ghana. Meditari Accountancy Research.