Report on Xiaomi's Corporate Entrepreneurship and Business Model

This report delves into Xiaomi's corporate entrepreneurship and business model innovation, examining its strategies within the Chinese and global digital markets. It explores how Xiaomi has adapted to challenges, including brand awareness and competition, and highlights the adoption of a "Triathlon Model" integrating hardware, software, and internet services. The report analyzes Xiaomi's product offerings, such as smartphones, power banks, and online platforms, and discusses the impact of aggressive pricing and social media marketing. It also provides recommendations for implementing innovative strategies, emphasizing the importance of requirement analysis, employee communication, and a strong connection between working processes and potential strategies. The conclusion summarizes Xiaomi's efforts to mitigate limitations and enhance its growth through innovative business practices.

Running head: REPORT ON CORPORATE ENTREPRENEURSHIP AND BUSINESS MODEL INNOVATION
REPORT
ON
CORPORATE ENTREPRENEURSHIP
AND
BUSINESS MODEL INNOVATION
Name of the Student
Name of the University
Author note:

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Introduction:
The organization Xiaomi is a Chinese corporation who has always expressed their
interest towards catching the large electronic market across the world. Followed by this concern
it is identified that Xiaomi has tried to adopt the internet of things into their business with the
purpose to reach their desired success. While analyzing the Xiaomi business strategy it is
identified that this organization has introduced several effective products to the market which has
majorly influenced the Chinese market as well as the digital market across the world (An et. al.
2014). Followed by the years the launched smartphones has effectively impacted their business
growth as it largely contributes towards offering smart devices that will help to address the
business objective of the Xiaomi organization.
In order to discuss the above mentioned statement where the significance of innovation
has been observed in the nominated organization, this paper will focus on the discussion of
business model innovation and corporate entrepreneurship. With the purpose to discuss the above
mentioned aspect this paper will elaborate the how Xiaomi has faced the problems and their
business innovation model. Along with this it will also discuss about the offered product and
services that will address the opportunities and the challenges by Xiaomi. Lastly, it will conclude
with recommending the best implementation strategy by which the innovations will be
implemented into the business model in Xiaomi.
Identified issues and Future innovation:
While analyzing the earlier stage of the Xiaomi organization it is identified that initially
the organization was not at all a company that manufactures electronic devices, rather it was the
organization which offers e-commerce platform and mobile internet. Accidentally they have

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developed compatible devices which has majorly impressed the customer experience.
Considering the fact that in the Chinese market there are several competitors present Xiaomi has
effectively tried to impress their customers however, the organization has faced several problems
related to lack of resource as well as less compatible planning to implement their strategy
(Johannsson et. al. 2015).
Followed by the above mentioned concern in order to achieve their business target
Xiaomi has decided to implement new strategies. Considering this intention the organization
Xiaomi will adopt a unique service based business model the name of this strategy will be
leveled as “The Triathlon Model”. This business model will be an integrated model that will
focus on the integration of hardware, software and internet. Since, Xiaomi has now renowned as
one of the smart phone manufacturing industry it is identified that these type of business models
holds the capability to focus on the primary concern of the organization that will help to address
the identified issues in the current business model (Xie, Wu and Zeng 2016). While adopting the
mentioned business model the primary concern of this model will be on the software and the
service of internet whereas the hardware will be considered as the platform that will be helpful to
provide effective services to its consumers. Along with this in the future business model of
Xiaomi it has been determined that the approach similar to the Kindle will be very effective that
will definitely support the innovation in Xiaomi.
Apart from these considerations the adoption of aggressive pricing policy will surely help
the organization to get their desired success. As from the analysis of the market it is identified
that all most every consumer has the tendency to buy best products with least prices. Hence, it
would be very easy of Xiaomi to impress its consumers by providing smart devices with revised
prize which will low compared to other brands (Zhihong, Duffield and Wilson 2015). Along with

3CORPORATE ENTREPRENEURSHIP AND BUSINESS MODEL INNOVATION
the adoption of the aggressive price policy in the future business model of Xiaomi it will surely
focus on the social media platform and its marketing strategies. As observed earlier that the
nominated organization has always intended to advertise their product via internet. Thus, in the
approached business model it will primarily focus on the marketing of their products via internet.
An analyzing of this model has helped to understand that this strategy will help to reduce the
maintenance cost as well as the marketing cost (Bashir and Verma 2017). Followed this concern
it is identified that the adoption of the online shopping strategy will be very helpful that will
draw future success towards the innovation process of Xiaomi.
Followed by the elements in the above mentioned business model of Xiaomi, it is
identified that in the smart phone business of china Xiaomi has effectively initiated the process
of developing an eco-system for Xiaomi smart products which includes the several device like
television, router as well may others (Xie and Liang 2013). Along with this in order to expand
the business growth Xiaomi has intended to integrate the software and hardware which will
definitely help to gain financial profits as well.
Offered Products by Xiaomi:
Followed by the above discussion it is identified that since, Xiaomi has faced several
problems with their previous business model. Considering this concern a detail elaboration of
those problems and impact on the offered product as well as the services of Xiaomi is discussed
below:-
 One of the major problems faced by the Xiaomi was due low brand awareness as for any
new brand it is very essential to catch the customer’s eye. As Xiaomi is one of the brand
in China but with compared to the other popular brands like Samsung and Apple, Xiaomi

4CORPORATE ENTREPRENEURSHIP AND BUSINESS MODEL INNOVATION
is new in the market. Along with this it has been identified that the Xiaomi’s business
strategy was primarily focused on the China market (Yanzhuang, Lei and Hongchun
2015). Thus, while advertising overseas the organization experienced major threats to
since, in the outer market of China there are several competitors present that gives a huge
completion to Xiaomi.
 Followed by the above identified aspect it is determined that one of the major problem is
the quality controls and the after sale problems. As in the after buying the products of
Xiaomi almost 6000 user has faced major problems (Li, Jia and Du 2019). However,
there was no such services offered by Xiaomi that may help to mitigate their problems.
With allowance to these identified concerns it has been identified that Xiaomi has now
strategies for mitigating these limitations with most effective services and products. While
analyzing the effective of these products it is identified that these products holds the capabilities
to reduce the identified threat that may influence the success of Xiaomi.
 Adoption of Service based business model- holds a major impact on the enhancement of
the business growth of Xiaomi. As this model includes the feature of incorporating the
service of the internet, hardware and software (Jia 2015). As due to the integration of
these application Xiaomi will get the benefits of providing the product purchasing
services for Xiaomi to its consumers.
 One of the effective products offered by the brand Xiaomi which has influenced the
business growth of the organization it is identified that Xiaomi has manufactured power
banks, chargers, air purifier as well as other peripheral products. Along with the above
mentioned products it is also identified that Xiaomi also offers Weibo, WeChat and
Xiaomi Mall which has also help the organization to attract more customers (Wanqiang

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2016).
 Followed by the above mentioned aspect it is identified the adoption of the aggressive
price policy will also effectively reduce the impact of the identified threats. Making
allowance to this concern it is identified that Xiaomi will provide low prize products
compared to the other brands which will help Xiaomi to get more brand awareness and
add value proposition.
 Along with this the adoption of online service will also help the organization to provide
more effective services to customers by providing them online product searching
experience (Li and Reimers 2015).
 Along with the above mentioned products and service which has helped to provide
advance services to its customer, the adoption of social media platform for marketing will
also help to reduce the marketing cost of Xiaomi which will surely help to influence their
business growth.
 Apart from these the development of ecosystem for Xiaomi device will also help the
organization to add extra value chain for the smart devices (Lee 2014).
Recommendation for implementing innovation in Xiaomi:
In the above discussion it is very significant that Xiaomi needs several innovation
strategy into their organizational structure as these approached innovations will help Xiaomi to
enhance their growth of success. Hence, it is very essential for Xiaomi to effectively implement
the approached strategy. Followed by this discussion it is identified that the adoption of effective
implementation strategy will be help Xiaomi to reduce the other potential problem that may
influence the business growth. While implementing effective implementation strategies into
organizational infrastructure it is identified that insufficient development of an innovative

6CORPORATE ENTREPRENEURSHIP AND BUSINESS MODEL INNOVATION
strategy is very significant (Greeven and Wei 2017). Considering this concern it is identified that
in order to implement the innovative strategies into the organizational infrastructure it is very
essential to adopt advance strategies rather than depending upon the technologies for the
implementation process. While analyzing this aspect it is identified that the with the purpose to
develop the innovation strategy it organizational must have the innovative capacities, resources,
information as well as the processes of innovation. Hence, it is suggested to thoroughly analyze
the requirements of the business and get detail information then apply the required action where
needed. Along with these, it also cannot be avoid to map the requirements as per the potential of
the organization which will help the administrator to successfully estimate the required action for
the identified issues (Lee and Trimi 2018). Making allowance to this concern it is identified that
in case of implementing the innovation into the business infrastructure it is identified that most
of the implementation failure happens due to the lack of requirement analysis and understanding.
Thus, it is highly recommended that the organization must seek the help to professional and
thoroughly analyze the problematic areas as well as the requirements which will help to
effectively implement the innovative strategy.
While analyzing the problematic areas it has been noticed that in case of the successful
implementation of innovation strategy into the business infrastructure there is a huge significance
of human factors as in case of any fault happened by any staff while implementing effective
innovative strategy the implementation process may get interrupted (Zhihui, Wei and Ziwei,
2015). Hence, it is highly suggested to the organization that the higher authority must
communicate with the employees of the organization. Considering this aspect it has been
identified that adoption of effective communication process will help to enhance the
communication process between them.

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Followed by this concern it has been identified that lack of awareness also help impacts
the innovation process as it is identified that the detail knowledge of the problematic area is
highly essential (Jiangang and Xijiao 2016). Thus, it is recommended to Xiaomi that they must
initiate the implementation process by establishing strong connection between working process
and the potential strategy. Thus, the adoption of any analysis tool will help the admin to analyze
the working process and success of the implementation process.
Conclusion:
After completion of the above discussion it is identified that the nominated organization
Xiaomi is one of the popular manufacturer company that develops smart devices like mobiles
and peripherals. Followed by this concern it is also identified that the organization has expressed
its interest toward incorporating effective mitigation strategies which will help to reduce the
impact of identified limitation that are present in the current organizational infrastructure of
Xiaomi. After the analysis of the mentioned aspect this paper also includes a detail elaboration of
the future innovation strategies and the approached business model. Followed by this
identification this paper also consist a detail information about the offered services and products
of the Xiaomi and how these product and services are enhancing the business growth of Xiaomi.
Making allowance of this concern it is identified that in the next section this paper has included a
recommendation which has elaborated that how the approached innovation strategies needs to be
implemented as it is identified from the studies that due to the lack of innovative implementation
most of the organization have faced several issues with their business process. Thus, it can be
stated that this paper will surely help the organization to effective implement the identified
innovation strategies into the organizational infrastructure of Xiaomi.

8CORPORATE ENTREPRENEURSHIP AND BUSINESS MODEL INNOVATION
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