Management 1: Xiaomi Corporate Entrepreneurship Report

This report examines the corporate entrepreneurship of Xiaomi, focusing on its business model innovation, particularly within the context of disruptive technologies and the Internet of Things. The report provides an overview of Xiaomi's company description, its business model innovation, including disruptive strategies and value creation, and its business strategy encompassing product design and technology. It identifies challenges like competition and after-sales service issues, while also highlighting opportunities in mobile technology and online platforms. The report recommends implementing innovation initiatives through social media promotion, strategic planning, and the adoption of advanced technologies, with a focus on continuous innovation and a flexible working environment. The conclusion emphasizes the importance of adapting to market dynamics and leveraging technology for future growth.

Running Head: Management
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Xiaomi
Corporate entrepreneurship
1/9/2020

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Contents
Introduction......................................................................................................................................2
Company Description......................................................................................................................2
Business Model Innovation.............................................................................................................2
Challenges and/or opportunities of Xiaomi.....................................................................................4
Recommendation to implement the innovation initiatives..............................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

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Introduction
The report will outline the future corporate entrepreneurship of the company Xiaomi and its
business innovation model. In this report, the plan will also be suggested for making the
innovation sustainable. There are several opportunities in the products like smartphones, smart
bands, TVs, tablets; laptops, MI note series, etc. so with the help of the proper business model
innovation, the up-gradation or specifications will be done. The company Xiaomi innovation
model belongs to the Internet of Things and in its effective services so in this report this will be
elaborated (Bashir and Verma, 2017). The challenges faced in the innovation business model
will also be responding and recommendations will be given to improve that. The report will also
evaluate the opportunities in the products, services, processes and business models which help in
leading the growth of the company.
Company Description
Xiaomi is a Chinese company which was founded in the year 2010 by Lei Jun. The company is
an electronics company that deals in mobile apps, smartphones, bags, laptops, trimmers, fitness
bands, etc. (TIAN, 2018). Headquarter of the company is in the Haidian District, China. The
company Xiaomi is the youngest and has gained a large market share in China. It is the fourth
largest manufacturer of the smartphone and also develops a wide range of electronic products.
Business Model Innovation
Disruptive business model innovation: The Company is developing its market rapidly and can
attain more customers if they adopt the disruptive innovation idea. The company has offered
online sales services to its customers to create a new market. The company Xiaomi sees the
future of the corporation on the internet of things and in its effective services. With the help of e-
commerce and social networking, the company raised its growth.
Business value and creation of the company Xiaomi: From the last IPO of the Xiaomi
Company, it has 40% of its value creation in the market. The company has created great value in
the market as they are offering the product to the company which is of valuable technology
(Bashir and Verma, 2017). The company has gained enough money from the investors so their

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value in the market is more than the US$46 million. The company has generated huge revenue in
the market as its annual sales were increasingly increasing. The products offered by this Xiaomi
are quietly cheap than the other technology companies so it helps the company in attracting more
customers and creates a large market share.
Business strategy of the company: The Company Xiaomi has the business strategy that they
have to utilize and gather a large fan base so they will offer a wide range of products with the
new innovation every time. The strategy of the company is to offer the products at a reasonable
price so that it becomes convenient for the users to buy (He, 2018). The design of the products
will be great and with the help of the Eco chain, constant optimization of the product can be
done. They want to introduce smartphones with great specifications so their strategy is to attain
the lower margin but to provide the great specifications.
Product/ Technology: The products offered by Xiaomi are smartphones, smart bands, TVs,
tablets, laptops, MI note series, etc. The company has the most valuable technology and they use
the unique design every time. The innovation in the company Xiaomi is that it always brings the
new product with some new specifications. Xiaomi is the world’s best private technology
company whose value is more than US$45 billion. In recent, the technology available in this
brand is the MI 9 phone (Rieple and Kapetaniou, 2017). In the display of the Xiaomi phone, the
fingerprint scanner is available. The top supplier technology of this company is Holitech
Technology Co. Ltd which has a severe vulnerability in the company.
Ecosystem and resource: As the business environment is very dynamic and advanced so every
time the new technology is demanded with the new innovation or creation. The future of this
corporation will stay longer if the company develops the new specifications every time and make
the product without harming the ecosystem. The company Xiaomi also takes care that the
resources which are available should be used in an effective manner and innovation is made
within those available resources (TIAN, 2018). If some advanced technology is required then the
more resources will be attained by the company so that the corporation will not face the
problems or issues in the future.
People: Liu De was the co-founder of the company who was putting the major focus on the
innovation of the new companies instead of checking the latest features. The top management,

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customers, sponsors, competitors, facilitators, ambassador, etc. play an essential role in the
business model innovation. The competition will not be tough in the market as the company will
not think to produce more innovative things. The customers’ demands and needs are high which
lets the company think deeper and create new features. The top management offers a wide range
of the product with the innovation so that in the less price more profit can be attained.
Challenges and/or opportunities of Xiaomi
The company Xiaomi has faced certain challenges such as in their early days there was facing
the challenge of money. They have started with the $11 million capital by combining the funds
from the different ventures. The company was not offering advanced functions as they were just
offering the texting capabilities and basic calling. The competition in the telecom companies is
much higher which was creating the biggest challenge for them. The biggest challenge for the
company Xiaomi was the high competition in the market related to smartphones. There were
many manufacturers who have large domestic telecoms (Sun, et al., 2018).
The company’s demand was increasing and people were more buying the products. So this also
creates a challenge for the company as the company was demanding the extra-talented
employees and the designers experienced. The company Xiaomi also faces the challenges in
delivering the services (Wang, 2019). There are not many stores of Xiaomi which repairs the
electronic things. It is the biggest challenge for the company as after-sales the quality problem
arises which affects the consumers.
The company Xiaomi has certain opportunities such as they have a Chinese smartphone in which
the screen is smaller but the picture is big. The company has a good team which is the biggest
opportunity for them as in the few months only they have developed the plan to introduce the
new smartphone. The Liu has recognized the opportunity that people are tram forming towards
the mobile technology so instead of offering hardware’s and software’s the company has to
develop the high-tech smartphone as the young people need it and the growth of mobile phones
is rapidly increasing in the market (Ortiz, et al., 2019).
Another biggest opportunity for the company is that they have the ROM which is a custom
operating system that would be first in the android phones. The online websites have also created

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a great opportunity for the company as it was increasing their demand and the fans and
customers can also give their suggestions and feedback over there (Bashir and Verma, 2016).
The company Xiaomi was offering the effective design of handsets and also offering new
software smartphones so it was attracting the new generation so they get attracted and the
company has the opportunity to raise their growth. The company also has a good working culture
which was attracting the employees to work over there.
Recommendation to implement the innovation initiatives
The company was making smartphones with the new features or specifications but they should
truly describe the future state. When any innovation is brought by the company then they should
start promoting the things with the help of social media so that people get awareness about that.
It is recommended that there are many consumers which are not aware of the innovation things
so with the help of social media connection they have to spread awareness regarding the
innovation (Lee and Trimi, 2018). The competition in the market is very high so the company
needs to make the proper plan and use the corporate accounting tools so that they can make the
innovation process in a better way.
It is recommended that the innovation model has to be followed by the company as per the
specific time and there should be no delay. Generally, the employees take the model lightly as it
belongs to the future period of time so it is important to complete the work within the timeline.
There are many technology gaps have been seen in the environment so it recommended that the
company should use advanced technology so that market opportunities can be attracted (Zeiss,
et al., 2019).
The market developments and the scenarios should be explored by the company Xiaomi so that
better innovation can be done. The desired goal of the company cam neb achieved when it is
happening within the time so initiatives for the innovation of the company should be driven at
equal intervals. The leadership style should be developed by the company so that future
innovation model can be implemented (ZHENG and YANG, 2017). The company should also
have effective resources and they have to purchase the updated technology which focuses on
innovative ideas. It is also recommended that the company Xiaomi should not only focuses on
R&D but also put the major focus on the other departments.

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After evaluating the opportunities for the innovation the company has to priorities the business
innovation model and put the major focus on that. The potential innovation should be tested by
the company which is the major recommendation so that the performance of the company can be
evaluated and if there were any defaults that it can be learned from the innovation effort (Liu and
Rieple, 2019). The innovation model can be easily implemented if there were an easy-going
culture and a flexible working environment in the company. So it is recommended that
innovation can be done in an effective manner when there is a good working environment. The
diversity at the working culture is needed so it is recommended by the company Xiaomi to
recruit different diversity of the employees so that they can keep at a diversified level.
Conclusion
From the above report, it is evaluated that Xiaomi Company is facing certain issues and
problems in the innovation business model which has stated above. The company was following
the disruptive innovation model in which the internet of things is used. The online networking
connection is major and the ecosystem has emerged in the IOT. In this report, the business model
has explained with the business model innovation which included things like an ecosystem, value
creation, resources of the company, etc. There are certain challenges such as competition in the
telecom companies is much higher and there are many manufacturers who are inventing the new
phones with innovation. The great opportunity for the company Xiaomi is offering the effective
design of handsets and also offering new software smartphones so it was attracting the new
generation and enhancing the growth of the company. The recommendation to overcome the
challenges as stated above which helps in making the innovation model more effective.

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References
Bashir, M. and Verma, R., 2016. Airbnb disruptive business model innovation: Assessing the
impact on hotel industry. International Journal of Applied Business and Economic
Research, 14(4), pp.2595-2604.
Bashir, M. and Verma, R., 2017. Value creation through business model innovation: a case study
of connect broadband. Prabandhan: Indian Journal of Management, 10(3), pp.53-60.
Bashir, M. and Verma, R., 2017. Why business model innovation is the new competitive
advantage. IUP Journal of Business Strategy, 14(1), p.7.
He, S., 2018, June. Research on Platform Strategy of Enterprises from the Perspective of Value
Co-Creation-Taking Xiaomi's Ecological Chain as an Example. In 2018 2nd International
Conference on Management, Education and Social Science (ICMESS 2018). Atlantis Press.
Lee, S.M. and Trimi, S., 2018. Innovation for creating a smart future. Journal of Innovation &
Knowledge, 3(1), pp.1-8.
Liu, X.H. and Rieple, A., 2019. Design management capability in entrepreneurship: A case study
of Xiaomi. International Journal of Design, 13(3), pp.125-138.
Ortiz, J., Ren, H., Li, K. and Zhang, A., 2019. Construction of Open Innovation Ecology on the
Internet: A Case Study of Xiaomi (China) Using Institutional Logic. Sustainability, 11(11),
p.3225.
Rieple, A. and Kapetaniou, C., 2017, August. The role of business ecosystems in the building of
disruptive innovations. In Academy of Management Proceedings (Vol. 2017, No. 1, p. 15200).
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Sun, Q., Wang, C., Zuo, L.S. and Lu, F.H., 2018. Digital empowerment in a WEEE collection
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TIAN, J.M., 2018. Customer Engagement in Value Co-creation of Xiaomi: A Case
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Zeiss, R., Recker, J. and Müller, M., 2019. Hardware-layer Dynamics in Mobile Platform
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