MG624 Strategic Marketing: Xiaomi Market Entry and Analysis Report

This individual management report, prepared for Ashanti Solutions, focuses on developing a marketing strategy for Xiaomi, a company specializing in phones, watches, and other consumer electronics. The report recommends introducing a new holographic phone in Germany. It begins with an executive summary and introduction, followed by a detailed PESTLE analysis of the German market, examining political, economic, social, technological, legal, and environmental factors. The report then evaluates different market entry options, including strategic alliances, mergers & acquisitions, and foreign direct investment, recommending mergers and acquisitions as the most suitable approach. Furthermore, the report applies market segmentation and targeting concepts to identify potential customer segments. Finally, it concludes with a summary of findings and recommendations, providing a comprehensive strategic marketing plan for Xiaomi's expansion into Germany.

Individual management report

Table of Contents
Executive summary.....................................................................................................................................3
Introduction.................................................................................................................................................3
Recommend a product or service and a country..........................................................................................3
PESTLE.......................................................................................................................................................4
Market entry options....................................................................................................................................6
Market segmentation...................................................................................................................................7
Porter’s generic strategy..............................................................................................................................9
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11

Executive summary
This project report is related to the Ashanti solutions company with the aspects of covering
marketing strategies. This business is based on the Xiaomi that deals in the phones, watches,
bag ,laptop, shoes, fitness bands etc. This project is related to making the marketing strategies
that will introduce for developing the new product and with this enter into the new market. The
main target is to make the plan for the decision making and covers its by various sections of the
marketing segmenting, positioning and the targeting(Jepsen and et. al., 2017).
Introduction
Management refers to a framework of dealing, managing and controlling the various
activities or the person. It refers to set the objectives to earning and enhancing the profits of the
organization. The main aim of making this report is to learn the variety of knowledge about the
management skill. The main objective of project is to identify the need of the management in the
business enterprise. This report is based on Xiaomi that is one of the prominent company in
china. it includes the PESTLE analysis for analyzing the external environment. Further it shows
the ways of market entry and market segmenting that helps in attracting many peoples. At last it
shows the porter’s generic strategy.
Recommend a product or service and a country
New product and its recommendation
To stay in the competitive market for a lifelong company need to develop and modify the new
goods. This helps in attracting large number of customers and also gains the competitive
advantage in the market place which is very important in today’s environment. In MI, manager
needs to introduce the new product to enhance and explore their business in new heights. In this
manager need to launch a new mobile phone of that contains high quality camera and
holographic phone which is very useful for the clients as they very affordable in nature at the
same time providing new features and model. Holographic phones are very attractive as they are
made up of 3d glass for which a person does not need any special glass to see this they can
normally see this(Vogelmeier and et. al., 2017).
Recommendation
To launch the new service and product Ashanti solutions gives the various suggestions
for this where they use it or whom to sell it. In this they firstly target the customers who are
regular users for the phones and it will also helps in enhancing the organization, attracting more

other users and also helps in increasing the revenues and the profits. They also analyze the whole
market and take the customer feedback. This will make the customer loyal towards the company.
New country and its recommendation
As a senior manager of the Ashanti solutions limited they suggest the Xiaomi to expand
their business in the Germany which is one of the best nations with a developed market. It place
a great opportunity for the company to expand their business in country this will increase the
number of customers and also helps in enhancing the sales and profits for the long term. It also
helps in increasing the GDP by providing the employment to the people of different
country(Fozer and et. al., 2017).
Recommendation
They operate their business where there are less number of competitors are present and
there is risk of new entrant where the new company cannot be established very frequently. It
helps in attracting new customers and potential customers. It will increase the market size,
growth, infrastructure of the firm and also helps in longer sustainability in the market.
PESTLE
Macro environment refers to that factors which shows the impact of the external factors within
the organization. it refers to that condition which demonstrate the whole economy not a
particular sector or the region. To analyze the external factor Xiaomi Company use Pestle
analysis that can be shown below.
 Political factor – This factor suggest the influence of government on the economic and
environment factors involving fiscal policy, trade tariffs etc in the country Germany. For
Xiaomi, manager of Ashanti solution analyze all the policies and the tax rate of the
Germany. It is very important to examine all the policies and the tax rate. The country
has combined corporate tax rate amount is approx 30-33% that is normal. It will create a
opportunity for the Xiaomi if the tax rate is stable in the nation. But at the same time it
will create threat if the tax rate is increased because of this the firm reduced its profit
margin and its revenues(Sridhar and et. al., 2016).

 Economical factor - this factor includes the inflation rate, economic patterns and foreign
exchange rates etc. Germany has the world largest economy and at the same time
contains the strong GDP and has been a fourth in worldwide. For Xiaomi it is beneficial
to open a store in the country as it contains strong GDP where people can purchase the
products very easily. It will create the opportunity for the firm as they earn more profits
and high market share. If the organization has low gross domestic price than it will
become a threat to a business as there stores face loss.
 Social factor- This factor suggest the social, demographic, cultural, values, customs,
population etc. Germany is the best company in terms of health, wealth and standard of
living of the people. It is the second largest population country in the Europe. For
Xiaomi, establish their store is very beneficial and create a lots of opportunity as there
people spend more on the products because they are economical stable and it helps the
firm to generate their profits and revenues at high extent. It will also create threat if the
company cannot fulfills the demand of the peoples at the time of making the new
innovative phones(De Villa, Rajwani and Lawton, 2015).
 Technological factor – In today’s world use of innovative technology is a trend and
Germany is the country with highly advanced technology user. In this manager of the
Xiaomi can examine the whole market what type of advancement can take place in the
country after that they make innovation in their products. It will create a great
opportunities for the firm as it helps in knowing the customer Taste and preferences and
this will helps in earning more and more profits. It also create threat as they spend more
amount in research and development to examine the technology in the market.
 Legal factor – It refers to the certain laws that a company can follow when they operate
their business without follow the rules and regulation that was assigned by the
government of the nations no firm get profits as it is generally make for the employees of
the company. in Xiaomi, manager can follow a safety and equality pay law according to
the Germany this will helps in improving the performance of the employees and because
of this they will increase the proficiency in the new market. But if they do not follow the
proper laws they will face threat of losing the profits with more employees’
turnover(Amine and Raizada,2015).

 Environment factor – It includes the weather, climate, location, pollution etc. Here,
Xiaomi wants to expand their business in the Germany so firstly they identify all the facts
related to the weather, climate and the locations and after that they decide at which
location they open their store. In this they use the inputs which are recycle in nature that
does not harm the environment. In this they will create the opportunity at the time of
analyzing the market they know very other facts which is very useful for the company
and helpful in gaining the profits. If they not properly examine the market, climate and
location where they operate their store than it will reduce the profits for the company
(Fozer and et. al., 2017).
Market entry options
It refers to that strategy which is used by the firm to enter into the new market and it also
helps in making the plan for delivering and distributing methods of the products offerings. It
includes various options like direct exporting, joint ventures, foreign direct investment.
Franchising, licensing etc. A manager of the Ashanti solutions suggests market entry options to
the Xiaomi so that they will earn more and more profits with high sales.
 Strategic alliance – It refers to the arrangement between the two parties or the
companies to set their goals and objectives on a mutual basis but retains independently. It
is less complicated as compare to the Joint venture. It is beneficial for that who decided
to work together with different project and market. In Xiaomi, if they choose this entry
option than they will work with different firm with same industry in the Germany market.
As the organization launch new product in the market so this strategy is not so useful
because there is a fear of copying their Holographic phone i.e. MI holo
phones(Abdolshah, Moghimi and Khatibi, 2018).
 Mergers & Acquisitions – It refers to the strategy known for ownership of the business
entity and joining the two enterprise with their work , projects and operations. If a
Xiaomi can use this strategy then in this they merge or acquire the other company this
will helps in increasing the profits and market share in a very period of time. In this firm
can tie up with already stable company in Germany because it will gives the many
information regarding the market so that it will easy to make the products and sale them
in the new market. This will helps in reducing the transportation cost, maximize the

profit margin, helps in better planning, controlling and scheduling(O’Hare, Stewart and
McColl, 2018).
 Foreign direct investment - It refers to that investment which is done by a firm to
control the ownership in the business in one nation entity based to the different nation. It
includes the various examples like mergers, logistics, manufacturing, acquisition, retail
services etc. it is useful when an investor need to operate their business in foreign country
and acquires the foreign business assets. It is generally used by the open market not in the
closed market. If a Xiaomi, used option then it will take the benefits like earning foreign
investments, increasing sales and profits and increasing the economy of the country. in
this they want to operate their business in the Germany where there is strong GDP and
follows a democratic culture by the nations. All of this facts helps the firm to open their
store with the new product “ MI holo phone” that includes high definition camera with
3D glass. With this innovation they attracts the many investors and clients who can
interested in this(Anoke, 2018).
From the above mentioned market entry option Xiaomi could choose the merger and acquisition
option because this helps in reducing the raw material cost and it also in generating more new
ideas. In this company can acquire that firm which is done their business for many previous
years so this colud help in analyzing the market because it is totally new for Xiaomi. This
process helps in making the proper planning, coordination and staffing options who can easily
deal with the people in the new market. All this facts helps in expanding and exploring the
business in the Germany and also increase the profits and the revenues of the organization. it also
helps in reducing the risk that was present in the market because the entity can take over the
same sector venture. This will reduce the competition and helps in gaining the competitive
advantage in the long run.
Market segmentation
It refers to a process of dividing the customers into the different parts or segments
according to their needs and wants so that it becomes easy to attract the customers and gain the
profits in the market. It helps in enhancing the revenues for the organization by segmenting the
whole market according the preferences. This will helps in gaining the competitive advantage

and provides a longer sustainability of the market. It includes four categories of market segments
i.e. geographic, demographic, physiographic and behavioral segmenting. It helps in creating the
strong marketing messages, also helps in identifying the most effective marketing tactics, it
differentiate the brand from the rival firms. in demographic Xiaomi, can segments their market
on the basis of the age groups and the family situation where they target the young generation
who are very active in using the phones. And they continuously search the new feature phones
that are very attractive. This helps in earning more and more profits(Hamm and Firmin, 2016).
Targeting - this segments helps in knowing the commercial attractiveness of the every
segments. In this entity may select one or more than one segments. In includes the accessible,
money, focus on different factors and the various criteria of size. In this company can examine
the potential customers of each section. For example – by section first firm may earn around
20% profit , from segment second they make a sales approx 15% or section third they earns the
profit of 40%. After that business enterprise decide that segment third gives the more profits so
that they will spend more on that segments (Nishimura and et. al., 2017).
Positioning – It is the last step where a firm can position their product to target the potential
customers in the every segments. In this they can select the unique promotional techniques,
value proposition etc. in this Xiaomi shows their MI holo phones to the targeted audience by
using social media like face book and Instagram. Where number of people can see the ad and
attract towards it. This will enhance the profits and sales(Otto and et. al., 2017).
From the above mentioned strategies Xiaomi firstly evaluate the whole market and segment it
according the the age and the family situation. In this they can targeted the young and
businessman people who need phones after segmenting they know their preferences and after
that they make innovate their products. In this they examine people need high quality cameras
with new features and keep all this in mind company can innovate the phone name’ MI holo
phone “that contains high definition camera quality with 3D glass body at a reasonable price so
everybody can afford. In this they attract the target customers by position their product to the
value customers by promoting it on face book, Instagram. All this helps in enhancing the profits
and sales of the company in the Germany.

Porter’s generic strategy
It is proposed by the Michael Porter since 1985. This model helps in gaining the
competitive advantage in the market and also assists in gaining the long term survival of the
company. It includes two basic type i.e. competitive advantages and the competitive scope and
these two factors involve the four quadrants i.e. cost leadership, differentiation, cost focus and
the differentiation focus. In MI manager need to analyze these strategies so that they know what
is useful to enter and open physical stores in Germany. These strategies can be described below.
 Cost leadership – It refers to that generic strategy that suggested the lowest cost
producer in the industry. It helps the business to achieve the competitive advantage. It is a
very easy strategy that every firm can use this. In Xiaomi, if manager could adopts this
strategy that can low the price of their goods while providing some offers to the peoples
that will attract them not to switch the brand as well as every customers show their
loyalty power towards the organization. This strategy helps n earning short term profits.
It also effect the brand image because of lowering the price customer things it is not a
quality products(Lloyd-Jones and et. al., 2016).
 Differentiation- this strategy determines the differentiation of good offering form the
other competitors. In this company can produce the goods with a creative and innovative
way so this will helps in enhancing and exploring the products values to larger audience,
and because of this many customers also show their loyalty towards the firm. In this
Xiaomi, if manager use this strategy while operating their outlet in the Germany than it
will maximize the profits and market growth at the same time also place their good
position in the market and this will lead to longer sustainability in the market
place(Vogelmeier and et. al., 2017).
 Focus – It is the last strategy of the porter’s generic model that includes two terms such
as cost focus and differentiation focus. In this company can focus on both the scenarios
so that they will the large number of customers in a minimum time. If manager of the
Xiaomi can use both the strategy than it will attract number of customer and maximize
the sales in a very short period of time. This strategy is helpful to attracting the new
consumers and retaining the old ones for the lifelong(Jepsen and et. al., 2017).

From the above mention strategy Xiaomi could choose differentiation and cost focus strategy
to stay in the Germany market where they done the innovation in phones that is totally
different from the competitors and it also helps in gaining the competitive advantage in the
long run. in this they target the customers with their effective cost and the innovative features
phones. In this they provide to their customers a best quality phone at reasonable price as
compare to other phone company. This will helps in reducing the sales of the competitors and
increasing the sales of the Xiaomi.
Conclusion
From the above explained report it is to be concluded that with the help of Ashanti
solutions group manager Xiaomi can expand and explore their business in Germany with their
new products. In this firstly they analyze the external market by using pestle so that they know
the condition of the country and its rules and regulation. Further it includes the various market
entry options so that they will select the best one and after that they segment the market and
target the customers according to this so that they will earn more and more profits by opening
their outlet in the Germany. At last they examine and plan to adopt the strategy using porter’s
generic model this will increase the efficiency of profits by maximizing the sales and market
growth.

References
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