Comment on my classmates blog The Rising Star: How Did Xiaomi Doubled Their Revenue?
I found JaeSeung Lee’s blog post very inspirational. After reading I wondered how a company could become so successful in such a short period of time. How can a business model be shaped so well that it can increase the company’s profit in such little time? JaeSeung describes how Xiaomi Inc. point of differentiation from such big competitors such as Apple and Samsung is its marketing strategy. I then decided to do some research about this company and what was behind its creation. In this sense, I can now comment on Xiaomi’s Inc. ladder to success. Lei Jun, its funder and CEO, focused on targeting a market that aims for very technological items at a low cost but also provides the ability to customize these products’ software according to users preferences. The low price are definitely points of differentiation as JaeSeung mentions with competitors such as Apple; and, in addition to this, the ability to modify the software provides an interesting value propositions for all users who have not yet found their needs fulfilled with current products.
This is one of Xiaomi successful items that have meet many customer’s unsatisfied desires like modifying their mobile software.
Probably the most interesting thing that I found while reading this blog was resemblance to the success of Apple Inc. and even more fascinating was to discover that Lei Jung idea for developing Xiaomi Inc. is related to Steve Job’s career with Apple. “Many Chinese consumers have come to idolize the Apple brand, and Xiaomi has been there to provide a similar product at a much cheaper price,” he said, and so that is basically what he does with Xiaomi.
He was basically inspired by Steve Jobs to develop his emporium.
It is amazing how it is possible to innovate not just by creating new products but also by reinventing already existing business to fit different markets. This in addition to JaeSeung’s mention on Xiaomi’s Inc. reduced costs allowed Lei Jun to find himself with a potential product which has escalated a long way in a short time.