This blog is a response to the Kevin’s blog about the smartphone company Xiaomi’s strategies to sell their smartphone. As Kevin has mentioned in his blog, Xiaomi sold 40,000 units of smartphones in shockingly just 4.5 seconds in India. The main stratedgies Xiaomi uses are cost leadership and focus strategy. Xiaomi sells their smartphone half the price Apple sells the Iphone, and Xiaomi focuses only the Asian market.
I disagree with one of the comments Kevin made regarding to the negativity of the cost leader strategy. I think that Xiaomi needs to continue focusing on this strategy because this is what attracts people to buy their products. If they set their products just as expensive as an Iphone, their products will lose its appeal because there’s no difference between Xiaomi’s smartphone and an Iphone. People would prefer an Iphone than Xiaomi if the prices are the same. Therefore, Xiaomi needs to keep its products’ price low to compete. Also, keeping the price low, Xiaomi can appeal to a much larger market in Asia because the majority of people in China are not that wealthy. Thus, they need to substitute to something cheaper, and the smartphone that comes to people’s mind will be Xiaomi. Furthermore, I think focusing only in the Asia market is better because the competition is too great outside as there are Apple, Samsung, Sony, and etc. Also, the market in Asia is huge due to the high population.