Marketing Essay

409 Words2 Pages
Future Prospect for Xiaomi: The model taken by Xiaomi is very promising and the strategy implemented by them is not very sustainable. As in present there Is a combination of cost leadership from Xiaomi and they have implemented all comprehensive measure to become a leader is cost. But there are different challenges in future that are listed below 1. Premium phones in low cost: Xiaomi phones are cheap compare to Apple , Samsung and other different android vendors. This brand is getting advantage of this cost leadership by removing brick and mortar infrastructure. It will work well in countries like India and China but if you consider expanding its brand presence outside Asian market where the phones are available on contract on very cheap prices there this profiltability will not work. So Xiaomi has to evolve itself in such a way so that this limitation could be overcome . So strong brand loyalty also diminish its value in outside market 2. Absence of strong brand presence Brand presence of Xiaomi is limited and it is not acceptable among rich class people. It is still perception in everybody’s mind that it is a phone for not so wealthy. So It is still a struggling brand. So when it will go outside market in future it will be a very difficult task to make a big brand. 3. Online selling will limit its reach where internet market is not well developed . If we consider the case of India then we can see here if u want to reach wider segment of people it is necessary to consider go on brick and mortar way. 4. Competitors are well prepared now. Apple have dealt with bigger threat like Samsung before so it has considered itself a winner in that situation but xiaomi is app in china where the things are very different, to confront apple here in US and UK market is very difficult. 5. These companies have the most powerful weapon is its patent

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