; S Achieve Three E's-Economy Efficiency And Advantage
Fig. 2 . Source: Chambers and Rand (2011)
Xiaomi also tries to achieve three E’s and thus reduces its cost of production and increases the revenues. First E is for Economy which refers minimising the cost of inputs and perform at a low price (Chambers and Rand, 2011). This is why the products of Xiaomi are equivalent to Apple’s technology but at a very affordable prices. Xiaomi continues with one mobile for two years and thus is able to spread the cost of inputs in a long span of time. The economy …show more content…
It is measured during the conversion of inputs into outputs (Chambers and Rand, 2011). In order to set the benchmark the process is precisely defined and then each activity of the process is examined to analyse the requirement of resources for smooth performance. The performance is evaluated with regards to standards and feedback from the customers and the changes are made and adjustment of the resources is performed.
Furthermore, Effectiveness measures the achievement of the objectives. The set of objectives are defined before the start of any process and then the result is evaluated against it (Chambers and Rand, 2011). Xiaomi makes sure that right job is completed in effective manner.
Thus, three E’s ensure improvement in business performance and increase in profits through set objectives and evaluation of results against it.
2.2 Stress between Cost Minimisation and Quality Maximisation …show more content…
The performance objectives are evaluated on the basis of set standards and these performance objectives help to attain corporate strategy (Kale, 2013).
Quality refers to the specifications and standards to which the product should match (Kale, 2013). Xiaomi is aware about the customer choice and thus tries to manufacture and offer products that are technologically advanced and high in quality. If it fails to deliver as per its standards, the other batch of the product would not get any customers and their feedback would ward off any new users also. In order to maintain the quality, Xiaomi has created its image as a dependable and high quality producer and thus it is able to save on the costs and quickly cater to the problems of customers.
Speed implies the time Xiaomi takes to respond to the inquiries, orders and the problems of the customers (Kale, 2013). The speed with which handsets get sold off shows how much customers rely on the products of Xiaomi. Speed of response leaves a positive impression on the customer’s minds and ensures a creation of the