Xiaomi company designs, develop and sell smartphones, mobile apps, laptops, and related consumer electronics. Compare to others company business models such as Apple and Samsung, Xiaomi employs a different business model very unlike them smartphone makers. Its initiate strategy which is using cost-effective and hungry marketing as the core elements of the "Internet phone" model to achieve the success in the whole world .Xiaomi sells their product through the internet. To further reduce overhead costs, Xiaomi does not own any physical stores, selling exclusively from its online store. It also did away with traditional advertising and relies on social networking services and word-of-mouth to publicize its products. In few year ago, Apple and Samsung have introduced top-tier phones which are iPhone 5S and Samsung Galaxy S5. But in that time, Xiaomi has implemented a strategy which makes android phones with high-end specs smartphones which is Xiaomi Mi 3. In that time, the Samsung Galaxy S5 costs at least $600 and iPhone 5S starts at $649 but Xiaomi sells its smartphones for about half the price which is cost about $320 only. Xiaomi Mi 3 has a 5-inch screen, high resolution, powerful processor Qualcomm Snapdragon 800 4x 2.3 GHz and a really nice design. Xiaomi success was due to a combination of its low prices …show more content…
By using this theory, Xiaomi can focus attack their enemy weakness without hesitating. There is always an easier way to attack the enemy when they are not aware of it and no guard against it.For smartphone maker company such as Apple and Samsung, they have been selling their products at a high price because of the high quality. So, Xiaomi has observed that and sells their products at a price that lower than Apple and Samsung but also almost same quality with them. Based on their business model, it allows Xiaomi to use this strategy to take this chance to fight with Apple and Samsung to win customer attention come to purchase their product and have probability become Xiaomi product royal customers. Because of Xiaomi understand this and make use of it so it has taken the top spot in China’s smartphone market and also the top 4th smartphone maker company in the