SHANXI UNIVERSITY OF FINANCE AND ECONOMICS

ASSIGNMENT: STRATEGIC MANAGEMENT

SUBMITTED BY: MARYAM ALI KAZMI (穆蕊)

(MBA 2020)

TOPIC: COMPARISON OF STRATEGY DIFFERENCE AMONG APPLE, HUAWEI AND XIAOMI

 Following heads will show the main strategic differences among these three companies.

APPLE: HUAWEI: XIAOMI:

Apple Ecosystem: Use of new kind of social commerce:
Love for its workforce: Because Xiaomi sells most of its phones
Apple has been designing, developing and online, social media is an integral part of
producing its own in-house hardware and the way it is always visible and engaging
Without people, organizations are nothing.
software. This natural advantage helps them with potential customers and customers. It
In the competitive world in which we live,
build a deeper level of integration between does this in China mainly through Weibo,
knowledge-based firms, representing 99.9
its hardware and software - across all of its and in new markets it uses Facebook,
percent in the technology industry,
devices. Twitter, and - especially with Hugo Barra,
understand the number of employees.
the former Googler turned to Xiaomi VP for
Here is an example - Say, you buy an international operations - Google+.
iPhone. You soon start using a few of its The new invention comes from passionate,
Creates scarcity:
online services like iCloud storage. Here's curious and intelligent employees who feel
Xiaomi's flash sales help restore and reduce
where the light comes in - the Hardware, they are the integrated body of the company
waste, avoiding the kind of over productive
software, and apps on the iPhone are well- they work for. Huawei understood this
disasters recently detected by Amazon's
designed and accurate to use that you'll approach before it became a theology of
Fire Phone and Microsoft's Surface RT.
soon fully embrace. Once done, it leads you Silicon Valley HR. In the 1990s, Huawei
While that makes it difficult to find the
to create a beautiful image and only other developed a stock ownership system where
Xiaomi gadget, the company has managed
Apple devices can use the apps. its employees' money was based on three
to turn it into a good thing, creating hype
factors: salary, performance and share
from time to time as flash sales of a limited
This allows you to buy their laptops and divisions. number of devices open each week.
other items that play well with each other. Xiaomi's social media accounts, especially
This extends to their accessories as well - By accepting this form of compensation, on Weibo and WeChat, play a major role in
the latest line of iPhones has removed the Huawei wanted to apply a law known as the driving people to the page for each new
headphone jack that makes people buy more "knowledge-ism", which focused on flash sale.
Apple wireless AirPods earphones. allowing and encouraging employees to
After that, when the flash sale was
This strategy has helped Apple create an completed, Xiaomi used a quick sale of
environment or "ecosystem" that provides a think of themselves as owners who some social media posts, announcing that,
consistent and positive experience for its benefited from the company's success, not for example, 50,000 Mi4 Smartphones were
users. as employees whose replacement had their sold in just 25 seconds.
contributions reduced. Every product range has a social hub:
Customer relations: Another important part of Xiaomi's
By transforming Huawei into an employee- communication strategy is that it operates
Apple has been making great strides in led company, it allowed the company to Weibo accounts throughout the product
providing customer service and has been seek out and retain top talent in its rankings range. Xiaomi has 10 major Weibo
able to do so with the help of AppleCare and stay away from its competitors. accounts, best known for Xiaomi Mobile
and by using experienced retailers and Weibo with nearly 11 million followers; the
service staff to cater for customers in need. Learning focused: new, MiPad (pictured above), recently
This has helped Apple to break away from surpassed 500,000 fans. Xiaomi's company
all other competitions in terms of customer Ren realized the importance of R&D as part Weibo has four million followers,
relationships and support, increasing its of Huawei's competitive strategy. To that indicating that people may prefer internet
product reliability. Apple has focused on end, he instilled in his senior management a and gadgets (i.e.) than the company.
providing the highest quality service to its sense of urgency and urgency. That is, Gadgets are very secretive, but companies
customers and this has reflected the whatever made Huawei successful years are often empty, so this makes sense in
increased potential for customer adherence ago was thought to be demolished and, as a terms of human perception - yet it is
to Apple. result, innovation had to be an ongoing something that few companies do,
effort. especially outside of China.
Offline is secondary to online:
Apple Stores also helps with excellent
So why, since its inception, the company Xiaomi has 451 national service centers, but
control of the customer experience and in
has never failed to reinvest, at least 10 they are not stores - although they look very
addition to displaying Apple products and
percent of R&D revenue. That's 5 percent similar to Apple's iconic stores with their
devices, Apple Stores doubles as a service
higher than Apple's, and about 2.5 percent pine desks and plenty of gaming space
center.
higher than Samsung's. . around gadgets.
These relatively small stores - usually just
outside of the city's major shopping center -
Form over function: save Xiaomi's money from premium
R&D: a global story merchandise.
One of Apple's key strategies when it comes When Xiaomi gets offline - like its events
to product development lies in its ability to Instead of expanding its R&D department or service centers - it's all at the very top of
provide well-designed products and services within China, Huawei deliberately went its ecommerce core.
- with a little emphasis, clean lines, and abroad to establish R&D laboratories Runs its own community:
strong tones. But it can also be said that around the world. Indeed, between 2002 Along with its careful communications
Apple has made it a point to focus on and 2010, the giant opened 57 new and framework, Xiaomi is also active in
design and performance planning if other corporate centers in the US, Sweden, operating its own social media platforms, or
possible. The latest MacBook (laptop) Germany, Russia, Sweden, Canada, and the BBS. This is where the brand’s most
system is a good example of this. Apple has UK based on regional expertise¹. hardcore fans, called "Mi fans," come
given up the power to dissipate heat and together to discuss gadgets, share
install a thin keyboard - full of issues such In addition, Huawei's new facilities are information, and often share. This is typical
as inefficiency in the event of dust getting closely linked as they work seamlessly to of Chinese companies, but especially those
stuck between the keys - all in an effort to ensure that information sharing takes place. that can be used by major brands overseas.
keep the design slim and smooth. But the Xiaomi's BBS has 30 million registered
strategy still works well and favors Apple. Not surprisingly, Huawei is the sixth largest users and sees 579,000 new posts every
The average consumer prefers smaller and R&D investor in the world in 2017, day.
quieter laptops. surpassing Apple.

Brand differentiation: Leveraging untapped markets:

Apple's product and marketing strategy has Huawei, on the other hand, has sold the
always made a point of advertising itself as prices of its phones to reach a growing level
a symbol of luxury while focusing on of mid-range and emerging markets that
separating itself from its competitors. Apple Apple has failed to regulate and serve.
confirms it presents the following image -
Apple competes with it and not with others. It is Huawei's aggressive pricing strategy
This helps Apple in gaining its brand image that protects emerging market shares in
and reputation. Consumers however often countries such as India, Indonesia, China,
assume that this is because Apple has built a Russia, South Africa, Nigeria, Indonesia
reputation as a manufacturer of well- and Pakistan.
designed premium products.
The growing demand for optional assets
Customer privacy: combined with the growing investment in
telecommunications infrastructure, as well
as brand awareness already established,
Apple has always made it clear that it
Huawei finds itself on the right track in the
values customer privacy and has proven to
world.
manage its customer data much better than
its competitors. During CES 2020, Apple's
executive director of global privacy spoke Strategic partnership:
about Apple's take on privacy as
In addition to its aggressive marketing
 Limit the amount of personal efforts, Huawei has established stable
information collected from its users. relationships with reputable international
brands such as Leica Camera AG, Google,
 Provision of secure cloud storage and Porsche Design to reach the mid-range
(Cloud) market currently marketed by Apple. So far,
this relationship has only produced positive
results.
 Providing tools for users to be able
Customer driven innovation:
to maintain their privacy
Huawei has made significant changes over
the past two decades - transforming itself
from a technology-focused company to a
customer-driven organization. Reportedly,
over the years, Ren has repeatedly told his
employees that they should “keep their eyes
on customers and their backs to
management”.
The company structure has a key element of
customer orientation within its three
business units: operations, business, and
terminals. With that in mind, all business
units operate in a disciplinary manner to
assist customers¹. As a result of such a plan,
Huawei's 22-year-old regional headquarters
is set up to deliver as many new products as
possible to its customers.