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    Xaomi Assignment

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    CAROLINA GASPERONI
    Xiaomi Technology Co. Ltd is a leading Chinese technology company that achieved success in China's domestic smartphone market. However, China's smartphone market became saturated, leading companies to explore overseas markets. Xiaomi began internationalizing in 2013 but faced problems with patents and unsuccessful sales abroad. To prevent these issues, Xiaomi adopted a conservative strategy of internationalizing through stages and entering physically close markets first. When internationalizing, companies should not only consider traditional economic factors but also cultural, administrative, geographic, and economic distances that can impact market attractiveness. Xiaomi's business relies on consumer goods preferences that are influenced by cultural differences, so entering Asian markets poses less cultural challenges than Western markets. However, Xiaomi's initial rapid internationalization

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    Xaomi Assignment

    Uploaded by

    CAROLINA GASPERONI
    38 views2 pages
    Xiaomi Technology Co. Ltd is a leading Chinese technology company that achieved success in China's domestic smartphone market. However, China's smartphone market became saturated, leading companies to explore overseas markets. Xiaomi began internationalizing in 2013 but faced problems with patents and unsuccessful sales abroad. To prevent these issues, Xiaomi adopted a conservative strategy of internationalizing through stages and entering physically close markets first. When internationalizing, companies should not only consider traditional economic factors but also cultural, administrative, geographic, and economic distances that can impact market attractiveness. Xiaomi's business relies on consumer goods preferences that are influenced by cultural differences, so entering Asian markets poses less cultural challenges than Western markets. However, Xiaomi's initial rapid internationalization

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    Xaomi Assignment-

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    Xiaomi Technology Co. Ltd is a leading Chinese technology company that achieved success in China's domestic smartphone market. However, China's smartphone market became saturated, leading companies to explore overseas markets. Xiaomi began internationalizing in 2013 but faced problems with patents and unsuccessful sales abroad. To prevent these issues, Xiaomi adopted a conservative strategy of internationalizing through stages and entering physically close markets first. When internationalizing, companies should not only consider traditional economic factors but also cultural, administrative, geographic, and economic distances that can impact market attractiveness. Xiaomi's business relies on consumer goods preferences that are influenced by cultural differences, so entering Asian markets poses less cultural challenges than Western markets. However, Xiaomi's initial rapid internationalization

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    38 views2 pages

    Xaomi Assignment

    Uploaded by

    CAROLINA GASPERONI
    Xiaomi Technology Co. Ltd is a leading Chinese technology company that achieved success in China's domestic smartphone market. However, China's smartphone market became saturated, leading companies to explore overseas markets. Xiaomi began internationalizing in 2013 but faced problems with patents and unsuccessful sales abroad. To prevent these issues, Xiaomi adopted a conservative strategy of internationalizing through stages and entering physically close markets first. When internationalizing, companies should not only consider traditional economic factors but also cultural, administrative, geographic, and economic distances that can impact market attractiveness. Xiaomi's business relies on consumer goods preferences that are influenced by cultural differences, so entering Asian markets poses less cultural challenges than Western markets. However, Xiaomi's initial rapid internationalization

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Xiaomi Technology Co.

    Ltd, which is conceived as one of the leading companies in innovative


    technology, has achieved great success in China ‘mainland domestic market after four years of operation,
    occupying leading the market share and having profound influences on the whole phone industry. Xiaomi
    started its internationalization process in 2013 and decided to be an international company.

    China's domestic smartphone market is the world's largest smartphone sales market, but after
    high-speed growth in the past, the growth rate of smartphone sales has slowed significantly and
    has stalled since 2015. The downward trend means that the China’s smartphones market has become
    saturated and at the same time, the competitiveness of domestic companies has increased, and the “war
    price” among major players has gradually reduced the profitable of the companies leading them to
    explore overseas.

    However, as presented on the case Xaomi´ internationalization process was marked by two main
    problems: The patent crisis, and the unsuccessful sales performance aboard. So, in an attempt to
    prevent those 2 main issues our internalization strategy relies on a conservative strategy and
    internationalize through stages to physically close markets. In our pitch we will identify which markets
    Xaomi should enter and the mode of entry.
    A very common pitfall of internalization that leads companies to expensive mistakes is to overestimate
    the attractiveness of foreign markets focus only on traditional economic numbers (like GDP, Market
    size,). Of course, that those indicators are important, but we can´t ignore the other 4 factors that can
    change the attractiveness ‘rate of the new markets: cultural distance, administrative and political
    distance, geographic distance and economic distance.
    Xaomi´s business is based on consumer goods and cultural distance among markets affects consumer´s
    preferences deeply. There is a deeply rooted system of unspoken principles that guide individual in their
    everydat choices and interactions with consumer goods products.
    Xaomi should take advantage of it´s knowledge of Asian market, we know that we can´t assume that all
    asian´s countries share the same culture and behaviors, but Xaomi would face a minor cultural distance
    challenge compared to western´s countries.
     As a result, the internationalization of Xiaomi in 2015-2016 caused heavy losses. Lei Jun later reflected:
    “Globalization cannot be radical.” “Globalization has to be a long-term plan for 10 or 20 years. We
    should do each market one by one.”
    Indeed, different countries and different markets have different political and economic systems and
    related laws and policies. Without a full understanding, evaluation, and judgment of the market, it is very
    difficult and unwise to copy the domestic model and enter the new overseas market. After deciding to
    enter the international market, it is a necessary step to conduct market research, choose the right market
    and enter in the right way.

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