Abstract

The case is about the success of Chinese multinational electronics company Xiaomi in India. Xiaomi employed an ‘online sales’ strategy to carve out a place for itself in the country’s smartphone market. The case covers Xiaomi India’s generic strategies, such as cost leadership, and how it overcame the competition in a short space of time. The subsidiary opted for local manufacturing to capture the market, reduce costs, offer quality products at affordable prices, and get closer to customers. This strategy was in keeping with the government’s ‘Make in India’ campaign. Not content with online sales, Xiaomi India ventured offline with a three-pronged strategy to meet customers’ needs. The case dwells upon its offline strategy along with analyst comments on Xiaomi India’s present and future. The question was whether the momentum would last and whether the company would retain its top position in the smartphone category in India.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Evaluate market entry strategies in international markets
• Analyze the different strategies adopted by MNCs in international markets
• Understand Porter’s generic competitive strategies
• Identify the challenges faced by Xiaomi in the highly competitive Indian smartphone market
• Explore future strategies that Xiaomi can adopt to retain its market position in India

Keywords

International marketing; cost leadership; porters generic competitive strategies; competitive strategies; global strategy; competitor SWOT analysis; Uppsala internationalization model; market entry strategies; Indian smartphone market