Xiaomi's case study: the innovative business model for the Chinese and global markets of smartphones.

Abstract

In the last decades, China has faced several changes. With the economic growth, the birth of successful global firms and the continuous need of innovation, local and international companies which work in China, had to manage their operations in a complex and dynamic environment. They had to face and overcome problems, challenges and barriers and modify their strategy models in order not to fail along their path to success. The aim of my thesis is to study Xiaomi economic history, organizational structure and culture, strategy model and how it adapted itself to keep up with the external world. I choose Xiaomi because it’s a Chinese firm which has faced the dynamism of the Chinese economic environment and it has shown the capabilities and the knowledge to adapt its strategy to every kind of change. Thanks to its abilities, Xiaomi has reached success that brings the company to be one of the top 5 smartphone manufacturers in the world. In order to evolve my thesis, I would focus the first chapter on the evolution of the telecommunication industry both worldwide and chinese of the last decade. In the second chapter, I would like to study the Chinese market of smatphones and the consumption's habits of the Chinese population, which means understand the Chinese socioeconomic system and the evolution of the trends in the smartphone industry. moreover, I would spend some time in defining Xiaomi's competitors, both international and local. In the third chapter I want to focus my attention on the Xiaomi's strategic business model. In order to understand every aspect of the model, I'll explain Xiaomi's history from 2010, the foundation year, till today, paying a particular attention on 2016, the most difficult and challenging year for Xiaomi. I would particularly concentrate this chapter on Xiaomi’s organizational structure,innovative strategies and the management of R&D operations. In addiction, I want to study the influence of external and internal factors on Xiaomi company, how it had modified its business model throughout the years to overcome obstacles on its path.