Global Supply Chain Group

Menu
Edit

Same Same But Different: Apple’s Emerging Rival Xiaomi Continues To Upstage Demand With Market Valuation More Than Nokia’s Sale Price Of $10 Billion: Supply Chain Business

Share
Share
Share
Supply Chain Business

Share:

Same Same But Different: Apple’s Emerging Rival Xiaomi Continues To Upstage Demand With Market Valuation More Than Nokia’s Sale Price Of $10 Billion: Supply Chain Business

Supply Chain Business Network

China’s three-year-old technology company Xiaomi has recently announced the sale of its flagship Mi-3 smartphone will be on the Chinese top messaging app Wechat.

This is another in a series of tactics deployed by Xiaomi to get to the heart of consumers and spur their demand.

Already with 7.2 million handsets sold last year in China, Hong Kong and Taiwan, and a revenue of $US2.1 billion, Xiaomi continues to pursue its drip-feed supply strategy.

It will be selling 150,000 units of the flagship Mi-3 smartphone on WeChat on November 28th and customers can reserve their spots in advance.

Some Different device of Supply Chain Business

Xiaomi has been famous for its lightning fast sold-out rates through its solely online distribution channel. In November, two records were made during China’s Single’s Day flash sale:

Xiaomi sold over 200,000 smartphones in just 3 minutes, making it the first company on Alibaba’s Tmall to break the $16.4 million benchmark.

A similar picture is expected with the upcoming sale on WeChat, with potentially added credibility to both partners since WeChat is seeking to be a payment platform as well.

Being compared to Apple with both positive and negative connotations, Xiaomi seems to be faring better than the global giant.

Although the two companies have manufacturer Foxconn in their supply chain and are praised for innovation, Xiaomi’s considerably lower price range has earned it a 5% Chinese market share, surpassing Apple’s 4.8% in the second quarter of 2013.

Xiaomi’s latest funding round put it at $US10 billion in value, more than what Microsoft just paid for Nokia’s handset division.

Mobile Mode of Supply Chain Business

Xiaomi, already profitable since September this year, is one of the 15 most heavily venture-backed mobile start-ups ever.

Some analysts have gone as far as saying Xiaomi was able to do in a month what Apple did in a year, pointing to Apple’s 2012 sale of 125 million smartphones globally.

Xiaomi’s achievements so far have been attributed to a number of factors: the right partnerships (e.g. with China Mobile, the country’s state-owned telecom giant; with Google for running its Android operating system; with Foxconn for assembling its phones containing components from Qualcomm and Sharp).

The key differentiator, however, is Xiaomi’s acute attention to innovation and customer service.

While Apple takes a top-down approach to innovation, Xiaomi thrives on idea crowdsourcing, leveraging user feedback to develop and release a new version of its Android-based software every week.

Xiaomi’s founder Lei Jun said: “We’re trying to create greater products while selling a product that is close to the manufacturing price”.

“Preferring to be compared to Amazon, Xiaomi follows the business model of selling low-margin devices and making profits from customers as they use them, just as Amazon sells Kindle and e-books.

5-star Supply Chain Business Network

In that case, Xiaomi probably wants to grow into a super networked business like Amazon too, with innovation, efficiency and outsourcing optimisation already achieved at admirable levels” – said Vivek Sood, author of “Move Beyond the Traditional Supply Chains: The 5-STAR Business Network”.

With its high price-performance ratio smartphone line, Xiaomi is also tapping into other technology products, such as smart TV (MiBox, MiTV) and a newly announced wireless router.

Originally operating without brick-and-mortar retailers as middlemen, Xiaomi recently announced the upcoming launch of 18 stores, albeit they are only for selling accompanying accessories and services.

As Apple ventures into the growing Chinese market, Xiaomi is looking outwards. In August, Hugo Barra, a Google executive, was hired to develop new products for international markets.

No detailed plans have been released yet, but analysts point to some criteria that Xiaomi would consider in a prospective international market: high activity levels on social media and a robust e-commerce infrastructure.

“It’s still early to tell if Xiaomi will create a disruptive force like Apple did when it first introduced the iPhone.

But if the Chinese firm knows how to balance the current needs for profits and future needs for products, how to match its product maturity with supply chain maturity, it can be a game-changer”, said Vivek Sood, CEO of Global Supply Chain Group.

Share Generously :

LinkedIn
Twitter
Facebook
WhatsApp

Copyright - These concepts, frameworks and ideas are copyright of GLOBAL SUPPLY CHAIN GROUP from the time of their creation. Do NOT copy these without permission and proper attribution.

Notes:

1. These ideas and concepts will be usually expressed by our thought leaders in multiple forums - conferences, speeches, books, reports, workshops, webinars, videos and training. You may have heard us say the same thing before.

2. The date shown above the article refers to the day when this article was updated. This blog post or article may have been written anytime prior to that date.

3. All anecdotes are based on true stories to highlight the key points of the article - some details are changed to protect identification of the parties involved.

4. You are encouraged to comment below - your real identity and email will not be revealed when your comment is displayed. Insightful comments will be featured, and will win a copy of one of our books. Please keep the comments relevant, decorous and respectful of everyone. All comments represent opinions of the commentators.

Our Quick Notes On Five Flows Of Supply Chain Management

Part of our new “Quick Notes” series – this report answers your most pertinent questions of the topic.

LIMITED TIME
USD 20
FREE

. What are the five flows of SCM?

. Why are they important TO YOU?

. How can you map, track, and optimise these flows to serve YOU?

. What is the importance of difference between "Supply Chain" and "Value Chain"?

. What are the stellar case studies of each of the five flows?

MORE INTERESTING READING

Leave a Comment

Your email address will not be published.

Table of Contents

ABOUT THE PRINCIPAL AUTHOR

Today, Vivek and his partners are among 20-30 people on the planet earth who have this deep understanding of supply chain systems, practices and tools. CEOs, COOs, executives and Boards call them in most challenging situations once they know the full potential of supply chain based transformations. Following are key milestones in Vivek's journey:

  • Started in 1983 as a merchant navy cadet at 18 years age, worked his way to qualify as a Captain – qualified to take command of any merchant ship, worldwide.
  • Earned a top tier MBA from UNSW at the top of his class.
  • Joined highly regarded strategy consulting firm Booz Allen & Hamilton, consulting to the CEOs, Boards and senior management of global corporations within Australia.
  • To learn and specialise in supply chain – against all odds, sought out the co-inventor of supply chain in Germany and convinced him to be a partner in his firm, GLOBAL SUPPLY CHAIN GROUP, launched in January 2000.
  • More than 500 successful blue chip projects with high impact business transformations in large corporations using the full power of SUPPLY CHAIN MANAGEMENT.
  • 4 Seminal and path breaking business books IN SUPPLY CHAIN MANAGEMENT – these are available in bookstores and universities and libraries worldwide.

Limited Time

FREE

This offer expires in

Our Quick Notes On Five Flows Of Supply Chain Management

US$20

USE CODE "FREETODAY"

WHAT OTHERS ARE SAYING

Our Clients say it better than we ever could:

TRENDING POSTS

OUR CLIENTS

Our Clients come from a variety of industries – yet they have a common element. They rarely rest on their laurels, and are always looking to do better.

OUR PROJECTS - EFFECTIVE TRANSFORMATIONS

In the last 20 years we have completed more than 500 projects. Click below to see a sample of our projects.

OUR TESTIMONIALS

RELATED POSTS

Our Books

5.0
5/5

THE 5-STAR BUSINESS NETWORK

If you are deeply passionate about the world of business and supply chain networks as I am, and enjoy digging answers to critical questions that will help build and steer your business with wisdom, then join me. This book is a journey of exploration through the world of business networks that run along the veins of today’s commercial world.

4.3
4.3/5

OUTPERFORM OUTSOURCE OUTPROFIT

The trend of outsourcing continues to grow unabated with the whole gamut of services, from simple to mission-critical tasks. There is not a single company on earth that does not outsource anything. It is not just about cost arbitrage, it is also a finer expression of division of labour at the organisational level. Like all leverage, outsourcing is a double-edged sword too. On one hand, it allows you to do more, faster. On the other hand, if it goes bad, it can easily kill your business. If you do not believe that is possible – you can google the Fox Meyer saga from the 90s and see for yourself.

4.3
4.3/5

UNCHAIN YOUR CORPORATION

Businesses Are Chained By Unseen Chains. If You Are Looking For Ways To “Unchain Your Corporation” A Successful Business Transformation Is Required.

Successful Business Transformations Are Difficult, Yet Rewarding.

Business Transformation Is Fast Becoming A Question Of Survival In The Modern Globalised Era.

Modern Supply Chains Integrate Businesses And Economies Faster By Systematic Information Sharing From Internal And External Sources.

Companies Can Multiply Profits By Progressively Ramping Up Cohesion And Collaboration Of All Moving Parts In B2B Network To Achieve Tighter Integration.

4.3
4.3/5

GREEN SUPPLY CHAIN – AN ACTION MANIFESTO

It is generally accepted that environmental consciousness is now changing to environmental proactiveness as organizations are discovering that it makes good commercial sense.

Boards are asking the management to review their policies related to environmental norms, not only to bolster their corporate social responsibility aims, but also because consumers are asking for greener supply chains

It is also widely agreed that consumers will increasingly prefer to buy more and even pay more for products or services provided in an environmentally sound manner.

FOR SENIOR EXECUTIVES AND DIRECTORS

YOUR HIGHEST VALUE ADDED IN YOUR COMPANY

Scroll to Top