Internal and External Analysis of Xiaomi
China is without a doubt one of the strongest manufacturers in the world. This is due to cheap labor and due to the technology built over time. Xiaomi is a company from Beijing in China which manufactures Smartphones. Its Mi and Redmi range of smartphones are famous and well adapted to the market. SWOT analysis is a vital strategic planning tool that can be used by Xiaomi managers to do a situational analysis of the organization. It is an important technique to understand the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) Xiaomi is facing in its current business environment. The SWOT Analysis framework helps an organization to identify the internal strategic factors such as -strengths and weaknesses, & external strategic factors such as – opportunities and threats. It leads to a 2X2 matrix – also known as SWOT Matrix. The main purpose of SWOT matrix is to identify the strategies that an organization can use to exploit external opportunities, counter threats, and build on & protect Xiaomi strengths, and eradicate its weaknesses.
INTERNAL AND EXTERNAL ANALYSIS OF XIAOMI by using SWOT ANALYSIS: STRENGHTS:
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As one of the leading organizations in its industry, Xiaomi has numerous strengths that enable it to thrive in the market place. These strengths not only help it to protect the market share in existing markets but also help in penetrating new markets. Based on Fern Fort University extensive research – some of the strengths of Xiaomi are –
• Successful track record of developing new products – product innovation.
• Highly successful at Go To Market strategies for its products.
• Strong Free Cash Flow – Xiaomi has strong free cash flows that provide resources in the hand of the company to expand into new projects.
• Highly skilled workforce through successful training and learning programs. Xiaomi is investing huge resources in training and development of its employees resulting in a workforce that is not only highly skilled but also motivated to achieve more.