This essay will concentrate about an interview on an article about, ‘How Xiaomi Relies on Its ‘Family’ of Customers’ by Rebecca Blumenstein and Barra, Xiaomi’s global vice president. Xiaomi is one of China’s new based enterprise that engaged in the field of technology, such as handphones, portable chargers, camera, fit tracker band and many more. It managed to develop rapidly since it first launched, especially their handphones. This essay will discuss about the success of Xiaomi’s handphones that happened because of their connection with the customers and how it can achieve much money by selling low-price goods. Moreover, it will analyse how it concern on the customer loyalty and customer value.
Xiaomi is a company that prioritise customer
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Every company should give higher value compared to other companies, so that consumers will choose that company. Customer value is an obligation of a company to know about the customer’s viewpoint about what they need and make sure that they could get it from buying the company’s product (Woodruff, 2001). As a company, Xiaomi accentuate customer value, as they want to give satisfying benefits with a low cost. It was mentioned by Michael Kan (2014), one of Xiaomi’s handphone “… the Mi 3, has the features you would expect from a high-end phone. It has an Nvidia quad-core 1.8GHz processor, a 5-inch 1,920 by 1,080 pixel screen, and a 13-megapixel rear camera, all fitted together in a metal casing.” with a low price, which is USD$327 for the 16GB and USD$408 for the 64GB (“Xiaomi Mi3 gets,” 2014). Xiaomi did not lower their product quality to get great income, they prefer to lower their costs. Further, they will not lower their quality because it can lessen their customer, and it is a hard thing to get their customers back. As Xiaomi’s vice president, Barra declared that to lower their cost, most of Xiaomi products are sell through their own e-commerce platform (“How Xiaomi Relies,” 2014). It is an innovative and creative thing Xiaomi did that is rarely thought by other companies. However, research shows that most of the internet users did not enjoy online shopping, since there were many consideration for buying things online (Teo et al., 2014). It is not easy for customers to trust online shopping because there were errors. Despite that, Xiaomi was able to gain their customers trust to shop their products online because they have shown it from their loyalty to the customers that they will be responsible of any errors from the products and service. In addition, to earn big income, Xiaomi decided to publish not much products in a year. It was mentioned that Xiaomi “…
The chosen article is Two Cheers for Consumerism by James Twitchell. In this article he talks about consumerism, commercialism, and materialism. He argues the stand point of consumers and the role they live by every day. In other hands the critics, Academy, gives the consumers and overview description to their consumers.
Our company designed three separate brands for our target markets. The first one is designed for Workhorse called Veloce Prime, which is a desktop with ultra capacity hard drive, ultra fast of computing power and high-speed networking. For software, it has office upgrade, presentation; database; engineering and manufacturing. Also, it has a stylish case, 19" standard monitor and expanded keyboard. The price of this product is $2500 and customers can get a $300 price rebate. To appeal Workhorse to choose our product, we made an advertisement to show it’s easy to use and we have local service and support. But it is not very work for this brand; there are total 2194 demands of this brand that 50 demands from Workhorse and 2144 demands from Mercedes and 0 demand form Traveler. We are unexpected that this brand didn’t get high demand from Workhorse but got 2144 from Mercedes, which was not our target market. To comparison this brand with our competitor’s, their brands are more to meet need of Workhorse than our brand. Thus, Workhorse was preferred to purchase the product from our competitor’s that is more matches for them.
What 's more, the new competitors always can drive innovation in the mobile phone industry. Because if the new competitors want to success in the industry, it has to have something different with other brands to attract the consumers, and this different thing symbolizes innovation in the mobile phone industry. Xiaomi, as a successful new entrant in mobile phone market in 2011, is a good example. According to IDC, in October 2014, Xiaomi was the third largest smartphone maker in the world, following Samsung and Apple Inc. and followed by Lenovo and LG. The smartphone that Xiaomi release is much cheaper than other smartphones, which contain high configuration as Xiaomi did. What Xiaomi has done, is to substantially eliminate the significant 20 percent to 25 percent cut retailers or distributors typically get, and pair that with the vision of earning profits from accessories and web applications within its eco-system (MIUI) instead. Because of the new consciousness of forging greater margins from the phones itself, they carve out a substantial market in a short time and become an effective competitor for the existing
There are a large number of competitors present in Smartphone industry serving to lower income group to niche segment consumers. Life of a product in this industry has reduced to a large extent relying largely on R&D to match with the emerging trends. The price of a Smartphone is decreasing whereas the purchasing power of buyer is increasing. There is also huge competition between Ios, Windows, and Android at the OS
Customer Value is a very important factor to all businesses let along business that supply products or services to the public. Value is relative to each individual customer but many researchers have found a simple way of defining customer value. Customer value equal the result produced for the customer plus process quality divided by the price to the customer plus the costs of acquiring the product (McMurrian & Matulich, 2016). The customer must purchase the product or service and experience it for the company to be able to benefit from the feedback. The four mechanisms within customer value, the results, process quality, price and customer access cost, are all very important for a company to understand in order to fully understand customer value.
The author’s purpose is to persuade the reader to learn how to control the use of smartphones and involve more in face-to-face conversation rather than chat online “It is not giving up our phones but about using them with greater intention” (Turker). She notices that many people are not really pay attention when it comes to face-to-face conversation because of get used to play the phones. In the article, she gives out many details and examples to supports her position, her sources are reliable. She points out a lot
The iPhone 5s is a high end smart phone and was designed to target the high end buyers of premium products. Its ...
Apple iPhone is one of the most successful consumer technology products ever created. It has dominated the Smartphone market since it was released in 2007. As Apple moves forward it is important that they do not ignore Hispanic Millennial, which comprises 25% of the up-and-coming segment of potential new customers. This report utilizes a number of sources and analyses trends within the Hispanic Millennial segment. It shows that the Apple brand and their products have a great reputation among the Hispanic Millennial segment and new products are not necessary. It also concludes that in order to keep the current brand image the price of the product is right. This analysis will explore the places iPhones are sold and focus on the importance of
...tphones and nearly two-thirds of its tablets. One way Apple could overcome this dilemma would be to acquire a low-cost smartphone maker like Xiaomi. Such an acquisition would allow Apple to enter the low-cost smartphone market in rural China and Southeast Asia without undermining its brand image.
BestBuy really needs to know the expectations of consumers to be able to align on the same distribution line than its competitors that continue to cut its market shares by offering the same products at very competitive prices. There is no doubt about the threat that may represent specially Wal-Mart for BestBuy, its "Every day low price" slogan speaks for itself. Today, quality’s problem is used as a marketing argument, but it’s not over true even though Walmart some low quality products. We have to notice that most of the producers of nowadays ’technologies are Asian countries as proof, IPhone and well-known brands technologies have always been manufactured in China. So the quality problem is not really the problem BestBuy is facing because there is no doubt that Wal-Mart and BestBuy have the same suppliers since everyone claims to offer high quality electronics. The first thing to do is to figure out how Walmart makes the difference by lowing its fixed and variables costs to better maximize profit even though offering low cost product. I think BestBuy needs to review its employees ‘training budget since they already have a good knowledge about the product they offer. As cited on page 22-4, even though its revenue grow, at the same time its net income and operating
is yet to reach its maximum potential. Truly a unique entity in its accomplishments and organization, apple through the conviction and leadership of Steve Jobs its founder and then CEO; have pioneered the revolution of mobile technology. When it comes to strength, apple Inc, has a great marketing team with great marketing and advertisement capabilities, strong brand awareness, a strong and extensive distribution channel, and most of all a vertical integration and the most obvious which is customer loyalty. With the acquisition of valuable companies such as Beats, WhatsApp, mobile payment systems with the IPhone 6, wearable gadgets like the IWatch, apple uses these opportunities to satisfy its loyal
Xiaomi has shocked the world with their ability to sell high quality, high tech phones for so cheap, but it all comes down to their pricing strategy. Xiaomi’s pricing strategy is based around not having any brick and mortar stores. This reduces many potential costs for them, such as distributing to different stores and wages for employees working in stores. Another surprising strategy that they have found great success in is that they put very little investment into advertising, if any at all. They rely solely on social media and word of mouth to sell their products, and they have built a very large social media following. With no advertising costs and no store location costs, Xiaomi can sell their products for a very low price, but still see
Therefore it is recommended that Xiaomi change the focus of its value proposition and emphasis on certain extent in order to capitalize its competitor Huawei. Thus, we proposed Xiaomi to adapt with Elementary/Basic value proposition framework by (Osterwalder and Pigneur, 2003) in defining new value proposition.
Thau was inspired by the Bashar Nejdawi, president of Ingram Micro Mobility that is a provider of technology and supply chain services. According to Nejdawi, “In five years, consumer electronics stores as we know them today won’t even exist, and the same rings true for our favorite apparel brands”. He also asserts that three influential factors will change the retail landscape: instant gratification, borrowing and customization. A good example of instant gratification is Uber or Amazon. The Uber customer can see in real time where the Uber car is and when is going to arrive. In the same way the Amazon provide fulfillment program that allow retailers to sell products that are not physically in storage. In this way the retailers do not have to care about inventory and can concentrate on marketing. Secondly, the borrowing culture is going to grow. As an example is Zip Car or Netflix applications. On the Zip Car program someone can borrow a car just for few hours. Likewise, some business offer a mobile device rental program that allow a customer to lease the latest device for a fraction of the cost. Further, the customization program permits customers to choose their preferences before the product is being made. As an example is miAdidas company that gives to the clients the possibility to create
Value can mean different things to different people; it is measured by a product’s performance and by the elements it is made up of which customers are prepared to pay for. (Hanson et al, 2008)