BY SIMPLY TIEZHENG LI
Msc in ISE 6
2013. 14. 18
Items made in Chinese suppliers are controversial these years, especially in smart phone industry. As the " Shan Zhai” culture meaning Imitation is more and more widespread in China, people are shedding faith in Chinese products and this deeply affects each industry in China. Nevertheless , in 2011, the appearance of Xiaomi phone M1 out of cash the scale of Chinese smart phone market. It's the first smartphone with dual-core 1 . 5GHz published in China and undoubtedly a strong impetus to the Chinese smartphone field. Based on the information by Xiaomi standard website, the sales amount of M1 features achieved three or more. 52million in 2 years and it was an amazing performance for the new company and item.
Many persons may wonder that how they could stay ahead of the rest. This dissertation is written about Xiaomi phone and explains how come it works in Chinese chaotic market. I will examination the central innovation merging with different elements which include Technology push and market pull, First Ocasionar Advantage, Blue Ocean Technique, Business Model Advancement and Technological Innovation, Intellectual House as well.
The History of Focal Development
In The spring 2010, seven people who had been from distinct top-ranking companies like Google, Microsoft and king smooth, etc created a start-up mobile net company, providing an name of Xiaomi for doing it. This company is dedicated to developing high-end iphones and creating an all factor user experience.
Xiaomi smart phone M1, a self-developed product, which usually published in 16th Aug 2011, sold at ￥1999 on Xiaomi official website. Until nowadays, Xiaomi smart phone has already become ‘The top three' among Chinese local companies in China mobile market.
More references: http://www.xiaomi.com/en/about
Technology Force or Market Pull
Dual-core 1 . 5GHz CPU in whose speed is almost twice of other iphones with one particular core. Within the snapdragon deal, the phone is additionally powered by a powerful adreno 220 graphics processor, that may no doubt generate good use of the phone's 1GB MEMORY and an astounding 4GB ROM and 1930mAH lithium polymer battery which has 30% even more volume compared to a normal smartphone. It seems that all these settings are generally not the unique and top level comparing with other phones. Yet , It is unheard of if you can buy a smart telephone with all of these settings of them costing only ￥1999. Below this circumstance, I would like to talk about the rate of growth of Xiaomi is more likely as a result of demand of market. Since many people find out, the counterfeit of smart phones in Customer extremely critical and we name those imitations ‘Shan Zhai'. Even if the quality of these unlicensed fakes is inferior, they have not really been protested by consumers but are more welcome in a few consumer organizations who are definitely the one of primary stakeholders of " Shan Zhai” tradition. As we know, you will discover 1 . several billion chinese and it is difficult for them to pay the cell phones with the price of 400 european or more numerous people might earn 200 euro per month. Von Hippel (2011: 297) said that ‘In many markets it is not normal users that are the source of innovation, but lead-users. Is it doesn't pull of users on the market that is accountable for innovation. ' A high environment with fairly low price sounds like as amazing as apologue. Xiaomi precisely grasp the requirements from users, especially those who have high demand about settings. Users in China can be labeled as 3 groups in general. One is individuals are for in apple, Samsung or HTC. An additional group could possibly be those who are only fund in the smart phones in cheap price and ‘Shan Zhai' smart phone can fit their needs perfectly. The final group is usually users whom chase pertaining to high quality but at reasonable price, living in a majority of users. Xiaomi group seized this kind of very second and efficiently pushed their particular first mobile phone into the marketplace, regarding to real market needs. And so they attracted all groups of users.