Swot Analysis.docx

13. INTERNAL AND EXTERNAL ANALYSIS OF XIAOMI – SWOT ANALYSIS: STRENGHTS: 1. Having Skilled and Experienced Workforce in which the professionals from other leading companies like Google, Microsoft, Kingsoft, and Yahoo are also included. 2. It has Competent and Experienced Business Units. Have wide distribution and sales network to expand its business to new existing markets. 3. Providing Quality Components in Smartphones and other products at the most affordable prices, with specifications that won’t obsolete till next 12-18 months. 4. Added with Strong Management Team and has direct consumer sales as well. 5. Use Word of Mouth Advertising rather than other sources. WEAKNESSES: 1. Online Advertisement model and the Word of Mouth advertisement is not as effective as other sources like TV advertisements or Celebrity endorsements. Also Social media marketing is becoming popular but it is still in under developing stage and it takes time to get success in online business. 2. Lack of consistency in bringing more and more professionals in the company, who can guarantee its success. And Logistics issue due to direct consumer selling. 3. Weak After-Sales Service and Lack of enough technical staff to carry on their electronic work and introduce new and fresh specifications in it (System updates are rolled out every week in China). OPPORTUNITIES: 1. Adopting Offline Sales Channel can really help company boost its sales along with the Online Sales Channel. 2. Explore new and existing markets while expanding the exhibition of their products, because they have a huge product line in China. 3. Having a huge product line consisting of many smart home devices, they can dominate Indian market and can create a great Internet Ecosystem outside China too. THREATS: 1. Face strict Government Regulations and the effect gets transferred on manufacturing and transportation of their products. 2. Their Loss Leader strategy is laying a question mark on sustainable future of Company. 3. Profitability in future at stake, because many competitors are coming up with affordable products with handsome specs.