The year 2020 wasnt a good year for Xiaomi. The US Department of Defence added Xiaomi to a list of Chinese companies that are not allowed to receive any American investment and are to be faced with tough restrictions to their businesses. The US accuses the companies of having ties to the Chinese military and/or being Communist Chinese Military companies. Xiaomi also faces intense competition from both high-end smartphone manufacturers like Apple and Samsung who unlike Xiaomi, charge premium prices but have managed to command a large market share due to their quality and strong brand names. It also faces intense competition from its fellow low price smartphone category competitors like Huawei, Vivo and Oppo who have achieved dominance in markets like China. Infact, Oppo rose for the first time in January 2021 to become the leading smartphone in China with a market share of 21%, followed closely by Vivo with 20% while Xiaomi, Apple and Huawei ranked third each with 16%.
In this comprehensive strategy analysis, we analyse Xiaomi's external and internal business environment using Pestle and Swot in order to understand the existing and future trends in the smartphone industry and their effect on Xiaomi, that is to say, whether they present opportunities that can be harnessed or threats that need to be mitigated.