Xiaomi's strategy to drive down profits in any industry is a price-down strategy that makes consumers feel cost-effective, but it is a challenge for companies. Taking Xiaomi mobile phones as an example, the early Xiaomi mobile phones were priced at around 1999 yuan, which caused a lot of pressure on other mobile phone brands because they did not dare to increase prices at will. Even if Xiaomi is now promoted to the high-end market, it is still the most cost-effective among other domestic mobile phone brands in terms of configuration and **. And such a strategy is not only limited to the field of mobile phones, Xiaomi is also in the field of small household appliances, major appliances and other fields, entering any industry, Xiaomi will do its best to reduce profits, in order to attract consumers, and quickly seize market share.
In addition, Xiaomi also has a secret of low profits - a strong ** chain advantage and research and development capabilities. This makes Xiaomi more handy when it comes to quickly entering multiple industries. Although the entry into the automotive industry has been relatively difficult, Xiaomi has also cleverly found a way to launch its own products in the automotive sector. Therefore, once Xiaomi gets involved in a certain area, other competitors will face serious challenges.
Xiaomi's brand influence and traffic advantage are important guarantees for its successful entry into various industries. Whether it is Lei Jun's personal charm or the cost performance of Xiaomi products, it has brought a large number of fans and consumers to Xiaomi. Once the Xiaomi brand is tied to a certain product, the sales volume is often not bad. This has led to a serious squeeze on the living space of other manufacturers, and they have to cut prices in order to compete with Xiaomi. Xiaomi's brand effect can be said to be a kind of effect with its own traffic, which makes Xiaomi always occupy a place in the highly competitive market.
In addition to the low-profit strategy and brand traffic advantages, Xiaomi also relies on its strong ** chain and R&D capabilities to quickly cut into various fields, so as to defeat other competitors. As mentioned earlier, Xiaomi has adopted a strategy of driving down profits, weakening the competitiveness of other brands through large sales volumes. In addition, Xiaomi also has the advantage of ** chain and R&D. This means that Xiaomi can easily enter other industries and quickly iterate to launch better products. Whether it's mobile phones, home appliances or other industries, as long as Xiaomi enters, many other companies will face tremendous pressure.
It is worth mentioning that in order to resist Xiaomi's competition, many small household appliance manufacturers have chosen to cooperate with Xiaomi and join Xiaomi's ecological chain. Although doing so will lead to a squeeze of profits, they will at least be able to get resources such as support and traffic from Xiaomi. And those companies that are not willing to become the Xiaomi ecological chain will either keep their distance from Xiaomi and focus on developing niche products, or they need to have a certain strength and develop better products to compete with Xiaomi. However, there are very few companies that can truly compete with Xiaomi.
To sum up, it is no accident that Lei Jun and Xiaomi are often questioned and attacked. In industries such as home appliances, mobile phones, and automobiles, many companies are worried about competing with Xiaomi, so they will try to create opposing pressure. This is because Xiaomi has unique advantages in various industries, including low-profit strategies, brand influence and traffic advantages, ** chain and R&D capabilities, etc. Xiaomi's entry into other competitors means a shrinking of living space and a reduction in profits. Therefore, in order to cope with Xiaomi's competition, many businesses will have to adopt other strategies.
As a company that is competitive in many industries, Xiaomi has been the subject of much attention and controversy. The article makes an in-depth analysis from Xiaomi's low-profit strategy, brand influence and traffic advantages, as well as first-class chain and R&D advantages. Xiaomi's entry into the market is a huge challenge for other competitors, and many companies have to choose to cooperate with Xiaomi or find other competitive strategies. However, in any case, Xiaomi's influence and strength as an Internet giant cannot be ignored. In the fierce market competition, enterprises need to make continuous efforts in brand building and product innovation in order to compete with or even surpass strong competitors like Xiaomi.