A New Product on the Chinese Market

Exploring how the Xiaomi smartphone became an overnight sensation in China

Thesis
Presented in Partial Fulfillment of the Requirements for the Degree Master of Arts in the
Graduate School of The Ohio State University
By
Tina Lynn Li, B.A.
Graduate Program in East Asian Languages and Literatures
The Ohio State University
2015

Thesis Committee:
Jian Xiaobin, Advisor
Galal Walker

Copyrighted By
Tina Lynn Li
()
2015

Abstract/
Xiaomi, founded April 2010, within 4 years has already become the king of Chinas
smartphones and even ranks third in global smartphone sales. This current paper explores
the reasons for Xiaomis explosion of popularity from six different angles: company
development history, business operations strategy, competitive advantage, competitor
analysis, potential obstacles to development and domestic market prospects. Through an
in-depth analysis, this paper will explore the resistances faced by Xiaomi when entering
foreign markets and how they were able to maintain foreign sales and health development.
Finally, it will discuss some of the valuable lessons that Chinese enterprises expanding
abroad and foreign enterprises entering China can learn from Xiaomis success.
2010 4

ii

Acknowledgment/
I would not have completed this study without my loving family and friends. To all my
past and present mentorsteachersProfessor Steven Knicely, Minru Li, Jing Li, Litong
Chen, Donglin Chai, and many more, thank you for always sticking by my sideand
teaching me this wonderful new world of Chinese language. To Sun Yat-Sen University
professor, and my advisor Wang Haizhong, who gave valuable assistance with my
research.
/

iii

Dedication/
My Grandma Dotty Burchfield has always been there, supporting me through all
my decisions. Through the ups and downs in my life, she has always been a great
motivator, by listening and supporting my decisions. She did not give up on me, which
says wonders. I know I have made a lot of bad decisions in my life, but you were always
there to help me in the end.
My decisions to join the military, finish undergraduate degree in Security
Intelligence, and continue graduate school specializing in Chinese language. All this was
because I wanted to make a difference in someones life, to help strengthen the ties with
China. Just maybe one day, I will be able to be like her and make a huge difference in the
world, a huge difference in someones life. As Neil Armstrong once said, One small
step for a man, one giant leap for mankind. Grandma, made a big impact on my life,
and I would not be where I am at without her.
Dotty Burchfield

Future Goal/:
Take politics out of International Relations.

iv

Vita/
2014. 9---2015. 7

---
2013. 12---2015. 5

---
2007. 6---2013. 12

2012. 6---2013. 8

---

2014. 9---2015. 7

Sun Yat- Sen University

Business Management School, Marketing

2013. 6---2015. 6

The Ohio State University

East Asian Language and Literature, MA Flagship

2007. 6---2013. 12

The Ohio State University

International Studies, BA Security Intelligence

2012. 6---2013. 8

Qingdao Ocean University

Chinese Language and Culture Study Abroad

2007. 2---2014. 7

U.S. Army Reserves

31B- Military Police, Operation Iraqi Force 08-09

1999. 8--- 2003. 6

Thomas Worthington High School

Computer Science, (Smart home of Tomorrow Project)

Table of Contents/
Abstract/ ...................................................................................................................... ii
Acknowledgment/ .................................................................................................. iii
Future Goal/: ----------------------------------------------------------------------- iv
Vita/ ............................................................................................................................ v
........................................................................................................ 1
............................................................................................ 3
2010 ------------------------------------------------------------------------------------5
2011 ------------------------------------------------------------------------------------5
2012 ------------------------------------------------------------------------------------6
2013 ------------------------------------------------------------------------------------6
2014 ------------------------------------------------------------------------------------7
2015 ------------------------------------------------------------------------------------9
.......................................................................................... 10
.................................................................................................. 14
----------------------------------------------------------------------- 14
----------------------------------------------------------------------- 15
----------------------------------------------------------------------------- 16
----------------------------------------------------------------------- 18
.......................................................................................... 23
-------------------------------------------------------------------------- 23
----------------------------------------------------------------- 24
-------------------------------------------------------------- 25
-------------------------------------------------------------------- 26
-------------------------------------------------------- 29
.......................................................................................... 32
-------------------------------------------------------- 32
1. ------------------------------------------------------------------------ 32
2. --------------------------------------------------------------------- 33
-------------------------------------------------------------- 34
----------------------------------------------------- 36
vi

 ...................................................................... 37
----------------------------------------- 37
-------------------------------------------------------------------- 37
.................................................................................. 39
-------------------------------------------------------------- 39
----------------------------------------------------------- 39
-------------------------------------------------------------- 40
-------------------------------------------------------- 41
-------------------------------------------------------- 42
.............................................................. 44
----------------------------------------------- 44
----------------------------------------------------------------- 44
----------------------------------------------------------------------------- 45
----------------------------------------------------------- 45
.......................................................................................................................... 46
Reference: ........................................................................................................ 48
A: ---------------------------------------------------------------- 50
A ----------------------------------- 51
B ---------------------------------------------------------- 52

vii

List of Tables/
: 5 : 2014 IDC ................................. 19
: Strategy Analytics) ................................................ 20
.............................................................. 24

viii

List of Figures/
: 2014 .................................................................................................... 4
: 2013 9 2014 4 ........................................ 13
: 3 ....................................................................... 21

ix

2010 4

CEOIT
CEO IT
MIUI
2014
2014 6112
227% 743 135%
2014
116 15.6 3% IDC
2017 740.5 117.8 1

1 (, 2015)

 : 2014 2

8%10%

2013 265.83
4.86 3.47 1.8%
28.7% 18.7% (, 2015)3
2013
2013 2014
2015

MIUI

2 (, 2015)
3 (, 2015)

 1000
3000

MIUI TV 8 + 1

IPhoneIPad
WIFI
30 MIUI
Android

AndroidIOSSymbianWindows PhoneCOS WIFI

3G4GGPRS
2014 2

2010
4 6
8 16 MIUI
12 10 Android
2011
7 12
MIUI
8 1
5

8 16 MIUI 798
1
9 5 30
12 18 1 5 30
2012
5 29 10
6 7 7 x 24
6 26 2.16
40
8 16 798
11 19 12 MI2 10 2 29
M1S 30 12 02
12 24 25
2013
1 4 60 50
3000
3 1 MIUI V5 2
3 12 12 25 20
25 1S
3 19 1 299
2 20 1999 16/32GB
4 9 MIUIV5 2
2S 2 2A
4 26 12 2a 10
5 9 10 5 10 10
6 7 12 2S16/32G
2A1
6 8
6

 15
6 24 8 6 27
900 qq
8 12 12
90 10
8 28 12 2013 APP
MIUI 100 199 1
1000
9 5
3
10 22 3
2S
11 11 11
311 2s11 5

11 28 10 15 3
2014
2 14 1s 2 20
2 27 10 2S 16G 4001299
600CPU
3 16 0 QQ Note 5.5
cpu3 19 3 26 12
3 27

4 22 mi.com xiaomi.com

4 23 mini
7

4K 129 399
5 15 MIUI16G
1499 64G 1699
7
7 22 4
4 2.5GHz 801 3GB LP-DDR3
16\64GB eMMC5.0 JDI 5 1080P OGS
1300 800 3080mAh
One More Things

8 16 798 MIUI 6

8 28 Lazada

10 30 LG

11 6
SDR1860 SDR1860
1.03
1

3%
11 12

11 19 18 3


12 14
12.7
2015
2015 QQ 1
4 QQ
1 4 2014

1 15 Note 2299
3299
1 19 5.27
4.23 2.98%
1 30 Note 1


1987 11 18
20 1G2G
3G 4G 1G
2G 3G PC

CPU
4G
3G
1978 10 GDP
10% 2010 GDP 10.3% 5.75
GDP5.39
42 4 2010 GDP
2014 GDP 7.4% 1990 GDP 3.8%
GDP 1978 381 2014 46510.5
7575 2014 8 GDP
1 6.1428
GDP 2014 90
53% 2000

4 (, 2015)

10

99%

2014
90.8% 66%
37%36%10%5
13

GDP

46% 1000

5 (, 2014)

11

1000 3000

12


Statista

0.91%
0.77%

0.70%

0.62%
0.47%

0.50%
0.37%

0.28%

: 2013 9 2014 4

GDP

13

IT IT
IT IT

++

++
80% Android
MIUI Android

6 MIUI
MIUI
APP

iPhone 5s

6 (, 2013)

14

++
Android IOS
IOS
IOS MIUI

GDP

40

15

MIUI
MIUI
MIUI MIUI

MIUI 100

1000 100 MIUI

100 MIUI

200 400 800

MIUI

2011 8 1

16

MIUI

1 2011 5 3000
MIUI
100 1 2000
20 23% 5000
3000

1 100
2012
150 150
150

2014
17

MIUI

360

66%

18

IDC 2017
740.5 117.8

: 5 : 2014 IDC

19

 : Strategy Analytics)

, 150 450 2014

50%MT6589
20%4.7 312ppi IPS 22%220 ppi
85
(4Q13) 799 130

20

 : 3 7

799 4505

3
1999 iPhone 5s 5310

7 (Handford, 2013)

21

22

13

4050% 799
2014 4
1000 Note
1000 1000 2014

3000
1000

10% 34%

23

/*

+
+

24

++

MIUI
Android

2010 4
MIUI MIUI MIUI
MIUI
2011 8

25

1 30
1 30
30

2012 1

F note
3

IT IT
26


IT IT

CEO

1992 Drexel

MIUI

1999
BSP
Art Center college of design

KTV

27

MIUI

1
2011 12 408

IT

100

100

100 85

5 80%
1000

2011 3

28


8 11

CPU

2 2

1 1

1
2 APQ8064 6
6

2 8064 8064 100

2 LG Nexus 4

MIUI

29

2013
9.4% 3.3%
87.3%

Android
80% Android IOS
Android MIUI Android

30

2 2012 8 16 1999 2013 4

9 1999 CPU2013 7
2S 1699 2013 9 5 2S 32G
1799 2 1999

2 2
2

31

2010 4
2014
2014
116 15.6
3%

1.

MIUI
MIUI Android
Android Android

MIUI MIUI

MIUI

32

PCT
2014 3 Unwired Planet
21 3GLTE 10
2000
2009

IOS
Android IOS

Android
2.

33

SIM 2014 38
13
13 HTC

34

++

2012 5 5 5 5
6000 iPhone iPad
75%iPhone 73%
htc
iPhone iPad 68%

2011 8 1 2012 5
2012 8 2 2013 7
2013 9 3

35

36

2012 10 2 Nexus 4
1900 2 1999
HTC Android
1888 vivo

vivo V
2014
TCL 6000 2014
1500 35

37

MIUI

MIUI

38

1987
20
90.8% 66%

IT

2010
39

 2010
42 GDP
10%2010

2014 7.4%
GDP 7575 46510.5

90.8%
66%

1997

8%
2014 53% 13

2000
40

2050 75%

1986
9
2006
9

1978
1999
50%

1999

10%

41

IT

42

43

2013 2014

44

20

45

46

95%

2.98% 100

APP

47

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49

 A:

50

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.
11.
a)

12.
a)

b)

13. C2B
14.
15. Apps

51

 B
1.

2.

3.

4.

a)

5.

6.

7.

8.

a)

b)

a)

b)

52