Xiaomi Inc.

  • Xiaomi Inc. is a privately owned Chinese electronics company headquartered in Beijing, China, that is the world’s 4th largest smartphone maker. Xiaomi designs, develops, and sells smartphones, mobile apps, and related consumer electronics.Critical evaluation of the macro-economic factors that affect Xiaomi Inc. Offers an insight into the existing opportunities and imminent threat that is likely to characterize its expansion strategies. Legal factor in Xiaomi Inc. PESTLE analysis is significant in its expansion plan (Furr,et al.2014,pg.63). For instance, it is worth noting that this firm doesn’t possess the all-important patent portfolio that is key in giving it immunity against lawsuits on intellectual-property by competing firms like Apple and Samsung (Arthur,2014,pg.61). This is a critical threat of success in the US where there are already complaints by Apple on Xiaomi’s imitation of iphone cues to its dirt-chip mobile phones.

    It is clear that should Apple lodge legal complaint, Xiaomi Inc. will likely loose and suffer negative publicity with significant financial losses. From the social aspect of Xiaomi Inc. PESTLE analysis, developed economies shows a trend in flashy lifestyle with preference to top quality Apple brands hence limiting Xiaomi Inc. from displacing its competitor in the West (Fannin,2012,pg.71). On this front, Xiaomi Inc. low prices for high specs tactic may not make impact in the US and Europe where Apple continue to command largest market share.

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