There has been a lot of discussion about Xiaomi in recent times, but it has been very different from the past. In the past, most of Xiaomi’s words were praised as “myths†and “miraclesâ€. Nowadays, many people talk about the most used words of “Crisis†and “Decliningâ€. In this respect, the growth of Xiaomi is slowing down. On the other hand, the story of “Friends and Businesses†is getting better and better. In contrast, Xiaomi has some feelings of “lostâ€. But is this really the case? not necessarily. Xiaomi does have a crisis, but there are opportunities in the crisis. Now it is decided that Xiaomi is "failed", too urgent!
crisis
From a small company that was not known in 2010, Xiaomi has grown into a valuation of 10 billion US dollars in 4 years, a valuation of 46 billion US dollars in the fifth year, and has nearly 4,000 employees, and is a fully internationalized super-mass company. Xiaomi's growth process is almost crazy, not only can not find any reference targets in the country, even in the world is miraculous, but we have forgotten that Xiaomi is actually a startup company. For a startup, frustration and even a detour seem to be inevitable. In my opinion, in 2015, Xiaomi did take some detours, which is the source of its crisis.
First of all, "fast" is a double-edged sword. When Lei Jun controlled the development of Xiaomi, he believed that "the world is martial arts, but it is not broken." Therefore, Xiaomi's overall management structure is flat management, group wolf strategy, and full-person marketing. As a result, the efficiency of Xiaomi is brought up. The action is getting faster, and there is always one step ahead in the competition with friends. But sometimes, this "fast", once the direction is wrong, the efficiency of making mistakes is also very high, and the cost is also heavy enough. This is why many mature and oversized companies strictly follow the workflow procedures and slow down the “burnâ€. The main reason for Xiaomi’s crisis today is the mistakes in strategy, decision-making and management. The “fast†pursued by the millet will infinitely magnify the “mistakesâ€.
Second, lost focus. Xiaomi's entry into the field of intelligent hardware cannot be said to be a mistake, but it has dispersed Xiaomi's focus. Even though Lei Jun has realized that he has paid too much attention on smart hardware, as mentioned above, Xiaomi's "fast" destructive power. It is enough to reflect. In my opinion, this is the biggest reason why Xiaomi did not complete the set goals in 2015. Even, Xiaomi’s marketing investment in its Xiaomi bracelet, patch cord, mobile power supply, headphone speaker, air purifier, water purifier and balance car has far exceeded the concern of Xiaomi’s mobile phone itself. It will cause users to shift the perception of Xiaomi's brand connotation, and think that Xiaomi is a smart hardware company rather than a professional mobile phone brand enterprise.
Finally, the product strategy is wrong. Xiaomi's four product lines: red rice, red rice Note, millet, millet Note, price range between 599-2299 yuan, especially the red rice thousand yuan model, in the early stage for the millet market share of the plundering . But the helplessness of Xiao also lost and Xiao He, the former strong "combat" red rice, in the situation that the domestic smart phone market stopped growing, became the biggest pressure for the Xiaomi brand to gradually move towards the middle and high end. On the other hand, Huawei, in the price range of 599 yuan -3699 yuan, has "explosive models" products: Mate series of 3000-4000 yuan price segment, P series of 2000-3000 yuan price segment, glory series of 1000-2000 yuan price segment The glory of the price range below 1000 yuan is a series of glory. Although the Internet has the saying that “there is no way to win the worldâ€, the role of “屌ä¸â€ is extremely marginalized for the competition among mobile phone manufacturers entering the replacement market.
opportunity
Although the growth rate of Xiaomi has slowed down, the mobile phone shipments in 2015 did not reach the target of 80 million units, but Xiaomi still made a good result with a shipment growth of 70 million units and a year-on-year increase of 14.75%. single. Moreover, within the internals, Lei Jun has not allowed to say "first" again, and pull all the attention of the numbers back to the service to the users. Removing the "first" "female" and refocusing on the user service of Xiaomi, under the premise that MIUI users exceeded 170 million, Xiaomi's story has only just begun, and there are many opportunities in front of Xiaomi.
First, re-focus on the core business, Xiaomi mobile phone will once again enter the "fast" lane. In the second half of 2015, at almost all the conferences of Xiaomi, Lei Jun always repeated a sentence, Xiaomi only did four things, mobile phones, tablets, TVs, routers, and Lei Jun himself had already made a profound reflection, re-" Focus on "core business. And Lei Jun has clearly put forward the specific action of "focusing" at this year's annual meeting, and set up the core device department to "dead" in the display, camera, battery and other aspects of mobile phones, in order to establish advantages and help the Xiaomi mobile phone to be seriously homogenized. Under the competition, break through and re-enter the "fast lane" of high-speed growth.
Second, Xiaomi will reorganize the product line and brand strategy. Xiaomi 5, released after the Spring Festival, is an opportunity for Xiaomi, an opportunity to reorganize the product line and brand strategy. Red rice, red rice Note, millet, millet Note, four product lines will open the gap, into a more reasonable price segment coverage. This can be seen from the pricing strategy of Xiaomi 4C 1299. Xiaomi's main line mobile phone Xiaomi 5 will break through the 1999 yuan touch 2500 yuan price, and Xiaomi Note products may be further increased to more than 3,000 yuan. The Xiaomi Note series with a price of 3000-4000 yuan, the millet mobile phone series of 2000-3000 yuan price, the Xiaomi mobile phone C series of 1000-2000 yuan price, the red rice of 500-1000 yuan price and the Red rice Note series. Of course, there is also a possibility that the Xiaomi Note series covers 2500-3000 yuan, and Xiaomi has launched a new high-end product line covering the price of 3000-4000 yuan like Huawei's Mate series. Xiaomi has a card in his hand to play, and the "substitution" quota of "Friends" has been exhausted, but the "match" is not over yet.
Third, Xiaomi's huge user base is a gold mine. According to the latest data released by Xiaomi official, Xiaomi MIUI network activation users have reached 170 million, including 37 official language versions, spread across 156 countries and regions. This is the core value of Xiaomi. As an Internet hardware company, the future value is not hardware, but Internet services based on hardware output. On the Internet, all services are based on users. This is why Lei Jun emphasizes making users happy at Xiaomi's internal meeting. Only by grasping users can they form barriers and precipitate the ecology. At present, Xiaomi relies on a large user base, and its e-commerce vendors around APP promotion, games and accessories are very successful. In the future, with the further refinement of user data mining, its operational value will be further highlighted.
Fourth, the ecological short board of Xiaomi is expected to be completed. Although Xiaomi did not deliberately highlight the concept of "ecology," it did go with this goal. If you look at Xiaomi with LeTV's “platform + content + terminal + application†ecology, the only short board of Xiaomi is currently on the content. Interestingly, Xiaomi seems to have seen his own shortcomings. From the addition of Lao Shen, to the recent return of Li Wanqiang, Xiaomi’s start, Xiaomi’s homework is falling. From the current trend of various aspects, Xiaomi's next step is very likely to acquire a video website to support the output of Xiaomi Film's content, and to undertake the content supply of Xiaomi TV to fill the only shortcoming of the ecological closed loop.
In fact, if we jump out of the huge expectations of Xiaomi, as a startup company, in less than six years, once occupied the domestic market share, accumulating 170 million users, the valuation is over 46 billion, Xiaomi has undoubtedly succeeded. . Even in the next mobile phone market competition, Xiaomi can rely on inertia to sit back and relax, but obviously, Lei Jun’s ambition does not stop there. Now, at the end of the half, Xiaomi slows down and makes a consolidation, which may be more beneficial to the development of Xiaomi. "Danger" and "machine" are relative. Under certain conditions, they can even transform each other. But the only thing that can be certain is that Xiaomi still has a long way to go. The twists and turns are inevitable. The day when the real "domineering" is restrained, Perhaps it is the time when Xiaomi is truly successful.
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