A Study On International Market Selection Of Xiaomi's Internationalization

The Chinese smartphone market has become saturated and the competition is fierce because all Chinese smartphone manufacturers are providing very similar products.Under these circumstances,it is imperative for Xiaomi to expand into international markets if it wants to sell more smartphones and thrive.This thesis summarized Xiaomi's internationalization strategy,and analyzed the motives,strengths and weaknesses for its internationalization and the required external factors for the success of its business model.And then,consulting existing theories and models on international market selection,this thesis set up the analysis procedure for Xiaomi's international market selection process.The procedure consists of four steps.First,to obtain new markets was identified as the major motive for Xiaomi's internationalization,so a list of candidate foreign markets can be generated according to market size.Second,according to Xiaomi's internationalization strategy,Xiaomi must enter emerging smartphone markets of developing countries first,so the markets of developed countries must be excluded from the list of candidate foreign markets.Third,assess the composite country risk and the political risk of each candidate country,and exclude countries with unacceptable risk.Fourth,assess the adaptability of Xiaomi's business model to the candidate foreign markets,and select markets with the three essential conditions for the success of Xiaomi's business model.The three conditions are as follows: medium smartphones and low-end smartphones are the majority in the market and the smartphone market is growing very fast;there is a sizeable e-commerce market in the country;and social media is very popular in the country.Screened by the three conditions,India,Brazil,Mexico,Philippines,Vietnam,and Colombia were identified as favorable foreign markets for Xiaomi.This thesis suggests that Xiaomi enters India first,and then Brazil.After Xiaomi succeeded in the two markets,it would be ready to enter the other four markets.