Research On Xiaomi's Smart Home Business Competition Strategy

With the rapid development of technologies such as the Internet of Things,artificial intelligence,big data,cloud computing,and 5G,with the encouragement,guidance,and support of national macro policies,the scale of the smart home industry has achieved explosive growth,and has become a wrestling field for major technology companies.How to stand out in the growing smart home market is a question actively considered by every enterprise in the industry.Xiaomi company occupies an important position in the smart home industry,and has occupied a huge share of the smart home market in just a few years.Through the study of the competitive strategy of the Xiaomi smart home industry,it can enrich the smart home market strategy theory of the emerging market and help Xiaomi has achieved greater advantages in future market competition,driving the future healthy and rapid development of China's smart home industry.Based on the competitive strategy theory,this article uses literature analysis and case analysis to analyze and analyze Xiaomi's smart home business from both internal and external environments.In terms of external environment,the PEST analysis model is used to describe the political,economic,social and technological macro environments faced by Xiaomi's smart home business;the Porter Five Forces model is used to negotiate the bargaining power of suppliers,the bargaining power of buyers,and Five aspects including threats,threats of substitutes and competition of competitors in the same industry analyzed the current competitive environment of Xiaomi's smart home business.In terms of internal environment,the company analyzes the resources,capabilities,corporate culture,core competitiveness,and organizational structure of Xiaomi to fully explore its own advantages anddisadvantages.Finally,the SWOT tool was used to enumerate and classify the internal and external environmental impact factors of Xiaomi's smart home,and conduct a strategic combination analysis.By comprehensively comparing the low-cost strategy,the differentiated strategy and the centralized strategy,the conclusion that Xiaomi's smart home business should adopt the differentiated strategy is finally reached.At the same time,it is recommended that Xiaomi's smart home business should proceed from multiple channels such as product differentiation,service differentiation,and marketing methods to ensure the effective implementation of the differentiation strategy.In addition,the implementation of the differentiation strategy should also pay close attention to consumer demand and market changes,to avoid valueless differentiation,excessive differentiation,competitor imitation and customers' sensitivity to differentiation.