Task: Select any one multinational organization. Carry out a research on the fol
ID: 354904 • Letter: T
Question
Task: Select any one multinational organization. Carry out a research on the following aspects of the organization in any two different countries served. Present your findings in the form of a report. 1. 2. 3. 4. Brief profile of the organization and the countries it operates in. The market entry strategies adopted by the organization in the two different countries. The legal, political and economic systems of International Trade in these countries. The comparative international production and marketing strategies adopted by the firm in the two different countries. 5. Future actions that might be suggested for the company's international operations in these two countries.Explanation / Answer
1. Xiaomi is a Chinese electronics and software company that designs, develops, and sells smartphones, mobile apps, laptops and related consumer electronic goods. The company is based out of Beijing, China and the CEO of the company is Lei Jun. The company was founded in 2007 and it had a revenue of $15 billion in 2017. The company has its operations in China, Hong Kong, Taiwan, Singapore, Malaysia, Philippines, India, Indonesia, Poland, Russia, Ukraine, Vietnam, Spain, Mexico Korea, Egypt, Thailand, and United States.
2.
Indian Market:
The company entered the Indian market with a partnership with the Indian e-commerce giant Flipkart. The company sold its products online only in the initial days and this worked really well for the company and the smartphones were sold out in few minutes after the release online. They partnered with the distribution channel covering the 5 major cities of India. They also worked with the network provider Airtel to sell the products on a contract basis to the customers.
Thailand Market:
They entered the Thailand market by exporting directly and also by partnering with many e-commerce companies to sell their products. The partnership with the telecom companies also worked for them to a great extent. The Thailand market is open for new products and the penetrating the market was very easy for the company.
3. For both, the market the production happened in China and the product were exported to both the international markets. The products were then sent to the distributors and the partners to sell it to the customers. But as a long-term strategy, they can have a manufacturing unit in both India and Thailand to meet the demands of other growing market for the company in the Asia Pacific.
The marketing strategy used by the company for both the Indian and Thailand market is by portraying themselves as a budget phone for the growing economy. They gave all the latest features on the phone for a very small price and this halped them in attracting the customers in both the markets. They used the same concept for their online marketing activities as well and they could generate a huge demand for their products. Both India and Thailand is witnessing an increase in the spending ability of the middle class of the society. The company used that for their marketing strategy and captured the market quickly.
4. Have a manufacturing unit in both India and Thailand as the market is huge and the demand is growing every year for quality products at an affordable price. Concentrate on having retail stores where they can sell the products directly to the customers. Give more importance to the after sales support and engage with the customers on different online platforms to keep them informed and satisfied. Concentrate on also building top-end phones for the upper-middle-class section of the society in order get out of the budget phone tagline attached to the brand.
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