Xiaomi M1

Xiaomi M1

BY TIEZHENG LI

Msc in ISE 6

2013.11.18

Contents

1. Introduction 2

2. The History of Focal Innovation 2

3. Technology Push or Market Pull 3

4. First mover advantage 4

5. Product or Process innovation 4

6. Radical Innovation versus Incremental Innovation 5

7. Business Model Innovation 5

8. Blue Ocean Strategy 7

9. Intellectual Property 9

10. Conclusion and Recommendations 9

References 10

Introduction

Products made in China are controversial these years, especially in smart phone industry. As the “Shan Zhai” culture which means Imitation is more and more rampant in China, people are losing faith on Chinese products and this deeply affects each industry in China. However, in 2011, the appearance of Xiaomi phone M1 broke the scale of Chinese smart phone market. It is the first smart phone with dual-core 1.5GHz published in China and undoubtedly a strong impetus to the Chinese smart phone field. Based on the information from Xiaomi official website, the sales volume of M1 has achieved 3.52million in 2 years and it was a spectacular performance for a new company and product.

Many people may wonder that how they could stand out from the rest. This dissertation is written about Xiaomi phone and explains why it succeeds in Chinese chaotic market. I will analysis the focal innovation combining with different aspects which include Technology push and market pull, First Mover Advantage, Blue Ocean Strategy, Business Model Innovation and Technological Innovation, Intellectual Property as well.

The History of Focal Innovation

In April 2010, seven people who were from different top-ranking companies like Google, Microsoft and king soft, etc built a start-up mobile internet company, giving a name of Xiaomi for it. This company is dedicated to developing high-end smart phones and creating an all aspect user experience.

Xiaomi smart phone M1, a self-developed product, which published in 16th August 2011, sold at ￥1999...