Value Chain Analysis of Xiaomi

Xiaomi is a consumer electronics, hardware, software, and automobile manufacturing Chinese multinational company. Lin Bin and Lei Jun founded the consumer electronics and automotive company in 2010. Today, we’ll discuss the value chain analysis of Xiaomi supply chain analysis; primary and supporting activities in the process of value chain analysis Example Company. They are inbound and outbound logistics, operations, marketing, and customer service; infrastructure, HRM, technology, and procurement as an application of the value chain analysis process.

Suppliers and Vendors of Xiaomi

• BOE
• TCL
• Yangjie Electronic Technology
• CATL
• BYD
• Bosch
• NVIDIA
• Qualcomm
• TPK
• Wintek
• Hon Hai
• TSMC

The Value chain analysis of Xiaomi supply chain analysis would analyze the primary and supporting activities in the process of value chain analysis. They’re inbound and outbound logistics, operations, marketing, and services; infrastructure, HRM, technology, and procurement. Here’s supply chain analysis of Xiaomi value chain analysis company example as follows;

Value Chain Analysis of Xiaomi

Let’s discuss the primary and supporting activities involved in the process of value chain analysis of Xiaomi supply chain analysis. It is an application of value chain analysis based on Porter’s model; some of the key elements and components of value chain analysis are as follows;

Primary Activities of Xiaomi

The primary activities are directly involved in the production of products and goods and adding value to the consumer electronics, automobile, and Technology Company. Some of the five main primary activities in the value chain analysis of Xiaomi supply chain analysis are as follows;

Inbound Logistics of Xiaomi

I-Suppliers Network

Xiaomi has established a very large suppliers and vendors network in various regions and countries across the world. Some of the main supplies, parts, and components from different regions are as follows;

• Batteries and MOS from Thailand
• Taiwan Semiconductor Manufacturing Corporation
• TPK and Wintek for screen technology
• Hon Hai and Inventec for assembling

II-Relationship with Suppliers

Xiaomi is aware of the value and significance of building and maintaining a strong relationship with suppliers and vendors. The large and diversified suppliers network and building a strong relationship would help them to ensure the smooth supply of supplies, parts, and components for the production and manufacturing of tech devices without any disruptions and delays.

Outbound Logistics of Xiaomi

I-Transportation & Distribution

Xiaomi employs various transportation and 3rdparty logistics service providers for the transportation and distribution of products and goods. They move supplies, parts, components, and equipment from the authorized suppliers and vendors to the production and manufacturing factories, assembling units, warehouses, and distribution centers.

I-E-commerce

Along with a very large network of Mi-Stores, Xiaomi has developed a very advanced e-commerce platform. It focuses on offering a wide range of Xiaomi’s tech products and devices directly to the end customers. However, it further amplifies the market reach of the brand to the end consumers by removing various intermediaries and middlemen.

Operations of Xiaomi

I-Production & Manufacturing Factories

Xiaomi has a very large network of production and manufacturing factories in China, India, Pakistan, and other countries. They receive tech supplies, parts, components, tools, and equipment from authorized suppliers, perform various technologically advanced operations to assemble various parts and components and develop various types of tech and digital devices.

II-Warehouses & Distribution Centers

Xiaomi has built a network of warehouses and distribution centers in various regions across the world. The company has built them in specific geographical locations near the retail chain stores and customer markets. They help the company to reduce the delivery time and cost.

Marketing & Sales of Xiaomi

Xiaomi runs various types of marketing and advertisement campaigns for the promotion of its products and brands. As a technology brand, it focuses on offering high tech advanced, and affordable products to the end consumers. The company implements the following strategic approaches to amplify its customer’s market reach and sales;

• Innovative technology
• Community engagement
• Cost efficiency
• Affordable retail prices

Services of Xiaomi

Xiaomi offers a wide range of services along with tangible products and goods. The additional services help the company to promote brand loyalty and improve the overall customer experience. However, some of the main services of Tech Company are as follows;

• After-sale service
• Customer support service
• Repair and maintenance
• Warranty
• Software and applications
• Cloud services

Supporting Activities of Xiaomi

Supporting activities are indirectly involved in the production of products and goods and adding value to the technology, consumer electronics, and automobile companies. Some of the main supporting activities in the value chain analysis of Xiaomi supply chain analysis are as follows;

Infrastructure of Xiaomi

Xiaomi has established a very large infrastructure of production and manufacturing factories, assembling units, warehouses and distribution centers, retail chain stores, and supplier networks. The large and well-developed infrastructure helps the tech device manufacturing brand to smoothly perform its various operations and timely delivery of the finished products to the end consumers.

HRM of Xiaomi

Xiaomi has employed approximately 32000 employees and workers to manage its global operations. The human resource management department of the company plays a key role in building and recruiting a large database of employees, carefully allocating employees to different roles, conducting training programs for employees, contracts with suppliers and vendors, and offering equal employment opportunities to all regardless of any differences.

Technological Development of Xiaomi

Xiaomi invests a significant amount of capital resources in research and technological development. It allows the technology brand to develop innovative tech devices with unique and advanced features, improves its software and application systems, and introduces new products to gain a competitive edge in the market.

Procurement of Xiaomi

Xiaomi is highly careful and cautious about sourcing and procurement of materials, parts, components, supplies, tools, and equipment. The company has built a better and stronger relationship with its suppliers and vendors to ensure the smooth availability of suppliers and parts on time without any delays and disruptions.

Conclusion: Xiaomi Value Chain Analysis Example Company | Application of Value Chain Analysis Process |Process of Value Chain Analysis

After an in-depth study of the value chain analysis of Xiaomi; we have realized that Xiaomi is the world’s leading consumer electronics manufacturing brand. If you are learning about the Xiaomi value chain analysis example company; then you should keep in mind the abovementioned primary and supporting activities. They’re inbound and outbound logistics; operations, marketing and sales, and services; infrastructure, procurement, HRM, and technological development as an application of the value chain analysis process.