This essay will concentrate about an interview on an article about, ‘How Xiaomi Relies on Its ‘Family’ of Customers’ by Rebecca Blumenstein and Barra, Xiaomi’s global vice president. Xiaomi is one of China’s new based enterprise that engaged in the field of technology, such as handphones, portable chargers, camera, fit tracker band and many more. It managed to develop rapidly since it first launched, especially their handphones. This essay will discuss about the success of Xiaomi’s handphones that happened because of their connection with the customers and how it can achieve much money by selling low-price goods. Moreover, it will analyse how it concern on the customer loyalty and customer value.
Xiaomi is a company that prioritise customer
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Every company should give higher value compared to other companies, so that consumers will choose that company. Customer value is an obligation of a company to know about the customer’s viewpoint about what they need and make sure that they could get it from buying the company’s product (Woodruff, 2001). As a company, Xiaomi accentuate customer value, as they want to give satisfying benefits with a low cost. It was mentioned by Michael Kan (2014), one of Xiaomi’s handphone “… the Mi 3, has the features you would expect from a high-end phone. It has an Nvidia quad-core 1.8GHz processor, a 5-inch 1,920 by 1,080 pixel screen, and a 13-megapixel rear camera, all fitted together in a metal casing.” with a low price, which is USD$327 for the 16GB and USD$408 for the 64GB (“Xiaomi Mi3 gets,” 2014). Xiaomi did not lower their product quality to get great income, they prefer to lower their costs. Further, they will not lower their quality because it can lessen their customer, and it is a hard thing to get their customers back. As Xiaomi’s vice president, Barra declared that to lower their cost, most of Xiaomi products are sell through their own e-commerce platform (“How Xiaomi Relies,” 2014). It is an innovative and creative thing Xiaomi did that is rarely thought by other companies. However, research shows that most of the internet users did not enjoy online shopping, since there were many consideration for buying things online (Teo et al., 2014). It is not easy for customers to trust online shopping because there were errors. Despite that, Xiaomi was able to gain their customers trust to shop their products online because they have shown it from their loyalty to the customers that they will be responsible of any errors from the products and service. In addition, to earn big income, Xiaomi decided to publish not much products in a year. It was mentioned that Xiaomi “…
The chosen article is Two Cheers for Consumerism by James Twitchell. In this article he talks about consumerism, commercialism, and materialism. He argues the stand point of consumers and the role they live by every day. In other hands the critics, Academy, gives the consumers and overview description to their consumers.
The author’s purpose is to persuade the reader to learn how to control the use of smartphones and involve more in face-to-face conversation rather than chat online “It is not giving up our phones but about using them with greater intention” (Turker). She notices that many people are not really pay attention when it comes to face-to-face conversation because of get used to play the phones. In the article, she gives out many details and examples to supports her position, her sources are reliable. She points out a lot
Mobile is the first order priority device for access because people are connecting with others, finding entertainment, and doing business—all with smart phones. The prices of mobile phones are never over $1,000 in today’s world. They are affordable and accessible. As the result of the changes the worldwide and national business environment has undergone, people own 1-2 cell phones on average. However, the mobile markets in US seems to have been saturated.
Our company designed three separate brands for our target markets. The first one is designed for Workhorse called Veloce Prime, which is a desktop with ultra capacity hard drive, ultra fast of computing power and high-speed networking. For software, it has office upgrade, presentation; database; engineering and manufacturing. Also, it has a stylish case, 19" standard monitor and expanded keyboard. The price of this product is $2500 and customers can get a $300 price rebate. To appeal Workhorse to choose our product, we made an advertisement to show it’s easy to use and we have local service and support. But it is not very work for this brand; there are total 2194 demands of this brand that 50 demands from Workhorse and 2144 demands from Mercedes and 0 demand form Traveler. We are unexpected that this brand didn’t get high demand from Workhorse but got 2144 from Mercedes, which was not our target market. To comparison this brand with our competitor’s, their brands are more to meet need of Workhorse than our brand. Thus, Workhorse was preferred to purchase the product from our competitor’s that is more matches for them.
Apple iPhone is one of the most successful consumer technology products ever created. It has dominated the Smartphone market since it was released in 2007. As Apple moves forward it is important that they do not ignore Hispanic Millennial, which comprises 25% of the up-and-coming segment of potential new customers. This report utilizes a number of sources and analyses trends within the Hispanic Millennial segment. It shows that the Apple brand and their products have a great reputation among the Hispanic Millennial segment and new products are not necessary. It also concludes that in order to keep the current brand image the price of the product is right. This analysis will explore the places iPhones are sold and focus on the importance of
price as the major decision-making tool for customers (“Global Consumer Electronics”, 2013). This lack of
Technology has become a huge part of everyday life, and people seem to have one great debate and are fighting over which is the best phone, iPhone or Android. The Apple iPhone is a cellular smartphone that was created and is maintained by Apple Inc. Android is another type of smartphone that is accessible to consumers, but the operating system is powered by Google and many different companies produce Android devices. The different operating systems and interfaces have created a long and carried out debate to which was superior. iPhone is the better phone and there are many reasons as to why it is superior to its rival, Android. The iPhone’s sleek and beautiful design has users’ hands fondling the device and never putting it down. The operating system is very distinct, but is straightforward with its functionality. People who purchase the iPhone believe that they have received their money’s worth and more when owning and iPhone. The iPhone is better than Android when compared because of the beautiful design and attractive display, the operating system and its functionality, and the device’s personal worth is definitely worth the money spent to own one.
Supporting material/specific details: different factors come together when it comes to selling a phone, author Gerry Purdy states that one of the primary four influxes of selling a phone is: “Technology innovation –the degree of innovative technology that has been incorporated into the handset and the degree it’s made useful to the user. Technology alone without any way to make use of it gets a lower score.”(Purdy p.1).
Telecommunications gained mainstream attention in the early 90’s; however the initial key market was business men and women, who used their phones whilst being on the move and so allowing them to communicate with their companies with ease. Though in the modern era, telecommunication went through segmentation in the market trends, and now in this day and age it would be difficult to find someone who does not own some form of mobile technology. Many phone providers battle to provide the best service for their customers (Figure 1).
My report is on the company Hewlett – Packard (HP) which was founded in 1939. I mainly focused on the Personal Systems Group (PSG): business and consumers PCs mobile computing devices and workstations which is one of the major industries of HP. In order to succeed in the business industry a company needs to understand its customer’s needs and create wants for them. HP found out that the customer needed light weight, useful notebook PCs through its Research & Development (R&D) centre. Hence, it created a want; a New Commercial Notebook PC Compaq Evo Notebook N1015v which packs the power and performance necessary for mobility into a stylish design for only $899(US $). HP also finds out about its customer needs through online feedback forms and survey. Via that, HP was also able to understand that not everyone are able to use their products hence it has created this HP accessibility products which can be accessed by anyone including people with disabilities and age – limitations. Example of such product under the PSG industry is the Mobile Speak Pocket which was specially made for the visually impaired people. ( Refer To Exhibit 1a – 1c )
is yet to reach its maximum potential. Truly a unique entity in its accomplishments and organization, apple through the conviction and leadership of Steve Jobs its founder and then CEO; have pioneered the revolution of mobile technology. When it comes to strength, apple Inc, has a great marketing team with great marketing and advertisement capabilities, strong brand awareness, a strong and extensive distribution channel, and most of all a vertical integration and the most obvious which is customer loyalty. With the acquisition of valuable companies such as Beats, WhatsApp, mobile payment systems with the IPhone 6, wearable gadgets like the IWatch, apple uses these opportunities to satisfy its loyal
[1] “A $400 Phone for the masses?-India’s Micromax, known for low price handsets, pushes into smartphones arena” ProQuest document ID: 929135140 [2012]
Under the circumstance that the mobile phone industry entered the 3rd generation, Nokia faced competition from both macro level and industry level. For the macro level, the government encouraged competition among the operators and handset manufacturers by giving digital licenses to new entrants. As a result, the mobile phones became more sophisticated, for example, the cameras and the games in the mobile phone. For the industry level, which can be analyzed by the Porter’s Five Forces, (lecture )Nokia was facing threat of new entrants, competitive rivalry and the bargaining power of buyers is increasing as well. As the government encourage completion between the handset manufacturers, there are several new entrants from different countries enter this industry, such as Apple from USA, Samsung from Korea. These new entrants compete with Nokia in both smartphone segment and basic phone segment. Some of them even constructed “ecosystems”, which they could integrate the services and applications quickly, in order to produce the phone in just two days. For the bargaining power of buyers’ aspect, they do not need to rely on the only operating system Symbian. They can choose Windows mobile launched by Microsoft, Android launched by Google and Ios launched by Apple, in addition, basically all of them are better than Symbian (Amiya, 2010). The buyers could choose any
"While practically everybody today is a potential mobile phone customer, everybody is simultaneously different in terms of usage, needs, lifestyles, and individual preferences," explains Nokia's Media Relations Manager, Keith Nowak. Understanding those differences requires that Nokia conduct ongoing research among different consumer groups throughout the world. The approach is reflected in the company's business strategy:
According to the customer value triad theory by Earl Naumann, “value is a combination of quality, service and price” (Naumann, 1995). In this case quality could be defined as performance quality, the objective quality of a product (Kotler & Keller, 2012). A product with high performance quality, increases the value of a product. The value of a product is furthermore positively influenced by the service that is delivered (Kotler & Keller, 2012). The price however, can both positively and negatively influence the value of a product. A high price will in most cases decrease the value, but for some exclusive and luxury goods, a high price increases the value. The exclusivity, which is of intangible nature, is than one of the most important determinants of the value of the product. For most normal goods however, the objective quality is the prime determinant of the value. Although intangible benefits can be important in determining the value of a product, in most cases it is still the tangible benefits and costs, the objective quality and the price.