1. The document discusses potential entry modes for Chinese technology company Xiaomi to enter the Italian market, including non-equity joint ventures, exports through independent agents, and establishing its own sales subsidiary. 2. It analyzes factors to consider for the entry mode such as control, dissemination risk, resource commitment, and flexibility. Exporting through agents allows low control and commitment while joint ventures enable more control but also more risk. 3. The document proposes a three-stage strategy for Xiaomi to enter Italy starting with independent representation, then direct online sales, and potentially opening an Italian headquarters to control local distribution.

1. Entry Modes For
Italian Market
How Xiaomi can strategically enter to
a high-competitive market
Giovanni Bartocci

2. We should consider 3 consequential Entry
Modes Stages:
1. No regular export activities
2. Export via indipendent representation (agents)
3. Sales subsidiary (own distribution channels)
Giovanni Bartocci
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3. A foreign market entry decision framework
has 3 main entry modes:
• Investiments (licensing, franchising, management contracts, non-
equity joint venture, co-production arrangements)
• Contracts (acquisitions, joint ventures, and start-up investments)
• Exports
Giovanni Bartocci

4. 4aspects concerning entry methods
Entry
method
Control
Dissemination
Risk
Resource
Commitment
Flexibility
Investiments High Low High Low
Contracts Medium Med-High Med-High Medium
Exports Low Low Low High
Giovanni Bartocci
1. Control refers to the different ways used by the company to manage production process, co-ordinate activities,
logistical and marketing efforts
2. Dissemination Risk concerns the know-how expropriation by a contractual partner
3. Resource Commitment refers to the financial, physical and human resources that firm commit to a host
market
4. Flexibility represents the adapting speed of the strategy to the evolving circumstances (key-factor)

5. Giovanni Bartocci
• Demand competition
• Socio-cultural conditions
• Political/economic conditions
Enviromental Factors
• Structure and characteristics
• Product features
Company Factors
• Strategy
• Company-specific advantage
• Experience
• Company size
Tech Industry Factors
• Control
• Dissemination Risk
• Resources
• Flexibility
Mode
Chosen
Moderating Variables
• Governament policies
• Home country technology
reputation

6. Giovanni Bartocci
18,3 bn
Smartphones and
home appliances
3,2% growth in 2015
Italian Market Overview
KFN.uk

7. BrandAwareness/Sales
Technology
Giovanni Bartocci
Xiaomi Competitors – Italian Market
Xiaomi could
use a flexible
strategy to
improve brand
awareness and
reduce sales gap,
in order to be
competitive in
the short run.

8. Giovanni Bartocci
Xiaomi Strengths – Italian Market

9. Giovanni Bartocci
Xiaomi Weaknesses – Italian Market

10. Giovanni Bartocci
Early Majority
Late Majority
Laggards
Early Adopters
Innovators
MIUIers
Xiaomi Products Adoption Model – Italian Users
TARGET
2,5% 13,5% 34% 34% 16%

11. Giovanni Bartocci
Xiaomi Italian Users - Focus
Why do Italians purchase Xiaomi devices?
o Beautiful Design
o High-Performance
o Quality/Price ratio
o High levels of device personalization
Italian MIUIers – Profile and Behaviors
• Ages 16-45
• Tech passionates
• High computing skills
• Familiar with custom ROMs
flashing and manual OS updating
(they usually update their
smartphones using weekly ROMs
released by xiaomi.eu)
• Members of tech forums and
communities

12. Giovanni Bartocci
Business Strategy to enter Italian Market
BRAND
AWARENESS
DIRECT
SELLING
EU –
ITALIAN
HEAD
QUARTER
1. No regular export activities
2. Export via indipendent
representation (agents)
3. Sales subsidiary (own
distribution channels)




13. IMPROVE
Brand
Awareness
Social Media
Official
Channels (lead
genaration)
Events, Fairs.
Convetions,
Congresses
presence
Xiaomi official
EU/Italian
website
Use italian
MIUIers and
strategic
influensers as
market-drivers
1. Brand Awareness
Giovanni Bartocci

14. Giovanni Bartocci
START
Direct
Selling
Export via
indipendent
representation
(agents)
Co-selling &
Partenerships
(wholesalers-
retailers)
Xiaomi official
EU/Italian
e-commerce
Xiaomi EU
technical
assistance
center
2. Direct Selling

15. Giovanni Bartocci
2.1 Best products to launch
Smartphones
Mid-level
Entry level
Home features

16. Brand
Awareness
Direct
Selling
FLEXIBLE
STRATEGY
BUSINESS STRATEGY
Meizu Italian Case – Export Strategy
Giovanni Bartocci

17. Giovanni Bartocci
Meizu Italian Case – Export Strategy
Official Italian website
www.meizumart.it
Official Italian forum
forum.meizu.it
Official Italian
Facebook Page
Co-selling
Topresellerstore
(Le.Ali S.r.l. – Naples)
Technical Assistance
Center (NAPLES)
Retailer Partnership
(Unieuro – Naples)
BRANDAWARENESSDIRECTSELLING
BUSINESS
STRATEGY
+ +
+ +

18. Giovanni Bartocci
E-commerce list
(where italians purchase Xiaomi devices)
Italians:
•Topresselerstore
•Mitikotec
•Xiaomishop.it / mi-italia.it
•Llandroid
Internationals
e-commerce:
•GearBest
•Grossoshop
•iBuyGou
•Flosmall
•HonorBuy
•Smartylife
Useful links for Xiaomi Customers and Fans - Italy
Main Italians Facebook Pages
• Xiaomi Italia
• Xiaomi Utenti Italia
Most relevant Facebook Group
• Xiaomi Utenti Italia
Tech websites and forums
• Gizchina
• HdBlog
• Wired.it
• Androidworld.it
• Androidiani.com
Main Xiaomi websites
• Miui.it
• Xiaomi.eu/community
Top Italian Influencer
• Andrea Galeazzi

19. Giovanni Bartocci
it.linkedin.com/in/giovannibartocci
giovanni.bartocci2000@gmail.com
Contact