Xiaomi is a Chinese electronics company founded in 2010 by Lei Jun. It designs, develops, and sells smartphones, televisions, laptops, and other smart hardware products. Xiaomi aims to provide high-quality technology at affordable prices. It has over 8,000 employees worldwide and sold over 60 million smartphones in 2014, becoming the largest smartphone vendor in China that year. Xiaomi focuses on innovation and accessibility in its mission and vision. It operates manufacturing facilities in India and engages in some CSR activities like e-waste recycling, but does not publish annual CSR reports.
1. COMPANY E – XIAOMI
Brief Introduction:
Xiaomi was founded in 2010 by serial entrepreneur Lei Jun, whose aim was to provide high-
quality products at a lower cost for the consumer. The employee population of Xiaomi includes
people from Google, Kingsoft, Microsoft, Motorola, Yahoo, and other Internet and tech
companies from around the world to bring their vision to life. Their product range, currently
includes Mi 4, Mi 3, Mi Pad, Mi Box, Mi TV, Redmi 1S and Redmi Note, Mi Power Bank and
other accessories. They directly sell to customers to keep their prices competitive. With more
than 18 million handsets sold in China in 2013 and products launched in Taiwan, Hong Kong,
Singapore, Malaysia, Philippines, India and Indonesia the company is ready to go global
(Xiaomi.inc)
Since the release of its first smartphone in August 2011, Xiaomi has gained market share
in mainland China and expanded into developing a wider range of consumer electronics,
including a smart home (IoT) device ecosystem. The company's founder and CEO Lei Jun,
China's 23rd richest person according to Forbes. The company sold over 60 million
smartphones in 2014.
The company has over 8,000 employees, mainly in mainland China, Malaysia,] and Singapore,
and is expanding to other countries such as India, Indonesia, the Philippines and Brazil.
According to IDC, in October 2014 Xiaomi was the third-largest smartphone maker in the
world, following Samsung and Apple Inc., and followed by Lenovo and LG. Xiaomi became the
largest smartphone vendor in China in 2014, having overtaken Samsung, according to an IDC
report.At the end of December 2014, Xiaomi became the world’s most valuable technology
start-up after it received US$1.1 billion funding from investors, making Xiaomi's valuation
more than US$46 billion. Xiaomi entered the Indian market in July 2014 and since then
expanded rapidly in India. Earlier, Xiaomi used to sell exclusively on Flipkart until it
announced its partnership with both amazon, Flipkart Snapdeal on April 7, 2015. This is seen
as a bid by the smartphone manufacturer to expand its retail base in India. It has also teamed
up with Airtel Store and The Mobile Store to sell some of its selected devices. Later, in Q1
2015, it started its own store and stopped selling its accessories to online stores. On its first
2. anniversary in India, it launched its own Mi Store App. On August 11, 2015, it started its first
factory in Sricity, Andhra Pradesh in a partnership with Foxconn. The Chinese tech company,
under the Make in India programme, have 7 manufacturing unit in partnership with electronics
manufacturing company, Flex and Foxconn. Xiaomi's production capacity, with the start of the
new facility, has jacked up from 2 phones per second to 3 phones per second in the country.
The company now has over 20,000 employees in India, 95 per cent of them are women. At the
start of the second quarter of 2018, Xiaomi was the world's fourth-largest smartphone
manufacturer. Xiaomi entered the Indian market four years ago and has invested the money
into Xiaomi Technology India. According to Counterpoint Research, Xiaomi was the leader in
the Indian smartphone market with 28% market share in 2018. On the other hand, Samsung,
Vivo and Oppo had a market share of 24%, 10% and 8%, respectively in 2018.
.
3. Mission
MAKING QUALITY TECHNOLOGY ACCESSIBLE TO EVERYONE- We believe that
high-quality products built with cutting-edge technology should be made accessible to
everyone. we incorporate their feedback into our product range, which currently includes Mi
and Redmi smartphones, Mi TVs and set-top boxes, Mi routers, and Mi Ecosystem products.
With a presence in over 30 countries and regions, Xiaomi is expanding its footprint across the
world to become a global brand.
Never produce below quality products. Never try and reduce human cost and investment cost
at the cost of quality. (Xiaomi.inc)
Importance of Mission: Maintaining a high quality yet low price products will allow the
company to maintain loyal customers. Maintaining human/investment and the quality of their
products will maintain their place in the market.
Goals: Xiaomi aims to, “create remarkable hardware, software and internet services for-and
with the help of-our Mi Fans”.
Their goals mostly focus on their customer experience which will help them to maintain a loyal
customer base. Their high quality yet low priced products will help build trust between the
customers and the company.
i- Key laws and regulations under which Xiaomi operates
Xiaomi has been known to work under the international as well as local law of customer
privacy, however, it has been proved after an investigation that Smartphones from Apple,
Xiaomi and others have been violating Taiwan’s privacy laws by collecting user data and
sending it back to company servers, according to a government regulator. (Kan, 2014)
ii- State of the economy and its effect on Xiaomi.
4. Xiami missed its target goal of 100 million phones for the year 2015 due to the Chinese
lacklustre smartphone market, which is either flat or shrinking depending on how the counting
is done. IDC estimates China’s smartphone market grew about 2 per cent for 2015, down from
double-digit expansion in previous years. (Clover, 2016)
iii- Effect of new technology on Xiaomi.
At Xiaomi, they’ve brought together people from Google, Kingsoft, Microsoft, Motorola,
Yahoo, and other Internet and tech companies from around the world to bring their innovative
vision to life, which helps them to get the best of the newest technology making them major
competitors in the market. (Xiaomi.inc)
VISION
Innovation for everyone- Our dedication and belief in innovation, together with the support of
Mi fans, are the driving forces behind our unique Mi products.
Importance of vision:
1-Increasing shipments/setting sales goals: A study from Harvard University has proven that
companies who set goals of any kind have a higher rate of motivation and achievement.
(Harvard)
2-Going global: Going global would bring new revenue potential which would help to get
access to a much larger base of customers. If their product or service is a success, they can
enjoy increased revenues from these new customers even if they have saturated their markets
domestically. Globalizing could be exactly the shot of life their company needs to take its
revenues to new heights.
The Ability to Help More People the solutions the business offers undoubtedly has the potential
to help their customers improve their lives in some way. When Xiaomi takes their business
global, they can help an exponentially greater number of people find the answers to the
questions or challenges technology consumers need.
5. Exposure to Foreign Investment Opportunities Foreign investment can be extremely valuable
for Xiaomi. This may be the reason why in 1997, foreign investment was up to seven times the
level it was in the 1970s.
Improving Company’s Reputation: Businesses that can successfully go global and market their
offerings to a totally different population will enjoy the prestige of calling themselves an
international company. It is not an easy feat to accomplish, meaning prospects and potential
business partners will instantly think more highly of Xiaomi when they know it has an
international presence.
Diversifying Company Markets: Since Xiaomi has a few countries where it can sell services
or products, what would happen if these markets experienced a dramatic shift because of a
natural disaster or other unforeseen circumstance? Taking their business global allows them to
diversify their markets so their revenue sources are more stable: even if their domestic activity
is slow, their business will not take as large of a hit since their global market will make up the
difference.
Going global has a number of advantages, but they do not come without challenges. If they can
create an effective strategy for getting over the hurdles that globalization might present, the
process can reap many benefits that Xiaomi will get to enjoy for years into the future.
(language, 2014)
3-Providing high-quality technology that is not overpriced will allow the companies revenues
to grow quickly as they will be able to provide the newest technology for the ever-growing
middle class without having to wait for a price drop.
Various CSR activities
E-waste Take back
What is “E-Waste”?
Discarded electronic appliances such as mobile phones, computers, laptops, printers, fax
machines or even their parts, which have reached the end of their useful life are called “E-
Waste”.
6. Why recycle “E-Waste”?
It is important to responsibly dispose of your e-waste because:
Most e-waste is informally dismantled and recycled by the informal sector. Informal
dismantling and recycling can cause health risks to the handlers and harm the environment.
Through our take-back system, we want to channel e-waste to authorized recyclers.
If not disposed of in a proper manner, e-waste can go to the landfills where hazardous
substances can leech into the ground and cause air, water and soil pollution.
E-waste can be a great source of raw materials (like precious and rare-earth metals) for new
products. Scientific recycling can recover more materials and is more efficient than informal
recycling.
Where and how can you recycle your e-waste?
Xiaomi exclusive service centres: Xiaomi has its exclusive Service Centres spread across the
country, where customers can drop off their e-waste. You can also call our toll-free number-
1800 103 6286 dedicated to e-waste to get information on these centres.
Karo Sambhav collection points: Customers also have the option of dropping off their e-waste
at the Collection points of our PRO and get more information on the subject.
You can also call our PRO’s toll-free number dedicated to e-waste 1800 2121 434 or can also
drop an email at engage@karosambhav.com on your queries.
Going beyond just recycling- At Xiaomi, we believe that our focus should not only be on
responsible recycling, but also on awareness generation. Our PRO, Karo Sambhav, is creating
awareness with schools and bulk consumers of electronic waste through awareness events.
Through its awareness efforts, our PRO is also engaging with individual consumers and making
them aware of the ill effects of improper disposal of e-waste.
Wake The Lake
Xiaomi is proud to support United Way, along with with BBMP in powering their flagship
‘Wake The Lake’ campaign. In the last decade, most of our lakes have been wiped out. From
262 lakes in 1960, we are down to 34 in 2017. This is a result of rich biodiversity being
converted to golf courses, playgrounds and residential colonies.
Xiaomi CSR: lack of information and CSR activities
7. Xiaomi does not publish an annual CSR report. It has been noted that despite its branding effort to
resemble theminimaliststyleof Apple,Xiaomidoesnotshow asimilarcommitmenttoenvironmental
responsibility.
CSR aspect of the business Xiaomi performance
Supporting Local Communities No information available
Educating and Empowering Workers No information available
Labour and Human Rights No information available
Employee Health and Safety No information available
Gender Equality and Minorities
It has been noted that Xiaomi uses “yanzhi,” or physical
appearance metric when hiring, leading to discriminaton
during employee recruitment and selection process.[4]
Energy Consumption No information available
Water Consumption No information available
Waste Reduction and Recycling
MI INDIA maintains PRODUCT TAKE-BACK & RECYCLING
PROGRAM. Xiaomi Authorisede-wasterecyclercan collect
e-waste from customer’s location, or customers can also
drop e-waste at any of company’s service centres [5]
Carbon Emissions No information available
Sustainable Sourcing No information available
other CSR Initiatives and Charitable Donations No information available
CSR Committee No information available
Mechanism of implementing CSR activities No information available
Monitoring mechanism No information available
Impact assessment No information available
CSR Expenditure:
8. Opinion:
I support corporate social responsibilities as they match public expectations socially as well as
economically as they also provide secure profits in the long run. Another reason is that it is
ethically obligatory for a business firm to have responsible actions for their own sake. Never
the less does CSR maintain the public image of the company and helps them gain new
customers and clients who are interested in saving the environment. The most important reason
which makes me stand with CSR is that it creates a balance of responsibility and power.
Year Expenditure More than 2% Less than 2%
2017-18 NA -
2016-17 NA -
2015-16 NA -