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Amitava Chattopadhyay


Amitava Chattopadhyay
Emerging Market Multinationals - Amitava Chattopadhyay


Coalescence Strategy

Market Disruption Strategies: The Transformation of Xiaomi

After breaking into the smartphone market in China and becoming a leading brand, Xiaomi saw its sales stagnate and then decline. The market disruption strategy that empowered Xiaomi’s rise was losing momentum. Competitors aggressively countered its every move, targeting its core consumer segment. Xiaomi urgently needed a new strategy to reignite growth and develop a sustainable competitive advantage. The case describes the changing market landscape, its product portfolio, distribution systems, partnerships, brand architecture, promotion and pricing. Xiaomi has to decide whether to remain focused on smartphones — on which its success and its reputation have been built — or transform itself into an IoT ecosystem encompassing a variety of product categories. The firm needs to thoroughly understand the pros and cons of either path, and formulate a detailed implementation plan for the chosen strategy.


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