United Arab Emirates University
College of Business & Economics
Master of Business Administration

BEIJIN XIAOMI TECHNOLOGY CO.: GROWTH VIA ONLINE CHANNELS1

1. Was Xiaomi creating a disruptive innovation? Why or why not? Explain using characteristics of disruptive innovation

I believe that Xiaomi Inc. is created a disruptive innovation, because it made huge success in sales in smartphone industry through online method, and didn’t use the traditional method of marketing. In addition, it didn’t launch any physical site to work, and it occupied the 3rd largest cellphone in China, and the 6th around the world as one of the biggest smartphone companies around the world. Therefore, Xiaomi disrupted the available market of the same industry, and created new market with value networks, as the quality of the phones manufactured and the low price offered to be sale online. It displaced the current smartphone markets exist, but it didn't stay lone, when new emerging companies started imitating Xiaomi in online sales, so disruptive innovation approved its failure to Xiaomi in the ability of execution and innovation. I believe in the failure that borught by disruptive innovation, because at the beginning it gives benefit for the company adopting it, but didn't sustain its success as in Xiaomi example. And, for Xiaomi it didn't produce it's own hardware and that's leads to the fact that Xiaomi can't produce innovative new products by itself. To conclude, I believe that to garuntee the sucessful of the companies, they should use only sustaining innovation that confirm firms' constancy with less predictable failure that may occur. 2. Why was there a need to develop MIUI and mchat? Do you see a similar business model in other industries?
The MIUI & mChat are 3rd party of mobile operating system based on android and