Introduction: In April 21, Xiaomi Company was formally established. This company, led by well-known investor Lei Jun, focuses on the production of smart phones, and at the same time develops into the independent research and development field of Internet TV. Xiaomi positioned itself as an Internet company, not a simple manufacturer of mobile phone hardware.

The company philosophy of "born for fever" runs through all Xiaomi products, and it has become the first company to develop mobile phone operating system in home Internet mode. So far, Xiaomi can be divided into seven business units, namely Xiaomi mobile phone, MIUI, Xiaomi net, Xiaomi box, Xiaomi TV and Xiaomi router. According to the report of TrendForce, a market research organization, the smartphone shipments in China will reach 45 million units in 214, accounting for 38.6% of the global smartphone shipments. Xiaomi's shipments exceeded 6 million units, ranking fifth, and the top two were Samsung and Apple. According to analysis and forecast, the shipment of millet in 215 will exceed 1 million units. It is not easy for Xiaomi Company, which has a history of less than 5 years, to achieve today's achievements, which proves that using Internet thinking to make mobile phones can also achieve good results. In addition, Xiaomi has also subverted the traditional set-top box, Internet TV and router markets. Its goal is to build an ecological chain system, which can achieve win-win cooperation in the whole industry and the whole industrial chain. Traditional enterprises are often prone to structural defects and it is difficult to form a real value chain. Internet companies are different. Because of the characteristics of their own industries, it is relatively easy to form a value chain or even a value network. Xiaomi company is a typical example of reconstructing its own value chain and moving towards results. Michael Porter, a famous scholar of Harvard Business School in the United States, took the lead in putting forward the concept of value chain in his book "Competitive Advantage". He believes that every enterprise is an aggregate of design, production and sales processes, and these activities can be attributed to a value chain. The survival significance of enterprises lies in the increase of internal and external values, and various activities can be divided into basic activities and supporting activities. If enterprises want to maintain "competitive advantage", they should focus on the business activities that really create value.

for the value chain of Xiaomi company, we might as well understand it from the following three angles. First of all, every link in the value chain will be closely linked with other links. In the past year, Lei Jun made everyone pay attention to it. In order to strengthen the center of "mobile phone is the center of the world", the chip company Songguo Electronics was established, and new products, such as routers, televisions, set-top boxes and so on, were continuously introduced around this center. Moreover, we will not hesitate to dig people from other Internet companies to operate the content. Also invested in Century Internet and opened up the cloud platform. With this series of measures, Xiaomi aims to build a closed hardware cloud empire with MIUI system as the link. It is not difficult to find that every link in Xiaomi's value chain is closely related. Both belong to the product army of Lei Jun Department and closely unite around MIUI. Secondly, the extent to which one link can influence other links is related to its position in the value chain. In the past, many terminal enterprises were addicted to the competitive thinking of hardware, which was limited to the competition of hardware and price, while Xiaomi of Lei Jun jumped out and chose the thinking of the Internet. Channel is undoubtedly an important link in Xiaomi's value chain and an important link between the company and customers. In the distribution channel, Xiaomi Company only takes the e-commerce channel, completely relies on Xiaomi's website, and removes the agency link to reduce costs. Moreover, the "zero-cost marketing" mode of social media is adopted to expand its sales channels and increase sales revenue. Most importantly, Xiaomi can accelerate the cash return through online direct sales. Finally, there are differences in the specific composition of value in different industries and enterprises, and the importance of the same link is also different among different industries and enterprises. Compared with some companies' large investment in marketing expenses, Xiaomi seems to be "poor". In the marketing process, many enterprises carry out traditional and expensive display advertising strategies, especially luxury brands. Xiaomi only does social marketing such as new media and focuses on his own MIUI forum. Xiaomi chose to abandon the traditional advertising model and only pay attention to the interaction with "rice noodles", and it also achieved good marketing results, which seems to be much more accurate. The traditional business strategy of intelligent terminals is generally that "low-end terminals occupy the market and high-end terminals make profits", while Xiaomi adopts a subversive model, focusing on "high-quality and low-price", but the purpose is to earn back from other products, such as terminal related accessories. Xiaomi Company's customer value proposition is to maximize customer perceived value by reducing customer costs, so as to achieve a win-win situation. This move is one of the core competitiveness of Xiaomi mobile phone, which is very different from some terminal manufacturers that sell high prices. In addition, Xiaomi Company also used the "zero inventory" model for reference to change the traditional terminal manufacturing from "asset-oriented model" to "asset-oriented model".

Xiaomi Company has made initial achievements in manufacturing mobile phones with the thinking of the Internet. Xiaomi mobile phone innovates closely around four rules-one is to be the best product; Second, insist on changing the marketing model; Third, adhere to the "triathlon" of hardware, software and networking services. Fourth, adhere to the "fan economy". Xiaomi Company judges the future trend, and it thinks that mobile phones will replace computers as computing centers. And with the arrival of the mobile Internet, the entrance will become the key. Therefore, Xiaomi focuses its strategic core on how to occupy more entrances. From the perspective of strategic positioning, there is not much difference between Xiaomi and Dell's success in those years, and the key to its achievement is Internet direct sales. The positioning of direct selling eliminates users' doubts and social crisis, and allows customers to buy products with confidence. Low price is just a strategic match brought by direct selling positioning. In recent years, the sales of other domestic mobile phone terminal brands have also grown rapidly, and many people attribute the credit to Lei Jun.. It is Xiaomi's strategy of continuous extension and product diversification that gives other companies opportunities for development. From the positioning point of view, the Internet has media characteristics, channel characteristics, market characteristics and technical characteristics, so it is undoubtedly reasonable for Xiaomi to guess the results of the strategy of making mobile phones with Internet thinking. However, now Xiaomi seems to be undermining its strategic positioning. Obviously, the latest release of Xiaomi's new products and the introduction of a higher-priced Xiaomi mobile phone have been criticized by everyone. Is this still the millet with high cost performance? In the low-price mode, the rapid growth of shipments did not bring matching profits to Xiaomi.

In this regard, Xiaomi Company should continue to firmly adhere to the original basic positioning, and must achieve differentiated positioning. At the recent Central Economic Work Conference. In the Internet market, positioning is becoming more and more important. Xiaomi should differentiate his own brand in customers' minds, so as to make his own brand the first choice for customers to buy. Compared with BAT, Xiaomi's maturity in information collection, data transaction and talent reserve in the field of big data is obviously not competitive in the market. Therefore, Xiaomi must increase its investment in big data. We will spare no expense to tap talents in the field of big data, and promote the business transformation of Xiaomi Company by building a reasonable and creative big data construction team. ;