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Xiaomi: Selling Across the Border
內容大綱
Xiaomi India Private Limited (Xiaomi India), a subsidiary of the Chinese smart phone company Xiaomi Corporation, controlled a major share in the Indian market. However, its dominance was threatened by geopolitical tensions between India and China. The two countries shared a 4,000 kilometre border and a history of dispute over the border’s actual demarcation. Tensions brewing over the international border during early 2020 precipitated an armed clash between Indian and Chinese troops at one border post that resulted in the death of 20 Indian soldiers. In response, the Indian government issued orders for companies to declare the identity of products made in China, with a preference for products made in India. A consumer boycott of Chinese products was also posing a threat to the Xiaomi brand’s market leadership position, while competitors saw an opportunity to expand their market share. How could Xiaomi India overcome the current negative environment and prepare for similar potential conflicts in the future?
學習目標
This case is suitable for graduate-level courses on strategic management, international relations, and marketing and brand management. In strategic management courses it can be used to discuss the effect of geopolitical issues on business. It can also be used in international relations courses that discuss the impact on trade between countries. In marketing and brand management courses, the case can be useful to help students understand the effect of country-of-origin designation on consumer acceptability of products and brands. After working through the case and assignment questions, students will be able to<ul><li> assess the role of country-of-origin designation on the acceptability of a brand in a specific market; </li><li> identify the relationship between geopolitical matters and country-of-origin designation; </li><li> recognize the broader relationship between geopolitical matters and business; and </li><li> examine different ways to neutralize negative country-of-origin associations.</li></ul>