Case Details

Xiaomi, a consumer electronics and smart manufacturing company with smartphones and smart hardware connected by an IoT platform at its core, successfully delivered its first smart electric vehicle in just 3 years after announced its entry into the new energy vehicle (NEV) industry in March 2023. The company announced it was aiming to be-come one of world's top five automakers as well as a leader in the evolving realm of global cutting-edge technologies. As a "novice" in the electric vehicle (or new energy vehicle, as it is known in China) industry, can Xiaomi seek the new opportunity of elec-tric vehicles (or new energy vehicles, as they were known in China) and dominate this fiercely competitive market as it expected? Compared with other industry players with different backgrounds and strengths, has Xiaomi missed the best entry window? In order to become a top seller, how should Xiaomi have positioned its own new energy vehicle and designed its competitive strategy? Could Xiaomi transfer its existing advantages and resources to its new business?

This case discusses the strategies adopted by Xiaomi based on its potential strengths, competitive assets, and identifies strategic opportunities and challenges Xiaomi faces in becoming a leading EV manufacturer. It also sets the stage for the discussion on whether or not their current strategies will be optimal going forward.