Look at is Xiaomi a Chinese smartphone company that is start

Look at is Xiaomi, a Chinese smartphone company that is starting to expand internationally. The smartphone business is a notoriously tough market with dominant competitors such as Apple and Samsung. Xiaomi has gained market share in China and is starting to expand into some neighboring countries. Given the high price of smartphones from Apple and Samsung, there may be room for a lower priced competitor in the global smartphone market.

Question Below:

What kind of strategy would you recommend for Xiaomi’s international expansion? Would you recommend product standardization or localization? Which overall strategy would you recommend – transnational, multi-domestic, or global? Explain your reasoning and apply the concepts from Jeyarathmm, M. (2008), Steers and Nardon (2005), and Herbig (1998).

Solution

The global level strategy.

The firm must integrate its activities on a worldwide basis to capture linkages between countries.

The global competitor must view its international activities as an overall system but must still maintain some country perspective, as per the ECLECTIC approach combines elements of various theories in a broad classificatory framework.  

It allows the analyst to consider all possible influences on the determinants of the extent and patters of various international activities.

The ownership advantages  can be enhanced by location specific elements. Production management, proprietary technology, trade marks, exclusive resources access such as finance, labor, information and natural. Free from government restriction whether national as well as international.

Internalization incentive advantage,

Local Specific advantages such as distribution of inputs and markets.

Government Intervention

Control on imports.

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I recommended for product  standardization Herbig (1998) according to his concept, i was selected my recommendations , expansion internationally product should needs standard, automatically the standard product reached everywhere and get success. Once product has reached to particular region/country, adapt the market variation according to the country which used for expansion.

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I would recommended as  multi-domestic status for  Xiaomi,An organization which has owning the production of goods in more countries.

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According to the  Herbig (1998), strategy stated that standardization has continued to be attractive to global marketers,  but they have had to develop adaptive strategies to co-operation  with market by market variations