Market Analysis of Eswatini BUS303

Running Head: INTERNATIONAL BUSINESS
BUSINESS EXPANSION OF XIAOMI IN ESWATINI
Name of the Student
Name of the University …

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Running Head: INTERNATIONAL BUSINESS
BUSINESS EXPANSION OF XIAOMI IN ESWATINI
Name of the Student
Name of the University
Author Note
1 INTERNATIONAL BUSINESS
Table of Contents
Introduction ………………………….. ………………………….. ………………………….. ………………………….. 2
Company Overview ………………………….. ………………………….. ………………………….. ………………. 2
Market Analysis of Eswatini (PESTLE) ………………………….. ………………………….. ……………….. 3
Market Entry Strategies ………………………….. ………………………….. ………………………….. …………. 5
Conclusion ………………………….. ………………………….. ………………………….. ………………………….. . 6
References ………………………….. ………………………….. ………………………….. ………………………….. .. 7
2 INTERNATIONAL BUSINESS
Introduction
International business and the criteria of business expansion within the international
market segment is entirely based on significant factors that are continuously involved with
attracting low pricing strategies for the particular products, attracting new customer bases
along with maintaining the existing customer [1]. The paper will be analysing and the
researcher will be aiming on preparing the significant business proposal of expanding the
business operations while providing complete company overview and analysing the market
segm ent of the country with the help of PESTEL analysis. The writer will also justify the
significant market entry strategies considered by Xiaomi to enter the market segment of
Eswatini.
Company Overview
The Xiaomi company was first established by Lei Jun, in 2010, within Beijing, China.
Xiaomi is considered me an electronics company based in China which is the largest
smartphone company in the entire Chinese Market segment. It has become one of the top 5
smartphone manufacturers and vendors in the entire worl d. Most of the smartphone
commodities that are included with Xiaomi are based on different series such as MI note
series, MI mix series, MI max series, MI note book series, Pocophone, Redmi series, and
Blackshark [2]. The current active user has been estim ated to be 291.6 million users for the
Xiaomi brand particularly based on the MIUI updates that the company has been providing.
Apart from smartphones, the company also provides and offers mobile accessories, mobile
applications, laptops, home appliances, wearables, and smartphone devices to its customers.
The primary focus of the Xiaomi company is to create the most effective and efficient quality
hardware devices and eventually sales them at the most comparative lower costs so that the
market is able to a vail the products and services to its customers [3].
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Market Analysis of Eswatini (PESTLE)
Eswatini formerly known as Swaziland is selected to be the target market because it is
a developing emerging market segment for electronics companies to expand their business as
well as a significantly emerging country within the global map. In most of the cases it can be
shown that the improvement in the internet connectivity of the country is helping with the
steady growth within the broadband subscribers. The effici ency and opportunity are existing
within the particular country because of its increasing population and efficiency in
technological advancement [4]. Researcher has also considered that within the particular
country that requirement and demand for Android mobile phones along with iOS is
simultaneously increasing within the market segment. The PESTEL analysis is conducted by
the researcher in order to identify the significant factors impacting the performances of
electronic market segment base companies with in the national boundaries of Eswatini.
Political factors
ï‚· There are potential losses regarding preference share markets within a Eswatini such
as the European Union and African growth and opportunity act increasing the
government regulations for most of t he business industries.
ï‚· Being an autocratic monarchy within the sub -Saharan Africa Swaziland has its strong
National identity through which people are continuously accepting monarchy within
the organisational structures and the business functions.
ï‚· Swazila nd has some significant levels of bilateral investment treaties with Egypt,
Taiwan, and Mauritius which are regulating their foreign investment regimes for the
foreign investors within the nations of Sub -Saharan Africa [5].
Economic factors
4 INTERNATIONAL BUSINESS
ï‚· Swaziland has a significantly close economic bond with the entire Southern Africa
region after being accounted for 60% of the entire exports and 85% of the entire
imports within the national boundaries.
ï‚· The GDP growth of Swaziland was estimated to be 2.1% in 2021 that si gnificantly
increased from 1.9% in 2020.
ï‚· There are significant investment agreements that Swaziland has pulled out with
Germany, the United Kingdom and Kuwait for gathering better economic stability.
Social factors
ï‚· The poverty level of Swaziland has deteri orated at its highest level within the time
period of the last 5 years which is expected and estimated to be 39.7% of the entire
population living below the international poverty level during 2016 and 2017.
ï‚· The country is currently ranked at 121st out of 1 89 Nations within the ease of doing
business index [5].
ï‚· There is a significant diversification existing within the business etiquettes used by
Swaziland and Asian market segments that are based on their traditional historical and
cultural growth.
Technolog ical factors
ï‚· The technological advancement is rapidly growing within the Swaziland national
boundaries along with the demand for smartphones.
ï‚· Over 20 to 22 million people within Swaziland are continuously using smartphones
which accounts for almost 1/3rd p ercentage of the entire population.
ï‚· The subscription to broadband connections and utilisation of the smartphone are
increasing demand for better variations of smartphones within the electronic market
segment of Swaziland [6].
Legal factors
5 INTERNATIONAL BUSINESS
ï‚· The Swaziland In vestment promotion act 1998 is regulating the significant investment
activities within the national boundaries.
ï‚· The promotion and attracting activities for foreign and local direct investments are
done through the Eswatini investment promotion authority wh ich is formed to support
the significant services to registration of the local and foreign companies for direct
investors.
Environmental factors
ï‚· Large industries existing within Eswatini are continuously getting affected by climate
change.
ï‚· The hazardous movements of raw materials are requiring more investment into
equipment and skilled labour. This is impacting the pay equality and inequality
system among the skilled labours and the unskilled labour [7].
Market Entry Strategies
The primary c ourse of action in order to penetrate the market segment of Eswatini
Xiaomi has to consider promoting the Xiaomi 12 pro model within the new market segment
so that the brand equity can be maintained by directly exporting the products from China to
Eswatini . The penetration of the particular market will be done through ensuring that all the
local designers are able to find the precise design by considering the trusted premium quality
product among the eyes of the local citizens of Eswatini [8].
Xiaomi will b e primarily undertaking the marketing strategy of flash sales where the
product range will be available for only unlimited period of time. This will continuously built
the exclusive person of the particular product and its brand and give greater opportunit y to
promote the flash sales through social media and ward of mouth marketing strategies. The
6 INTERNATIONAL BUSINESS
affordability of the price needs to be maintained by Xiaomi in order to attract more buyers
who want quality products within the affordable pricing range.
The pri cing strategy of Xiaomi 12 Pro needs to be affordable for most of the citizens
of Eswatini because primarily the consumer will analyse the historical value for the price of
the product. Xiaomi needs to showcase the benefits of buying this particular produc t to all the
customers and primarily the young customers’ existing within the market segment [9].
Conclusion
The primary idea of the business expansion is based on growth and performance
enhancement of the particular organisation by expanding its business operations into a
broader aspect to the international market segment. From the current study it can be
concluded by the researcher that the market analysis has shown that Eswatini will provide a
beneficial opportunity to Xiaomi in order to expand its busi ness operations into the southern
African region among the large population of middle -class citizens. Opportunity by offering a
better platform to achieve the impressive quality and affordable prices of the products. The
Government of Eswatini will also st rive to alleviate poverty and to get a better anticipation
regarding the long -term economic growth that will significantly provide Eswatini to conjure a
better global strength within the smartphone and electronic market segment globally.
7 INTERNATIONAL BUSINESS
References
(1) Mi.com. Xiaomi Global 丨 Official Website 丨 Mi.com – Mi Global Home.
https://www.mi.com/global/ (accessed May 16, 2022).
(2) Tong, T.; Guo, Y.; Chen, L. How Xiaomi Redefined What It Means to Be a Platform.
https://blog.sodipress.com/wp -content/uploads/2021/10/How -Xiaomi -Redefined -What -It-
Means -to-Be -a-Platform.pdf .
(3) Lu, L. Strategic Planning for Xiaomi: Smart Phones, Crisis, Turning Point.
https://pdfs.semanticscholar.org/34b6/de1aee17441021e62b63c543abc1c28b0928.pdf .
(4) RUILIN, H. Research on Business Ecological Chain and Enterprise Value Promotion — A
Case Study of Xiaomi Technology Corporation. https://e -research.siam.edu/wp –
content/uploads/2021/09/IMBA -2020 -IS -Research -on -business -ecological -chain -and –
enterprisevalue -promotion.pdf .
(5) WANG, K. XIAOMI IN THE INTERNATIONALIZATIONPROCESS:FAILURES
AND LESSONS.
https://bibliotecadigital.fgv.br/dspace/bitstream/handle/10438/30300/KAI%20WANG%20 –
%20Xiaomi%20in%20the%20internationalization%20process_%20failures%20and%20lesso
ns%200324.pdf?sequence=1 .
(6) BUSINESS ESWATINI. BUSINESS ESWATINI STRATEGIC PLAN. https://business –
eswatini.co.sz/wp -content/uploads/2020/11/BUSINESS -ESWATINI -STRATEGIC -PLAN –
2018_2021 -min.pdf .
(7) Washington State Library. LibGuides: Industry Research: PESTEL Analysis.
https://libguides.libraries.wsu.edu/c.php?g=294263&p=4358409 .
8 INTERNATIONAL BUSINESS
(8) Lojacono, G.; Misani, N.; Tallman, S. Offshoring, Local Market Entry, and the Strategic
Context of Cross -Border Alliances: The Impact on the Governa nce Mode.
https://scholarship.richmond.edu/cgi/viewcontent.cgi?article=1060&context=management –
faculty -publications .
(9) Oguji, N.; Ow usu, R. Market entry into Africa: Acquisitions and international joint
ventures. Studies of foreign firms’ market entry strategies, challenges, and performance in
Africa.
https://osuva.uwasa.fi/bitstream/handle/10024/11898/Osuva_Oguji_Owusu_2020.pdf?sequen
ce=2&isAllowed=y .

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