New products in the Chinese market

- Millet phone "red storm overnight" and study the possibility of long-term development
A New Product on the Chinese Market
Exploring how the Xiaomi smartphone became an "overnight sensation" in China

Thesis
Presented in Partial Fulfillment of the Requirements for the Degree Master of Arts in the
Graduate School of The Ohio State University
By
Tina Lynn Li, BA
Graduate Program in East Asian Languages and Literatures
The Ohio State University
2015

Thesis Committee:
Jian Xiaobin, Advisor
Galal Walker

Copyrighted By
Tina Lynn Li

)
(Li Tingna

2015

Abstract / Summary
Xiaomi, founded April 2010, within 4 years has already become the king of China's
smartphones and even ranks third in global smartphone sales This current paper explores the reasons for Xiaomi's
explosion of popularity from six different angles:.. company development history, business operations strategy,
competitive advantage, competitor analysis, potential obstacles to development and domestic market prospects Through
an in-depth analysis, this paper will explore the resistances faced by Xiaomi when entering foreign markets and how
they were able to maintain foreign sales and health development. Finally, it will discuss some of the valuable lessons that
Chinese enterprises expanding abroad and foreign enterprises entering China can learn from Xiaomi's success.

Founded in Millet 2010year4May, just four years into the development of China's smart phone King, the wo
Smartphone sales ranked third, present papers on millet
phone Why "night red storm" because, from the
development process of the company was founded
millet, operations strategy, competitive advantage,
competitor analysis, deep worries facing the
development of the domestic market prospects six angle
of more in-depth, and the attempt of the company to
foreign markets millet resistance that millet company's
own large stable and healthy development of the
Chinese enterprises to go abroad, foreign companies,
into China to provide valuable reference.

ii

Acknowledgment / book Acknowledgments

I would not have completed this study without my loving family and friends. To all my past and present
mentors/teachers;Professor Steven Knicely, Minru Li, Jing Li, Litong Chen, Donglin Chai, and many more, thank you
for always sticking by my side
,and
teaching me this wonderful new world of Chinese language. To Sun Yat-Sen University professor, and my advisor
Wang Haizhong, who gave valuable assistance with my research.

I would like to dedicate my love of family and friends.

All my thank
mentor
/Teachers,
you has been by my side stick,

And taught me this wonderful new world "Chinese language." Guangzhou Zhongshan University teacher and m
Assist in my research.

iii

Dedication /Dedicate
My Grandma Dotty Burchfield has always been there, supporting me through all
my decisions. Through the up's and down's in my life, she has always been a great motivator, by listening and
supporting my decisions. She did not give up on me, which says wonders. I know I have made a lot of bad decisions
in my life, but you were always there to help me in the end.

My decisions to join the military, finish undergraduate degree in Security

Intelligence, and continue graduate school specializing in Chinese language. All this was because I wanted to make a
difference in someone's life, to help strengthen the ties with China. Just maybe one day, I will be able to be like her and
make a huge difference in the world, a huge difference in someone's life. As Neil Armstrong once said, "One small step
for a man, one giant leap for mankind."Grandma, made a big impact on my life, and I would not be where I am at
without her.

I want to thank my grandmother

Dotty BurchfieldAlways at my side, to support all my decision. at me

The process of ups and downs in life, you are my great

power, always listening and support me. You never gave
me. Although I know that in my life, I did a lot of wrong
decisions, but you're always behind me, it has helped me
in the end.
After reading the Security Intelligence undergraduate degree, I decided to continue graduate studies, and
Because I want to help the United States to strengthen
ties with China. Maybe one day I can be like you, to
bring about tremendous changes in the world, so that
the lives of others a huge difference. As Neil Armstrong Grandma, you're in my life has a great shadow
once he said: "This is one small step for a man, but one
giant leap
for mankind."
Sound,
without
you I would not have today's achievements. I love you, thank you forever in my life as I did a
cut.

:
Future Goal /Personal goals
Take politics out of International Relations.
Removing political influence in international relations

iv

Vita / Biography
2014.9 --- 2015.7

Zhongshan University in Guangzhou

School of Management
--- Marketing Professional
2013.12 --- 2015.5

Ohio State University

Chinese Chinese flagship

project
--- China
smart phone US market research
2007.6 --- 2013.12

Ohio State University

Undergraduate International Relations,

MinorSociology,
Chinese
2012.6 --- 2013.8

China Ocean University of Qingdao

American students
--- major in Chinese

2014.9 --- 2015.7

Sun Yat- Sen University

Business Management School, Marketing

2013.6 --- 2015.6

The Ohio State University

East Asian Language and Literature, MA Flagship

2007.6 --- 2013.12

The Ohio State University

International Studies, BA Security Intelligence

2012.6 --- 2013.8

Qingdao Ocean University

Chinese Language and Culture,Study Abroad

2007.2 --- 2014.7

US Army Reserves

31B- Military Police, Operation Iraqi Force 08-09

1999.8 --- 2003.6

Thomas Worthington High School

Computer Science, (Smart home of Tomorrow Project)

Table of Contents /table of Contents

.................................................. .................................................. .................. ii
Abstract /Summary
..................................................
................................................ iii
Acknowledgment /Acknowledgements
book
: ------------------------------------------------- ---------------------- iv
Future Goal /Personal goals
.................................................. .................................................. ........................ v
Vita /resume
First, the purpose and methods
.................................................. .................................................. .... 1
Second, the development process
of the company was founded
millet
..................................................
..........................................
3
2010year-------------------------------------------------- ---------------------------------52011year-------------------------------------------------- ---------------------------------52012year-------------------------------------------------- ---------------------------------62013year-------------------------------------------------- ---------------------------------62014year-------------------------------------------------- ---------------------------------72015year-------------------------------------------------- ---------------------------------- 9

Third, the Chinese mobile phone

market development of situation
..................................................
........................................ 10
Fourth, the company's operating
strategy millet
..................................................
................................................ 14
(A) product design

-------------------------------------------------- --------------------- 14

(Ii) the concept of business

operations
---------------------------------------------------------------------- 15
(Iii) marketing model
-------------------------------------------------- --------------------------- 16
(Iv) business profit model
-------------------------------------------------- --------------------- 18
Fifth, millet Competitive Advantage
.................................................. ........................................ twenty three
(A) good product positioning
-------------------------------------------------- ------------------------ twenty three
(Ii) products with unique advantages
-------------------------------------------------- --------------- twenty four
(Iii) the unique advantages of marketing
model
------------------------------------------------------------- 25
(Iv) strong human resources
-------------------------------------------------- ------------------ 26
(V) a strong competitive advantage in-------------------------------------------------business profit model
------ 29
Sixth, millet competitor analysis.................................................. ........................................ 32
(A) domestic and foreign competition-------------------------------------------------advantage analysis
------ 32
-------------------------------------------------- ---------------------- 32
1.Strong core competitiveness
-------------------------------------------------------------------- 33
2.Supply chain for the strong
force
(Ii) domestic and foreign competitors
weaknesses
------------------------------------------------------------- 34
(Iii) product positioning accuracy better-------------------------------------------------than millet
--- 36
vi

Seven, millet company's domestic development

facing profound worries
..................................................
.................... 37
Intense (a) competition in the market, millet development
was imitating
----------------------------------------37
(B) the lack of core competitiveness
-------------------------------------------------- ------------------ 37
Eight, millet company's domestic market
development prospects
..................................................
................................ 39
Support (a) China policy

-------------------------------------------------- ------------ 39

(Ii) China's sustained and rapid economic

development
---------------------------------------------------------- 39
(Iii) China's urbanization process
accelerated
------------------------------------------------------------- 40
(Iv) the continuous deepening of China
Education Development
------------------------------------------------------- 41
(V) the strong support of Chinese Traditional
Culture
------------------------------------------------------- 42
Nine, millet company into the international market..................................................
extension of resistance ............ 44
(A) millet phone price advantage is no longer----------------------------------------------particularly prominent
44
(B) undermine the advantages
of network marketing
---------------------------------------------------------------- 44
(Iii) the patent crisis
-------------------------------------------------- --------------------------- 45
Resistance (iv) of the foreign policy
-------------------------------------------------environment
--------- 45
X. CONCLUSIONS
.................................................. .................................................. ...................... 46
Reference: references

.................................................. .................................................. .... 48

appendixA:Depth survey-------------------------------------------------questions
-------------- 50
appendixA: Millet company staff depth interview
questions
----------------------------------51
appendixB:Store Interview -------------------------------------------------Questionnaire
-------- 52

vii

List of Tables / List of tables:

Map
one: before5Name of the global smart
phone
makers
: 2014In
the
third quarter
IDC).................................
(
19
Map
two: Global smart phone makers shipped
Strategy( Analytics) ............................................... 20
Map
Three: millet, Samsung, Apple common parts supplier
.................................................. ............ twenty four

viii

List of Figures / Figure list:

table
one: 2014Results of millet
.................................................. .................................................. 4
table
two: 2013year9Months to2014year4Month (MoM increase of mobile
phone users) 13
........................................
table
three: Millet millet phone company
.................................................. ..................... twenty one
3Material Price

ix

Millet mobile phones in China, "red storm overnight" Causation

Li Tingna
Chinese flagship project Ohio State University

First, the purpose and methods

This thesis, millet phone in China "red storm overnight" delve into the reasons, from millet company was f

Development of Chinese mobile phone market development of situation, millet company operating strategy, co
Opponents strengths and weaknesses, deeply worries facing the development of millet in the domestic mobile

More in-depth market resistance, and other aspects of a comprehensive analysis to help millet more robust lon

Other domestic and foreign enterprises from the successful factor from Millet's "red storm overnight" developm
Faster and better development.

Thesis explored millet phone when the Chinese "red storm overnight" Cause depth investigation and analy

Course, like consumer sentiment, China's unique geographical and cultural, which is millet company can "get v
Soil foundation, millet companies in other countries may not be able to create such a legend, indeed the case,

Division in India, South America and other foreign markets suffered a lot of resistance, the development of num

Research of this paper are also a lot of help, such as millet companies must urge further research to expand th

Relevant laws and regulations, mobile consumer groups, status of the mobile phone market, a comprehensive s
Their product design, operations and marketing model, business profit model and so do adaptations,

It can really open the country's mobile phone market. Conversely, foreign mobile phone manufacturers want to

M mobile phones in China, "red storm overnight," the course of development, has come to realize the importan

Relevant laws and regulations, the mobile phone market, consumer sentiment shape, shape and other competi

Tao, China is one of the world's most populous country, has been sustained and rapid economic development, t

Early into the world's second-largest mobile phone market, the smart phone is the mobile phone market is now

Methods of this paper is mainly field research, through a variety of networks, files, books, etc. to gather re
1

Data, and then by the author to grasp all the information and materials to conduct a comprehensive in-depth a

Text results, due to the limited time and effort to the author, financial, horizontal, etc., the paper may not go fa
Overall, we urge readers to the instructor and other criticism.

Second, the development process of the company was founded millet

Founded in Millet 2010year4Month, is to concentrate on independent research and development of intellig

Business, it is with most other companies in Beijing are not the same - only the network of sales channels, the

Design, development and sales of Internet services and consumer electronics products. Lei Jun, founder of mill
The company's chairman
and
chief
CEO. Lei
Jun
was a ChineseITHuangpu
"
", founder of Kingsoft, Kingsoft and
CEO,CEO,in China

ITSector has ringing prestige, first-class network of resources - the breadth and depth

Resources. Just four years, from millet MIUITrend millet community - accumulated loyal fans, then go

Smart phones, after extended to television, the Internet set-top boxes, has become China's
smart phone indust
2014year
Global smartphone sales ranked third, behind Apple, Samsung.
2014Years, millet mobile phone
6112Ten
salesthousand
Units, up

227%, Sales tax

Sales charts first.

743Billion, an increase of
135%, Retaining its position as China's smart pho

2014Double eleven years, the mobile phone sales charts, millet strong in first place, the pa

Total single116Million
phone
IDC
units, the total amount
15.6Billion,
to be
accounting
paid
for the total
3%.turnover
According
of to
theresearch
Lynx
firm
Estimated to
2017Years, the market value could reach millet
740.5Million
phone(

1(

Zhang Mengwei, 2015)

3

117.8Billion).

2
table
one: 2014Results of millet

Millet company on profits, a very rich, although profit margins

around
8%-10%,
Much lower than Apple,

Including Samsung, but by virtue of its ultra-low cost, using Moore's Law, with huge shipments, the actual leve

At least to normal smartphone manufacturer, later analysis of specific examples. However, the company's non-m

City company, do not easily disclose profit, net profit, profit margins and other data, the underlying causes are
Affect a very important commercial secrets. At present,
the outside
know
265.83income
2013Related
data world
for theonly
year,
operating

Billion, operating profit

4.86Million and net profit
3.47Billion annual profit 1.8%, Apple's annual profit margin over the sa
28.7%Samsung 18.7%.(Daily News

, 2015)3

It can be said, millet is the red storm overnight, the heyday of the Chinese mobile 2013
phone industry's cutting
In the beginning of ambitious global 2013Test
market, the water in China Taiwan, Hong Kong - gratifying
2014
results,
Continued swept into Singapore, Malaysia, India, Indonesia and2015In
otherpreparing
countries,to attack Mexico,

Russia, Thailand, Turkey, Vietnam, Brazil and other countries or regions, but in addition to the Chinese cultura

Smooth outside, such as Taiwan, Hong Kong and Singapore, in other foreign markets have suffered many setba
Millet millet phone company's flagship product, red rice phone, TV millet, millet
box,
MIUI,Meter

2(
3(

Phoenix Technologies, 2015)

Daily News

, 2015)
4

Talk to other hardware and software properties. Millet phone is high-profile low-price smartphone
enthusiast,
1000

-3000Between the yuan and take the low-end market. Red rice mobile phone is a highly cost-effective smart pho

From the leading supplier of top quality, high configuration that is, the pursuit of fashion phone, the user exper

Yuan around, go low-end market. Millet TV is a high cost-effective configuration of television, is the developme

Regard2, Quad-core processors, powerful graphics processor capabilities, high-efficiency, large storage capaci
High-definition LCD screen and Wi-Fi - which is a lot of other brand TV features not installed
Super simple, fully functional
MIUI TVSystem, sound system is independent
8 + 1. Millet box is connected
Internet HD set-top boxes, mobile phones are the most fever millet accessories. Users free millet box on TV
Watch Internet TV movies, the millet phone, IPhone,IPadPhotographs inside the computer, through video

WIFIProjected on the TV. Millet box with rich content resources, the application can provide the user with supe

Pass30Million hours of CCTV genuine licensed ultra high-definition television movies,

chase drama feature
MIUIItand
is small

M CompanyAndroidDepth system optimization, customization, development, especially by the third-party mobile

Operating system, fully in line with Chinese habits of people use mobile phones, mobile phone operating exper

Function, and has been continuously updated to improve. M chat is completely free mobile instant messaging s
Operating systems,
such as
Android,IOS,Symbian,Windows
Phone,COSEtc., may be used

WIFI,

3G,4G,GPRSMobile phone network, optionally send text messages, pictures, video, voice chat, etc.
And so on, but then Tencent's WeChat occupied mobile instant messaging
protagonist,
ricehave
talk business
2014year2You
may
Wali was Beijing Network Technology Co., Ltd. acquired, millet and Beijing Wali two teams will work together
M mutual entertainment. "
Specifically,Millet company was founded focused on content development courseas follows:
2010 year
4month6Day, millet company officially founded and settled in Beijing Silver Valley Building.
8month16day,MIUIThe first beta version available.
12month10Day, m chat
AndroidBeta version for the first time on-line.
2011 year

7month12Day, millet founding team for the first time officially unveiled ceremoniously announced its entry
His once-secret -

MIUI, M chat, millet phone.

8month1Day, millet community formally launched operations.

5

8month16Day, millet phone conference

MIUIFans
and anniversary celebration
798Arts
in Beijing
Centre,
Xiaomi phone
1Officially released.
9month5Day, try millet network, Book super half a day
30Million units, was very successful.
12month18Day, millet phone
1The first official sale network.
5Sold out within30Million
minutes units.
2012 year
5month29Day, millet company through the official website booking, millet
10Million
phoneunits.
telecom version sold out
6month7Day, millet company reached through
7 x 24Hour
the later,
official
after-sales
website service are also improved.
6month26Day, millet completed a new round of financing
2.16Billion,
millet consequent valuation of the company
40Billion, investors are top international investment company.
8month16Day, millet second generation mobile
798Artsphone
Center
in was
Beijing
officially released.
11month19Day, noon 12Point second round
MI2 10Million units
2Minute29Sold
in
out within seconds, the sixth round
M1SYouth Edition30Million units in12Minute02Sold out within seconds.

12monthtwenty fourDay, Christmas special25Million

millet phone
units began to put the purchase, millet to make the world
2013 year

1month4Day, millet millet phone company is ready for

60Ten
the old
thousand50Accessories
users of the
yuan cash coupon, spen
fee3000Million.
3month1day,MIUI V5Beta version, millet phone 2The first release.

3month12Day, noon 12point,25Million units millet phone available20Standard

for purchase,
Edition
including
or telecommunications
Version of millet 2,5Million
phone
units millet phone
1SYouth Edition.
3month19Day, millet millet phone boxes and sales together. Mi1Million
Box
units, priced
299yuan. top
Level configuration2Standard
millet phone
20Million
Edition units, starting
1999Yuan,
at

16 / 32GBTwo choices.

4month9Day, millet company released the latest fourMIUIV5Phone

products - system, millet phone2
Enhanced
Edition phone 2Youth Edition
2S,Xiaomi
2A,Mi Box.
4month26Day, Friday noon
12Point, millet cell phone
2aThe first 10Million units in the official website for sale.

5month9Thursday morning
10Point to5month10On the morning of10Point, is the first micro-channel privilege spec
6month7No. Friday noon
12Point, the top quad-core millet
2S(16
phone
/ 32G), Dual-core millet hand the king
machine2A,1Million units millet box open later.

6month8No Saturday millet companies to participate in the electricity supplier war, millet phone open to s
6

Scale promotions, crazy 15day.

promotions
6monthtwenty fourEvening8point-6month27Day, New millet piston headset open appointment.
And open appointment,
900More than one million
qqSpace
users
reservation.
by the

8month12day12O'clock, red rice phone open to buy, millet company has created a new history of mobile ma
Legend, only
90Sec sold 10Million units of red rice phone.
8month28day12Point, millet2013Annual new conference tickets millet Mall
APPFormal sale.
inMIUICommunity and Community points
greatershould
than millet
1 per person
100Users
purchase, each199Yuan, the purchase
Zhang. Only half a minute
sold
1000Tickets.

9month5Day, millet company held a press conference at the National Conference Center, issued a deadline
Core mobile phone - millet
phone
3With
ultra-narrow millet TV smart TV.

10monthtwenty twoDay, millet the first time all of its products are available for purchase,
3,small
including millet ph
M TV, millet phone

2S, Red rice phones, millet box.

11month11Japan, the first time the company millet Lynx double eleven
11Million
promotional
units in black,
activities,
silver
Millet phone 3,11Million units telecom version, the ordinary
2s,11Million
version ofunits
milletofphone
red rice
5Million
phone,units
New millet box to participate in promotions.
11month28Day, millet special micro-channel open,
10Minutes
only
sold15Million
out
units millet
3. phone
2014 year
2month14Day, about rice 1sRelease,
phone
and on2month20Officially for sale.
2month27On the morning of10Point, millet phone back
2S 16GEdition
on the shelves
prices again
400-1299yuan,
Configuring Qualcomm
Xiaolong
600CPUMobile
phone price reached the limit.
3month16day0Point, millet company
QQSpace first release red rice
NoteMobile phones,
5.5Inch big screen,
Eight-corecpu;3month19Open day appointment,
3month26day12Point first-round buy.

3month27Day, millet and Kingsoft jointly announced that it would invest in the technology industry in Haid

Park together to build mobile Internet ecosystem. The company is headquartered future millet, Jinshan Headqu

The new business will be settled in this technology industrial park to build a mobile Internet enterprise collabo
4monthtwenty twoDay, millet millet company opened
mi.com. Access
a new domain
the original
name
xiaomi.com,
domain name
It will
Automatically jump to the new domain name.
4monthtwenty threeNews, millet company announced two new products
mini, The
- millet
firstrouter
to support output
7

4KMillet box enhanced version, priced at 129yuan,399yuan.

5month15Day, high-profile release millet millet flat, optimization of the use
MIUI.16GVersion
of depth
Selling price1499yuan,64GVersion Price1699yuan.
7Month, millet company began to attack the Indian market.
7monthtwenty twoDay, millet millet phone released
4, Millet bracelet, high-profile designs are in use. Millet hand
machine4Built-in2.5GHzXiaolong801Processor,
quad-core
with

3GB LP-DDR3Memory, storage space

16 \ 64GB eMMC5.0Storage space; the other usesJDIProduced 5inch1080PFull fitOGSscreen;

Back1300Million and pre
800Megapixel camera; battery capacity
3080mAhUnder
of
normal use a strength available
Half days. Jobs millet bracelet using the classic
One"More Things"Plot, the surface of an aluminum alloy,
Laser micro perforation technique.
8month16Afternoon, millet company in798Arts
BeijingDistrict has released MIUI
the latest
6System in operation
Interface optimized for depth, color background, the notification bar, cloud service functions.
8month28Day, millet has attack the Indonesian market, the e-commerce
LazadaThe
site in
exclusive
Indonesia
sales
Red rice phone.

10month30Japan, the company has gone beyondLGThe

Lenovo
company,
millet, jumped into the world's third largest smar
Manufacturer, only inferior to Samsung, Apple.

11month6The evening, a wholly owned subsidiary of Datang Telecom Technology Co., Ltd. and Beijing with
sign"SDR1860 Platform technology transfer contract ", the core technology
development
has
SDR1860
Platform Technology
RMB

1.03 Prices billion licensing Electronics Co., Ltd. to Beijing pine cones. Beijing pineal Electronics Co.

The company was founded less

than millet
1Month
chip companies.

Double eleven activities, millet company achieved amazing results in Lynx sales of mobile phones, is Lynx,
Champion, with sales accounting for Lynx double
eleven total sales
3%.

11month12Day, Youku potatoes Group announced that the company reached a strategic cooperation and m

The content of cooperation in two areas: First is the content of the depth of cooperation, in the field of Interne

Send video playback technologies such as mobile terminals; Second, millet company will invest Youku potatoes
Production, produced in close cooperation on the issue.
11month19Japan, along with millet companies
18Equivalent
in the capital
to one hundred
3Billion
million
stake yuan
Iqiyi,

Baidu also additional investment for love Fantastic Art. After the investment is completed, iQIYI will work with
8

In content, technology product innovation, especially in the field of mobile Internet to expand the depth of coop

12month14Evening, the US group announced that it has signed a strategic cooperation agreement with the
12.7One hundred million yuan stake in Midea Group.
2015 year
2015Years, millet company will cooperate with Tencent
QQNewmobile
series starting
phone red rice. Millet

month4Japanese QQExclusive
mobile phones
debut of the red rice phone.
1month4Day, millet company founder Lei Jun to employees in the form of
2014In
an open
transcripts,
letter published millet
Boarded the Chinese smartphone market throne.
1month15May, the company released a new flagshipNote,
phone
Regular
millet edition
millet 2299
priced
Yuan, top with
Version3299 Yuan, open up the millet's a new mobile phone product line.
1month192007, Kingsoft announced that the millet company for its wholly-owned
5.27Hk (approximately
subsidiary, with
Together RMB
4.23Million) of the purchase price from Kingsoft Tencent
2.98%Shares.
hands
1month30Day, millet millet new company
NoteOld boots special user-oriented millet phone
1The first use
Households.

Third, the Chinese mobile phone market development of situation

Since China
1987year11month18Guangdong launched the first large-capacity Japanese cellular public mobile c
Systems, mobile communication will stride onto the
fast track
of development,
20Years
of development,
we have
1G,2Gera,
gone through
We are at3GEra,
the cusp
to mix

4GEra forward. 1GIs bulky, heavy Big Brother analog mobile phone,

2GTechnology is more mature, but the main function is3GIs

to call,
the SMS,
integration of PCComputer
mobile phones,
functions,
That is in addition to basic call and messaging features, there are video calls, download and install third-party

Browse news stories, watch video movies on tv, mobile payments, online shopping, games and other functions,
Smartphone, but

CPUStorage space, screen size, battery and other restrictions, the phone response rate,

When using the full power long after, the presence of short plate browse news fiction
text quantity, immature
4GTechnology
3GOn these issues have improved greatly improved, can still not ideal.

Since China
1978After years of reform and opening up, the economy has
10Years,GDPIn
been sustained
flat and rapid developme
Average growth
rate of about
10%,especially
2010Years, China GDPGrowth10.3%, Of the total economy
5.75Trillion US

Yuan, surpassing GDP5.39Trillion

Japan
dollars into the world's second largest economy after the United States. Befor
Stable from the world's second
largest
economyfar China's year
42year
4. from2010So

GDPThe total economy has been ranked

Second in the world,

despite
2014yearGDPOnly
growth7.4%--Yes1990yearGDPGrowth3.8%Since most
Low annual growth rate. China's
per capita
GDPby1978Year381Yuan
rose
Yuan - equivalent to

2014Year

46510.5

7575Dollars,2014There were8Provinces per capita

GDPBreak one trillion US dollars, namely Shan

Beijing, Tianjin, Zhejiang, Jiangsu, Inner Mongolia, Guangdong and Fujian,

when
the
exchange rate is
1The
dollar
6.1428yuan
Yuan. Nevertheless, China's per capita
GDP 2014In still about global ranking
90Bit. In addition, China's
Urbanization continues to accelerate, as the current urbanization
rate
of about
53%Every year,
about
2000Million rural people
Into urban population.

4(

Baidu Encyclopedia, 2015)

10

It is such a situation like economic development, the Chinese government on laws, regulations, policies, p
Deeper support the development of Chinese communication industry, as China is now pushing the triple play -

Networks, telecommunication networks, the rapid development of China's telecommunications

99%the above, industry, of cou

Three highly competitive mobile communications giant, communications services continue to lower prices, cou

Enhance the acceptance of new things such as faster, deeper, China is a very speaking family, fellow feeling, lo

Human friendship and other countries, the people around to buy their own phone has a lot of influence, caused
Like the same plane development. According to Chinese
official
statistics,
2014China's
per
capita rate of mobile phone ownership
90.8%Wherein the per capita rate of about66%,
smartphones
In some emerging markets such as Russia, Brazil, India
Degree, smart phones over the same period
per capita rates
were than China 5 . Therefore, there is
37%,36%,10%,
Far lower

13More than one billion people, China is the world's largest mobile phone as early as producer, consumer, the w

Producer, consumer, for example, to sell some of scavenging survivors, retirement pay lower of urban subsisten

Have a cell phone. But behind this phone per capita rate is that most people consume is low-end phones or Hil

Walled machine, whether non-smart phone or smart phone, the phone number must only consume or basic fun

SMS, basic Internet browsing news stories, watch TV movies, online shopping, mobile payment, the phone app

Design, the task of the amount of time can work at the same time, the flow speed, application-specific features

Know, traffic is to spend money, more than the flow of traffic packages priced higher because
GDP of China's per ca

Low, and many people to afford the high cost of child life education, etc., and a large gap between rich and poo

Number of46%So, in particular the vast majority of rural consumption is all to not more
than two or three hund
1000Dollar

The phone number of poor families or poor areas, many people can not afford a mobile phone, even if the econ
Not everyone dares to buy high-priced high-end phones, because they are "rich" is not the righteous -

Or caused by corruption or by means of unfair competition - fear of outsiders to know their informant was unfa
China's per capita compared to the cultural quality of the developed countries is not high and even a bit lower

Exhibition backward areas, many elementary or junior high school education labor, and China has a long sectio

About the fine tradition of the country, hard-working, many Chinese people are willing to live frugally for them

Training to enhance the survival and development capacity, the other is very family talk, the students love, fell
Each Chinese people, whether rural or urban population, the annual human cost overhead lot. Most of China

5(

, 2014)
China Industry Research
11

People chase of non-smart phones or smart phones, is high-profile low-price, low price but high hardware confi
Hardware configuration is by no means the highest price expensive.

Thus, the Chinese mobile phone manufacturers more research and development and production of low-en

Machines are exported to some developing countries, mobile phones are more than the price of a few hundred

More in1000yuan-3000Yuan, the price range is the two Chinese mobile phone manufacturers the most competiti

Grid, grade range, especially the thousands of smart phones, more broad market. In the smart phone market, t

There are two types: the first is the high price of high-performance, such as Apple, Samsung; one low price and

Domestic brand mobile phones, with some cottage. China smart phone market is not a high-performance low-c

The vast majority of domestic brand mobile phone manufacturers, such as Huawei, ZTE, Lenovo, Jin, backgam

End mobile phone market is highly competitive, especially in a competitive thousands of smart phones, some fo

Multi-industry compete in high-end mobile phone market, such as Apple, Motorola, Samsung, etc., but also som

The enormous potential of the low-end market, have rounded out the market, such as Samsung, Nokia and oth

State of the mobile phone market, especially in the smart phone market competition is particularly intense. No

The exhibition is the mainstream smart phones, smart phones popular in China or enhance the quality of consu

Each year has added the rural population into urban population after their former non-smart phones or low-gra
Most smart phones to upgrade consumption, on the other migrant workers flooding the town in the consumer
There will be rising demand.

However, China's mobile phone sales in the previous years has experienced rapid growth, the Chinese mo

To saturation at the same time, a marked decline in the growth rate of the past two years, look at the following

12

Mobile phone users increase in the chain

(Source: Statista)

0.91%
0.77%

0.70%

0.62%
0.47% 0.50%
0.37%

0.28%

table
two: 2013year9Months to2014year4Month (MoM increase of mobile phone users)

Reason phones per capita growth rateGDPNot

of decline
is China
high,
there are reasons for Chinese culture, China is a
One has a long thrifty, hard-working tradition, many children who have to bear the high life education

Overhead, and the other more mature and deepen China's market economy, competitive pressures between pe

Force increases, many people want to set up hundreds thousand square frugally invest in education and trainin

Exhibition ability, if they continue to pursue a Ph.D. degree PubMed attend English and computer education an

There are basic communication, knowledge, attitudes, basic smartphone functions can be, therefore, high-inco

Group of the replacement phone has a strong will, but the wider economy in low income who frequent replacem

Cautious, not particularly attractive at innovative smartphone and price have great benefits, they will not be m
For mobile phones.

Millet phone in such a market environment in China, "red storm overnight," a shocked China, it is the wor

Marvel legends, to seize the main mobile phone market development context - smart phones, high-profile low p

The company was founded in the development of the use of what operating strategy successful? The author co

13

Fourth, the company's operating strategy millet

Millet uses a set of completely different from other Chinese mobile phone manufacturers, including foreig

Enterprises operating strategy to quickly grasp the depths of the Chinese consumer's heart, deeply touched th
Chinese mobile phone manufacturers develop magical history.
(A) product design

Millet mobile consumer market in China is very thorough understanding, including macro and micro leve
Lei Jun has been in China
ITRemoved from the industry over the ITTop
next decade,
removed,
and
the
ingroup led by a gang
The same is true team, theyITOrITRelevant
are from
senior figures, millet products targeted for grade fever wisdom

Smartphone - "for the fever and students" millet product concept, namely high-profile - almost all mobile phone
Is the world's leading manufacturers to provide first-class products,
including theservices,
concept"the
of "hardware
+software+Internet
phone

Hardware, software, applications perfect combination, the price is lower than similar phone to one half of a th
Pin to go low-end market.

In the product concept

of "hardware
+software+Internet
services ", the" Hardware "means millet phone." Software "mean
Based on the global market share in mobile
phone operating
system
80%Above
AndroidDepth
optimization, development, customized

MIUI, Can greatly enhance

AndroidThe operational value, good user experience degrees, which is in its fully unders

National phone consumer habits, cultural and psychological factors reached, and fully integrated into the enth
Meeting the needs6. Millet created their own online communities, forums, enthusiasts
can fully participate
MIUIPriority
Technology, development, customization, aroused
their
use phone's strong desire. "Internet service
MIUI,
Millet

Service "refers to multiple third-party smartphone

applications
APPResearch
and development, application fees and other paid serv
Services, such as instant messaging software meters chat.
Millet on the company's product design philosophy, both inside and outside millet was brilliantly dabbled
Had vivid and popular sentence summed millet phone a feeling of superiority "fashion and cheap." card

Lancaster more sensible, funny sharply pointed out the profound meaning of millet phone unique concept: "You
Uncle and all his rich friends will buy gold
iPhone 5s, But you will get a fashionable brother millet phone. "

6(

Si Rui, 2013)
14

In China, full of criticism to some extent has become synonymous with ridicule, the underlying reason is "too r

Net, "Chinese law corruption rampant in the world are known for, millet mobile phone design concept of passin
Appropriate "information in many people's minds had a strong resonance.
In addition to millet, the global mobile phone production enterprises,
to the "hardware
+software+Internet
services "products
The concept was also Apple, it has a high quality smartphone operating system
is second only to
AndroidofIOS,

IOSNot open source, but the user experience is good operation, fully functional, the Internet service is also the
Party applications, Apple Store and other application
software.
butasMIUISo close to the Chinese consumers
IOSNot
as good

Habits, cultural and psychological, can not improve the promotion of open source, Apple's mobile phone hardw
- The case of profits, with some kind of monopoly profits.
(Ii) the concept of business operations

Millet corporate operating philosophy and all Chinese mobile phone manufacturers, including foreign bra

Are not the same, it only R & D, design, marketing phone, do not produce their own mobile phones, mobile pho
Leading mobile phone OEM manufacturers IAC, IAC is a field of electronic communications Taiwan's business

This company concentrated its main efforts on the key aspects of the mobile phone industry - R & D, design, m

On the professional breadth, depth beyond all other domestic and foreign mobile phone manufacturers can mo

While minimizing production costs, various expenses, such as marketing, management, finance charges, so tha

Industry more flexibility to respond to market, maximize avoid another investment of idle assets, employees an
Millet lowest overall cost of the product cost concept, its design concept inherent depth consistent.

You know, create factories, land, plant, machinery and equipment, skilled workers, technicians, managers

On investment management, payroll and welfare staff and other staff is great, but if not enough sales, they som

Production, which brings the plant, machinery and equipment, staff, and other waste of funds, China's smart p

per capitaGDPRanked in the world is relatively backward, many people survive pressure, not much money on h

Development, production and marketing of the huge risks many uncertainties exist, like millet mobile phone R

Red rice phone to give up halfway

ago
40Wan
retail orders parts red rice mobile phone production. And any category of
Phone reservations are limited, production, marketing, marketing strategy gives this hunger

To note here is that there is a global mobile phone manufacturers and millet a company's corporate opera

Thus, namely Apple, only R & D, design, marketing, smart phones, computers and other products, never produ

All products are OEM looking at the world-renowned foundries, the Apple smartphone configuration higher pr
15

Line, take the high-end market, is a lucrative smart phones, the market narrow face, complete with millet com

Face entirely different market, millet smartphones than Apple which the smartphone is in wide many times, an
In the configuration, performance, price and other competitive advantages much.
(Iii) marketing model

Millet company's marketing and domestic and international mobile phone manufacturers is completely diff

Channels, such as millet official website, micro-channel, microblogging, blog, forums, internet communities, w
Or actual sale, and skillful use of hunger marketing. Founded early millet, did not directly launch smart
Phone, but developed and
launched
MIUIAnd
their Internet community, create forums, culture fans, let him

Who participate
MIUIDepth optimization, development, customization, their experience, requirements, opinions and su
More reasonable atMIUI,
all into
theas millet will be releasedMIUIUpdated
Such
Friday
firmware, forum members can

Submit feedback and develop content, such as themes, wallpapers, ring tones, and millet software team will be
Firmware.

For example, when the newly established company millet, millet Lei Jun, vice president of the company on
No cost to MIUIAccomplish100Million users? ", Only to be driven to embark on Kingsoft Liwan Jiang Zeng

It proved to be extremely effective forum to do with reputation. Liwan Jiang led the team to the major well-kno
Water - pull people everywhere, finally pulled
to the carefully selected from
1000People,
100People involved
MIUIof
Depth optimization, development, customization,
this consumers lighter, millet
100People became
MIUITo

Sources fan culture. Pure reliance on word of mouth, the fans grew bit by bit at first, after the rapid growth, th
Two weeks200People, third
week the fifth800people
400People,
week
So do the fans like a snowball development, and inspire them toMIUIDesire,
use strong more practical

Is a great warm-up for clever millet phone sold out - "consumer participation millet products through the Inter

Development, design, improvement, millet companies to consumers as a friend, rather than as consumers, a re
Kinds of emotion even more consumers
moving ",millet
etc. phone company launched
2011year8Millet
1When there
monthare high-profile

Height lure of low prices, the desire to buy a huge number of fans an unprecedented height of millet phone, th

I feel, if not quickly snapped or grab Reserve will not buy such an excellent cost-effective mobile phone. Such c

Buy millet phone information would affect other people around them or know this information, they also arous

The desire to buy millet phone, but also free to help promote the millet company and its products, much of the
They are attracted to come to help promote spontaneous.
16

As can be seen from the above, a major advantage of Internet marketing is the use of Chinese pole about h

Traditional culture, if the product quality and prices are extremely advantageous, Internet marketing can be w

Advertising costs, much larger than the effect of word of mouth advertising effects, including over the CCTV sp

The effect is much better, which makes the millet company's high-profile low-price smartphone quickly from po

The mobile phone market body, causing popular Chinese mobile phone market almost every corner, you just ca

People, especially some of the high education level, to ensure that they place in their hearts millet phones, and
Like many of them participated in the millet phone to buy, more often in Jingdong, Lynx and other channels to

Millet and other Internet marketing course,

including
fan participation
MIUIThe
improved,
including the release of new products or other p

Face a variety of relevant information. Another big advantage of Internet marketing is not need to spend much

All positive information cents, accept, praised millet phone and then in person deliver the Internet or entity mi
Also free, which is better than any free advertising effectiveness to spend money. So, Internet marketing also

There is another big advantage of a wide range of marketing, marketing lowest cost, do not even spend a penn

Comprehensive cost machines can cost minimization is an important way, it is the millet phone product positio
A fundamental factor.
For example, millet1Before
phone starting2011year5Month, Liwan Jiang design a cost
3000Million
Marketing plans, Lei Jun is a stretch "shot dead" - "you
do did not spend a penny, do not phone
MIUITime
Could that be? . "Logically speaking,100Million
sales
units millet1,phone
According 2000One
to the price
yuan, total sales
income20Million according to the 2-3%Marketing
general business
investment
5000
costs
ratio is normal, that marketing expenses
Million, while the Liwan Jiang marketing plan marketing
costs have been much less. Liwan Jiang forced on
3000Million,

After the Liangshan create a forum millet phone, millet phone forum has several key technology sectors - resou

Getting Started, millet College, after an increase of lifestyle sector - Coldplay help, readily beat, popcorn, etc.,

Forum and finally with the 1Without

help of millet
phonea penny completed
spending
100Million
marketing
unitsexpenses
for the first time sales tasks. sma
The company also used the microblogging 2012In
metersthe
do first
marketing
as forphone", well-prepared
"youthtopics,
versionsuch
of millet
The "150G Youth "topic in the microblogging fermentation, after making
Ourearth
150Gmicro-film,"
Youth "upload
Beans Youku, the topic in the network uproar, magical suspense " 150G of youth in the end is what

What? "Final hot phone millet youth version of Internet sales, which can not spend the whole vigorous marketi
penny.

Of course, millet company in order to expand their visibility,

hadCCTV Spring Festival Evening smashed a l
2014In the
17

Advertising, then millet company to do such high-grade large audience reach of advertising is advertising effec

Millet company because this has been a considerable marketing through the Internet truly reputation, than wi
Reputation as a solid foundation of business in the CCTV advertising effectiveness is many times better.

Finally here it is that in the domestic mobile phone manufacturers, the company in addition to the use of h

Apple is also the case, Apple's new products to market before the message is always half cover half exposed, th

Let fruit powder followed the chase, and then release a new product under the eye. And after the new product

Spot source is insufficient, so that consumers can not buy heart itch. But Millet's hunger marketing is more tho

Bottom depth, it binds only Internet marketing advantages, such as reservations, buy, purchase, etc., the consu

Feel more in place, deeper, Apple may just feel hungry have a period of time - not enough depth, comprehensiv
Because Apple has to go physical sales. Apple's profit mainly by profits, millet company's profit is profit,
Mainly by marketing puerile go hungry.
(Iv) business profit model

Millet company's business profit model positioning software, software value-added services, rather than s

Member itself, which is mainly

manifested inservices, mobile services and other third-party applications on the
MIUIValue-added

The fundamental trends in the mobile Internet is now, the future booming, and mobile Internet in the future, so

Point of view, is the protagonist of the Internet, mobile Internet access to the Internet anytime, anywhere - at t

Rich and varied, covering various aspects of social development, and other information for people to live, need

The development potential of Internet service companies, and prospects, as many of today's computer giants li

News,360Sina, etc., with a number of server or application software providers, such as enterprise instant mess

With well-known companies and services - Guangdong Qunying Network Ltd., two hundred sixty-three, Realink

Due to Chinese mobile Internet transmission channels providers - Telecom, China Mobile, China Unicom t

Monopoly, mobile Internet content providers in this area is weak, the mobile Internet servers and other hardw

Some weak, caused by a tripartite interest in the development of mobile Internet can not reach a fairer agreem

Show subject to greater constraints, but the future will certainly break this pattern, development of mobile Int

Trend no one can really stop, but also benefits the country in line with the fundamental principle, the arrival of

Now the smart phone penetration

rate
has reached
66%A.
Therefore,
millet company located in the software business profitable valu
Service as the core direction is absolutely right.

18

However, in practice, millet company's business profitability is still mainly rely on the sale of mobile phone

Is a high-profile low price - go puerile marketing mode, but millet companies in the fine management and stric

This positioning of millet phone still able to bring in enough profit for millet company's development has also a
Less risk or other aspects of the investment, a large amount
of investment2017In
research
company
IDCestimated,
millet
The market value
may reach(
740.5Million

117.8Billion), as evidenced by today's development model Now that

Magical, if the future value-added services software really play a role, or play a significant role, millet compan

A legendary unlimited. You know, according to the comprehensive development of the Chinese situation now, s

Market is now many people reluctant to spend or can not afford, but China is growing at sustained and rapid e

Software development of value-added services will be infinite, development status, as mentioned, said compute
Prospects same.

Map
one: before5Name of the global smart
phone
: 2014In
themakers
third quarter
IDC)
(

19

Map
two: Global smart phone makers shipped
Strategy (Analytics)

The author more in-depth analysis of the overall cost of millet companies to explore the millet phone com
True, here are a few examples of millet phone cost analysis:
In the end the smart phone
market
, Class
phone costs 150Dollars to 450Between the dollar,
2014Expected
Which will account
for more than
50%Shipments.
Red rice from the phone's hardware
MT6589MediaTek
point of view:
chips of total product
Cost

20%;4.7inch,

312ppi IPSDisplay of its

twenty two%the cost

220 ppiDisplay
of;
in common

The same price on the device. Component costs based mobile phone red rice, red rice total85production cost wa
Dollar(4Q'13). Red rice mobile phone retail
price
799Yuan,
or about

130Dollar, millet higher configuration

Low price profit rate is almost identical to other smart phone manufacturers.

20

7
table
three: Millet millet phone company
3Material Price

Millet company can reach such a level of profitability, for three reasons. First, at least one new product la

Before quarters, assembly millet companies seeking to reduce costs. Second, the millet is better than the comp
hand. And millet companies use the Internet to implement reservation sales model, it is possible to accurately

Thereby reducing the charge funds or sell stock and other risks. Third, the social network marketing strategy r
Advertising costs, but also can be a cause for concern in the market.

It is so, the price of red rice phone

799Yuan, while the price of Apple's mobile phone in
4505yuan
China is

How far the yuan, the price gap can be configured, the performance gap is almost not much, Chinese consume
Which mobile phone brands naturally very clear. Again, millet
phone to other high-end phones, but the price
3Superior
Suitable low big advantage, which sells
for Apple
1999Yuan,

7 (Handford,

2013)
twenty one

iPhone 5sIn mainland China about

5310yuan,
the price

More than double the price difference between the two, showing the company's business millet profit model of
Company profits smartphone deep.

twenty two

Fifth, millet Competitive Advantage

(A) good product positioning

China has13More than one billion people, growth potential is unlimited consumption country, but most peo

Survival pressure, in the mobile phone market, is willing to spend big money or real money, like Apple, Samsun
Smartphone many people, most people buy a mobile phone is made in China some low-end goods, or knockoff,
Eager to buy low-cost high-end smart phones, millet company is analyzed quasi-Chinese mobile phone market

Like, millet phone positioned as a low-cost high-profile product line, but the price is not low quality to others th
The degree of poor, to give consumers a good purchase experience. Like with the same configuration than the
Millet phone prices lower
by about
40-50%.
For example; red rice phone is priced
799Yuan,
at only
and other products of the same grade

Brand phone sells at least a thousand

dollars;
2014On4Guangzhou
market quarter, many banks take red rice phone to do pr
Marketing activities,
such as
deposit
1000Yuan,
a year
can be saved on a red rice NoteRespondents said that calls a year
not only
1000RMB deposit
1000Yuan into the matter, the end can get it back;
2014Lenovo, China Unicom continues
Millet phone sales, only selling hundreds a month; and so on. Seen in the popularity of millet phone market
Wide deep, which originated millet excellent product positioning.

Moreover, the Chinese mobile phone market is the dominant role in the low-end 3000yuan
phones, the price from se

Between the price at which the smartphone

1000Yuan, the smart phone will be the core of China's mobile phone market
Non-smart phones may be subject to future vast majority of consumers will be phased out, the smart phone in

It is an irresistible trend of booming, but now is not the innovation in performance, speed, storage capacity, ba
Capacity and price on the great power of the smart phone, China
still about
34%
10%People
did not phone, about

People use non-smart phones. Therefore, high-profile companies targeting low price of millet smart phone deve
limit.

twenty three

See vendor's important sources of millet, key components, consumer

/ *Fees will know the millet phone
Hardware configuration is the top, with Apple, Samsung, as low as the price of a lot - big advantage of mobile

Map
Three: millet, Samsung, Apple common parts supplier

In addition, the mobile Internet will be the protagonist of China's Internet, millet positioning
of the produ
+

software+Internet service "will be another amazing development history of Chinese mobile phone manufacture
Millet promote comprehensive development of the company.
(Ii) products with unique advantages

In China, including global mobile phone hardware and software research and development, production, m

Industry completed, namely mutual isolation, which leads to the phone hardware and software used in combin

Not a perfect match, such as: When using a high-quality mobile phone, because the software is not very good q

Etc. Software death ray machine, light or software errors, or software is not perfect, complicated operation, an

Software quality and excellence, but poor quality or incompatible phone or is not complete, the software can n
Piece slow response, or because the phone memory is small software can not be used, and so on.

In China, almost all mobile phone manufacturers only focus on hardware development, production, ignori
twenty four

Huge commercial space mobile Internet - do not pay attention or do not care about the mobile Internet service

How to research and development, production to meet market demand for high-quality mobile phone hardware

Deepening of upscale mobile Internet becomes more and more the great potential value, the value of the Inter

Immeasurable same. The future, mobile phone software, mobile Internet services commercial space will be ver
Cleverly discovered what had happened, their products are+software+Internet
designed to "Hardware
services ", and the phone

High quality hardware - all parts of the world's leading supplier of first-class products, such as Qualcomm's ch
Touch screen, the design has reached the extreme of human nature, beauty, fashion mellow,
software
MIUIratio

AndroidFar superior, more in line with the Chinese people's habits, cultural psychology, giving users the best mo

Operating experience, the Internet service has been painstaking research and development, like the rice had t
Millet this unique product design, is fit such a concept: a truly excellent finish

US smart phone is the phone hardware, software, the perfect combination. Millet perfect solution to mobile ha

Isolated from each other, not supporting each other to reduce the use of other large-value problem, which is th

Pain, can phone the company has not been addressed, not to solve it. And millet have the same design concept
Only in the world of Apple, but Apple phone is expensive, many people stay away.
(Iii) the unique advantages of marketing model

Millet company's marketing model not only in China, and the world is unique, which is also its magic into

Power made a great contribution, just take electricity business marketing model - Internet marketing, and nev
A millet mobile phone shops, or consumers in shopping malls, tones, games and other mobile phone monopoly
shadow.
Millet

2010year4When the month was founded, not eager to launch mobile phone R & D, but R & D l

MIUIAnd create a site specifically set up forums, so that

MIUIUser
the majority
participation
of MIUIImproved upgrade,
To maximize lift

MIUIUse value, user experience, while cultivating millet company's loyal customers -

- Fans, trained hundreds of thousands of fans, millet company in the mobile

phone market burst
2011year8Month,
small on the scene li

M The company was launched only in the first mobile phone network, low-cost high-profile immediately attract
Fans, by the fans and then word of mouth, millet company's rapid rise in the mobile phone market, reputation

Millet company has always adhere to the only Internet marketing, Internet marketing adhere to not spend a pe
This, with respect to which a number of cost-saving marketing entity, even if the Big Three mobile and mobile

Telecom, have to spend a lot of money to buy a product or product display cabinet booth, Internet marketing c
25

For product positioning, greatly enhanced the competitiveness of millet phone, in the Internet era, whether it i

Internet, millet company's outstanding reputation, the unique advantages of more widespread, consumers and
Do not spend nearly a penny.

Hunger millet marketing is marketing magic weapon for winning. According to Moore's Law, according to

After analysis of sales forecast given only cost until the predetermined sales, mobile phone prices began a pha

According to the principle of diminishing marginal cost of gradually, and mobile phone parts in productivity gr

Ultimate mobile phone manufacturers to achieve a commercially reasonable profit. Millet company is doing, in

When have taken limited production, marketing will not be large-scale production, which result in a kind of "w

For your "impression, coupled with the low price of millet phone targeting high-profile, people feel millet phon
Beautiful baby fairly high, but at lower prices, smart phone component costs associated with the development

M The company reduced a lot when you buy them, plus millet cleverly enhance the phone in one or a few squa

Surface properties, such as memory capacity, cell phone camera pixels, and even because of improved perform

Before the price reduction on the basis of points raised prices - The price is still lower than the first price, even
Crazy, that is, when most consumers can buy mobile phones, millet, millet early earn normal
Business profits.
For example, millet 1Initial
phone pricing is based on sales
30Million units costing using cost buyback
After millet phone
1Pricing almost no profit margins, but when outselling
30After million units, procurement costs

He declined, the decrease and Transcendence

30The number of how many million units related expenses buyback completed

Reach breakeven state, and then further sales is pure profit millet company profits, and that price is how much
A number of net profit. In fact, to2012In the second quarter, millet phone
1Other hand have been earned at home and
Machine manufacturing enterprises the same as a normal commercial profit margins of about ten percent.

For example, the company has so used hunger millet marketing, consumers can not buy millet phone site
Needs, etc., to get FNo need to wait a while to get the phone. Such as the latest models, such
note, as red rice
Or millet

3Just released, only a few minutes, there is no rush. In the process of waiting, millet public

Secretary to the consumer desire to buy millet phone raised to the highest realm, promotion, cured millet phon
By beautiful image in mind.
(Iv) strong human resources
When Lei Jun created millet company,
it has been
in for many years, particularly in known
IT
ITIndustry
fought
as "
26

Huangpu "Kingsoft worked for ten years, and has accumulated rich network of resources, so the company crea
, That have

ITIndustry, strong human resources, is the founder

ITSenior
of the
industry
whole executives
team
in a tube

There management, technical or human resources contacts profound advantage, which is millet company at lo

Procure a fundamental component to the class factor, which is capable of millet company was founded in China

Machine manufacturer in Deus Ex, a fundamental factor cited praise of world attention, the company is able to

Ambitious series with forward-looking vision of the philosophy of science, a fundamental factor in the decision,

Go hungry Internet marketing plus marketing to create a fundamental factor in Chinese mythology Legends of
Look at its strong human resources - the founding teams of the personnel background:
Founder and former Kingsoft CEO Lei Jun, graduated from the Department of Computer Science, Wuhan
Li, chairman and chief millet

CEO.

Former Microsoft software development division, Director of Engineering, former vice president of Googl
In the Department of Electronics
Engineering,
1992In
the U.S DrexelUniversity master's degree in computer science, good

Computer, management, and Lei Jun millet company constituting dual-core operation and management togethe

Kingsoft Liwan Jiang former general manager, graduated from Xi'an Institute of Engineering Science and

Page, HCI, vice president of millet, millet company responsible for marketing, electricity providers and service
MIUIprincipal.

Former Microsoft China Academy of Engineering Development Director Huang Jiangji, specializes in so
M chat the person in charge.

Former Google senior product manager for China Peak, graduated from Shanghai Jiaotong University Com

And he received a master's degree in computer science from Purdue University, specializes in the development
Father Millet, vice president of robots meter company.
Former senior director of Motorola's R & D center
Zhou
Guangping,
1999On
Ph.D.
Institute of Acoustics,

Georgia Tech Ph.D., specializes in hardware design, to enhance the company's vice president
of millet, the team
BSP.
Former Head of Beijing University of Technology industrial
design
a graduate
of
Art Center
collegeLiu,
of design,
A record

Office of the Beijing University of Technology Department of Industrial Design, specializes in industrial design,
Machine industrial design project hardware business.
Ray Stone had created their own scienceKTVVOD
and technology
- occupied
China
system market
share
of nearly half of the king

Army, graduated from college, has been playing an important role in the company's growing millet, millet com
27

- LEI invited investment by a year, is the initiator of hunger marketing millet company,
MIUI"each
Week Iteration "advocates, as millet TV set-top boxes at the helm.

In addition to the founding team of individuals, the millet company also away from TechFaith Wireless Bu

Millet's core hardware and software R & D team, millet 1After

phone the launch of the company's warehousing and lo
Eslite financed fully supported. to2011year12Month, millet team has expanded
to
408people.
R & D group

Half of the team were from well-known companies, including Google, Microsoft, Motorola and Jinshan and othe
nameITthe company.

The key role of these strong human resources for the company's development of millet with the foregoing
At first, there is no brand, factories, sales records, there is no profit - funds already exist great risk

- Less profitable or unprofitable or loss, the concept of business operations, product design and so in the end if
Market prospects, everything is unknown, the smart phone to find parts for a leading global supplier
Parts flow, especially important, the key parts, is very difficult. Full smart phone parts supplier

Before the ball100Are strong in product development technology, production, marketing and so very strong, wo

The customers are chasing behind them to goods, such as Sharp, Samsung screen, touch screen, Qualcomm ch
And so on, they have been very loyal customers, according to customer demand and orderly production, many
Factories are created based on customer needs. Apple
is like this
100Strong
corporate procurement for all kinds of parts,

Often to their investments, to help them purchase technologically advanced or sophisticated important, the key

Tier suppliers to solve problems with supply, millet company in order to survive - a ground-breaking sail, other

A. Solve these problems, mainly depends on the millet company said strong human resources, rely on their Zhu
The more management, social skills, a strong network of resources and so on.
Founded early millet, and 100Strong smart phone parts companies when talking about
85Family
supply, which is

Mercilessly rejected some of the millet company executives, he is considered the founder of the team, on hand
Efforts to solve the smart phone component supply 5Within
problems.
Lin Binthe
in
months,

80%Time spent with

On contact with potential suppliers, held a meeting

about
1000Field,
in addition, millet companies use strong human resource
We took some maverick strategy to that of the supplier of deep faith.

for example,
2011year3Month, hit Fukushima earthquake, tsunami, nuclear leak, many people make every effor
Away to Japan for business or tourism. These terror can occur for two weeks, Lei Jun, Lin Bin, Liu catch fly

Machine rushed to Japan, hoping millet company with one of the best screen technology in the world to finalize
28

At that time, the three airline passengers in addition to the three of them sitting outside, almost no other peop
So moved by their sincerity, and Lei Jun, Lin Bin, Liu has been
the morning
8On from
the point
has been
11Point,
to night
final
Order millet reached satisfactory supply agreements.
Determine the success of the smart phone chip is the other core
namelya years
CPU. components,
In order to capture

Direct share ranked first worldwide smart phone market, Qualcomm chips, Lin Bin spent a lot of time and effor
Qualcomm customer representatives
meet, Lin
Bin spent
2Months,
waiting
for the official signing
2Months,
took etc. to Qualcomm
Products Division butt, get product specifications, spent three or four months, eventually spent seven or eight
To millet phone
1Chips authorization. This is only for the production 1Starting
of the firstjourney
mobile back
phone
took
millet

Six months time, Lei Jun, Lin Bindeng executives frequently travel between Taiwan, Japan, Taiwan, Inventec fin

Phone1, IAC is a world-class communications and other electronic products, foundry, of course, it also has its o
Ready to produce millet
phonemillet released Snapdragon Qualcomm
2When,
APQ8064Chip before

6Month sent

6Qualcomm engineer assigned to the headquarters of the San Diego R & D center, and Qualcomm engineers to

The company's strong human resources, excellent management, social skills, a strong network of resources, an
Millet company wants the world's top smartphone vendor We supply parts. Like Qualcomm and later millet

The company's cooperation is very close, the reason of course, there's rising sales millet - China shocked the w
Xiaomi phone
2A high-pass
8064The first models of the chip, Qualcomm
8064The first chip production have
100Million pieces,
Half of which millet phone 2Half for

LGProduction Google
Nexus 4.

Through unremitting efforts millet company executives layer, millet company completely reversed the beg

Machine parts in the world's top supplier of refuse outside plight, but also the successful and Samsung, some o
Into a strategic partnership.
(V) a strong competitive advantage in business profit model

Millet company's product design philosophy is the same as Apple's earnings by an expensive phone, and t

Georgia high-profile product line millet to sell mobile phone company obviously can not rely on hardware profi

Extending to mobile phone software, Internet services, which is to make money or make money by not less ent

Multi-user, and then by some billing software, value-added services, and other related accessories to achieve r
To this end, millet company has been trying to build the
millet
phone,
MIUI,
Millet
box, a mall, and cloud services
Developer composition ecosystem.

However, in today's China mobile phone market environment, companies rely on the phone millet softwar
29

Heart source of profit, is not easy. Application and millet ecosystem similar to2013Fiscal
Apple,
year
Its software services, music and other goods and services only9.4%Parts
for the fiscal
year total revenue
and accessories
of3.3%,
total revenue
Total income remaining
87.3%Apple is relying on a variety of hardware marketing. In fact, Apple has determined

Profit is the protagonist of the hardware, not the accessories, software, Internet services. Millet rely on profits

It is not easy for two reasons: First, Chinese consumers much money on hand, survival pressure, refused or no
Fee mobile phone software, Internet services; the second is in
the mobile
system,
AndroidOf
the phone
global operating
market share
of80%Above, Apple has created entirely out of self

AndroidofIOSMoney was small, millet

Want AndroidPlatform depth optimization

MIUIThe more difficult to make
AndroidThis
money, and
is open source

Mobile phone operating system, the mobile phone industry itself gathering of many elite wisdom constantly im
The company's depth optimization is increasingly less space.

Although the actual earnings, the main source of the company's profits millet mobile phone hardware sale

The road is very correct, consistent product positioning, unlimited future development trend of mobile Interne

Profit model will play a great role in the success of millet recycling myth legend. Even in the actual main profit
On the phone hardware sales, millet phone pricing is still strictly follow the product positioning.

Nevertheless, according to the current phone hardware millet rely on the company's actual earnings for t
Product line, the company is still profitable millet and obtained with other domestic and foreign mobile phone

Often business profits, the fourth point of the preceding millet company's operating strategy of "profitable bus
Depth examples.

Moore's law, the smart mobile phone parts in the development of the productive forces under costs contin

Pricing for the amortization of the costs associated with the cost price, sales volume and other predictive analy

After smart phones based on the time dimension little by little, the price, and then integrated into one or some

Lift, will greatly increase sales, companies can reach a commercially reasonable profit. Use Moore's Law given

The key elements of the price of the product life cycle is elongated so that before the role of Moore's Law, com

Principle of diminishing costs and price adjustment space sufficient to ensure profitability, adequate profitabili

Millet company full use of Moore's Law, then with hunger marketing perfect match to promote millet pho

Take a good high-profile low-price line. When millet new listing using hunger marketing will not be large-scale

And so when the vast majority of consumers on the Internet to buy millet phone, smart mobile phone parts in t

Lower cost and reduced a lot, plus millet company will have more smartphones to configure certain properties
30

Upgrade some aspects, to ensure the normal business profits premise, millet smart phone will cost insurance

Maintained at the same price of the highest level, all of this is not only to increase sales and extend the life cyc
It is to achieve millet chase with other mobile phone manufacturers at home and abroad as business profits.
For example, millet2,2012year8month16When
phone
released, the price is
1999Yuan; to

2013year4

month9Day in the price

1999Yuan unchanged under theCPUThe
premisecamera
of
pixel upgrade;
2013year7month,
Xiaomi phone
2SPrice to
Prices up to

1699yuan;2013year9month5Day, millet phone 2SMemory upgrade 32G,

to

1999
1799yuan. Xiaomi phone
2The use of Moore's Law, hunger marketing to the extreme,
the cost price

Yuan, product life cycle extended to 2023, due to sales prices, performance improvements and so greatly impro

machine2The declining cost of components, millet

phone
2The
entire production, marketing and other marginal costs ar
Decline, eventually millet
phoneenough profit from this powerful and vivid example can be seen, why millet
2Made
Higher configuration low price smartphone is still a lot of profit, they are earning a lot of profit annually.

From millet companies rely on high-profile low-price smartphone hardware profitability analysis and real

Earnings protagonist - phone software, after the Internet services, once achieved, millet company's earnings w
As the sea was rough and the global marvel, will be the mythical legend of the global handset manufacturers!

31

Sixth, millet competitor analysis

Since millet

2010year4Month after its inception, just four years into the development of China's smart p

2014In China smartphone sales chart ranked first worldwide smart phone sales ranked third - behind Apple

As a result, Samsung.
2014In double eleven activities in China and Asia's largest and most well-known electronic busines
Strong mobile phone sales ranking first in the treasure charts,
co-payunits,
phonethe
orders
116Million
total amount
15.6Onetohundred
be paid million

Yuan, accounting for the total

of about is
Lynx
3%.turnover
Its development
so strong, strong competitors at home and abroad have suffe
Blocking, the main domestic rival Huawei, ZTE, Lenovo, Meizu, Cool and other foreign rivals mainly apple

As a result, Samsung. These competitors, what advantages and disadvantages? This is a millet-depth and comp
The core issue is the key issue of this paper must be studied.
(A) domestic and foreign competition advantage analysis
1.Strong core competitiveness

Domestic and foreign competitors have a strong core competitiveness, and that is the core patented techn

Produce their own components. This is true, they are not subject to the fierce competition in the smartphone m
In the development of strong self-control ability.

The millet company no core patented technology, almost all parts of smart phones are all external procur

Like the chip, touch screen and other important key components all rely on cutting-edge global supplier Qualc

Even the final production of smart phones are looking for OEM IAC, its unique coreMIUI,Yes
technology content is high
Core earnings millet phone design one of the protagonists,
MIUIJust but
a pair

AndroidDepth optimization,

improve
AndroidOperational value, the user experience of software, technical content
AndroidIs
is not
a high, but

Open source software can enhance the editing improvements, many of the mobile phone industry's elite have b
Upgrade, once Android is perfect,
MIUIThere is no room for survival, to some extent dependent
MIUIandon

Millet phone consumers can place in their hearts as now extremely difficult to love millet phone to say. In addit

Millet higher configuration low price product line, which the vast majority of consumers implication millet pho
A sense of whether they
are willing
to in
MIUIThe
charges
continue to invest money in such topics, books, etc., this is a
Unknown.
32

Huawei's smartphones are all independent core technology research and development, including hardw

The chain he can get close to this basic chain, especially the core chip has its own investment control Hass pro

Huawei has a number of patents in China, the industry is one of the world's highest, Chinese patent application

International
PCT Foreign patents are more than 10,000 pieces. The association has its own smart phone core technol
Production plant, but in order to more smoothly
into the global,
2014year3Month
from Lenovo
Unwired PlanetI purchased
twenty oneRelated
3G,LTEMobile
items
communication technology
10Month
patents,
acquired Motorola smart phone business,
Motorola smart phone has about patent
2000Item association status in the domestic smartphone market since its

2009Years later into the mobile Internet business is very strong, has jumped to the world's third largest smart p

Second only to Apple, Samsung, and now at home and abroad to develop more powerful. ZTE is China's larges

Preparation of listed companies, the world's fourth largest mobile phone manufacturer, has been committed to

Production plants, although recently in 2012 have failed to catch up with Huawei in the process, but the found

For the better. Huawei, Lenovo, ZTE's product line length is much greater than the millet profit point much mo

There they could get control of a complete industrial chain. Meizu, Cool and others have their own core techno
Machine is own production.

Apple, Samsung has its own smart phone core technology, including hardware, software, core technology

All products containing computer almost all OEM production, but all the core technology products all their ow

Smart phone hardware and software core technology

is alsophone
true, as
IOSMobile
operating system is completely self-sufficien
Surgery, AndroidKeep
and
pace with, or even
IOSSmartphone market share than Android, Apple smartphones

Machine of mobile Internet services in the global music products and services are also well-known, business is

There is world-class technology. Samsung's business extremely diversified, more complete industrial chain, alm

There are all the core technology of their own, such as their mobile phone screen is the world's very best-sellin
Send complete fabrication from start to finish himself,
only the
the like.
operating system used
AndroidAnd
2.Supply chain for the strong force

Millet Products targeted at high-profile low prices, which will inevitably lead to its choice of suppliers req

Ratio, and parts performance and price point of balance is often lag the market at the expense of millet compa

Already strong key technologies, development, and manufacturing are neither important key components, mob

All this makes the millet company's supply chain strong dependence on suppliers to control weak, small suppli

Rice company to high prices, or suppliers at cost-effective requirements Millet's preferred provider of high pur
33

Machine manufacturing enterprises, all of this is the phone millet production capacity often appears, listing ne
Promotional efforts and performance gap between a class of objective underlying causes.

In addition, the millet companies to adopt high-profile low-price product line, no way regardless of the co

Ascend, so millet mimic Apple's use of asset-light model of development, the company can not be the millet like

Like any company can pick worldwide suppliers comply with product standards, nor able to devote a lot of mon
Help new suppliers, including providing free guidance on technology, management and training.

Huawei, ZTE is the world's leading professional communications equipment old enterprises, the core tech

Research and innovation, with enough beyond the core technology patent, an important supplier of key compo

After you have created your own harm plant development, design, production, suppliers not only not too depen

Supplier of the control and strong. Lenovo through its own research and development, purchase, etc. made far

Lee, have their own production facilities, which have a variety of the world's very best-selling products in comp

Long lines, many related parts and smartphones can produce their own, only a small dependence on suppliers,

The supplier of the control power, it is now in development anywhere in the world are without any major obsta
Field sales performance far exceeds millet companies.
Apple, Samsung is the world's very high profile of old brands. Although almost all Apple products are

It is OEM, but the core technology, strong marketing professional precision, strength ,, assets to invest a lot of

Gold in a very important key for their suppliers to help them develop, and strong control of the supply chain, o

Active tip picking global suppliers. Samsung's business extremely diversified, than the whole industry chain, th

Are broader, have their own many factories in the development and manufacturing of smart phones, it is almos
Almost every component of smart phones, not controlled by the supply chain.

Millet company to control the industrial chain is not strong deep great damage can occur frequently from

Spy, such as: a touch screen touch is not precise enough, the battery charge is too hot, actually tilt the screen,
Lax,SIMSlot abnormal sound problems occur 2014year,38Home
frequently;
Rights Unit of the more in-depth comprehensive
Apple, Samsung, Lenovo, millet, etc.
13A mainstream mobile phone brand authorized service outlets, published
"Put an end to mobile phone service repair fraud investigation report,"
the survey
report,HTC
13Brands,
millet,
Together at the bottom of the worst.
(Ii) domestic and foreign competitors weaknesses

Smartphone focus is inferior millet? Millet is a company focused on the development of mobile Internet in
34

Products business, the smart phone is the core business, the business scope and variety than the simple, to con

Financial, material, technical equivalent to the smart phone, so that product performance, quality, market adap

Other aspects are more professional advantages,

such as its "hardware
+software+Internet
services, "the concept of product design, and on

In Internet marketing, hunger marketing unique and innovative marketing mode, domestic and foreign compet
Sex and not.
Millet smartphone focus is also reflected in the excellence of each of a smart phone, do not pursue

The number of smart phone category, this idea ingrained in the company's core millet Lei Jun helm. Lei Jun sai
NOTE means less is more, Road to Jane, "that he got inspiration from Apple's focus on smart phones," Apple
Today (

2012year5Month) so far only been

5Mobile
out phone only,
5Only a year

5Phones. But Apple

Has been the most expensive company on the planet,

valued
atdollars,
more than
6000Billion
US
only
iPhone andiPad Tribute to
Offer a75%income.

iPhoneFull access to global smartphone market

73%Profits, which means that

All of its smart phone manufacturers, Samsung, Motorola,

htcEtc. They all add up to profits
iPhoneThird. A quarter

iPadIn the global tablet market share expanded

68%.
to "

Therefore, millet company developed and launched only a year to two phone models, each of these hands
Cause, like
2011year8Month millet phone
1Available,2012year5Launched a limited edition for the Chinese young youth
Xiaomi phone,
2012year8Month millet phone
2Available,2013year7May go low-end market red rice phone was born,
2013year9Month millet phone
3First, these phones even today at the high-profile, low price and so may still no
Match.

Huawei, ZTE is developing product diversification communications equipment manufacturers, in addition

Network, transmission network, a wide range of professional communications services, communications servic

Conglomerates, there are computers, printers, TVs, smart phones, etc., which focus on the degree of the smart

And none of millet, the launch of new smart phones are more accurate and therefore smartphones to meet mar

Marketing, cost control and other aspects are inferior millet. Foreign Apple, Samsung also true, they are diver

Develop, Apple has consumer electronics, computer software, online services, personal computers four catego

Products more varied, with TV, washing machines, refrigerators, cameras, mobile phones, semiconductors, sm

Style, multi-category launched, both impossible to concentrate almost all of the human, financial, material, and
Phone.

35

(Iii) product positioning accuracy better than millet

Now, most Chinese people living pressure, not much money, many people buy mobile phones are low-low

End mobile phones, including smart phones - smart phones are now the mainstream, the future development o

China's only major ecological categories - low price low profile, high price of high-profile, low prices at high va

Most Chinese people are very eager to be high-profile low-cost smart phone, millet company based on the Chin

Complete control of the aforementioned deep, accurate grasp of market demand, product positioning high-pro
Unlimited.
Huawei, ZTE, Lenovo, Meizu, Cool smart phone competitors such positioning is not the case, it

Based on their own costs, product performance, quality and other location - what grade smartphone targeted a

Prices, such as low-end smart phone is a low-price, mid-price, mid-range smartphone, they are mostly concentr
Intense competition in China's low-end mobile phone market, in order to cope with low prices.

Apple's smart phone targeted at high-end market, consumer groups only good for the economy, the econo

Good, high-end smart phones eager crowd turned away, while the market in the smart phone market is most p

Samsung's high-end smart phone pricing is also a high-end price, Samsung's low price is also low-end mobile p
Low price machine high-profile high-end smart phones can easily beat Samsung's high-low-end smart phones.

36

Seven, millet company's domestic development facing profound worries

Intense (a) competition in the market, millet development was imitating

Chinese mobile phone market is intense competition in the smart phone market, Cool, Huawei, glamor, Sa

Competitiveness, although after the Chinese smartphone sales charts helpless living millet phone, but they are

After research into the reasons for the success of millet, millet also wise to imitate the company's business mod

Phone configuration level, to develop Internet marketing, to develop their own network of loyal fans. Chinese c
Huan high-profile low-cost smart phone, smart phone prices, performance Temin sense.
for example:2012year10Month, Google launched a mobile phone
with milletmatched
Nexus 4
2Configuration
Smart phones, price
1900Yuan, millet phone

2Price

1999Dollar lower. In this case, Samsung, Motorola

Pull,HTCWaitAndroidCamp's main mobile phone brand, but also into the rapid price channel, launched in China
Quad-core smartphone, the price
only Lenovo, Huawei, ZTE,
1888yuan.

vivoEtc. have imitate the male millet

Division's Internet marketing model, and strive to explore the Internet platform with the "fan mode", and to im

Brand communication power, the Lenovo Innovation "pink music club," Huawei carefully introduced "pollen", Z
"star",

vivoIntroducing"

Vpowder".

2014, The Chinese smart phone competition degree far more than in previous years. Huawei, Cool, Lenovo
TCLHave put

6000Million units as2014Year shipment goal, because as long as each quarter shipments

1500Million units, will be able to enter

3-5The
the
name
world's
of the
topmarket. Many domestic and foreign enterprises in China's

Crazy industry study the underlying causes of Millet's "red storm overnight" myth behind the legend, beyond t

Millet company. Millet in the status quo situation like Chinese mobile phone market, the industry is under deve
In deep worry.
(B) the lack of core competitiveness

Millet company did not support their own long-term healthy development of the real reliable core compet

Parts are totally dependent on outside suppliers, while taking the low price of millet company route, bound wit

The relationship between the price of a contradiction, and to some extent were they control, like Samsung's to

Class, but Samsung had threatened Huawei, Huawei has to build from their own touch-screen production ente

37

Not have their own production facilities, mobile production entirely on manufacturing, to some extent, said ou

System, such as control of the foundry production time, quantity, quality will benefit more stand on our own po

Instead of millet company point of view, and so on. All purchased parts, mobile phone OEM production is also o

Deep hunger marketing objective reasons. All this has led to multiple millet phone quality problems, many con

After-sales service are not satisfied - repeatedly repair or not to repair completely good, or a long time to repai
M phone bring a lot of negative impact.
In addition, with technical
content
MIUIIs
also facing a deep crisis, Android is open source, domestic

Foreign mobile phone manufacturers are available at any time and place of its improvement to enhance it are a
M's depth optimization space getting smaller MIUIAdvantage
and smaller, no Advantage,
more
millet phone will not reduce
less.
All of the above indicates that millet millet phone company on the core technology, the core components,

The presence of deep worry, millet companies must address such fundamental issues as quickly as possible, oth

Development, including the international market, such problems even worse, heavier impact deeper, may direc
Discovery status quo.

38

Eight, millet company's domestic market development prospects

Throughout this paper, the entire contents of the foregoing, the development prospects of millet compani

Larger, from a development environment that Chinese mobile phone market analysis, mainly the following reas
Support (a) China policy

China has been the top priority of information as China's economic development, which of course include

Smartphone is a mobile phone now, the future development of the core trend represents the fundamental direc
Development History of China's telecommunications
knowcommunication
from
1987On industry,
a cellularwe
mobile
system in public

Since the opening of Guangdong,

short
20Many
years, China has been all over the urban and rural mobile communication b
A wide range of cell phones, and mobile phones for90.8%Smartphone
their coverage ofcoverage
China's population
66%. Present

China and efforts to promote the triple play, accelerating the development of large communications industry, in

Chinese new industrialization must be closely integrated with information technology. All this shows the impor
Deep.

To promote the development of the Internet and e-commerce, China introduced a number of security on t

We wait for the policy, but also express law. These vigorously promote the development of mobile Internet, mob

Core network is the lifeline of development of smart phones. China is considering pushing mobile telecommuni

Internet servers and other hardware

and
software
ITThe
depth
of theservices
joint venture, in order to solve the bottleneck of the develo

Accelerate the development of mobile Internet. In addition, if it is really to achieve the triple play, mobile Inter

exhibition. China is increasingly mature market economy, the deepening of market competition, more open, fai
Great conducive to the development of the smart phone industry, for the millet companies to display their fists
between.

Millet company in just four years to get "red storm overnight," the fabulous development, far ahead of so

Cards, mobile phones and other veteran production enterprises, to benefit from China's policy of strong suppo
territory.
(Ii) China's sustained and rapid economic development

China's economic reform and opening up from the sustained and

rapid development
into theofchannel,
abo
2010Years
ago, at the expense
the environ

39

The cost of resources to obtain the rapid 2010Sit

development
andthe world's second economy throne, edged
firmly on

The sit tight in the throne

42Japan's annual per capita
GDPUp to four or five thousand dollars, and has been on the throne

In the past two years, the average growth rate

of China's economy
about
10%,2010Years
later, China
can no longer be realized at the expense

Environment, resources, economic development, we must pay attention to the quality of economic developmen

Direct upgrade performance in each industry, the mobile phone industry, also, must be higher technology, high
Smartphone road features such as low
power consumption.
2014Years,
China's economic growth,
7.4%But
although
still the
onlyhigh-speed growth
Long, per capita
GDPReach7575Dollar, the renminbi 46510.5yuan. These instructions, the Chinese are getting rich,

Chinese people more and more money on hand sufficient, the future of China, too; Chinese people are willing t
Funding more money, especially smartphones. Chinese mobile phones
perSmart
capitaphones
ratio per capita Yong
90.8%,

There is a66%This
rate
shows that the Chinese people on the phone, smartphone some spending power from the side

China has sustained rapid economic development, the demand for smart phones, smart phones increased perfo

Higher demands configuration, design, etc., may replace smartphone cycles, as long as the new push for smart
Machine performance, configuration, design and price have enough innovation, attractive.

Such as China's economic development environment for the sustained and rapid development of millet co
Basis, provide endless power millet company's growth. Millet company's own "red storm overnight," from

External conditions that are potentially huge consumer demand for Chinese mobile phone market, the Chinese
Dynamic generated.
(Iii) China's urbanization process accelerated

China's rapid economic development, mainly based on the rapid development of industrialization, urbaniz
Closely linked, as the shadow of a man with it, without urbanization, we can not truly industrial

, Agricultural modernization, it is impossible for all people to enjoy the economic development of a better outco
Depth can not really be expanded to consumption-driven economic development in this troika will fail, China's
Will be subject to profound impairment. Therefore, China had
realized
problem,
about of urbanization.
1997Years
to the
speed
up the at
process

The main characteristics of the process of urbanization in rural urbanization, rural urbanization, agricultu

It must be of the road. Before the reform, China's urban population in 8%,
the Showing
total population
of only
about consu
that Chinese
people's

The ability of weak

costs. China's urbanization rate
2014Years,
53%,China
of about
has 13More than one billion population, has becom

Large consumer market, of course, is the world's mobile phones, smart phones largest manufacturer, consume
This brings limitless opportunities for consumer smartphones, plus every
year nearly
2000Million
rural transformation
40

Urban household, the consumer demand on the phone, lift capacity, it must be replaced once or non-smart pho

A very low-end smart phones, smart phones they replace cycle is also greatly shortened. According to China's u
Strategy to 2050Years, China's urbanization rate
75%This
should
smart
reach
phone to unlimited broad space for development,

How many of the rural population into urban population, how much they will buy a number of smart phone ah,

After the town of, all aspects of ideology, culture and other qualities are big upgrade, from the smart phone's p

View more demanding design and price, which gives the development of the smart phone industry jumped offe
force. Millet Company naturally eligible for benefits from the huge acceleration of urbanization in China.
(Iv) the continuous deepening of China Education Development

Education is China's fundamental policy is the most fundamental way to China to participate in shaping t

States since the reform and opening up has always attached great importance to the national strategic level ri

Too, from the examination-oriented education to quality education reform, there are now a variety of curriculu

Reform of the times at any time. Compulsory education are constantly

advancing,
1986Years,
China for the first time the obligatio

The right to education became a law, "People's Republic of China Compulsory Education Law,"
9year requires school

Compulsory education, compulsory education is still charged at this time, but charges2006year
only the cost price - stri

And the revised law, China began to implement free

9Years of compulsory education, began in rural areas to the cit

Comprehensive national strength and the urgent needs of the future development of competition in the countr
Practices, China will expand free compulsory education to high school. All this in the present and future great
L the cultural quality of Chinese people.
Chinese higher education after the reform step into the big round development
of recover
the fast high
lane,
1978It began to

test,1999Universities in China to implement comprehensive enrollment policy, junior high, high school to colleg

Many places in the test was increased now

50%Can not be increased in the majority of the students entered the sch

Vocational technical school, etc., to enhance the cultural quality than many former students, college entrance r
Ninety, one senior number of Chinese intellectuals greatly
increased.
Inmany places, the test liter
1999Years
ago, in
The proportion of high school is twenty or thirty percent, even more than the secondary school exam test high
The proportion of10%about.
the University
of
If casually
into a city, college students everywhere, Chinese people colloquially

This phenomenon is described as "just a hand grasping a lot of college students, college students do not worth

Students do not Haozhaogongzuo, formerly much culture dry handling class did not work, now also a universit
Delivery staff, who bottled water, supermarkets, etc. salesperson like.
41

Chinese people from the foundation to enhance the cultural quality of higher cultural qualities, the bigges

China has greatly promoted the economic development of all aspects of in-depth, various industries have emer

White-collar, skilled workers, particularly in the cultural knowledge of the requirements

of high-tech
ITElectronics
industry industries

And so on; the second is to enhance and expand China's spending power, grade, low culture, high culture peop

Force is not, as in the concept of consumption, capacity, grade, and other goods are also different, which is far

The former, high culture are easy to accept new things, goods, services, consumer requirements and more dive

For many high-tech goods, consumer services have the ability, and can make their own consumer goods, servic

Effective improvement put forward comments, suggestions and the like. This is for the development of the sma
The emergence of the smart phone industry, in-depth development, given the development of the smart phone
Support, consumer support.

Comprehensive foregoing, the Chinese continue to deepen educational development provides a huge chal
All kinds of support, opportunities and so on.
(V) the strong support of Chinese Traditional Culture
China is a big country a long three thousand years of development history, the accumulation of profound

Performance in Confucian culture, such as thrift, hard-working, honest, integrity, patriotism, tolerance, kindne

To Broad, etc., but also fully integrated into the outstanding culture of other countries, nation, especially Weste
Freedom, equality, democracy, and other favorite new things, including gender equality, etc., such a culture is
Millet is highly conducive to the development of the company.
Thrift, Chinese people prefer high-profile low-price smartphones, this is a true eternal China

Li, millet company's product positioning high-profile low price in China has great development space for etern

Many Chinese people are more willing to put money into think more valuable areas, such as investment in edu

And other health and care, coupled with China's increasingly mature and perfect the mechanism of market com
Big unprecedented pressure, but little money in hand, they are of course high-profile low price especially love

The integrity, patriotism and other traditional culture and thought, many Chinese people are more willing to bu
Smart phone, millet phone is the best natural product of its kind. Western freedom, equality, democracy, love
Like new things into the traditional culture, many Chinese people like new things, can own unique vision big

Force support its development in China, the company that millet is something new Chinese mobile phone indus

Vacuum - and high-profile low price, and they do not take into account what the brand, the big, established han
42

Any effect, free to choose their favorite smart phone, millet phone is undoubtedly the best choice.
Chinese government, many Chinese enterprises, units, etc., under the influence of Chinese traditional culture,
Millet holding companies.

43

Nine, millet company into the international market extension of resistance

As China's mobile phone industry, "red storm overnight," the cutting-edge strength - millet, must not stop

Development of the domestic unit, it must make excellent Chinese enterprises to the world, to make Chinese b

Goods to the world, many people want the world to try the excellent Chinese goods to demonstrate China, Chin

Industry strength, image, spirit, etc., to help other Chinese companies, China and other large-scale developme
To do so,

2013Years to try China Taiwan, Hong Kong, was very2014In

successful,
the same attack as Singapore

This, but when you attack non-Chinese cultural circle Malaysia, India, Indonesia, Brazil and other countries ar

Small lot of resistance, mainly in the following areas, millet companies should further study how to resolve the
In a multinational outstanding:
(A) millet phone price advantage is no longer particularly prominent

Millet phone's high-profile low-cost mobile phone market in China is very advantage, or can be made to s

Developed countries, this advantage is no longer particularly prominent. For developing countries, the local co

The low, such as labor, resources, materials and so relatively inexpensive, millet phone to these countries go th

Transportation and other costs, coupled with China's pace of development around the world, is no longer a low

This is higher than in developing countries, increasing the cost of smart phones, if the establishment of factori

These investments in foreign countries, especially in developing countries can fully retracted great uncertainty

Some developing countries, continents, all this makes the millet phone in developing countries, high-profile low

Out, even no price advantage. On the level of developed countries, the economy, science and technology develo
High, most consumers economically less well-off, high-profile phone millet advantage of low prices may not be
Or a sense of interest, not to mention the mobile phone in China millet frequent quality problems.
(B) undermine the advantages of network marketing

China's Internet environment to create increasingly developed after Ma Taobao, many enterprises to emb

All aspects of corporate survival became more specialized Internet companies, society as a whole, almost all ar

Net, online shopping in China is crazy. This is a network marketing company millet a fundamental basis for the
But also its high-profile low-price products to a core reason, but this might not be for the foreign market. for

44

Developing countries, such as India, South America and some developing countries, which China's Internet env

Internet environment is poor in many countries, people are not conscious online shopping or online shopping w

Pin with a lot of resistance, greatly weakened the advantages of network marketing, mobile marketing may no

How much to sell. For developed countries, the network marketing environment full, strong sense of consumer

Companies do not have good business enterprise resources, that State and local commercial enterprises did no

Cultural psychology, consumer mobile phone market environment, competitors and other situation in the count
Internet marketing advantage in many developed countries has also been weakened.
(Iii) the patent crisis

Patent relates to a cell phone

about units in China's mobile phone industry and other high-tech industries
20Million

"Theft" or imitate other companies upon one or several early patents is an open secret, otherwise these industr

Not so booming, direct a profound impact on China's economic development. You know, any purchase of a pate
Cost or authorized use are astronomical, a mobile phone R & D to get most of its patents

The legal right to use the mobile phone that cost is greatly pushed up the price of the phone will be high, the p

Engraved affect the development of various other industries in China. But the Chinese mobile phone manufact

To a foreign country in a strictly protectionist picky, picky patent that is the best pretext, Lenovo spent heavily
Motorola Mobility, is to get Motorola mobile phones have many patents to successfully expand the country
Foreign markets, Lenovo mobile phone abroad now developing well.
Resistance (iv) of the foreign policy environment

Millet Whether the company to which foreign development, the country will face local resistance in terms

Every country has its own interests, there are deep-rooted protect themselves, local businesses and other natu

Natural local government will develop a number of limitations, or not conducive to the development of foreign

Deposit development policies, systems, etc., coupled with local Chinese consumers also tend to support the con

Smart phones, for millet companies and local enterprises to compete in the market caused by unfair competitio

45

ten,in conclusion

Millet mobile phones in China in just four years time to cross into China rose Overlord smart phone in

Smartphone sales chart ranked third, it is really a way to make China the world marveled at the "red storm ove

Legend, this paper from the perspective of a more comprehensive in-depth investigation of the underlying reas

Location, design, marketing model, human resources, business profit model is the core reason, the last attemp

Analysis of the company to millet encountered resistance to foreign markets, mainly the lack of core competitiv

And other protectionist economic, cultural and environmental interests of the country and other resistance, all

Develop healthy and stable aspects for Chinese enterprises out of China for foreign companies, into China to p
Reference, these objects are achieved in this paper.
Finally, I want to talk about their views on the millet very personal: First, I personally millet

Whether profitable real views; second, if the opportunity arises, I will invest into the millet company to shareho
I think, millet is positive corporate earnings and profit a lot of money, for four reasons:

First, the unique marketing model. This is millet earnings performance at the operational level of the core

M Internet marketing company, marketing the perfect combination of hunger, marketing costs to a minimum, b

After moving from the consumer desire for millet phone, consumers buy millet phone, I feel easy, cherish, men

Rose millet phone a better image in the minds of consumers. Hunger marketing use of Moore's Law, according

Love determine a price substantially in line with product positioning, and then study the development, product

The equal shares to millet phone, how much sales, the sales volume that is first published book Mobile sales in

You know, the smart mobile phone parts in the development of the productive forces under costs continue to de

High purchase price relates to some new parts - with the passage of time, costs fell even more sharply. Millet p
Secondary net sales, the price whatever it is, all of the net, and millet smarter use at any time

Room dimensions a little price reduction strategy to enhance the consumer's desire to buy, and with every time

Improved phone configuration, performance, potential sales of more unlimited, millet company can still use the

Pin - Limited. All this greatly deepen the millet phone a better image in the minds of consumers, continue to pu
Every time the price of mobile phone sales.
46

Second, product positioning is good, the market demand. This is the core reason for the company's profit

Low-price product line, we are in line with Chinese consumer demand for profound psychological smart phone

Extremely large market demand, which is more diluted the cost of millet phone, millet greatly enhance the com
Thirdly, I am in various surveys, almost
95%Or more of the respondents knew millet phone, many

People are very good impression millet phone, or they buy too many phone millet, millet or are eager to buy a c
Do young people, some of the elderly are especially fond of millet phone.

Fourth, millet company survival and development up to now, is very strong, a lot of venture capital to abs

If millet at a loss, how could the rich research and development, management, marketing, mobile phone, furth
Mountain
Software world
2.98%Stake?

100Strong mobile phone parts vendors will supply millet shipment? Some count

Inter's top venture firms have taken the initiative to millet substantial financing, they do it is a moron? But the

The only goal for the chase! Millet company is actively entering foreign markets, has been taken in Hong Kong

It was gratifying achievements, will enter South America, the United States, Europe and other markets, not ab
Millet company's profit is undoubted, and profitable.
If I have an opportunity to invest into the millet company, a shareholder, I will not let go, and that I could

Many investment gains, at least a lot of money! China is vigorously support the development of mobile Interne

School planning meeting has been requested to reduce the three major broadband operators, flow rates, etc., t
Wide, millet is not only profitable hardware, softwareAPPBased
designed profit
to
model, more in line with smartphone
Machine trends.
Millet is really China, the global mobile phone industry, a myth!

47

Reference: References
wenku.baidu.com
[1]Baidu Library
[2] Bischoff, Paul. "It's official: China will get 4G on December 18. "[J].Tech in Asia,
2013. Web. (2013, 12 06). [3] <http://www.techinasia.com/official-china-4g-december-18/>.

. Retrieved 1 28, 2014

[4]West. (2014, 124). Software Park West
[OL]. Retrieved
Red rice90Steal second refresh. millet
record
[5]Anonymous. (2013, 0812). Not the same speed
September 14, 2013, from News PC Online:
http://news.pconline.com.cn/342/3423564.html
Androidsystem. [OL]. Retrieved 02 26,
[6]Si Rui. (2013, 0927). global80%Smartphone adoption
2015, from TechWeb: http://www.techweb.com.cn/data/2013-09-27/1339275.shtml
[7]Lang

1-4. economy and foreign aggression

. (2013, 821). Managers Network
. Internal problems of China's

743One hundred million yuan1month

. [OL].
15Released new flagship
[8]Zhang Mengwei
. (2015, 14). Millet2014Annual income
Retrieved 2 26, 2015, from Phoenix Digital

http://digi.ifeng.com/a/20150104/40929108_0.shtml
[9]Phoenix Technologies
. (2013, 116). Phoenix

. [OL]. Retrieved 11 6, 2013, from

http://digi.ifeng.com/jm/special/jiema02/content-3/detail_2013_11/06/30992217_0.shtml
Shipments
[10] Phoenix Technologies
. (2015, 0104). Lei Jun millet sun 2014Year results: Income Tax743One hundred
million yuan
:
6112Ten thousand. Retrieved 01 05, 2015, from Phoenix Technologies
http://tech.ifeng.com/a/20150104/40928977_0.shtml
[11]Baidu Encyclopedia
. (2015, 0308). ChinaGDP. [OL] .Retrieved 03 23, 2015, from Baidu:
http://baike.baidu.com/link?url=r-hRRRaqIOp1XEPwHmZSHvv03NoLqYhdNWWF98ZmiaICn0p85nZPdlOjT80kbazjkt8Qrf6L8yQS_AHRUBL2_

[12]Daily News

2014Report card Analysts say low-end machine is still the ma

. (2015, 15). Lei Jun millet sun

force. [OL] .Retrieved 1 27, 2015, from Eastern wealth network

:
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http://finance.eastmoney.com/news/1360,20150105463961512.html
[OL].
[13]China Industry Research
. (2014, 212). 2014China's smart phone penetration will90%.
reach
:
Retrieved 2 26, 2015, from China Industry Research Network
http://www.chinairn.com/news/20140212/161323476.html [14] Chen, J. (2013, 2 21) US- China Today:. Spring Festival
Gala & Super Bowl Difference:. Advertising Retrieved 2 5, 2014 [15] China Internet Watch. (2013, 10 21). Smartphone
Brand Awareness in China: Samsung on the Top

. Retrieved 10 15, 2013

[16] Custer, C. (2013, 6 10). The New York Times Gets Xiaomi Way, Way Wrong

. [OL].

Retrieved 10 14, 2013, from Tech In Asia: http://www.techinasia.com/york-times-xiaomi-wrong/ [17]

Handford, R. (2013, November 6). Mobile World Live
. Retrieved 8 2013, 2013
[18] Kelleher, K. (2013, 10 4). Xiaomi: China's Threat to Apple and Samsung

. [OL].

Retrieved from Business Times: http://business.time.com/2013/10/14/xiaomi-chinas-threat-to-apple-andsamsung/

...and Netflix) of China.

[19] Khalaf, S. (2013, 10 22). Xiaomi: The Apple (

[OL].

Retrieved 10 25, 2013, from Flurry Blog. [20] Madden, N. (2010,

03 10). Advertising Age
. Retrieved 2 1, 2014
. (2012, November 20). [OL]. Retrieved
[twenty one] Samsung Massive Marketing Budget
October 13, 2013, from Buisness Insider: http://www.businessinsider.com/chart-of-the-day-samsungs-massivemarketing-budget-2012-11 [22] Tse, A. (2014, 08) . (TL Li, Interviewer) [23] Wakabayashi, D. (2013, 12 6). Apple
Legal Fees in Samsung Patent Case Topped $ 60 Million. Retrieved (2013, 12 6), from Wall Street Journal.

-Tiger
[24] Whuxiu.com. 'Interpretation of millet company's business-Aspect
model with
a olfactory
diagram network'. Np, 2014. Web.
17 June 2015. [25] Yarow, J. (2013, March 13). Samsung's Ad Budget Grew By 5X To $ 401 Million Last Year,
Crushing Apple.
Retrieved October 13, 2013, from Business Insider.
. Retrieved
2
[26] Youku. (2014, 2). video: Millet2014CCTV Spring Festival Evening commercials
"our time"
4, 2014

49

appendix A:Depth survey questions

50

Visit the following questionnaire was used in the investigation papers. To know more about the role of millet com
in conclusion.
appendix A: Millet company staff depth interview questions

1.

You work in the millet company for years?

2.

Where previous work?

3.

Why millet?

4.

Millet company's development process characteristics, the more successful in the Chinese market, do you thi

5.

Millet company philosophy, and "for the fever and students" is the source?

6.

Millet companies rely on fans to promote their information enough?

7.

Many consumers say millet site to buy mobile phones do not fly, because it is difficult to set the phone within
where is it?

8.

There is no way to solve the problem of consumers ah?

9.

Millet company uses high-profile low-price marketing strategy, the company can make money?

10.

Apple and Samsung's high-profile use of high prices will not make ends meet because of the cost of a loss it?

11.

Do you think millet company has no plans to cross?

a)

12.

If you plan, you have any suggestions?

About millet company's marketing strategy that you think it excellent?

a)

Excellent: In what way?

b)

Not good: In what ways can further correct?

13.

Millet company uses

C2BMany companies is the opposite, what do you think is the reason?

14.

Do you think millet companies in China market is profitable? why?

15.

Millet companies rely on software

applications
Apps) Earnings,
do (you think the future development of the line can it?

51

appendix B: Store Interview Questionnaire

1.

How long you are working here?

2.

What phone you use?

3.

You usually have any promotions shop phone?

4.

Consumers into your store has plans to buy mobile?

a)

If not what you usually will launch a mobile phone? why?

5.

What do you think is the most popular mobile phone ah? why?

6.

Do you think the age of influential consumers do?

7.

8.

a)

What young people will buy a mobile phone?

b)

People will buy what phone?

Consumers buy mobile phones examination problem?

a)

Phone prices influential it?

b)

Phone features influential it?

You will help the company to advertise it? (Example: Apple, Samsung, millet, contact, etc.)

52