Question

Discuss the support activities of HRM, R&D, Technology development, and Infrastructure in Xiaomi Corporation.

(Use your own words)

Answer 1

In the strategy for cost control, a organization focuses on producing for customers the most affordable commodity. This typically means that their product / services cost less than their rivals. The HR division will concentrate on recruiting inexpensive workers in the HRM plan, while workers should also repeat the job. This helps workers to make good use of economies of scale. The overall culture of the business can, but can do so cheaper, to copy creativity and patterns from others.

In case of focus strategy, a company focuses on creating value for a small part of the market and attempts to establish leadership in those category. The most common examples can be luxury goods that focus only on niche segment of the market. Naturally the products need to be unique and the HRM strategy should focus on providing innovative culture and nurturing R&D efforts through unique talents.

Differentiation strategy focuses on making products that stand out and can appeal to wide array of consumers. Here the target is on the entire market but the focus is on making products that have different offerings. This is commonly seen in electronic products and their offerings. The HRM strategy in this case focuses strongly on the marketing aspect and product management. As a result the organization is tuned into making products that stand out.

In case Xiaomi, they have approached the market with a cost-leadership strategy. Their products are often identifical to that of Samsung or other bigger brands. However, their products cost considerably less. They have been able to do so by merely following the industry trend and leveraging cheaper labor cost from China and saving on innovation. Their strategic HRM likely focused on handling factory and manufacturing systems with more focus on efficiency and productivity. The best approach for this is to have a market standard of salaries for workers, have a general policy for employees and workers and focus more on improving efficiency through training.

In AIoT applications such as smart speakers, Xiaomi is reportedly establishing a new subsidiary concentrating on research and development (R&D). Xiaomi's chipset subsidiary Pinecone, which it launched in 2014, is also being restructured. The Pincone team will take part in Xiaomi's new AIoT business. It is announced that Xiaomi has called this new company Dayu part of the RMB 10 billion ($1.5 billion).

However, several investment companies have already expressed their interest in Dayu. There is currently no details about how Xiaomi can enter the broad segment of AIoT on the market. Investments in Dayu will start raising funds independently. Or what types of chips we'll see from the newly developed Dayu in the near future.

On the stage of the 798 Art district of Beijing Clubhouse, Xiaomi Technology CEO Lei Jun appeared and there shouted the names of Xiaomi's fans "Lei Busi" - no question in Xiaomi fans' minds and expect Lei Jun as Steve Jobs, it is the Xiaomi's hope that he will be "China's Apple Phone."The TechCrunch Disruprt conference, held in Beijing on 1 November 2011, Xiaomi Technology Chief Executive Officer Lei Jun said the technology goal of Xiaomi is to become a world class mobile Internet business and to successfully crack the top 500 list of the "Fortune" "Apple iPhone."