Research Of Fans Driving Direct Sales Business Model

With Apple’s iPhone and iPad become popular, it brings the blooming of the intelligent terminal products.Together with Andriod phones and other mobile devices. They opened the curtain of the mobile Internet.More and more companies and entrepreneurs entering the world of mobile Internet; make the first bucket of gold from this amazing platform. We can say that the mobile Internet era is coming. In the era of mobile Internet, electronic commerce mode and profit mode has changed, it also gives some new opportunities for those who dare to investe and intending to innovate. For example, the game software company (Angry Birds, Fruit Ninja), grew up in Apple Store. Samsung mobile also became lead company based on the the Android operating system running on their Glaxy series mobile device. In the past three years, the domestic market also brings up many new innovative companies who rely on this wave of mobile lnternet. Regardless what are their final destinies, regardless successful or not of their innovation efforts. They still give those people who are in the same ear a lot of thinking and enlightenment.This thesis will deep looking into a new company, who created in2010, become widely known in China in the past three years. The company named Xiaomi Technology Company.Why Xiaomi using direct sales model can successfully cut a piece of cake out from the intelligent mobile phone market which are fully competed like the Red Sea? Can Xiaomi successfully established and continuously create miracles? And, we will study more on Xiaomi’s successful secret:leveraging the fans power to drive for Xiaomi’s business growing and build Xiaomi brand’s reputation. The author hope can give some idea to those enterprenurs who are trying to changing their business model to comply with the new requirements of mobile internet. Give them some idea on how to strategic think about the business model revelution. And provide them a role model company as a example.This thesis adopts the method of case study. Firstly, through the analysis of the specific mobile Internet and mobile phone industry, industry characteristics and development trend of the Xiaomi Company. Use the PEST model and the Potter’s five forces model to analyze Xiaomi’s external enviorment.Include the macro environment and micro environment. Through the analysis of Xiaomi internal strenghth named "3elements of the iron man" and using SWOT model to grasp the dynamic process of Xiaomi mobile phone value creation process and their advantages and disadvantages. Understand the company’s competitive advantage. Finally, throught these analyses, the author summarize out the business model of Xiaomi is:Rely on brand’s repution, leverage fans driving business operation, through B2C direct sales.And the author creatively figure out a role model of fans driven:vortex model. Futhurmore, author also analysis the innovation and the competitive strengths of this innovating business model.