A Case Study On The Financial Strategy Of Xiaomi Company

In 2017,China's Internet infrastructure development was further improved,and the scale of users grew steadily.After experiencing the PC era and the mobile Internet era,the Internet development began to enter the third stage in 2017—the Internet of Things era,and the development of the Internet industry has shown a thriving development trend.As a company positioned as a mobile Internet and technology consumer goods,Xiaomi's success is due to the industry's good development and its correct strategic management.Therefore,the success of Xiaomi Company deserves to be studied from the perspective of corporate strategy,especially financial strategy.This paper selects Xiaomi Company as the research object and uses case analysis method to conduct research.Firstly,it introduces the background and value of this research.Secondly,it defines the four basic classifications of financial strategy and expounds the basic theory.It introduces the basic outline and industry background of Xiaomi Company again,it relies on the previous analysis framework to carry out the financial strategy of Xiaomi Company.The analysis mainly selects two aspects of investment strategy and financing strategy,studies its formulation basis and strategic characteristics,and makes evaluation of strategy implementation.Finally,it summarizes the experience and enlightenment of Xiaomi's financial strategy in selection and implementation,and finances other companies in the industry.Strategic research and formulation provide a basis for reference.The study found that the success of Xiaomi's financial strategy is well-founded.It is based on cost leadership.The development of financial strategy for scale expansion is based on its overall strategy of controlling and using customer traffic.The user needs are oriented,the flow management is the idea,and the core principle of the business model is based on efficiency improvement.The specific implementation process of the financial strategy is closely related to the overall strategy and business model.Overall,Xiaomi Company reflects the fundamental principles of the financial strategy based on the overall strategy and business model.The formulation and implementation of its financial strategy also promotes the development of the business model and the realization of the overall strategy,reflecting the close relationship between the three.Has a certain reference value.