Research On Optimization Of Xiaomi's Business Model

With the rapid development of the Internet,the update speed of technological products is accelerating iterations along with the rapid changes in the consumer market.This situation has led to continuous increase in production costs and continuous decline in profit margins.Xiaomi,as a top domestic mobile phone manufacturer,has already foreseen this.Fierce industry situation.In the context of this era,Xiaomi began to deploy Io T products in 2013.With the continued popularity of AI technology under the promotion of capital,Xiaomi based on its own advantages,officially proposed "mobile phone + AIo T" at the press conference in January 2019.As the first company in the industry to put forward this concept and put it into practice,Xiaomi's real goal is to tap the profit growth point of Internet companies in the new era through a whole new set of business models.This move has important reference significance for China's mobile Internet companies and the Chinese economy that is undergoing transformation and upgrading.Based on this,this article first summarizes the business model and its related theories and makes a certain degree of analysis,and then makes an understanding of the concept of the business model and summarizes the analysis methods.Then focus on the business model formed under the "mobile phone + AIo T" strategy proposed by Xiaomi in 2019,and analyze the situation,and get the strategy that Xiaomi should adopt in the internal and external environment at that time.With the help of the business model canvas analysis method,the product ecology of the entire Xiaomi company is analyzed in detail,and the shortcomings of its business model are proposed through the business model element evaluation method.Based on the analysis of the logical relationship between the nine elements of the business model,the deficiencies of Xiaomi's business model are classified and summarized,and four paths for Xiaomi's optimization of the business model are derived,namely,from key business,value proposition,channel and channel client subdivision.Through the architecture design level of the business model,Xiaomi's business model under the "mobile phone + AIo T" product strategy is optimized;then this article analyzes the safeguards that may be required during the optimization process and gives corresponding suggestions.That is to ensure the smooth progress of optimization through three aspects of human resources,brand value and technological innovation.By expanding a larger product ecological platform and using AI technology to integrate and optimize the production resources involved in the entire system,Xiaomi seizes the dividends of the economic transition to the Internet and artificial intelligence.Due to the continuous development crisis that Xiaomi has encountered in recent years,there may be many factors restricting its development,and this article may only analyze some of them.Therefore,as an Internet innovation technology company,it can only see its strengths and weaknesses and base itself on its own situation.In the development process,the company's business model should be analyzed more thoroughly,so as to make a scientific optimization and guarantee for the company's business model.Make reasonable plans and propose feasible business model optimization strategies.