Boston Consulting Group’s (BCG) study entitled “The 50 Most Innovative Companies in the World” was published by them. Chinese company Xiaomi was placed twenty-fourth worldwide. The organization was initially ranked 35th in 2016 and has since achieved 50 top ranking (DayDayNews 2020). BCG Corporation stated that technology has advanced to an extent in several industries. The market limits are exceeded by Xiaomi’s ability to introduce new products and services. Their efforts in cross-industry innovation were recognized by the BCG survey.
According to reports, Xiaomi intends to invest in 5G and AIoT. To increase Internet Field’s speed, the company will invest RMB 50 Billion in network technology. It will require this innovation to enable the growth of companies in the age intelligence. Xiaomi’s innovativeness is mostly due to its investment in R&D. For example, the corporation spent RMB 7.5 billion on R&D in 2018, a 29.7% increase from the previous year (DayDayNews, 2020). The investment in R&D is anticipated to increase by 10 billion RMB. The firm has also invested in the R&D workforce; as of March 31, 2020, the department employed 8,984 individuals, or 48.6% of the overall workforce (DayDayNews, 2020). The position of the company in the BCG report has improved as a result of R&D expenditures.
In order to gain a competitive edge, innovation is essential. Tidd and Bessant, 2020 report that business leaders from many sectors and businesses see continuous innovation as an important concern and top priority. However, innovation is difficult for many companies because it can be confusing, complex, and unpredictable. Contrary to Samsung and other competitors, which are focused on improving the existing products and monitoring industry trends, Xiaomi’s success has been based on its original products (Mun & Moon, 2016). The success of Xiaomi is due to its investments in innovation and the acceptance of new technologies.
Xiaomi is a Chinese manufacturer of smartphones with a unique business plan. It allows the creation of large numbers of phones, which reduces the stock costs. Xiaomi is now selling items online, challenging traditional retail models. It has saved the company money otherwise spent on intermediaries and rent. Xiaomi’s smartphones sell at a price that is roughly equal to their cost of production. This means that the profit margins for Xiaomi’s mobile phones are very narrow. The company also sells accessories and other products. There is significant competition from ZUK and Huawei (Safiya, Shylesh 2019), whose designs and products are similar to Xiaomi’s.
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