EkaLore contends that "Alien Invasion" is an effective analogy for the significant business moves in the early 20th century. We've used our analysis to explain companies such as Amazon, which started in the book business and rapidly grew into one of the world's largest businesses. Moving into different markets isn't a new event, but moving into adjacent markets and dominating them has been a dominant theme of the last couple of decades.
Alien Invaders are attracted to markets with wide margins and a stable competitive environment. In our model, the Alien Invader is already large. It blindsides the competition, often bringing new enterprise organizational structures, a different business model, and technology-based innovations, enabling fresh approaches for customers.
The global size and importance of the Electric Vehicle (EV) market have created opportunities for entrants and re-structured traditional manufacturers. The advent of the EV market affects almost all manufacturing and logistics chains in some fashion. The transition to EVs affects industrial markets ranging from utilities, chemistries, extractive (metals/materials), energy (oil, natural gas), semiconductors, cloud services, and logistics.
EkaLore, in this release, looks at an Alien Invader who has announced their intentions to change global markets. Xiaomi is a publicly traded, Hong Kong listed enterprise self-described as:
"Xiaomi is a consumer electronics and smart manufacturing company with smartphones and smart hardware connected by an IoT platform at its core."
In 2022 Xiaomi's gross revenue exceeded USD$40B with earnings of more than USD$1.2B. The enterprise blamed the substantial drop from previous periods on slow sales in the domestic Chinese market with recovery during 2023.
Xiaomi sells in more than 100 countries. 4Q2022 sales of smartphones reached an estimated 12% of a Chinese market that has averaged more than 300M units per year prior to 2022. Until 4Q2022, Xiaomi's products have been the best-selling overall in India. In the last quarter, competitive pressure from Samsung saw Xiaomi displaced from the top spot. Xiaomi claims 558.3 million smart devices connected to its global platform with smartphones and Internet-Of-Things devices combined. Xiaomi has been a consistent player in the Chinese smartphone market.
In March 2021, Xiaomi announced it would be entering the consumer passenger electric vehicle (EV) market space.
Our next post will dig into the Xiaomi's efforts to enter the EV marketplace. You can find it and other Alien Invader stories at www.ekalore.com/alien-invaders
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