Lei Jun's strategic thinking behind Xiaomi's operations
Lately, there's been a lot of buzz around Xiaomi's venture into the automotive industry, particularly with Lei Jun at the helm. I've been watching quite a few related videos on short video platforms, and it's gradually helping me understand Lei Jun's strategic thinking behind Xiaomi's operations over the years. After the setbacks with zhuoyue website and Kingsoft, Lei Jun believed he wasn't any less capable than others; the key difference lay in the unfortunate timing of zhuoyue's failure and Kingsoft not being an internet platform-oriented company. So, when Lei Jun foresaw the rise of mobile internet as the next big thing, he decided to enter the market through smartphones, aiming to transform Xiaomi into an internet platform-oriented company. Initially, the plan was for Xiaomi phones to quickly dominate the majority of the domestic market share, followed by reaping the rewards effortlessly. However, competitors responded swiftly, and the eventual outcome was companies like Huawei, Xiaomi, and OPPO collectively dominating most of the domestic market share. Xiaomi's IPO in 2018, breaking its offer price, actually reflected the capital market's pessimistic outlook on Xiaomi's vision as a platform-oriented company, viewing Xiaomi essentially as a hardware manufacturer struggling to make ends meet rather than a company poised to make easy profits. Initially, the idea of Xiaomi entering the automotive industry seemed perplexing, seemingly following a blind trend, but now it appears to be a defensive move. While the future of new energy vehicles might not solely be electric cars, the deep integration between consumer electronics and the automotive industry is almost inevitable. If Xiaomi fails to keep up, it risks completely missing out on the opportunity to become a platform-oriented company. Sometimes, I can't help but marvel at how deep the waters of the capital market run; investing in a Fortune Global 500 company can feel as uncertain as backing a start-up.
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