With the improvement of living standards of the people, consumer demand needs gradually improve from a low level of material to social needs, self-actualization needs, and so on. Mobile phone is no longer just a luxury. Chinese mobile phone market, Apple, Samsung, HTC present three brands among the three users. Beijing MI Technology Co., Ltd. was a company founded by previous top players from Google, Microsoft, Jinshan and other companies,focusing on developing a new generation of smartphone software and hot spots of mobile Internet company business. It was officially launched in April 2010, and financed from capital Morningside, Qiming reserve. By the end of 2010, MI community came into being. In the launch of six months, the registered users exceeded more than 300 million. Additionally,company also created mobile operating system MIUI. By the end of June, there were over 300,000 active users in MIUI community. This report focuses on the environmental analysis of MI phones, smartphones in China, which are the internal and external environmental factors including the PESTEL analysis and Porter's Five Forces analysis. On the basis of these analysis, three recommendations will be provided at the last.
2.1. Political factor
For businesses, the political climate of the country directly affects the business situation. Under the current political environment, people are living in a life without worrying about food and shelter, which is peace and stability. In this case, it is advantageous for MI to build favorable market conditions. Besides, China is vigorously supporting the telecommunications industry to do the development of smart phones. Since the National People's Congress of the Communist Party of China, the Chinese government focus more on supporting the private sector to stimulate innovation, regarding to the improvement of the mobile Internet industry. Under the current political climate, the political situation is relatively stable. This is very favorable marketing to create a good business environment.
2.2. Economic factor
The economic environment is a crucial factor affecting the yields in a business. Last year, China's GDP was in the second place, after the United States, higher than 2012 by 7.7% (St. consulting, 2013). It was noted that it should be a good sign for a company. According to"2013 economic and social development Statistics Report" (China Economic February 2014), Chinese citizens DPI was about 10 percent excluding the inflation. Currently, mobile phones have become a necessity of life. A variety of the functional and technical needs are required by the consumer. In order to take market shares, the company needs to keep innovation to attract more suppliers and buyers.
Economic factors may also lead problems for the company relating exchange rates, interest rates and inflation. It is directly MI and gain (NA2013). Now, MI is operating internationally with the...