Author(s)

Zhu Haowen, Gao Huanji

Corresponding Author

Zhu Haowen

ABSTRACT

Considering the fierce competition and demand diversification in the market, the financial situation and performance need to be anatomized. Additionally, it is conducive for a company to comparing its financial metrics to other competitors and the whole industry. This paper takes Xiaomi, a typical Chinese corporation in the mobile telephones industry as an example, and ZTE as an emblematic competitor from China, respectively. In the first place, PEST and SWOT analysis are used in this paper to analyze the macro and micro environment of the smartphone industry, and Xiaomi is a rapidly growing company among the rivals to some extent. And then, by analyzing the strategies and financial ratios of Xiaomi corporation, this paper concludes that Xiaomi is using an aggressive financial structure. And its profitability is increasing even though it keeps a low profit margin and ensures short-term solvency. However, the company has to improve its asset management and long-term solvency issues. Additionally, this paper mentions future expectations and suggestions related to the industry. Through this paper, it is possible to help improve the performance of Xiaomi or other mobile phone companies and promote healthier industry development.

KEYWORDS

Mobile Telephones Industry, Xiaomi Corporation, Strategic Analysis, Financial Analysis, Financial Ratio