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ManagementBusiness Model PivotFood & BeverageIntermediate2010
Zomato: From Directory to Delivery
The challenge
In 2010, Xiaomi founder Lei Jun wanted to create high-quality smartphones at a fraction of Apple's prices. The Chinese market was flooded with cheap, unreliable phones. Major brands like Samsung and Apple dominated the premium segment. Xiaomi had no retail stores, no carrier deals, and limited capital.
The strategy
Xiaomi built its entire initial strategy around a passionate online community of early adopters called 'Mi Fans'. By selling directly online and letting fans co-create the product through weekly software updates, they eliminated retail costs and built intense loyalty.
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Try the full case free →Key lessons (preview)
- Building a community before launching a product creates massive launch momentum.
- Flash sales create urgency and manage inventory simultaneously.
- Treating customers as co-creators builds loyalty that advertising cannot buy.