Publication Type

Journal Article

Version

acceptedVersion

Publication Date

9-2021

Abstract

Traditional platform businesses generally fall into one of two categories: Ecosystems, such as Apple’s App Store, which offer limited resources to a wide array of independently-run firms; and Corporate Venture Capital (CVC) companies, such as Intel Capital, which invest heavily into a small number of ventures that promise either financial or strategic returns. However, new research into Xiaomi’s growth strategy suggests that the Beijing-based electronics giant has developed a blended approach, borrowing elements of both traditional ecosystem and CVC firms to create a broad ecosystem of strongly-supported partner ventures. Based on a series of in-depth interviews with executives from both Xiaomi and its partner companies, the authors identify three factors that have enabled this novel business model: Xiaomi structures its investments to incentivize innovation and build trust while still ensuring alignment, proactively fosters an ecosystem mindset throughout its organization, and takes a deliberate, measured approach to expanding the scope of its ecosystem over time.

Keywords

Xiaomi, e-commerce, China, partner ventures, eco-systems

Discipline

Asian Studies | E-Commerce | Strategic Management Policy

Research Areas

Strategy and Organisation

Publication

Harvard Business Review

First Page

1

Last Page

4

ISSN

0017-8012

Publisher

Harvard Business Review

Copyright Owner and License

Authors

External URL

https://hbr.org/2021/09/how-xiaomi-redefined-what-it-means-to-be-a-platform

Additional URL

https://hbr.org/2021/09/how-xiaomi-redefined-what-it-means-to-be-a-platform

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