What are the benefits of Xiaomi's choice of penetration pricing strategy? The smart phone market has always had great potential and fierce competition among manufacturers. As the representative of these enterprises, Xiaomi mobile phone is undoubtedly at the forefront of the market, especially its penetration pricing strategy adopted in the early stage of product listing, which has achieved remarkable results, won a high market share and greatly improved the market competitiveness of products. However, it has also buried hidden dangers behind the high cost performance, and Xiaomi's future development road faces great challenges. Based on the analysis of the basic situation of the enterprise, this paper deeply interprets the market and competitive situation of the industry in which the enterprise is located, studies and discusses the influencing factors of enterprise pricing, and deeply analyzes the opportunities and challenges brought by Xiaomi's penetrating pricing strategy. Combined with the current market situation, this paper puts forward reasonable suggestions for Xiaomi's future pricing strategy. Competitors' products and prices The smartphone market is highly sensitive to prices, and low prices can stimulate the rapid growth of demand. The unit cost of production and distribution will decrease with the accumulation of production experience. Low prices can scare away the hardware costs and sales costs of existing and potential competitors. Online direct selling: electronic channel+logistics cooperative distribution channel mode 1. Xiaomi technology's e-commerce network, Xiaomi. Com, it is understood that global smartphone sales will increase by 46% this year, reaching 687.9 million units, and will reach 65.438+005 million units in 2065.438+04. Some analysts pointed out, "We will see a strong growth in the demand for smart phones in China. We believe that by 20 15, the smart phone market in China will account for 22% of the global market." Many people want to eat apples but can't afford age analysis: generally, they are netizens who often shop (18~30 years old) and mobile phone enthusiasts. 2. Income analysis: monthly income of online shopping users >; In 2000, the proportion was large, and the online sales model was adopted. 3. Analysis of consumption habits: willing to accept new things, strong values, etc. 4. Apple influence: Many people want to eat apples but can't afford them, but Xiaomi imitates apples in marketing strategy.