410 platform and partner ecosystem back in 2013 when

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4.10 Platform and Partner EcosystemBack In 2013 when Xiaomi was facing a tough times because of the slowdown of its smartphone salesits management wanted to escape from the situation taking a innovative move they decided to augmentcompany's business model by adding a third leg to create new stream of reveneue. The smartphonecompanystarted to play on the aggressive with investments in number of startups, to compliment theinitiative of building physical retail channel. The goal was to develop an ecosystem bringing partnerstartups who are offering a varied range of home and tech products mostly connected with internet andtrying to drive their foot to access at physical store locations (Delventhal, 2018; Coyu, 2018).On the other hand, Xiaomi to be best at what it does by keeping focus on making limited number ofproducts. Butwhen Xiaomi motto “Less is more” it means itneed other start-up companies to engagewith Xiaomi to do more things. Thus, the interest of the other start-ups corresponds with Xiaomi.Consequently, Xiaomi started to invest in other start-up companies to create more products and forman ecosystem. Xiaomi decided to makes only smartphones, TVs, tablets, router and set-topboxes.When everything else is made by independent start-ups. All what Xiaomi did is it reviewed 600 startupsin two years and finally decided to invest USD 100,000 to USD 500,000 in 54 start-ups among them.Asa reasut currently Xiaomi sell 600 items. Liu a Xiaomi manager says. It would require Xiaomi20,000 employes to produce 600 items when Xiaomi have have only 8,000 employes.Besides this itapplied ecosystem approach instead of acquiring the talent to make the products it self becauseSmall
42companies move faster and adapt to change more rapidly. What is very tough for companies havingdifferent divisions to produce various products (Rowan 2016).In 2016, the company tactically upgraded its ecosystem and launched MIJIA a new brand having aname of Mi. Xiaomi has connected 210 start-ups within its ecosystem By March 2018. Including mostsuccessfiull Huami, NINEBOT, Smart Mi and ZMI and a number of start-ups have flourished withinXiaomi ecosystem. Some of these start-ups with billion-dollar valuations have touched unicorn statusin 2015. (Lam & Leung. 2018). Xiaomi has a devoted IoT platform for its products that has involvedover 400 hardware partners (Coyu, 2018). According to iResearch With all this start-up companis in itsecosystemXiaomi has built the bigest consumer IoT platform internationally as of December 2017 interms of the quantity of internet connected devices (Rowan 2016). Thus, in last years, Xiaomi ecosystemhas extended so rapidly and increasingly become complex that other competators find it difficult toreplicate. (Rowan 2016. Lam & Leung. 2018)
Figure 4. 6: Xiomi Ecosystem productsSource: (Lam & Leung. 2018).

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