Xiaomi Company's Differentiation Strategy and Competitive Advantage in the Intelligent Automobile Business

Against the backdrop of the rapid expansion of the world's new energy vehicle market and fiercer market competition, traditional auto manufacturers and technology enterprises all flooded into the market. Xiaomi officially opened its smart car business in 2021 and continued to advance through activities like team building, technological research and development, and factory building. Its SU7 smartphone has drawn huge attention from the market, and its subsequent release of the YU7 further added to its product range. Backed by the double-carbon policy and the development tendency of the industry, xiaomi relied on its technological R&D strength, intelligent experience, and ecological interconnectedness, become a leading firm in the new energy automobile industr. This article talks about Xiaomi's smart vehicle business' development path, competitive advantage, and innovative design model, in contrast to the industry leader Tesla, talks about its competitive distinctions in the automobile industry, and how the SU7 and YU7 product series contributed to market share gains. The research demonstrates that Xiaomi, with "a complete ecosystem covering people, vehicles and homes" as core positioning, has developed its advantage through ecological interconnection, high cost-performance, and diversified distribution channels, but is challenged in automotive core technology and brand premiumization, which is different from Tesla in product strategy and competitive advantage. This research provides a benchmark for Xiaomi to enhance its business strategy, and also offers a model for other enterprises in the industry to enter the new energy vehicle industry, and thereby driving the industry's innovation and development.