1. Why does Xiaomi appeal to the average Chinese consumer?
2. Why might Xiaomi’s cool, hip image in China be tarnished if it goes global?
3. Describe the barriers Xiaomi will likely face as it expands into the United States.

Xiaomi, China’s hottest smartphone company, has established itself as an icon of innovation. The company is already valued at more than $10 billion and is expanding into global markets. The company has seen increasing growth opportunities. However, this potential does not exist in all markets, especially in those where Apple and Samsung dominate the market. In trying to enter the United States, there are many barriers to entry. A strength that Xiaomi has over competitors in China is its ability to create a high-quality, low-priced phone that appeals to the average Chinese consumer. Getting the phones into retail locations may prove troublesome to the small cell phone maker.