Xiaomi’s rapid rise is changing the smartphone landscape in China, and potentially the world. China rapidly surpassed the United States of America to become the world’s largest smartphone market in 2011. While industry giant Apple’s attention was focused on overtaking industry leader Samsung for the fast-growing China market, Xiaomi burst onto the mobile phone scene catching both giants o guard. In the five years since their founding in 2010, Xiaomi rose to be the world’s third largest smartphone company based on units shipped. South Korea- headquartered Samsung Electronics Co. Ltd. and U.S.-headquartered Apple Inc. are the holders of the first and second spots, respectively.

When founded, Xiaomi’s vision was to develop and sell software for mobile devices using the Android operating system. As the company evolved, Xiaomi grew into a mobile Internet and e-commerce company that contract-manufactures smartphones and compatible devices designed to o er a complete customer experience. Xiaomi, one of China’s relatively few indigenous innovators, has been a major disruptor in China’s lucrative mobile telecommunications industry, due in large part to their emphasis on continuous, incremental improvement.

The reputation of Xiaomi’s driven founder, chairman and CEO Lei Jun, a Chinese serial entrepreneur and investor, is that he rarely rests. His reach in China’s high-tech sector is extensive, and his vision for Xiaomi aggressive. Lei stands out from many other Chinese IT leaders like Alibaba’s Jack Ma or Lenovo’s Yuanqing Yang; when he founded the company, he had no Western experience and did not speak English. To realize his vision, Lei surrounded himself with a world-class team of Chinese executives—and one prominent Western executive—with collective experience at top foreign IT firms like Google, Microsoft, Motorola, and Yahoo. This executive team complemented Lei and brought attributes that Lei lacked, in addition to considerable world-class IT experience.

Xiaomi was the 2014 leading smartphone vendor by shipments in China and the third largest smartphone manufacturer globally. Lei has come a long way from his youth in Xiantao, Hebei, to the helm of the most highly valued start-up in the world; yet, challenges remain for Lei and for Xiaomi. With more than 18 million handsets sold in China by 2013, and products launched regionally in Taiwan, Hong Kong, Singapore, Malaysia, Philippines, India, and Indonesia, the company contemplated global expansion. Xiaomi had been very successful in China, but how would they fare in the global market? Would Xiaomi need to develop additional capabilities to compete head-to-head with industry giants Apple and Samsung? Given Lei’s extraordinary range of interests and activities, would he have the focus and bandwidth to lead Xiaomi to its future?

Lei Jun, Founder, CEO, and Chairman

Lei was born during the height of China’s Cultural Revolution, in December 1969, in Xiantao, a small city in China’s central Hubei province where his father was a schoolteacher. He attended local primary and secondary schools. Lei earned a Bachelor of Science degree in Computer Engineering in 1991 from Wuhan University, one of the first schools in China to offer Computer Engineering.

Today, billionaire Lei is one of the richest men in China. Often referred to as the Steve Jobs of China, he dresses in simple black shirts and blue jeans emulating Jobs, whom he has admired since his college days. Like Jobs, he has been called a shameless self-promoter and supreme marketer—characteristics that are thought to partially explain his company’s success by Xiaomi’s competition and the media. Described as wonkish by the media and his colleagues, Lei’s technical focus remains intense and consistent. In the spirit of continuous professional improvement, Lei seeks criticism as well as praise. His reputation as a very hard worker propelled him on a dynamic career path from the beginning.

Shortly after graduation, Lei began his career with Kingsoft Corporation Limited, a Chinese office software developer that creates software similar to Microsoft Office. His talent was recognized early and his career progressed steadily. Although he is often identified as its co-founder, Lei worked for Kingsoft for several years before being appointed CEO in 1998. He remained at their helm and, after repeated attempts, oversaw a successful initial public offering launch and listing on the Hong Kong Stock Exchange in 2007. Lei resigned from Kingsoft in 2007, reportedly for health reasons associated with the preparation of the company’s Hong Kong Stock Exchange listing. e IPO process had been exhausting. In July 2011, Lei rejoined Kingsoft and has been its chairman since then.

During his time away from Kingsoft, Lei realized that his real dream was to build his own high-tech company. He concluded that timing was critical when starting a new venture, especially in the high-tech industry sector. e mobile Internet industry was taking off. Lei saw an opportunity to pursue his dream by catching the mobile Internet wave. Years later, in a post on Sina Weibo—a social media forum similar to a combination of Twitter and Facebook—in September 2011, he reflected on Xiaomi’s success and commented, “Things get much easier if one jumps on the bandwagon of existing trends...A pig could fly if it finds itself in the eye of a storm.”

Lei’s entrepreneurialism has been a consistent theme since his graduation from college. While at Kingsoft, Lei founded Joyo.com in 2000, an online bookstore company that was subsequently acquired by Amazon in 2007. From 2007 to 2010, Lei invested in various tech start-ups, including UCWeb—purchased by Alibaba in 2014—where he served as chairman and president of what became China’s largest mobile browser company.

In addition to his entrepreneurial activity, Lei is an investor who pursues three key areas for investment— the mobile Internet, e-commence, and social networks. He is a co-founder, founding partner, and chairman of the Shunwei Fund, a venture capital firm that specializes in incubation, early to mid-stage, and growth capital investments in a variety of information technology-related high-tech industries. Lei also co-founded VANCL Limited, an online apparel and accessories company; and YY Inc., a communications and social media platform where he serves as chairman.

Lei is sought after as a consultant in the mobile Internet industry for his vision expertise. He served as a director and chairman of Cheetah Mobile Inc., a Chinese firm specializing in Internet security, beginning in October 2010. Lei is an investment advisor for Taiwanese Hotung Investment Holdings Limited, a venture capital fund that invests primarily within Greater China. He also served as a director of 2020 ChinaCap Acquirco, Inc., a hedge fund, and is an advisory board member at the Great Wall Club, an organization that provides professional services to leaders in China’s mobile Internet industry.

What are the major factors that contributed to Xiaomi becoming a leading smartphone company in the PRC? Please write at least 350 words. Please use above information