Question at position 15 Xiaomi Corporation is planning to expand sales of its smartphones beyond its home market in China. The company decides to first enter nearby Asian countries with similar consumer preferences and market conditions rather than expanding into very different markets. Which of the following statements is true?Xiaomi is pursuing a global strategy by entering all world markets simultaneously.Xiaomi is pursuing a regional expansion strategy by focusing on markets similar to its home market.Xiaomi is pursuing a defensive strategy by reducing its international presence.Xiaomi is targeting culturally distant markets to maximize risk.单项选择题
A
Xiaomi is pursuing a global strategy by entering all world markets simultaneously.
B
Xiaomi is pursuing a regional expansion strategy by focusing on markets similar to its home market.
C
Xiaomi is pursuing a defensive strategy by reducing its international presence.
D
Xiaomi is targeting culturally distant markets to maximize risk.

Question

Question at position 15 Xiaomi Corporation is planning to expand sales of its smartphones beyond its home market in China. The company decides to first enter nearby Asian countries with similar consumer preferences and market conditions rather than expanding into very different markets. Which of the following statements is true?Xiaomi is pursuing a global strategy by entering all world markets simultaneously.Xiaomi is pursuing a regional expansion strategy by focusing on markets similar to its home market.Xiaomi is pursuing a defensive strategy by reducing its international presence.Xiaomi is targeting culturally distant markets to maximize risk.单项选择题

A

Xiaomi is pursuing a global strategy by entering all world markets simultaneously.

B

Xiaomi is pursuing a regional expansion strategy by focusing on markets similar to its home market.

C

Xiaomi is pursuing a defensive strategy by reducing its international presence.

D

Xiaomi is targeting culturally distant markets to maximize risk.

BlackTom AI · Accepted Answer

Focusing first on nearby Asian countries with similar consumer preferences and market conditions is a regional expansion strategy.

Relevant knowledge points and concepts:
- Regional expansion strategy: entry into geographically or culturally proximate markets that share similar demand patterns, regulations, or competitive environments so firms can leverage existing capabilities with limited adaptation.
- Global strategy: standardized, simultaneous or coordinated entry across many world markets to achieve worldwide scale and uniform positioning.
- Defensive strategy: actions taken to reduce exposure or withdraw from markets (e.g., cutting international operations), not to expand.
- Cultural/market distance: greater distance increases adaptation costs and risk (liability of foreignness).

Step-by-step reasoning:
1. Identify Xiaomi’s chosen target set: “nearby Asian countries” — this implies geographic proximity and likely cultural/consumer similarity to China.
2. Identify strategy characteristics: Xiaomi prefers markets “with similar consumer preferences and market conditions” and explicitly avoids “very different markets.” That describes a deliberate, phased expansion into similar markets rather than broad simultaneous global entry.
3. Match to definitions: Entering similar neighboring markets to exploit transferable products, marketing, and supply-chain knowledge is the textbook regional expansion approach.
4. Check alternatives:
   - Global strategy would require entering all world markets or pursuing a standardized global rollout; Xiaomi is not doing that.
   - Defensive strategy would mean reducing international presence; Xiaomi is expanding, so this does not apply.
   - Targeting culturally distant markets to maximize risk is the opposite of choosing similar nearby markets.

Why the correct answer is correct:
By prioritizing nearby Asian markets with similar preferences, Xiaomi minimizes adaptation costs and leverages existing competencies—core objectives of a regional expansion strategy.

Other options are incorrect for the reasons above. Final answer: Xiaomi is pursuing a regional expansion strategy by focusing on markets similar to its home market.

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