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Xiaomi case: How did it become one of the largest technology companies in the world? In the late 80s, a young Chinese student with low resources borrowed a book from his university library, which would inspire him to enter the technology industry with the purpose of contributing to the development of his country. Years later, that young man would become one of the richest people in the world and would be recognized as the “Chinese Steve Jobs”, after creating one of the most important technology companies on the planet, whose current market value is more than $45 billion dollars… How did he do it?
The protagonist of this story is Lei Jun, who was born on December 16, 1969 in Xiantao, China.
From a very young age, Jun developed a great passion for technology encouraged by his father, who firmly believed that, thanks to it, China would have a better future. In his free time, the little boy used to take apart radios and other devices out of pure curiosity.
When he wasn't in the lab, he spent his time in the library reading everything he could about computing. It was there that he discovered a book that would mark a before and after in his life; it was the classic "Fire in the valley" by Paul Freiberger, which would lead him to arouse great admiration for Steve Jobs.
Full of motivation and determination, the young man founded his own company before graduating. His focus was the manufacture of chips that would make it easier for computers to process data in Chinese. Unfortunately, the business failed because there were already strong competitors in the market that produced better chips.
Although he had a good salary, he says that he was very bored at work. His dream was to contribute to improving China's technology, so he quit his job and dedicated himself to visiting all the technology fairs he found in the city. At one of them he would meet Qiu Bojun, founder and vice president of the startup Kingsoft, who was impressed with the type of questions Jun asked the vendors at his stand at the fair, so he decided to invite him to dinner. In this way, the young man received an offer to work as an engineer at Bojun's company, which was developing a program similar to Microsoft's Office, called "WPS Office." He accepted, becoming Kingsoft's sixth employee in 1992.
By 2010, his intuition told him that the technology industry would face great changes in the coming years as a result of the massification of smart mobile devices, so he began to look for fresh ideas for his next venture. He was not interested in money, he simply could not stop and wanted to fulfill his dream of revolutionizing technology in China. His experience told him that he should ally himself with the best, so he turned to Lin Bin, an expert who had worked at Google before leaving China, to form a team with him. Then, the entrepreneur contacted six well-known investors from China and Singapore, who had previously invested in his projects, to finance the creation of his new company.
Everyone gathered at Jun’s apartment in Beijing on January 14, 2010, to decide on the name of the company. At first, they thought of calling it “RedStar,” but found that they might run into problems because it was already a registered trademark, so they discarded that idea and settled on the wordplay “Xiao-mi.” “Xiao” is a Buddhist concept, which says that a grain of rice can be as big as a mountain, referring to the fact that the company they wanted to create was going to compete with large technology multinationals, with decades in the market, such as Samsung and Apple; and the word “MI” is the abbreviation of “Mobile Internet,” in reference to the industry they would enter. On April 6, 2010, Xiaomi was officially founded.
The initial purpose of the company was to create an operating system for Android cell phones and tablets, which would add the best qualities of “iOS,” the system created by Apple for the iPhone. They called this system “MIUI”, and it quickly became a success thanks to its design and attractive features. Over the years, this operating system has gained popularity in the market to this day, becoming not only the main system of the brand, but also the preferred one by several manufacturers.
Currently, Xiaomi is positioned as the third most important cell phone manufacturing company on the planet, it generates employment for more than 33 thousand people, has a market value of more than $45 billion dollars and invoices more than $3 billion dollars annually.
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