After breaking into China’s smartphone market, where it becomes a leading brand, Xiaomi sees sales stagnate and then decline as the disruption strategy that empowered its rise loses momentum. As competitors counter every move, targeting its core consumer segment, the company urgently needs to reignite growth and develop a sustainable competitive advantage.

The case focuses on an innovative social media strategy by L'Oréal Paris to "listen" to consumers, then develop a product to meet consumer needs and market it. First, the company partnered with Google to track emerging styles and determine which (if any) would endure. Then it leveraged social media when deciding how to position, name and launch the product.