This study investigates the entrepreneurship and management strategies of Lei Jun, the founder and CEO of the Chinese electronics company Xiaomi. Lei Jun’s entrepreneurship can be summarized with the words ‘innovation’ and ‘a spirit of challenge’. The former has been implemented through pushing for changes in the perception of China's domestic products through quality, superior cost-efficiency and new retailing based on so-called ‘Internet thinking’. Meanwhile, the spirit of challenge has been put into practice through Lei Jun's keen intuition that enables an accurate understanding of the phases of the times to identify current trends. In our study, Xiaomi’s management strategies are analyzed from the perspective of marketing. The core competency of Xiaomi's management is Internet thinking. The Internet's key factors are composed of four concepts (namely, “focus”, “acme”, “word of mouth” and “speed”) and are applied to Xiaomi's business. The core product strategy is simplicity. In contrast with other competitive international brands, Xiaomi first focuses on a single product (the smart phone) as well as on the basic product attributes that consumers really want. In addition, Xiaomi has increased the speed to modify and supplement products by actively accepting the feedback of Mifans (i.e. the loyal consumers of Xiaomi). As a result, Xiaomi’s products could reach the acme of perfection. The company's price strategy is penetration pricing, which is aimed at gaining a market share as large as possible in the early stages of entering a market by adopting a low-price strategy. Meanwhile, its distribution strategy focuses on new retailing. As for its promotion strategy, Xiaomi uses little paid media, but has actively relied on both owned and earned media in the past. Currently, however, Xiaomi uses all of them equally. * Ph.D. Candidate, School of Management, Kyung Hee University, First Author ** Assistant Professor, Department of Hotel Management, Cheju Halla University, Co-Author *** Professor, School of Management, Kyung Hee University, Corresponding Author In sum, Lei Jun's entrepreneurship has a business philosophy of impressing customer and offering affordable prices to enhance social welfare through a continuous supply of cost-efficient products to the market. Lei Jun's ultimate goal is to build a Xiaomi ecosystem with its unique mobile operating system, MIUI. Thus, Xiaomi is expanding its product line based on MIUI and is making investments in sustainable start-ups to establish such an ecosystem. The findings about the entrepreneurship of Lei Jun, who significantly influences Xiaomi's management strategies, provide fruitful implications for Korean companies.