Htc Case Analysis

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HTC, originally founded by HT Cho and Cher Wang, was initially commissioned by Compaq to be an ODM, original design manufacturer. Their job was to engineer and design products for Compaq, all of which would be sold with under Compaq’s brand. Their innovativeness attracted business professionals and soon they collaborated and succeeded in creating the world’s first pocket-sized PC with Microsoft. Their success at fulfilling their vision of creating smaller lightweight devices then lead HTC to creating PDAs, once again a bit hit. All of these successes lead HTC to thinking about the future of mobile phones and what their part in it would be.

Once the idea struck, it stuck. HTC’s new goal was to make smart phones and wireless PDAs. In order to achieve this, they partnered with Qualcomm, the world’s leading wireless chip maker, and allied with Texas Instruments, using their processors for the phones and internet functions that would be available through their phones. Eventually HTC saw the future in transitioning from PDAs to smart phones and partnered with Microsoft in order to produce a smart phone together. Eventually it hooked up with Google and used its Android platform to become the user friendly smart phone that it is today.

HTC did a great job when it decided to create direct relationships with its end users. They did this by offering customized mobile phones that fit the needs of each individual customer. This tactic lead to better margins, helped HTC differentiated themselves from other ODMs, and it created a horizontal approach which helped HTC to specialize in what it did best, instead of focusing on everything concerning the supply side. Although customization was a huge hit, it did have its drawbacks. Customization produced high costs, thereby taking away from the margins. But in the end it was worth it due to the consumers feeling that they were in control of their phones and that their mobile devices were able to meet their...
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