Htc in 2008

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1.  Evaluate HTC's performance to date.  What are its competitive advantages and vulnerabilities? Before analyzing HTC’s competitive advantages I will briefly introduce the company’s history. Founded in 1997 as a PDA original design manufacturer mainly, it quickly moved into what the Board of the company thought it would be the next growth platform: the mobile telecommunications market. This at strategic was a great strategic move of Cho and Cher Wang both HTC’s founders. At that time PDAs represented more than 80% of HTC’s revenue, with which the company could finance the development of new products in the telecommunications industry, similar to what Apple did with the iPod. The first moves into the mobile telecommunication markets where in two distinct segments: as an original design manufacturer (ODM) and as a mobile operator business. As an ODM HTC followed the PDA’s model, so the company manufactured smartphones for branded handset companies. In addition, in the mobile operator business HTC designed phones for service providers as T-Mobile or Vodafone. This second business provided HTC with great margins and by 2005 the company wasn’t planning to change the strategy. The mobile phone industry, however, was moving too fast, and there was a great business opportunity for those who were moving fast into the smartphone business. The CEO Chou new that the next move was creating a brand identity for HTC. This was a risky a controvert decision, given the previous failure of other Taiwanese companies trying to do the same. Despite the tough competition, Chou was determined to create a cutting-edge smarphone and in 2007 they launched the first HTC Touch with a touch-screen interface, even a bit before Apple came out with the iPhone. With a high investment in R&D they became an important player in the business, especially in Europe and Asia, not that much in the US market. By the end of 2009 HTC had completely exited the ODM business to focus into their own...
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