Macro SWOT Analysis
* Solid design and innovation: HTC is one of the leading ODMs (Original Design Manufacturer) for many top-tier operator-branded devices. It owns and designs the in-house products that are branded by other operators. The solid background may step up the producing process. * R&D investment: HTC has spent 15%-20% of sales on R&D. It recently opened the new R&D offices in North Carolina and Taipei to extend products’ features and functions. This may enforce their core competence from other competitors. * Variety product line: HTC believes that smartphones shouldn’t be made for all. HTC provides variety of products every year, and this may satisfy different consumer groups. * Running Android and Windows operating system: Android phone occupied 40% market share worldwide, and is expected to take a half market share in 2012 – This is a benefit for HTC. Although Windows OS takes only 2% in 2011, however, Gartner’s analysis expected that it would grow to 11% in 2012. Investing in both OSs may help HTC to enlarge the sales volume and provide the flexibility to develop products to approach consumers’ preferences. Weakness
* Shortage of patents’ ownership: Patent is a protection for creativity and innovation. It is also a weapon to attack the competitors. HTC is recently accused of infringing upon the patent of Apple, and lost the lawsuit. This may harm its reputation among the U.S users. * OS depends on Google and Microsoft: Cooperating with Google (Android) and Microsoft (Windows OS): HTC successfully draws attention and sales worldwide. However, as Google acquired Motorola mobility, this may increase variation to HTC and the market. * Brand awareness is weak: Due to the ODM and new-entry background, many customers don’t know that the mobile devices they have are made by HTC. This may extend the time it needs to acquire consumers and keep their loyalties. Opportunity:
* The strong demand of Android OS among smartphone market: Smartphones are replacing the feature phones in the U.S market, the revenue may account for 75.8% of the overall mobile handset revenue at $258.9 billion by 2015. And Android OS is expected to take more than 50% market share. This may be the advantage of Android phone manufactures, including HTC. * The on-the-go Internet service and device are flourish: The Internet connection speed on mobile device has been improved a lot due to the strong demand of Internet service. Many telecom providers offer 4G (The connection speed is capable to reach up to 100 Mbps theoretically) this trend may enforce the smartphone market. * Most popular websites have developed mobile-usage apps to enable the smartphone users the better viewing experience. Also, there are many communicating apps that allow users to instantly contact other users. This may stimulate the smartphone users to bring their family or friends to join smartphones. Threat
* Price rivalry: Competition is getting intense, and the some competitors have negatively cut the price to attract more consumers. This may reduce the profit. * Patent combat: Competitors many act on patent combat to compete against each other and forbid the competitors to enter to any territories or countries. Companies may spend more money on buying patents, and it will increase the cost. * Economy is in recession: The economic recession may delay or reduce mobile phone users to embrace smartphone because they may consider an alternative option: Keep the feature phones and buy tablets – the more powerful multi-tasking mobile devices that provide the similar and strengthen user experience than smartphones, except instant talking feature.
Differences from traditional mobile phones are emphasized on the function of mobile communication and usually are made-for-all, smartphones provide on-the-go entertaining experience, information sharing and managing, and variety communicating gadgets. HTC...
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