HTC Corporation deals in the manufacture of mobile wireless technology. The firm faces extensive competition from companies such as Nokia, Samsung, Apple and RIM among others. To stay afloat in the competitive field of mobile technology, HTC has continued to undertake extensive R&D in mobile technology, efforts which have been rewarded by the production of many ‘firsts’ including the numerous phones operating with Android and Microsoft software. On marketing and logistics, HTC has embarked on a long freight process which has continued to increase the prices of its products, thus putting pressure on its maintenance of competitive advantage, bearing in mind that its competitors manufacture similar products and sell them at a cheaper price. For HTC Corporation to make headways in the competitive market, it has to reduce the marketing channel, outsource logistics process and tap on unexplored markets in developing countries.
1.1 HTC market position1
1.2 HTC four V’s management operations2
1.3 Value chain analysis3
2 Marketing channels of HTC and its impact on logistics function6 2.1 Marketing channels of HTC6
2.2 Logistics function of HTC8
2.3 Impact of HTC marketing channels on logistics9
4 Role of HTC marketing channels and logistics towards customer service, relationship management and value creation11 5 Conclusion12
6 Recommendations and implementations plan12
Appendix: SWOT Analysis of HTC16
Marketing is defined as the progression of generating value and building robust customer relationships, so that in return, value can be attained from customers (Kotler et al., 2008). Logistics management is a supply chain segment that is responsible for planning, implementing and controlling competent and valuable flow and storage of goods or services, in order to add value and hence satisfy customers. Business organisations should ensure they have devised a way to achieve all the above mentioned, using the cheapest means and without compromising of quality of the products (Kleinmann et al., 2012). This report is just to discuss marketing channels and logistic functions as well as their nexus relationship. Before going to the main point, the external and internal context of HTC needs to be analysed, so as to identify the challenges for its marketing and logistics.
1.1 HTC market position
HTC, based in Taiwan, is a company that deals in the manufacture of Smartphones including the invention, development, assemblage and selling of touch phones, mobile computers and digital personal-assistant phones (DataMonitor, 2011). Fierce competition from companies such as Samsung and Apple have significantly reduced HTC’s market share to 4.8 % in the first quarter of 2012, dropping from 8.9 % in the first quarter of the year ended 2011 (DataMonitor, 2011). This may be a big blow to the company having had to project a 55% growth on revenue for the second quarter of 2012, although other mobile phone manufacturers such as Nokia have witnessed reductions in market shares. Nokia’s market share dropped to 8.2% from 23.8% (DataMonitor, 2011). In addition, HTC offers high quality products at relatively higher prices than competitors. In contrast, Nokia provides mobile phones products with similar features at a lower price (DataMonitor, 2011).
Figure 1 HTC Positioning Map
Source: DataMonitor (2011).
1.2 HTC four V’s management operations
The four V’s comprise of the variety, volume, visibility and variation in demand. According to Slack and Lewis (2003), variety comprises of the range of products a company offers to its customers; volume is...