Htc Strategic Options

Topics: Mobile phone, Strategic management, Smartphone Pages: 7 (1819 words) Published: March 20, 2011
Table of Content
2.Strategic Action3
3.The Analytical Model4
4.Overview of HTC Company4
5.External Analysis4
5.1 Macro-environment (STEEP)5
5.2 Industry Analysis5
6.Internal Analysis and the matching of capabilities with Key Success Factors7 7.HTC’s Competitive advantage8
8.Strategic Actions required to meet KSF or turn KSF into competitive advantage9 8.1Innovation and Agility9
8.2Brand and Equity9
8.3Economies of scale9
8.4Financial Resources9
8.5Product Portfolio10
8.6Overall Growth Strategy10


This paper explores the strategic actions that HTC can adopt in order to become a leading smartphone company in the world. The paper will define the concept of strategic action and then follow the analytical process depicted in heading 3 below to identify strategic actions required for HTC to achieve its vision. The analysis will however be preceded by a short overview of HTC. 2.Definition of Strategic Action

Hardy, C (1994) defines strategic action as the “ability to forge organizations that are capable of carrying out effective strategies in a sustained and profitable way”. Hitt, Ireland and Hoskisson (2001) concur with this view and regard effective strategic actions as “prerequisite for achieving the desired outcomes of strategic competitiveness and above average returns”. 3.The Analytical Model

Figure 1: HTC’s competitive positioning analysis model
The above model will be followed to identify strategic issues and strategic actions. 4.Overview of HTC Company

HTC Corporation, through its subsidiaries, engages in the design, development, manufacture, and sale of smart handheld devices. Its products include smart phones, touch phones, mobile computers, and personal digital assistant phones. The company also offers repair and after-sales services. HTC Corporation offers its products in Europe, the Asia Pacific, North America, Latin America, Africa, and the Middle East. The company is headquartered in Taoyuan, Taiwan (, 2010). 5.External Analysis

The external environment of HTC comprises the macro and the industry environments. The analysis of this environment will be conducted by using the (STEEP), Porter’s Five Forces model as well as identifying Key Success Factors for the industry. 5.1 Macro-environment (STEEP)

The macro environment was primarily characterized by the existence of a global recession. The recession meant that operators like HTC needed to contain costs even more in order to retain current margins. On the mobile regulatory front, the trend has been for regulators to push for operators to provide higher bandwidth services at reduced prices. This forces mobile device manufacturers like HTC to constantly look for cheaper new technologies to enable them to offer operators more value proposition. 5.2 Industry Analysis

After exiting the ODM (Original Design Manufactures) market at the end of 2009, HTC now operates in the mobile telecommunications industry as a manufacturer of among others, the branded (HTC) smartphones for mobile operators such as British Telecom, Orange, and Vodafone. Apple is considered to be the market the leader in manufacturing of the smartphone in this industry, with other notable competitors including Palm, Samsung, Nokia, Rim and Motorola (Yoffie and Kim, 2009). Below is a more detailed analysis. 4.2.1 Porter’s Five Forces as they relate to the smartphone industry According to Bhakru (2005), for a firm to successfully develop a competitive strategy, it is critical to understand the industry environment. Porter’s Five Forces model is one of the models used to understand the industry. Figure 2: Porter’s five forces analysis

Rivalry in this industry is high primarily because buyers do not have high switching costs. It will be imperative for HTC to ensure that continuously improve their products’ value proposition vis a vis...
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