Individual Case.Htc.Andre

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HTC Corp. in 2009
HTC Corp. in 2009

By Yu Kuai (A0096024)
By Yu Kuai (A0096024)

Grading Criteria|
1| Analysis – Comprehensive and In-depth Analysis With Clear Conclusions Drawn| (40%)| 2| Recommendations – Clear and Specific Recommendations Provided and Defended Well| (40%)| 3| Report Structure and Format – Proper Headings and Subheadings, Correct Grammar and Good English, Does Not Exceed Page Limit, Correct Citation and Referencing| (20%)| Total (20% of Course Grade)| |

Contents

Background3

Company analysis--SWOT4
Strength4
Weakness4
Opportunity5
Threat5

Industry analysis--Five Forces6
Threat of substitute products or services6
Bargaining power of customers6
Bargaining power of suppliers6
Intensity of competitive rivalry6
Threat of new competition6

Recommendations for HTC7

Background

HTC was founded in 1997 by Cher Wang, H.T.Cho, and Peter Chou. For many years, as an ODM AND OEM business, HTC manufactured smartphones for branded handset companies, and established a tight relationship with them. These companies include the five leading telecom companies in Europe, four largest in America, and numerous fast-growing telecommunication companies in Asia. However, due to the price competition and cost control within OEM industry. As a result, the yearly gross profit was decreasing. In order to change the situation, in June 2006, HTC introduced its first smartphone and started creating its own HTC brand. HTC became popular of Windows Mobile smartphones. In 2008, it introduced the new Android smartphone, and would shift its core business to Android phones. The US and Europe market occupied nearly 75% of the HTC’s region sales.

Company analysis--SWOT

Strength

HTC has an economic scale. Not only being the largest smartphone ODM, HTC also has its own brand. So they have a great amount of production. As an ODM, it has a whole system of manufacturing, including material purchasing, production and supply. So HTC can minimum its costs. It actively participated in both Windows Mobile and Android market. And now HTC would shift its core business to Android. It has a beautiful UI—HTC sense. HTC is one of the first mobile manufacturers introduced full-touchscreen smartphones. In order to maximize the market share, it has no limitation on the operators. One of the biggest mistake for Apple is they restrict the iPhone to one network operator in US and UK markets. Although their agreement would expire in 2010, it was still a good chance for HTC. It has a constant cooperation with the Microsoft, Google, and the operators. It has a variety of products and the family of HTC smartphones is still growing rapidly. It is more convenient for the consumers to choose their products. For different consumers, HTC provides a customize service.

Weakness

HTC is a new brand in the market. Its brand identity cannot be compared with Nokia, Samsung or Apple. Normally the battery of smartphones can only last for short time. It would have a negative effect on consumer’s experience. The prices of smartphones are still high. It creates a barrier between the products and majority of the consumers. As an ODM, HTC uses to focus on R&D, and runs a B2B business with operators or other mobile phone companies. It may lack the experiences of how to run a B2C business.

Opportunity

The demand for smartphones is growing rapidly. There are still a huge potential waiting in the market. The speed of mobile connection for internet is increasing. It would encourage more consumers to purchase smartphones. Some of the new markets open to world. For instance, China has a population of 1.3 billion and would open 3G network throughout the country. Every competitor of HTC approximately shares the equal chance to enter China’s smartphone market. Besides the growing market of smartphones, the market of application for each operation system is growing even faster. HTC should pay...
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