By Rahul Gairola
Subject : Appraisal of a MNE's recent market entry (2007-2010) ( 1. Firm Motivations for internationalization 2. Entry Strategy 3. Corporate Strategy) Question: Acting as a market analyst for the US Investment bank Merrill Lynch, you have been allocated the responsibility to produce an appraisal report relating to a client’s (MNE) recent market entry
In the appraisal I will discuss my findings on HTC’s entry into the Indian mobile phone market. HTC was founded in 1997, it has been making a strong name for itself internationally. In 2007, the company entered the Indian market and quickly made a name for itself providing the first touch and Android phone available in India. Its motives for internationalization have been in the hopes of gaining access to new market opportunities in Europe, the US and Asia. In India HTC seeks efficiency though International Specialization. When the company first entered the Indian market, there was a lack of top of the line mobile phones, a gap that HTC saw and quickly filled. In terms of its Market entry strategy HTC made sure to offer phones with the latest technology to the upper and middle class. It joined together with local telephone connection providers to gain faster access and trust from the Indian consumers. It follows a transnational corporate strategy in which the products are standardized and there is only one R&D department located at the Taiwan Headquarters, while strategies are created by each country’s subsidiary specifically for the targeted country.
Table Of Contents
•About the Brand
2.HTC’s Motives for Internationalization
3.HTC’s Indian Market Entry Strategy
4.HTC’s Corporate Strategy
•SWOT Analysis of HTC
As acting market analyst for the US Investment bank Merrill Lynch, I have been allocated the responsibility to produce an appraisal of report relating to Taiwan’s HTC Corp’s recent Indian market entry in 2007. This appraisal will touch on HTCs motivation to enter an International market as well as why they decided profitable. What actually made it so easy to start internationally and how that affected their strategy. I will then discuss the Indian market entry strategy together with the corporate strategy and how both relate. About the Brand
HTC’s mission “is to become the leading innovative supplier of mobile information and communication devices by providing value-added design, world-class manufacturing and logistics and service capabilities.” (from HTC’s Mission Statement) Founded in 1997 by Cher Wang, HTC has received outstanding recognition in recent years, becoming one of the fastest growing mobile producers in its sector. The company has established an accomplished R&D department with a Taiwan based high-volume facility and accounting for 25% of their total headcount in Taiwan. Country head of HTC India, Ajay Sharma, described the company’s strategy as "to offer a range of data-centric devices to every segment –students, housewives, businessmen". He states that HTC has “created brand saliency and top-of-the-mind recall” by choosing effective promotional channels for both product consumers and partners at the same time.
HTC’s Motives for Internalization
There are several motives for HTC’s entry into India. It is in general trying to gain access to new market opportunities by entering new countries. This is in hopes of becoming known as one of the leading mobile phone producer in the world. A unique opportunity was seen by the company to provide Original Design for other companies that only produced OSs till now. Starting with Microsoft, the company was only giving their OS to other mobile phone producers, but didn’t have a device with only their name on it. That is where HTC jumped in the same way they later did with Google and their Android OS and managed to get a strong start into the...