Doria, Brian Section 010
Memo: HTC’s Future Strategic Growth Plan
To: Mr. Chou, CEO, HTC Corp.
From: Brian Doria, PwC Consultant
Mr. Chou the success of your company now face complex challenges in an era of rapid technological advances. It is time to implement new business strategies in order to continue HTC’s upward trajectory. Your competitors have raised the bar in the smart phone industry, and have challenged HTC’s future outlook in electronics. In this analysis, I formulated recommendations for HTC based off a SWOT analysis, horizontal integration analysis, and a vertical integration analysis.
Background of HTC:
Prior to 2012, HTC had six consecutive quarters of record sales, but the lacked differentiation in their product line. Founded in 1997, HTC formed valuable partnerships with Microsoft, Texas Instruments, and Qualcomm and developed PDAs and mobile devices. In the early 2000’s, HTC’s original strategy of manufacturing phones for carriers and other business was very successful with profit margins over 20% compared to the industry’s average of 5%.
Mr. Chou when you were appointed CEO in 2006, your aggressive initiative “to brand and sell handsets under the company’s own name” led to impressive financial figures from 2006- 2011(Exhibit 1). Despite HTC having little brand recognition, these numbers were very impressive.
Exhibit 1: HTC 2006- 2007 Revenue & Net Income ($millions)
Your ‘Magic Labs’ research initiative and Android collaboration with Google were brilliant steps that led to the development of the HTC 1. Adding HTC sense differentiated you from competitors and oriented HTC’s focus on delivering products that enhances personal experiences with customers. Now you face the challenge of offering unique innovative products to existing and emerging