Htc Assessment Essay

3584 Words15 Pages
| | | | | | | Table of Contents 0.0 Executive Summary………………………………………………………………………………………….3 1.0 Company Overview………………………………………………………………………………………….4 2.0 Mission and Vision……………………………………………………………………………………………4 3.0 External Environment ……………………………………………………………………………………..4 3.1 PESTEL Analysis…………………………………………………………………………………………4 3.2 Competitor Analysis…………………………………………………………………………………..5 3.3 5 Force Analysis………………………………………………………………………………………..7 4.0 Internal Resources……………………………………………………………………………………………8 5.0 Strategy Option for HTC…………………………………………………………………………..………9 5.1 Business Level Strategies……………………………………………………………………………..9 5.2 Corporate level…show more content…
3.1 PESTEL Analysis The PESTEL analysis can be used to analysis the market environment in which HTC operates in, they include: Political Factors and Legal Factors * Due to the high tech nature of the industry, products from various companies are heavily patented and since similar technology is used between manufacturers, infringement of these patents can lead to very costly lawsuits against the company. * In 2008 as well 2010, lawsuits were filed against HTC by companies such as Apple and IPCom claiming that HTC infringed upon their patents and demanded compensation such as to prevent the company from exporting their products into certain countries (Datamonitor, 2011). * Possible infringement of intellectual property in the future which if proven would result in large compensation in money as well as damaging the brand image. Economic Factors * Since the company operates on the global scale and since most of their revenue comes from international markets, HTC would be positively or negative affected by fluctuation in the exchange rates. * Due to high operating expenses overseas, such as high cost of labour and taxation, HTC’s operating margins have dropped from 19.9% in 2008 to 15.8% in 2010. However, these margins are considered low when compared to their competitors (Datamonitor, 2011). Social Factors * According to several report, the demand of smartphone have amount to 300 million units being sold by the end of 2010 and is
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