Htc Case Study

HTC’s competitive position is not sustainable. In fact, the disappointing financial performance in Q1 2012 and the increasingly decreasing operating margin all points to a slower growth. Besides the statistics, HTC also face several imminent threats, such as the popularity of Samsung and Apple’s smartphone offering, the increase in competitors in the smartphone market, the shift in market, from operator push to brand pull, and the ongoing patent war with Apple. However there are also opportunities HTC can take advantage of to keep its competitive position. The opportunities are presented in the high growth rate of Smartphone Market, 61% in 2011, and the lack of well made Android Tablet.

* HTC has a diverse customer base (no one client held more than 10% of HTC’s business), which means that HTC is more risk resistant.

- The smartphone industry is very capital intensive due to high research and development (R&D) costs and expensive manufacturing facilities. This raises the barrier of entry and makes it difficult for small companies to enter. Many of the firms that compete in this industry have existing long-term contractual relationships with mobile carriers and benefit from their significant brand equity. These companies also have a great deal of knowledge and experience through economies of learning, which gives them a major cost advantage over smaller entrants. New entrants will have difficulty getting carriers to adopt their phones because many carriers are already in profitable deals with the large mobile phone manufacturers.

Catherine, W., Tat Pui, L. and Henrik, U. (2011) The Roles of Branding for a Brand Entering

The generation of talking face-to-face is slowly fading away, and the technology era is going to keep on growing. One of the most widely used technology services known today is the cellular phone industry. According to the Pew Research Center’s website, 90% of American adults own a cell phone. Of that 90%, the smartphone ownership is at 64% (2013). Verizon Wireless, along with the other major carriers, T-Mobile, Sprint, and AT&T, have taken this data and comprised a growing industry where competition arises from all angles. These companies have battled one another on pricing, plans, and customer service for many years in order to stay on top. Unfortunately, these are major factors in whether or not a customer will choose the particular company over another.

There are many competing brands of smart phones and Samsung has reported a decline of profits in 2014. Information from GSM arena shows than Samsung released 54 new phone models in 2014 , compared with 24 by HTC , 11 Motorola and 2 by Apple, leading to increased production costs and lack focus on a specific customer segments thereby losing some of its competitive advantage (GSM Arena , 2015).The lack of popularity of its own OS (Tizen ) and dependence on Google’s Android platform makes it vulnerable on google to develop an “ecosystem”. There are component integration issues as well as loss revenue from potential App sales (Strategic Mangement insight , 2015). Negative publicity from litigation due to patents are likely to continue as technology patents are vague and Samsung with is large portfolio is likely to infringe on some of the patents (Tibken, 2014).

Apple and Samsung are the two greatest organizations with an industry of the greater part the worldwide cell phone advertise. Consistently, both Apple and Samsung are getting new developments their mobiles, which extraordinarily expands their cell phone deals. Since there is though competition in the present world, Apple created a trend by introducing IPhone to the world, which is one of the best feature smartphone with high security. According to Business Insider, “Though apple is getting more profits and experiencing the first place in the market, then came the competitor Samsung, Samsung introduced the Galaxy S smartphone which made the apple market

2000-2006: HTC made first time profits when it engineered and developed PDA for Compaq computer. HTC made an alliance with top hardware companies and became best hardware maker which led to release of the XDA, the first Windows based smartphone by collaborating with Microsoft. HTC operated in ODM business and Mobile operator business. HTC designed customized phones for Mobile operators based on their specifications which led them to gain attractive contracts from different Mobile operators. HTC contracts with mobile operators was reason for HTC’s early success. HTC relationship with Handspring to develop Treo smartphone facilitated the opportunity to learn about software and User-Interface design. By 2006, HTC was shipping more than 70% of the world Windows Mobile smartphones.

“We always keep on pace with the demand of our end customers, delight them through continuing maintain a close relationship between manufacturing, ongoing Research and Development as well as working closely with supply chain and outsourcing partners, to provide cost-effective, high-quality Smart phone, wireless devices and software to our customers, internationally. Constant Training and Development program and strong culture practices are held to motivate the employees, also, to ensure infinite innovation and creation come out from them. Most importantly, offer attractive

Branding is a tool to make the goods of one producer different from another producer (Keller, 2003). Carroll (2008) asserts that branding is a sign of quality, and it is helpful to increase

Nokia’s aggressive strategy to dominate mobile communication cluster would be the main reason how Nokia could become a world leader in the sector among other reasons. Nokia’s passion for mobile communication industry was great enough to give up more than 40% of its revenue in is pre-owned communication industry to concentrate only in mobile communications. Nokia was also lucky enough to see the possibility of mobile communication early enough to predominate the industry and prevent any competition from

HTC Corporation (HTC) is a Taiwanese operation founded in May 1997 in Taiwan, which is one of the most influential, creative and leading players in global telecommunications with an n increasing influence in the industry’s future (HTC quietly billion, 2012). HTC’s portfolio includes smartphones and tablets powered by the Android and HTC Sense™ operating systems (HTC Annual Report, 2010). Focusing on smartphone market; devoting to innovation and design in the mobile phone industry; and committing to develop exceptional technology and products to cater for the diverse and exceed needs of users are HTC’s current brand strategies. In addition, HTC response to market changes fast and provides

smartphones, first dual-mode GSM/ WiMAX phone, first 3G Android phone, and first 4G LTE Android phone. Also, HTC Sense, launched in 2009, was a momentous breakthrough that revolutionized the mobile phone experience. Consistent innovative product launches also enhance the visibility of the company 's brand. The company 's significant R&D capabilities gives it’s a competitive edge to reach the market first with many industry leading innovations and features. Strong relationships with industry leaders The company has strong relationships with many technology companies and telecom service providers. It maintains strong long-term partnerships with technology industry leaders, including Microsoft, Google and Qualcomm, which serve as active labs of research and development and product evolution. For instance, HTC 's launch of the world 's first Windows Mobile smartphone and first Android smartphone is an example. These partnerships ensure that the hardware, software, and content management and delivery systems are united in seamless and intuitive ways. HTC 's products are currently sold through major carriers and local retail channels in major markets in Europe, the Americas and Asia.

India was lucrative since the Indian handheld market is booming and slowly becoming one of the world’s biggest and fasted growing markets. There being a lack of certain technology, gives HTC the opportunities to fill new market gaps. The company’s products are standardized for the global market, while strategies are adapted to respected countries. HTC seems to be efficiency seeking when looking especially at the Indian market. HTC is selling phones globally and in India they are trying to succeed through International Specialization. The company was benefiting at first, from the lack of top of the line mobile phones in the Indian market. Its future strategy is to keep this trend going. The company is trying to take over the top and middle class mobile phone market in India by being the first to offer the latest and greatest technology available and ignoring the lower class mobile market. It managed to do so already by introducing the first fully touch phone and fully Android powered phone.

Long before now has branding been considered as one of the peripheral aspects of business. Manufacturers, investors and other key players focused on the product without paying much attention to the consumer. But as the business landscape got tougher, marketing became not just an integral part of business but one of the fundamental principles of success.