Htc : The World 's Most Successful And Innovative Manufacturing Company Essay

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PROBLEM STATEMENT/ KEY ISSUES HTC is one of the world’s most successful and innovative manufacturing company. Their original business plan was to manufacture laptops which had issues because it had “high production costs, technical glitches, and lack of brand recognition”. HTC tackled the PDA market in 2011 and reported their first profit that year. In the early 2000s, their main manufacturing segments was the original design manufacturer (ODM) for branded handset companies and producing phone for wireless network operators. They focused their resources on customized approaches with mobile operators to differentiate HTC from other contract manufacturers which helped them gained a sense of control over their product portfolio. In 2006, they were facing other competitors who were catching up in the ODM market, which gave Palm and HP, two of HTC’s biggest customers, to look for different partners that were cheaper alternatives. Peter Chou, the new CEO that took over 2006, recognized that their company lacked branding. They needed to set themselves apart from its competitors and this will lead to greater control over the company’s future. Thus, is the reason why Chou wanted to release its own smartphone. Serval directors on board disagreed and was worried that “their operator customers could view HTC as a competitor, creating conflict of interest between HTC’s own brand sales and customized phones for the operators” (Alcacer, Kim, Yoffie, 2012). HTC’s marketing strategy was

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