htc inc five forces analysis

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UNIVERSITY OF WALES INSTITUTE, CARDIFF Master of Business Administration MBA 402 STRATEGIC MANAGEMENT Assignment 1 Lecturer: Lucky Cheong Student Name: Ngo Si Hien Student ID: 1106/8578 Submission Date: 7th May 2012 Word count: 2,519 words Table of contents I. Industry background and five force model 3 a. Company’s product and segment of industry 3 b. Demand elasticity of various products 3 c. Cost structure of the Company, economy scale. 4 d. Five forces model 5 The threat of entry 5 The bargain power of suppliers 6 The threat of substitutes 6 Bargaining power of customers 7 Competitive Rivalry 7 II. Position and Strategy 7 a. Position…show more content…
And many specialist predict that HTC will continue lose their economic scale in year 2012. (http://www.businessweek.com). d. Five forces model The threat of entry: As mention about HTC Corporation has good cost structure, but it also has to face with the down trend of economic scale. Well manage cost structure helps company earn profit and maintaining the operation of the company, but if HTC Corporation cannot increase their output, they will not have abilities to compete with their competitors in the future. Secondly, the competition in Smartphone is very cutthroat, and almost all producers of this industry always have to invest in technology in order to producing the latest Smartphone. HTC Corporation is not an exception; the company has to pay a large amount of money in inventions, intellectual property and patens. The budget for research and investigate may be the weight for the company, however luckily HTC Corporation has an excellent global operation system and it also is an advantage of the company. (HTC website htc.com) Thirdly, the distribution channel of HTC Corporation is new and more underdeveloped than the competitors, Apple, Samsung, Nokia have sewed up retail system all over the world. HTC is a new company which is established in 1997 so this is a disadvantage of HTC Corporation. Another threat of entry is retaliation of the competitors; year 2011 is year of patens violation for the Smartphone industry. Many

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