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Question:

Critically Analyse the Business Strategy of HTC.

 

Answer:

The Competitive Strengths and Weaknesses of HTC

HTC is the second largest manufacturer of handset in Asia which mainly based in Taiwan. The strength of HTC is their ability to cooperate with their partners as a result of which they do not feel to have an operating system of their own. The SWOT Analysis of HTC will help us to get an overview about the competitive strengths and weaknesses of the company (Yoffie, 2012).

 Strengths and Weaknesses of HTC

(Source: Craigmoliver.com, 2013)

The competitive strengths of HTC – The most important strength of HTC is that it is the leading manufacturer of the PDAs Smartphone. The biggest strength of the company lies in the fact that it is expanding quickly in the world and it is drawing more and more customers from all over the nation. The company has also become successful brand that is recognized by everyone. The research and development has become a strong set up in the case of HTC. The research and development has been given more significance in the case of HTC as it helps the company to be familiar with the demand of the customers.

Strength of HTC is that the portfolio of HTC broad enough with 42 phone products till date. The customer service of HTC is also broad as the company helps to cater to the demand of both the domestic and the global customers.

The competitive weaknesses of HTC – one of the most common weaknesses of HTC is that they do not have an operating system of their own. The brand is also not much recognized in the market. For example, if any elder person comes to a mobile store they will either ask for Microsoft or Apple or Samsung. However, they will not be aware of the brand HTC as it is not so famous.

Sustainability of HTC’s position

In terms of sustainability, HTC has accomplished the E-label. However, there are very less information regarding the policy for sustainability of HTC (Yoffie, 2012).

1.The policy of HTC to compensate the emission of carbon

There are several measures that have been implemented by HTC in order to reduce the carbon emission that harms the climate. The measures include the management program related to the energy efficiency.

2.The disclosure of the absolute carbon footprint

HTC has been successful to reduce the climate footprint.

Strategic Actions that would move HTC into the Top Three

The strategic actions that will help HTC to move into top three are as follows:

Innovation – This is one of the most important actions that need to adapted by HTC that is the innovation of its products. According to Chou and Wang, the most important way to create a powerful brand is by introducing advanced Smartphone. HTC already has a magic lab that deals with innovation. If they make of this lab more appropriately then it will be able to move into top three (Yoffie, 2012)

Brand Reputation – the brand reputation of HTC should expand in order to move to top three.

HTC differentiate its products as more handset manufacturers enter the Android market

With each passing days, there are many handset manufacturers entering the android market. In order to differentiate its products the company needs to focus on strong partnership as well as exceptional multimedia experiences and their ability to get adapted to the market demand.

The strong partnership will help the company to get differentiated from its competitors. The partnership of HTC included the coalition with Google in the year 2008 in order to launch the first Android phone. The company has also built an attractive relationship will Facebook in order to launch such phones which are designed with a Facebook button. This type of partnership will help the company to differentiate its products from the other manufacturers of HTC (Yoffie, 2012).

The second most important way by which HTC can differentiate its product from the other manufacturer of handset is by generating an exceptional multimedia experience. The company had offered the function of taking photo while recording video in its phone which has helped its product to differentiate its products from the other manufacturers of HTC. The strategy made by the brand that helped the brand to get differentiated from others will help the company to survive in the competitive market.

 

Should HTC abandon the tablet market

In the case of the mobile device makers, tablet has emerged as the most modern technology front line in the case of the makers of the mobile device. The tablets were sold in the U.S. by retail store as well as carriers and the third parties. Although, the introduction of Tablet has created an indentation in the sales of Laptop, but the tablet market was not able to affect the business of HTC phones (Charles Arthur, 2011).

As per the recent reports, HTC has pulled out of the tablet market in the US. It has been stated that the youth will prefer to buy the tablet before opting for a Smartphone as they do not have to pay for the data if they go for a Tablet. Since the IPad by Apple is very expensive, the consumers will prefer a tablet by Android that will be reasonable. Taking all the information into consideration, HTC should not abandon the tablet market (Gartner, 2011).

HTC’s OS strategy

The likely option for OS strategy was contemplated by HTC which in turn led the company to team up with Google in order to make the first Android handset in the world. As per the recent reports, HTC has been developing an operating system for the market in China. The software of the OS will comprise of the micro blog Weibo which is similar to that of Twitter and they have also sent some samples to the government of China for the purpose of checking (Frier and Tim Culpan, 2011).

HTC though thought of launching its own software in the US, however, it has lost the market share to its competitors that included Samsung. According to Chou, the most significant way to influence their partnership is by associating with both Microsoft and Google (Cher Wang, 2009).

Strategic Objectives

HTC was successful in grabbing a vital market share in the Smartphone industry. The strategic objectives of HTC are as follows:

HTC followed the product portfolio objective by which the company renamed its product when it faced downfall.

With the sense of HTC, in the android market it became successful in differentiating its product from others.

It is the ninth largest in the market for mobile devices

In terms of innovation, it is the 31st most innovated brand (Sarah and Tim, 2011).

Dialectic Approach to Evaluate the Recommended Strategy      

The dialectic approach mainly deals with the situation in which two or more group’s converse the problems in order to analyze numerous points of view into a complete framework. It is thus recommended that HTC should not abandon the tablet, as it is an additional benefit for the company. HTC should also introduce an OS of their own as it will something new for the company to try out in a competitive world where there are numerous suppliers of Android. HTC should differentiate each product so that it can survive in the competitive market.

 

References

“Kenneth Leon, “Telecommunications: Wireless, S&P Net Advantage Industry Survey, May 26, 2005.

Charles Arthur, “iPad to Dominate Tablet Sales until 2015 as Growth Explodes, says Gartner, “ The Guardian, Sept 22, 2011.

Cher Wang, interview by casewriters, Taipei, Taiwan, February 23, 2009.

eMarketer, “US Mobile Phone Users, by Device Type and OS, July 2011, :Sept. 1, 2011.

Gartner says Apple Will Have a Free Run in Tablet market Holiday Season as Competitors Continue to Lag ,” Gartner Press Release, Stamford, CA, Sept. 22, 2011.

HTC End-User Satisfaction Research Survey” Q3, 2011, internally published by HTC.

Jason Tan, “Never Mind the Lawsuits, HTC in On Buying Spree,” PCWorld, Sept 6, 2011, https:// www.pcworld.com, accessed November 2011.

Sarah Frier and Tim Culpan, “HTC’s Anti-Apple Strategy Wins U.S Market, “ Bloomberg, November 10, 2011.

Yoffie, D. (2012). HTC Corp. 2012 (pp. 1 - 14). David Yoffie - file:///C:/Users/absas_3k/Downloads/860607_1647254814_HTCCase%20(4).pdf

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