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8/2/2019 HTC Corp in 2009 - Gokul
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HTC Corp. in 2009
Presented ByGroup T1
Anoop RGokul Krishna J
Isha PandeyVenkatesh Iyer
Sindhu Krishnan
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About the Case
HTC was started in 1997 by HT Cho & Cher Wang
First PDA in 2000 iPAQ
PDAs to Wireless devices
Original design manufacturing and Mobile operatorbusiness
Microsoft CE
Selling in their own brand name (2007)
Android operating system
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Challenges before the Company
1. Brand Promotion
2. Global recession in 2009
3. Competition within the industry
4.Growing Manufacturing costs
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SWOT Analysis of HTC
Strengths Weakness1. Strong setup of R& D2. Contract with Android &
Windows3. Financial Performance
1. Brand Name2. High Manufacturing cost3. Small range of cell phone
models
Opportunities Threats1. Increasing demand for
touch screen with 3Gtechnology
2. Untapped china market3. Shorter product life cycle4. Growing market for smart
phone applications
1. Rapid technologicalchanges
2. Intense competition withinthe industry
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5 Force Analysis
Rivalry amongexisting firms
Threat ofnew entrants
Bargainingpower ofsuppliers
Threat ofSubstitutes
Bargainingpower ofBuyers
1. Raisingmanufacturingcosts
BenQAcer
1. Nokia2. Samsung3. Apple4. RIM
1. Mobile NetworkOperators in USA andEurope
2. Direct customers inAsia
1. Laptops2. PDAs
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Porter Generic Strategy
Nokia LG AppleHTC
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Competitive Strategy
Target segment different from those of the wellestablished industry giants
Apple ---- Sophisticated consumers
Research In Motion --- Larger Enterprises
Nokia -- All segments
HTC ---High end of the prosumermarket(professional + consumer)
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COMPETITIVE STRATEGIES
Nokia Non compliance to U.S. operators customization
demands
Strategy Employed Highly customized approach to provide unique value
proposition and optimize service
Shorter product cycles to gauge customer
preferences
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COMPETITIVE STRATEGIES
Samsung Heavy marketing campaigns that weakenedoperating profit margins
Strategy Employed Sales and Marketing of HTC: 6% of total sales
Sales and Marketing of Samsung : 12% of total
sales
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COMPETITIVE STRATEGIES
LG Electronics
Software and User Interface
Strategy Employed Collaboration with Google Android to
provide
An appealing user interface
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COMPETITIVE STRATEGIES
APPLE Restrict iPhone Network to one networkoperator in markets
Strategy Employed
Collaboration with Android potential to run onany network and any platform
Leveraged on the first mover advantage inmarkets of Asia
And Europe
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Strategic Recommendations
Leverage the Economies of Scale
Advertise effectively
Expand markets in Asia and Europe
Develop a proprietary operating system
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Sustaining the strategies
Keep the Operating system as a proprietary
Update the operating systems regularly andprovide customized applications
Produce more touch screen models
Compete in the mid cost segment after achievingeconomies of scale
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Thank You