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    HTC

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    Cheyee Tao
    HTC has experienced strong growth in the smartphone market and became one of the top 10 mobile phone companies in 2010. While it has strengths in product quality and popularity in urban markets, it faces threats from cheaper substitutes and competition from other prominent brands. A SWOT analysis identified key opportunities for HTC in the growing Android market as well as weaknesses in hardware issues, lack of marketing, and high prices.

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    HTC

    Uploaded by

    Cheyee Tao
    369 views6 pages
    HTC has experienced strong growth in the smartphone market and became one of the top 10 mobile phone companies in 2010. While it has strengths in product quality and popularity in urban markets, it faces threats from cheaper substitutes and competition from other prominent brands. A SWOT analysis identified key opportunities for HTC in the growing Android market as well as weaknesses in hardware issues, lack of marketing, and high prices.

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    HTC has experienced strong growth in the smartphone market and became one of the top 10 mobile phone companies in 2010. While it has strengths in product quality and popularity in urban markets, it faces threats from cheaper substitutes and competition from other prominent brands. A SWOT analysis identified key opportunities for HTC in the growing Android market as well as weaknesses in hardware issues, lack of marketing, and high prices.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    369 views6 pages

    HTC

    Uploaded by

    Cheyee Tao
    HTC has experienced strong growth in the smartphone market and became one of the top 10 mobile phone companies in 2010. While it has strengths in product quality and popularity in urban markets, it faces threats from cheaper substitutes and competition from other prominent brands. A SWOT analysis identified key opportunities for HTC in the growing Android market as well as weaknesses in hardware issues, lack of marketing, and high prices.

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    SWOT Aanalysis

    Environmental Analysis : 1. Opportunity: The cooperation between HTC and the global important telecommunication manufacturers formed a linkage effect. The successful cases of promotion for smart mobile phone by French Telecommunication and Germany Telecommunication had brought about the other telecommunication manufacturers to follow for inquiry, in attempt to duplicate the similar cooperation model to reduce procurement cost and to exploit the data service market for customers on mobile devices, therefore to consolidate the foundation of the wireless communication field for the future. What customers concern is the functionality of smart mobile phone rather than the preference or loyalty for particular operation platform. In coming Broadband Age, customers will change their habit of usage, to make use of mobile phone for internet communication. 2. Threat Customers still concern with brand image when selecting for mobile phone. Fully with the marketing style of the big telecommunication manufacturers and the channel brands are still hardly to compete with the big mobile phone manufacturers which are aggressively engaged in deployment for smart mobile phone. Meanwhile, the unfair competition and low price strategy among Taiwan OEM manufacturers will quickly duplicate the cooperation model with the telecommunication manufacturers. On the other hand, in order to reduce production cost, the big mobile phone manufacturers provide technical supports and consign Taiwan OEM manufacturers to produce high-end smart mobile phone for them to carry on market penetration. Furthermore the functional type mobile phones which also belong to high-end mobile phone products are transformed to enhance data function, this will also threaten the smart mobile phone in market position Resource Analysis: 1.Strength: Possess with ample experience in research and development (R&D) and foundation on handhold devices, together with the full supports from cooperation partners, to develop related application technology.Existing customers include big PC manufacturers, big mobile phone manufacturers, channel distributors and service providers, all are familiar with channels of communication devices, therefore can employ existing customer relationship in various aspects to promote the smart mobile phone. 2.Weakness

    The business growth is rapid enough while the infrastructure can not keep pace with market development, such that logistics can not immediately support the front-line order fulfillment and response to market fluctuation.The product belongs to introduction stage or growth stage and most materials do not be standardized or are monopolized by a few manufacturers. The procurement negotiation ability and the responsive ability for market materials are poor.With company rapidly grows up, personnel amount expands too fast, while the education and training are inadequate, therefore personnel need to cultivate and enhance their professional competence.

    STP Segment Target Group Positioning Stylish and smart touch phones Urban people from middle and upper income class Device which is helps in communication and also serves as an entertainment device SWOT 1.Known for best overlay of Android OS with HTC interface 2.High product quality 3.Highly popular in the urban market 1.Mostly Touch phones 2.Hardware issues 3.Lack of advertising and marketing 4.High price 1.Growing and untapped market for Android 1.Threat from cheaper substitutes 2.Other prominent brands Competition 1.Samsung Galaxy 2.Sony Ericsson Xperia 3. LG Optimus 4.Apple iPhone

    Strength

    Weakness Opportunity Threats

    Competitors

    The top 10companiesin the mobile market in 2010.

    In 2010, HTC became one of the top 10 mobile phone companies (feature and s m a r t p h o n e i n c l u s i v e ) s e l l i n g 5 . 9 m i l l i o n u n i t s w i t h a m a r k e t s h a r e o f 1 . 8 % ( Gartner Newsroom, 2010). For the smartphone business alone, HTC has experienced a surge in its market share by 73.3% in the last year and currently holds a market share of about 4.8%( IDCPress Release, 2010).

    Mission
    To become the leading innovative supplier of mobile information and communication devices by providing value-added design, world-class manufacturing and logistic and service capabilities.

    5 Force Bargaining Power of customer


    HTC customers comprise of retailers, service providers and end-users. Service providers and retailers have a strong influence on HTC. Their willingness to addHTC products to their portfolios and their capacity to entice users through phone discounts and multiple service offerings magnifies the bargaining power of these service providers and retailers(Chip, 2010). The single end-user influence on HTC is negligible. However, as a collective, these end-users set new trends thereby influencing the company by exercising their buying preferences the company set new trends thereby influencing by exercising their buying preferences.

    Bargaining Power of Suppliers


    Phones are normally assembled using components from various suppliers. Then tell actual property for these components is owned by the OEM`s (in this case,HTC). This structure allows

    HTC to quickly switch between different suppliers to meet demand. For example, when HTC faced supplier problems with its AMOLED displays, it switched quickly to Super LED displays (Computerbild, 2010). Thus the supplier bargaining power is quite minimal. HTC and Google are in a symbiotic relationship. HTC is keen to develop itsmarket through Android phones while Google is able to promote Android andother services like Google Maps (Winfuture, 2010). Both parties have an interest in developing the Android eco system.

    Threat of new entrant


    The smartphone market being highly competitive has a significant threat of new entrants. Some of the potential barriers that could work in HTCs favour are listed below: a. Economiecs of scale and capital requirements Due to high manufacturing costs, to reach a break-even point, significantly high quantities of phones have to be sold in the market.. b. Differentiation Technology patents are a barrier for new entrants (Heise, 2010).Only Developing developing new technology might can help overcome this barrier. c. Access to distribution new entrants need to establish relationships with service providers. Selling products via the Internet is possible but raising public awareness limits selling opportunities (The Wall Street Journal, 2010).

    Threat of substitute products


    PDA, tablets, smartphones etc. are based on similar architecture and are converging into the same segment. So there is a risk that the demand of smartphones can be absorbed by a substitute such as a web-enabled tablet.

    Competitive rivalry within industry


    Existing competitors are the biggest challenge in the market. This is the biggest force in play. Brand development and innovation are key to sustainability (Heise, 2010). This entire analysis can be summarised using the Spider diagram (see Figure5)Please refer to Figure 5 for the analysis summary.

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