htc corp in 2009 - gokul

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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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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LG Electronics

Software and User Interface

Strategy Employed Collaboration with Google Android to

provide

An appealing user interface


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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

htc corp in 2009 - gokul

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