HTC Corp.

in 2009
Presented By Group T1 Anoop R Gokul Krishna J Isha Pandey Venkatesh Iyer Sindhu Krishnan

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 operator business Microsoft CE Selling in their own brand name (2007) Android operating system

Challenges before the Company

1. 2.

Brand Promotion Global recession in 2009

3.
4.

Competition within the industry

Growing Manufacturing costs

SWOT Analysis of HTC

Strengths 1. Strong setup of R& D 2. Contract with Android & Windows 3. Financial Performance Opportunities 1. Increasing demand for touch screen with 3G technology 2. Untapped china market 3. Shorter product life cycle 4. Growing market for smart phone applications Weakness 1. Brand Name 2. High Manufacturing cost 3. Small range of cell phone models Threats 1. Rapid technological changes 2. Intense competition within the industry

5 Force Analysis
Threat of new entrants
BenQ Acer

Bargaining power of suppliers

1. Raising manufacturing costs

Rivalry among existing firms

1. 2. 3. 4. Nokia Samsung Apple RIM

Bargaining power of Buyers

1. Mobile Network Operators in USA and Europe 2. Direct customers in Asia

Threat of Substitutes
1. Laptops 2. PDAs

Porter Generic Strategy

Nokia

LG

HTC

Apple

Competitive Strategy

Target segment different from those of the well established industry giants Apple ---- Sophisticated consumers

Research In Motion --- Larger Enterprises

Nokia HTC -- All segments --- High end of the prosumer market (professional + consumer)

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

COMPETITIVE STRATEGIES
Samsung Heavy marketing campaigns that weakened operating profit margins

Strategy Employed
Sales and Marketing of HTC: 6% of total sales Sales and Marketing of Samsung : 12% of total sales

COMPETITIVE STRATEGIES
LG Electronics Software and User Interface Strategy Employed Collaboration with Google Android to provide An appealing user interface

COMPETITIVE STRATEGIES
APPLE
Restrict iPhone Network to one network operator in markets
Strategy Employed Collaboration with Android potential to run on any network and any platform Leveraged on the first mover advantage in markets of Asia And Europe

Strategic Recommendations

Leverage the Economies of Scale Advertise effectively

Expand markets in Asia and Europe

Develop a proprietary operating system

Sustaining the strategies

Keep the Operating system as a proprietary Update the operating systems regularly and provide customized applications

Produce more touch screen models

Compete in the mid cost segment after achieving economies of scale

Thank You