Htc Assignment free essay sample

Yet they are designing the high-end smartphones in the industry that are equipped with most advance features in the market. HTC Corp. has decided to become a recognized global brand in the Smartphone market. This requires: * Restructuring manufacturing operations * Deciding value-proposition * Change of OS * US and China focus * Changes in cost-structure * Intense marketing efforts * Re-orient financial resources * ODM manufacturing (Original Design Manufacturer) * Rethink white label, mass-customization The Value Chain Although HTC Corporation continues to grow, it is not growing initially in 21st Century, so they equip their smartphones with largest and most advance operating system (Android) by partnering with Google Inc. The company has increased their product range and expands their selling network. Involving in new-product development has improved the products range, cutting costs, most efficient and reliable and superior quality smartphones. Core Competencies HTCs product portfolio offers easy-to-use solutions that embrace the full range of mobile multimedia resources, wireless anytime and Internet on the go. It is an Innovative ODM and Premium Priced Phone Maker. It has an extensive range of HTC-branded products around the world. It is the only brand in smartphones that have the largest number of phones equipped with latest android platform. Content is becoming an important strategy of HTC’s future core competency A Holistic Marketing Orientation and Customer Value Value Exploration * Began the first Smart phone innovation in early 2000. * Built operator business model since 2002. * Established unique partnerships with leading mobile brands, including Microsoft, Google, Qualcomm, and major operators in the world. Decided to go HTC own brand since 2006. * Change product strategy from hardware innovation to hardware, software and experience holistic innovation. Value Creation * The first successful brand product launched – HTC Touch in 2007. * Launched the most compelling Windows Mobile product – Touch Diamond in 2008. * Enabled first Android platform in 2008. * Develo p a â€Å"green† image. * Add strong value to your partner. Value Delivery * Communicate HTC innovation to consumer * Fully capture the value of innovation * Create long term shareholder value * To be able to continue to invest on innovation The Central Role of Strategic Planning HTC invested greatly in research and development to create further product innovation. The subsequent differentiation and innovation strategy indeed created a shift in the industry structure as mentioned in Viney and Gleadle (2007). The outreach for China was part of HTC’s overall vision to expand its brand name into the global market. This led HTC’s executive team to ponder on how quickly it had to move to achieve this dream Breakthrough Marketing (Intel) Corporate and Division Strategic Planning Business Level Strategy HTC Corporation adopted collaborative strategies and entered the business smartphone market in strategic collaboration with firms of Windows Mobile operating systems in 1997. After the Global Financial Crisis, the company decided to enter the general smartphone market and expanded its collaboration with the Android operating system by Google. â€Å"HTC sense† was launched in conjunction with HTC’s own brand to build customer value towards the brand. Differentiation focus, Collaborative, Integrated innovative, Cost-reduction, Collaborative, Own brand strategies. Division Level Strategy Customized pull strategy, Flexible production platform, Improve production technology, Strategic supply chain management Product: HTC’s own brand. OEM and provides Otek with own brand products. Price: High-price business products. High-price business mobile phones and mid-range general consumer mobile phones Place: Collaboration with telecommunications providers from Europe, U. S and Japan. Expand collaboration with telecommunications providers in Korea and China to create own brand place. Promotion: Done by distributors. HTC sense and media promotion Defining the Corporate Mission HTCs mission is to become the leading innovative supplier of mobile information and communication devices by providing value-added design, world-class manufacturing and logistics and service capabilities. Diversification is a key element in corporate strategy (Viney and Gleadle, 2006) and highlights a move away from a single industry and a relationship with other organizations, which HTC has indeed accomplished with Google. Strategic Business Units After a hefty search I founded that HTC Corporation has no SBU (Strategic Business Unit) so this topic is skipped. Assessing Growth Opportunities HTC is driven by innovation. This should be maintained as the core focus for HTC’s future strategy. By launching the first 4G Android phone in key markets like the US, HTC has become a pioneer and has a first-mover advantage (Electronista Gadgets for Geeks, 2010). This ability of HTC to bring and innovative technologically-advanced products to market rapidly will help the company compete with key players in the market. By patenting HTC Android Smartphones Market Analysis and Growth Strategy its innovative phone interfaces, HTC will also be able to create a successful differential advantage, which will help the company further build on its image as industry leaders in innovation. HTC and Google are in a symbiotic relationship. HTC is keen to develop its market through Android phones while Google is able to promote Android and other services like Google Maps. Organization and Organizational Culture HTC is committed to driving the growth and capabilities of smartphone echnology. Since its establishment, the company has developed strong RD capabilities, pioneered many new designs and product innovations and launched state of the art PDA phones and smartphones for operators and distributors in the global telecoms industry. It has invested in a strong RD team accounting for 25% of the total headcount and a world-class high-volume manufacturing facility, both based in Taiwan. Since its inception, HTC has pioneered the smart phone market through partnerships with Microsoft and key mobile operators. Additional strategic partnerships include: Intel, Texas Instruments and Qualcomm; some of the largest mobile operators including Orange, 02, T-Mobile, Vodafone, Cingular, Verizon, Sprint and NTT DoCoMo. Marketing Innovation HTC has planned to continue to strengthen organization on talent development, marketing strategy and operation; expand RD capacity by adding 1,000 headcounts for the year. Establish retail preference via a holistic brand management strategy * Content and Service Content is becoming an important strategy of HTC’s future core competency * Management aims to develop a unique and differentiated content experience * Acquired 82 issued patents and 14 patents applications from ADC Telecommunications Inc. for US$75 million –to strengthen wireless patent portfolio * Expand manufacturing capacity by investing NT$2. 8 billion to build a new factory in Taoyuan and US$64 million to increase capacity in China * Formed strategic partnerships with suppliers to secur e supply of key components Business Unit Strategic Planning The Business Mission According to HTC, its mission is: â€Å"To become the leading innovative supplier of mobile information and communication devices by providing value-added design, world-class manufacturing and logistics and service capabilities. † SWOT Analysis Strength As a company, HTC’s main asset is its strong focus on research and development. With about one quarter of its staff employed in research and HTC have several state of the art innovation centers. The flexibility and openness of the Android (OS) system operation courage’s innovation and enriches the applications experience available to end-users. Android OS has proved to attract many developers away from the iPhone due to Apple’s restrictive software development kit (SDK). * HTC chose the right partners (giant players in software industry, such as Microsoft) to cooperate with to enter the market with less risk. * Strength in hardware design and strong manufacture capacity: provides high quality products with high technology and innovation. * ODM saved cost and avoid market entry risk. * The brand HTC was recognized by end users. Weaknesses Despite the global advertising campaign it launched in 2009, HTC still suffers from a weak brand image in comparison to its competitors (e. . Nokia, Apple, and Blackberry). Being an open source, the Android applications domain is currently very loosely controlled. This might jeopardize the security of the system by allowing potentially ill-intentioned suppliers to inject viruses and malware in the system. * Operator business requested customization module for HTC, and customization i ncreased the cost of product and reduced margin (ASP). * Too related on Microsoft’s platform which was not mainstream in the smart phone system market. * Brand awareness is weak. Opportunities The staggering growth in demand for smartphones in emerging economies is a strategic window that HTC should exploit. The professional/corporate users’ segment remains exclusive for many Smartphone companies, with the notable exception of Blackberry. HTC can create a differential advantage in this segment over Apple, whose applications have not yet proved to be enterprise ready. * Other Taiwanese competitors were catching up in the ODM market * Lots of new entrants jumped into handset market. (Apple, Samsung, RIM†¦) * Lots of new entrants penetrated into system platform market. Apple, RIM, Google) * More technology and innovation are used on smart phone. * Product cycles are getting short Threats Like every player in the marketplace, HTC is not shielded from innovative strides made by competitors.