The Future of HTC

The issue of the Case HTC is what strategy should HTC take to compete the increasing smartphones rivals in a long term, and let Taiwan to be synonymous with HTC and become a powerful, global brand like Nokia or Samsung Electronics.

yanglin_GA2011960920 wrote:The issue of the Case HTC is what strategy should HTC take to compete the increasing smartphones rivals in a long term, and let Taiwan to be synonymous with HTC and become a powerful, global brand like Nokia or Samsung Electronics.

HTC has a good vision for a powerful, global brand, and is on the way with some success. However, it should be realized that HTC has a weak brand identity in the US market and still has a long way to fulfill its brand dream. Currently HTC has an increasing innovation system and set up a good alliance with Andriod, one open and strong OS platform and a couple of giant network service operator. For the future competition, the product lifecycle is becoming shorter, the product is more functional, the product cost keeps going downward, HTC should strengthen the global market strategy and its innovation system, improve its process to reduce the production cost, to compete the increasing rivals.

It's strength lies in the innovation, the high quality product and it's experience accumulated with it's willingness to collaborate with the operators for customized smarphones and the ODM business for brands. To maintain a sustainble growth in the fast changing industry, HTC decided to create it's own brand. It brings more challenge to itself such as conflict of interest with it's customers, the cost increase as a brand owner and manufacurer, lack of own operating system and etc. Maybe copy and collaboration is a good start for a new brand, merge would be the seond step for this company to get the resources it lack of. Apple is a good pioneer to be learnd from.

Jindong wrote:

yanglin_GA2011960920 wrote:The issue of the Case HTC is what strategy should HTC take to compete the increasing smartphones rivals in a long term, and let Taiwan to be synonymous with HTC and become a powerful, global brand like Nokia or Samsung Electronics.

HTC has a good vision for a powerful, global brand, and is on the way with some success. However, it should be realized that HTC has a weak brand identity in the US market and still has a long way to fulfill its brand dream. Currently HTC has an increasing innovation system and set up a good alliance with Andriod, one open and strong OS platform and a couple of giant network service operator. For the future competition, the product lifecycle is becoming shorter, the product is more functional, the product cost keeps going downward, HTC should strengthen the global market strategy and its innovation system, improve its process to reduce the production cost, to compete the increasing rivals.

In my opinion,this HTC case would let us to think that in competitive market, ten years short HTC from an unknown to the public companies to become the fourth biggest mobile phone makers, HTC is how to establish its brand and how will develop henceforth? I just summarize simply as follows 1.Operating system
There is not have its own operating system, many aspects will be restricted, the best method is to develop or buy off-the-shelf operating system to match their products.
2.Technology
HTC need always keeps the "technological innovation" in order its R & D team keeps high speed growth.

Luo Jian wrote:

Jindong wrote:

yanglin_GA2011960920 wrote:The issue of the Case HTC is what strategy should HTC take to compete the increasing smartphones rivals in a long term, and let Taiwan to be synonymous with HTC and become a powerful, global brand like Nokia or Samsung Electronics.

HTC has a good vision for a powerful, global brand, and is on the way with some success. However, it should be realized that HTC has a weak brand identity in the US market and still has a long way to fulfill its brand dream. Currently HTC has an increasing innovation system and set up a good alliance with Andriod, one open and strong OS platform and a couple of giant network service operator. For the future competition, the product lifecycle is becoming shorter, the product is more functional, the product cost keeps going downward, HTC should strengthen the global market strategy and its innovation system, improve its process to reduce the production cost, to compete the increasing rivals.

In my opinion,this HTC case would let us to think that in competitive market, ten years short HTC from an unknown to the public companies to become the fourth biggest mobile phone makers, HTC is how to establish its brand and how will develop henceforth? I just summarize simply as follows 1.Operating system
There is not have its own operating system, many aspects will be restricted, the best method is to develop or buy off-the-shelf operating system to match their products.
2.Technology
HTC need always keeps the "technological innovation" in order its R & D team keeps high speed growth.

I agree that self-developed OS will be HTC's choice,but it should be a long-term goal. This is because:
1. For HTC, does it have the core competitive including the technology ability and its influence on the corresponding industry chain to develop one popular OS platform by itself at this moment? It doesn't at least in a short-term future.
2. HTC already selected one open OS platform, Andriod, which is powerful to add market value to HTC. It is a low-cost operation choice to support its business growth.

So in the short term, HTC need concentrate on its hardware part to develope more portfolios of smart phone with its innovation system to increase its brand identity. Meanwhile, it also need reduce the operation cost to win more opportunities to entering into wider market.
In a long term, it need take the self-developed OS into account to reduce the dependency on the third-party OS platform. In this way, it can have more control on developping a new category of smartphone by its disruptive strategy. For instance, NFC (Near Field Communication) application is becoming hot and should be a good opportunity for it to refresh the market.

Actually, HTC has another big challenge that it has the trend of homogenization compared with Samsung, the mobile of these two brands all have beautiful and impressed outside and with Android platform, they should more focus on the design, research and development of hardware to make difference, for example, more standby time, higher resolution, lighter wight etc.

In my opinion,HTC should put efforts on the operation strategy optimization instead of business strategy transformation.Here are some recommdations that HTC can take into consideration:
•Increasing the gross profits from its loyalty users by reducing product cycle and providing value-add services;
•Strengthening its innovation and R&D, and providing great products to be suitable for different markets;
•Improving the operation efficiency by centralized purchasing and process optimization;
•Starting online brand promotion and building up a team to collect online feedback information and creating a process/organizational structure to quickly respond to the feedback.

HTC is very competitive except that HTC Mobile outlook design still need to be improved..........

To get survived I think HTC should choose or made or buy its own operation system. It is heard that HTC will purchased WebOS, which has been spun-off by HP. Maybe that would be a good beginning. The flaw of Andoria is unavoidable, the operation process of its RAM slow the whole systems. I am not sure if GOOGLE could solve the problem, but it would be better to say goodbye sooner than later.

i don't agree with the opinion that HTC should control its own platform,because it's not its advantage ,and it need increase R&D cost .In its history ,HTC gained a lot from the stable coopertaion with MS,which could offered it advanced Platform.At present ,it also succeed by using Android.But what has Syban taken to Nokia?

yanglin_GA2011960920 wrote:The issue of the Case HTC is what strategy should HTC take to compete the increasing smartphones rivals in a long term, and let Taiwan to be synonymous with HTC and become a powerful, global brand like Nokia or Samsung Electronics.

As a former ODM, HTC is lack of marketing experience. However, brand building is now the utmost critical for HTC. Without high brand awareness, there is no way to open the market. And with the different natures of different markets, its market strategies in U.S., Asia and EU are different. Also, continuously driving the cost down through large scale production, offshore operation and open-sourced platform leveraging is also a big task for HTC to fulfill its final mission of making profit and stay competitive. Last but not least, through diversifying its product line, HTC can expand its market base, improve its brand awareness and also reduce risks resulting from singularity.

HTC keeps expanding its customer scope - from ODM customer, mobile operator, to end user. In the future, HTC can expand to more customers.
HTC is a mobile manufacture without OS. It starts to use Andriod, an open source OS, to run applications on it. The final users are using applications in the mobile. Both mobile and OS are carriers for the applications. And there are so many applications developer. The application developer are potential customers to HTC. It can also provide service to application vendors in the future. If HTC can provide enough attractive applications to the customers, it can PK with apple and other mobile manufacture.

Han Min

yanglin_GA2011960920 wrote:The issue of the Case HTC is what strategy should HTC take to compete the increasing smartphones rivals in a long term, and let Taiwan to be synonymous with HTC and become a powerful, global brand like Nokia or Samsung Electronics.

1, Continuous innovation in smartphone area and further its product ranges in intellectual products as that would be the future trend
2, Strengthen its power in related patents by self-development and M&A, this is the key point
3, Focus on UI design
4, OS is important, applications upon the OS are even more important.

HTC is looking for a way out for Taiwanese Manufacturers. For mid term, manufacturing would still be a strength for HTC. And Google would be a reliable partner.

However, we can look a the history of PC industry. Compaq was substitution of IBM, and Compaq won by cutting its cost of manufacturing. Years after that, Asian manufacturing took over the cost advantage. Compaq fell to find any new things for its brand and it failed!

When Google's Android would became matured, the handset provider can be easily replaced. Samsung and SE maybe would still be willing to keep a low profit strategy. Then, HTC would sure face a hard time. To avoid this situation, HTC need more aggressive strategy to make best handset than Samsung, SE, Moto and so on. It is DIFFICULT.

In the fast evoluting tech era, HTC, as well as any other company, has to keep innovation in product to keep the upper hand.

As a not-that-well-known brand, when HTC is design its product to meet the need of ender user, the core competitive item: engineering cannot be left behind. Of course, it is a large group of versitale talents working on the chips and the user interface together.

Push too more on the sales/marketing chanel but lost the tech innovation standing point, HTC may fall down after a quick boom.


-----Carol Yang/Yang Jiaxn/2011GA-----

HTC smart phones seemed had no clear strategy in customer segment. With Blackberry targeting to the business people and iPhone targeting those rich and fashion guys, it was an embarrasing environment for HTC to have a step in.

Since smartphones are not only popular in high-end market, but also be attractive to those not that rich. Oppotunities existed if HTC could leverage its innovation strength to develop cheap smartphones so as to build the share in the comparatively low-end market, as there are always more consumers in the lower level of the pyramid.

In my opinion, HTC is a quite competitive company, has good experience and background in this area, shall becoming a powerful and global brand.
The weakness is brand perception, time is needed for brand perception in mass, anyway, currently HTC has an increasing innovation system and set up a good alliance with Andriod, it is a health way to develop. Indenpendent R&D is importance for it, and strengthen the global market strategy as well.

1,For HTC, build the brand value is very important. Appple equals simplicity, RIM equals business mobile e-mail.What does HTC stand for?
2,Also,HTC should keep the relationship with customers, emphasis on users' experience, promote HTC brand maturity and permeability.
3,HTC should pay more attention on development of software.
Thus, HTC may become a global brand in the future.

after the discussion this afternoon, i still thinking HTC's way, comments maybe two ways:

1) Rethinking what's IPHONE's weakness, from application view, it is popular in young generation, but it is not convenience for some elder people, especially in China, most of IPHONE's value added service are in English. So, that is a good access for HTC in Chinese market, especially HTC is a good Chinese culture background company.
2) disruptive innovation, touch screen is a revolution for phone industry, but still have somebody do not like touch, favor on keyboard. Now, almost no company focus on this market any more. so there are big space for HTC, in my opinion.

If HTC want to go futher, they have to build their platform (operation system). They are building a brand of cell phone which is consisted by the hardware and the software. with the development of the smart phone, software becomes more and more important. With out its own software, HTC is a walking dead.

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I agree that self-developed OS will be HTC's choice,but it should be a long-term goal. This is because:
1. For HTC, does it have the core competitive including the technology ability and its influence on the corresponding industry chain to develop one popular OS platform by itself at this moment? It doesn't at least in a short-term future.
2. HTC already selected one open OS platform, Andriod, which is powerful to add market value to HTC. It is a low-cost operation choice to support its business growth.

So in the short term, HTC need concentrate on its hardware part to develope more portfolios of smart phone with its innovation system to increase its brand identity. Meanwhile, it also need reduce the operation cost to win more opportunities to entering into wider market.
In a long term, it need take the self-developed OS into account to reduce the dependency on the third-party OS platform. In this way, it can have more control on developping a new category of smartphone by its disruptive strategy. For instance, NFC (Near Field Communication) application is becoming hot and should be a good opportunity for it to refresh the market.

[/quote]

To develop the OS is a way to suceed, but the risk is very high. The competition of mobile phone is the competition of operation system. HTC had many advantages in making the phone, but did not familiar with the R&D of the OS. It need more resources and investment, also need time. If the OS they developed does not meet the market, then they will lose their leading position.

3 main points：
Firstly, developing its own smart phone operating system or through the acquisition of some new operating system providers to achieve. There are two merits, one is HTC no longer will worry about Microsoft and Google’s patent and license fees and increasing R&D costs. Encourage designers to afford applications to this platform. The other is solving the mainly bugs and optimizing design and process to improve the user experience better and faster.
Secondly, accelerate developing its App Store once having its own operating system and actively encourage software developers to provide software, share the revenue, it is the same way as Apple's app store.The cost of investment to this platform is not high, it will be completely developed by themselves or buy a company for support. Setting up an App Store is not only for the consumers’ needs, but also help to enhance HTC's brand. And form a complete product and service solution, from hardware to software.
Thirdly, enhance the influence of HTC brand, and increase user loyalty to buy HTC. HTC could do some marketing campaign such as outdoor advertising, television advertising and establish electronic store to exposure its brand, with offering end-to-end and one-stop services to enhance the experience to HTC brand.

another solution especially in China,learn the copy mobile phone for the low-end market with price on less than 1000￥ per unit，using the handset brand of Dopod.

zhuhuanhuan wrote:It's strength lies in the innovation, the high quality product and it's experience accumulated with it's willingness to collaborate with the operators for customized smarphones and the ODM business for brands. To maintain a sustainble growth in the fast changing industry, HTC decided to create it's own brand. It brings more challenge to itself such as conflict of interest with it's customers, the cost increase as a brand owner and manufacurer, lack of own operating system and etc. Maybe copy and collaboration is a good start for a new brand, merge would be the seond step for this company to get the resources it lack of. Apple is a good pioneer to be learnd from.

Recommendation:
1.For the operator part, with its traditional approach of making customized phones for mobile network operators, HTC can aim on dominant players to enlarge market share, but it is necessary to use common components on those customized products to reduce expenditures.
2.Persistent in the innovation tech. and high quality, for the key to creating a powerful brand was to focus on R&D to produce cutting-edge smart phones.
3.Value the brand with focuses on smart- phone area and high end consumers is a way for HTC to stand out in the market. Collaborate not only with Microsoft’s Windows system, but also with the new powerful entrant Google’s Android to expand its product categories.
4.Take action in brand building and market penetration in US market where 80% of the consumers wanted to buy a phone that cost less than $200 and 60% plans to purchase a new mobile phone within the next 12 months, and make full effects to lower the ASP.

On my opinion, HTC will have the chance to success, its future will fine, as it has many strength and advantages such as: good manufacture experience in mobile phones industry, located at China, which can provide low labor and also will be the biggest customer market in the world, and so on.

But the critical suggestions for HTC will be:
1, Should focus on patent and intellectual property development, to add RD&D budget to develop them, or like Google does, to find good intellectual property and patent resource and purchase them. This is very critical in future competition.
2, Keep in strengthen the brand image, improve the service quality, to make customers feel HTC is the BMW of smart phone market.
3, It is need to decrease the component cost. And make full use of the low labor cost advantages in Mainland.

I was deeply impressed by what Prof. Ali had commented in the class that "Many other Chinese companies are looking at HTC closely. You know why? Because what HTC is facing today is just what they are going to be facing tomorow." What I am thinking more about is just the dim prospect of these middle small sized Chinses companies who are facing the much more severe predicament than ever before. Can HTC continue to set up the example for them to survive in the new hi-tech era ?

Sincerely wish the bright future of HTC and will closely focus on its further step. Hope it could become the pioneer and explore some more appropriate ways for the Chinese corporations.