The Strategic Position of HTC

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The Strategic Position of HTC

Post  loujia on Tue Oct 11, 2011 10:58 am

(1)Keep on the Forefront of Technology & Innovation
Where should HTC participate in this expanding value chain? What should we do to make HTC unique in one of the most exciting, innovative categories in the technology world? The only answer is to be an the forefront fo technology an innovation. During the past 10 years, HTC made relentless commitment to R&D.
●Largest Windows Mobile Device R&D team worldwide.
●Strong management experience in handheld market.
●Unparalleled design expertise in RF, logic , software, mechanical and power.
●Multimedia.
(2)The Road To Brand
The outreach for China was part of HTC’s overall vision to expand its brand name into the globalmarket. This led HTC’s executive team to ponder on how quickly it had to move to achieve thisdream. HTC already have the products, but its competitors are coming…HTC has to penetrate fast. At the same time, HTC has to go carefully on the brand, first concentrate on building brand value—that is, more cutting-edge, innovative products such as the Diamond to earn the respect of the end users. Thinking about brand value—Apple equals simplicity, FedEx equals speed, RIM equals mobile e-mail, What does HTC stand for? So it is time for HTC to start brand strategy.
Indeed, brand-awareness market surveys conveyed that the HTC brand still had a long way to go in the U.S. market as compared to Europe or Asia. A survey revealed that 60% of U.S. consumers had plans to purchase a new mobile phone within the next 12 months, preferably a phone that offered functionality beyond basic calling. Seven in 10 consumers preferred a brand with a proven track record. Although few U.S. mobile phone owners were aware of the HTC brand, the majority of those who did own an HTC handset ranked their satisfaction level with a score of 8 out of 10 or higher.
(3)Build strategic alliance with OS company
The mobile phone operator business not only provided better margins, it also helped to differentiate HTC from other ODMs. HTC would add or remove a certain function on a handset according to the operator’s target geographic market. This highly customized approach added costs for HTC, for example, the number of R&D employees exploded.
Although the ODM and mobile operator business continued to bring in profit margins as high as 20% compared to an industry average of around 5%, there is pressing need for HTC to change its strategy. It should try to avoid competing with Nokia or Motorola, as HTC do not plan to like them.

loujia

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Re: The Strategic Position of HTC

Post  Joel-11GB on Tue Oct 11, 2011 4:45 pm

Apple and Jobs made a big miracle by its product iPhone. HTC and Peter Chow made another by its product HTC Magic. To the computer tecnology and even in the smartphone field, there may be many miracles waiting us to make. Can HTC be the next one or can its current model be sustainable in long term? We have got no idea and all these leave unkown. But we can definitely conclude that only the company which keeps on innovating new technologies, keeps on discovering new business models, keeps on exploring new markets, can he be standing in the leading and undefeated position in its field and more and more miracles be made by them.

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