Case analysis of HTC

STRATEGIC MANAGEMENT HTC HT C Corp. in 2012 2012 Case Analysis

By Group AE1: Abhina "1#S$01% Ani&a "1#S$0(% )ushan "1#S$1

%$Sin!h Tapa'iya Gar!

Nihari*a G "1#S$2+%

HTC Corp case Analysis Group AE1

Rai,e-a "1#S$/$% re& "1#+0#%

alan*i Shara,h

a!e  2


I.

Executive Summary

HTCs ahiee&en, ha' been ou,s,an'in! oer ,he las, 34,een years. Bein! hu&ble5 'yna&i an' innoa,ie is ,he o&panys )NA an' i, is ,ruly re6e,e' in i,s ,a!line 78uie,ly Brillian,9. Bu, ,he year 2012 pose' in,i&i'a,in! hallen!es ,o ,he o&pany. a,en, ars i,h Apple a'ersely a;e,e' HTCs share prie. I,s ,o &a-or
II.

Top Facts (People and events) May !!"

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HT Chou an' Cher ?an! S,ar,e' HTC

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e,er Chou beo&es ,he ne CE<. Bran'in! an' sellin! han'se,s un'er ,he o&pany@s on na&e

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HTC bran'e' hones in Europe an' Asia. 1 &illion auisi,ion o4 )o po'.

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ro'ues 3rs, an'roi' han'se,
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They launhe' ,heir Hero ro'u, 7HTC one9 HTC as inole' in ,he pa,en, ars. a!e  /


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III.

Co&pe,i,ion 4ro& Sa&sun! inrease' a4,er ,he launh <4 HTC
Structure

.$ HTCs perormance till date* its stren+t,s and -eanesses

1.1 The belo ,able su&&aries ,he o&panys per4or&ane on arious para&e,ers suh as 3nanial5 pro'u,5 an' bran' ,o na&e a 4e: Financial Perormance

• •

•

Product Perormance

• • • • •

/rand Perormance

• • •

0t,er Perormance

•

•

$ onseu,ie uar,ers o4 reor' nu&ber o4 sales Reenues 0$>12 up 4ro& /2//.0 ,o 1/(+./ "up by /($ D% R us,o&iable in,er4ae oer base
1.2 HTCs s,ren!,hs an' ea*nesses an be analye' 4ro& S?
•

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Stren+t,s Firs, &oer a'an,a!e ")A5 po*e, sie' C% HTC bran' i&a!e "HTC
• • • •

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1eanesses No in>house

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Fir&s"Goo!le an' Miroso4,% S*ille' en!ineers

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0pportunities

)epen'eny on a sin!le pro'u, "HTC
Mini ,able,s oul' be ne=, &ar*e, sensa,ion )eelop&en, o4 'eie en,ri apps ,o a'' beo&e nu&ber one an'roi' alue ,o us,o&ers

Threa, 4ro& o&pe,i,ors "Sa&sun!% o us,o&er loyal,y

#.$ HTCs competitive position2 sustaina3le or not4 C,allen+es aced and t,eir impact on its position

2.1 Analysis o4 HTCs o&pe,i,ie posi,ion an be 'one usin! ,he RI< 4ra&eor*:

5esources6

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Capa3ilities

Costly to

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suppor 9es

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Competitive Parity Competitive Parity

:o

:o

:o

:o

Competitive 8isadvanta+e

HTC Sense

HTC one product

store Ta3lets Tie'up

Sustaina3le Competitive Advanta+e Sustaina3le Competitive Advanta+e Sustaina3le Competitive Advanta+e Competitive 8isadvanta+e

;oo+le (Android) In House 0S

a!e  


2.2 The &ain hallen!es ,ha, HTC 4aes an' ,heir i&pa, on ,heir o&pe,i,ie a'an,a!es are as 4ollos: a) C,allen+e2 Table, oera!e is poor Impact2 HTCs ,able,s 4aile' ,o ,ransla,e in,o sales. The ,able,

in'us,ry is boo&in! i,h ia' lea'in! ,he &ar*e, share. HTC is poor in ,he en' ,o en' on,e=, e=periene is a,in! as a bo,,lene* 4or ,he suess o4 i,s ,able, por,4olio. I,s ,hus losin! a po,en,ial us,o&er base. 3) C,allen+e2 Sus,ain&en, o4 'i;eren,ia,ion s,ra,e!y "i,h HTC
oer ,he basi ups an'

auisi,ions% Impact2 ?i,h

,ie ups be,een ,he &a-or players e.!. Sa&sun!>

Goo!le 4or Ne=us5 Goo!le auirin! Mo,orola Mobili,y5 Miroso4,s No*ia auisi,ion5 ,he lea'in! players in
e=posure ,o in'os &ar*e,. e) C,allen+e2 o Bran' isibili,y Impact2 )ue ,o la* o4 bran' aareness i, has less sales an' lo

us,o&er base. E=hibi, 11 re6e,s ,he !lobal bran' aareness o4 HTC as per 2011 /rands

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Preerenc e /rand Considera tion Aided /rand A-arenes s ?.$ HTCs 0S strate+y2 -indo-s mo3ile @ android6o-n platorm

E=hibi,  is abou, ,he &ar*e, share o4 ,he 'i;eren, 11. I, shos5 ,he 'ri4, 4ro& No*ias Sy&bian ,o Goo!les an'roi'. (0.00D $0.00D 0.00D 200( #0.00D

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Sa&sun!@s Ba'a

HTC has &a=i&u& oppor,uni,y in Goo!les An'roi' hih oupies 2. D &ar*e, share in ,he

They hae a s,ron! en!ineerin! in! hain! e=per,ise' in suess4ul us,o&ia,ion "HTC Sense% an' ,his 4a,or shoul' be api,alie' upon. a,er in near 4u,ure5 HTC an buil' i,s sel4>one' .$ /uildin+ an o-n app store lie Apple

E=hibi, # ,al*s abou, ,he apps s,ore orl' 4or ,he lea'in! players in &obile in'us,ry. The in'us,ry lea'ers are i
Android :ov #$$" ?$$B$$$ % 3illion

i0S an #$$" =$$B$$$ & 3illion

Apple nee's an app s,ore beause i, has i,s in'epen'en, one'
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a!e  +


HTC has !aine' ,he a'an,a!e o4 repurhases "$2D o4 urren, users are illin! ,o repurhase%. Hene5 'eelope' an' be,,er innoa,e' pro'u,s are &us, ,o be in,ro'ue'. HTCs KS lies in 'elierin! us,o&iable user in,er4ae oer ,he basi an'roi' layer. Seeral pro'u,s in ,he o;erin!5 suh hi!h leels o4 us,o&ia,ion are 'iul, ,o &ain,ain a, a;or'able os,. In suh on'i,ion5 HTC shoul' 4ur,her s,rea&line i,s pro'u, o;erin!s in ,he &ar*e,5 onen,ra,in! on proi'in! inreasin! pro'u, 'i;eren,ia,ion 4or li&i,e' pro'u,s. A&on! ,he onsu&ers5 HTCs peren,a!e o4 re> purhasin! se!&en,5 hih as $2D5 as seon' only ,o apple. This 4a,or an be u,ilie' by HTC in proi'in! i,s e=is,in! us,o&ers a uniue e=periene in ,er&s o4 pro'u, suppor, an' serie so ,ha, i, an buil' up on ,he e=is,in! &ar*e, share an' also inrease i, 4ur,her. .2 Sa,is4a,ion 4a,or: Cus,o&er Sa,is4a,ion ra,e 4or HTC is ery hi!h an' is -us, behin' Apple in ,his re!ar's. Hene5 i, shoul' ,ar!e, ,his 4or &a=i&u& bene3,s. ./ Mar*e, E=pansion E=hibi, 11 shos ,ha, HTC5 a, a !lobal leel as la!s in ,er&s o4 bran' i&a!e an' aareness a&on! po,en,ial onsu&ers. A''in! ,o i,5 HTC has ,o es,ablish ,heir &ar* in ,he ,able, se!&en,% hih as &os,ly 'o&ina,e' by Apple in K.S. This proi'es HTC an oppor,uni,y ,o o&e up i,h a ne line o4 ,able, pro'u,s i,h ,he sa&e alue proposi,ions o4 !rea,er us,o&iin! in,er4ae an' pro'u, 3nishin!. HTC shoul' han!e ,heir ,ar!e, &ar*e, 4ro& KS an' o,her es,ern oun,ries ,o Sou,h A&eria5 Sou,h Eas, Asian oun,ries hih are !rea, po,en,ial &ar*e,.

I7.

Synt,esis

a!e  


Smartp,one Platorm Mar.et S,are(? mont, Avera+e endin+ AprilD?)

1D D /D

Goo!le Apple Bla*berry Miroso4,

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/ED

Sy&bian

I, learly shos ,he AppleLGoo!le 'uopoly s,ill !oin! s,ron!5 as ell as ,he Bla*BerryL?in'os hone s,ru!!le 4or 'is,an, ,hir' plae. Here are ,he nu&bers behin' ,he !raph: S,are o

S,are o

smartp,one smartp,one Platorm

su3scri3ers su3scri3ers

C,an+e

End o an

End o Apr

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a!e  10


Smartp,one 0EM Mar.et S,are(? mont, Avera+e endin+ AprD?)

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Apple Sa&sun! HTC

11D

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Mo,orola G

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Apple an' Sa&sun! are ,he bi!!es, ay ,ie 4or ,hir' plae. Here are ,he nu&bers behin' ,he !raph: S,are o

S,are o

smartp,one

smartp,one

su3scri3ers

su3scri3ers

End o an

End o Apr

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Apple

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a!e  11


7.

5ecent developments

a% HTC pos,e' 22.1 p, rise in )ee&ber 201# sales. b% HTC eyes bi!!er pie o4 ,he In'ian s&ar,phone &ar*e,  I, eyes 10D &ar*e, share by 201. I, is inreasin! i,s re,ail reah 4ro& (5000 ou,le,s ,o 105000 ou,le,s an' launhin! o4 e=lusie s,ores in Mu&bai an' Ban!alore by Marh 201. % HTC@s 201 roa'&ap ,o be ,he bes, eer5 Ohu!e surprisesO o&in!5 says Pe; Gor'on5 HTCs Senior Global
,

a!e  12

Case analysis of HTC

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