Htc Essay

Q1. Evaluate HTC’s performance till date. What are its competitive strengths and weaknesses?

Performance review:

• The last few years for HTC has been poor in terms of profits and sales.

• The strategic partnership between HTC and Beats audio has come to an end.

• HTC’s shares declined by than 50% in 2012.

• As of January, 2015, HTC’s sale have finally stopped dipping.

Competitive advantages:

• It had an internal research center named “Magic Lab” especially for UI and product design.

• Founders struck the right chord with a mix of technical and functional expertise, a major reason for success in initial years.

• HTC was successful in strategically forming alliances with organizations like Qualcomm, Compaq, and Microsoft etc.

• IPAQ which was

The major advantage for HTC is strong partnerships with leading firms, this helps HTC sustain in the market.

HTC has a competitive advantage for value for money, where its offering High quality products for relatively low prices, this advantage is temporary as its competitors are following the same path.

HTC holds a sustainable advantage in its multimedia offerings with sound quality, camera quality and unmatched display being the key factors.

HTC has a wide product portfolio, this is due to offering latest technology and expectations from the customers, this shows that HTC adapts to customer needs and hence it has a sustained advantage in adaptability.

HTC has an efficient organizational structure, effective style of learning, and creative HR process, though all these are followed by its competitors too, giving HTC a competitive parity in human capital.

Competitive Disadvantages:

• There were lot of disputes regarding patent infringements with Apple.

• HTC lacked AT&T’s support, though Apple had that advantage.

• HTC had a strong presence in Asian market, but not in US

• Leverage the ‘Silicon Valley’ culture existing in the firm, to innovate more and explore newer ideas and technologies.

• HTC has always fallen behind Samsung and Apple in terms of marketing its product, It needs to improve on it.

• HTC follows an open work environment for employees where employees are encouraged to innovate and share ideas, this positive attitude would be fruitful in the long run.

• R&D expenses need to be increased to face tough competition from Apple and Samsung, HTC should try to focus more on product innovation to stay ahead of the game.

• HTC should concentrate on Asian Markets as the sales have increased from 18 to 20%(Exhibit 2b) in 3 years.

• As per Exhibit 9 HTC needs to diversify itself into lower price Smartphone market.

• HTC should regularly update its OS version to keep its product intact with latest technology.

• HTC is having lot of troubles with patent lawsuit, hence it must create an alliance with other companies to boost its patent