Htc Corp. Strategic Management

Introduction - Company Overview of HTC

HTC Corporation is a consumer electronic base company which was founded by few of the Taiwanese in Taiwan in year 1997. Initially, the company was focus on manufacturing notebook and laptop. After that, HTC begin to transform and design some of the hand-held devices with physical contact to the screen of the devices. In year 2006, HTC promote and brought their brand to international by partnership with the strong and leading company in the country like, US, Europe and China (HTC, 2011). The company headquarters located at Taiwan while the key operation centers located at Taiwan, UK, China and USA. These centers not only to provide a close relationship with customers but also provide service to others countries as well. Furthermore, HTC could stand a strong competitive advantage in smartphone sector in innovation, design, and development due to provide a marvelous experience towards their customers. (HTC Corporation, 2009).

Company’s Strategy Statement

HTC is practicing differentiation strategy as their business strategy. The implementation of differentiation strategy in HTC is dividing to two main strategies which are competitive factors and brand strategies. With regard to Brand Strategies, smartphone industry is the main focus of HTC and they always wanted to be the top one in Microsoft Operating System and Google’s Android platform. Furthermore, the company are trying hard to keeping launch innovative products and improving interface with more friendly user in order to build up the brand value. Response to the market change promptly due to deliver product diversification to meet market’s requirement are also one of the strategy to boost the brand value (HTC Web Strategy, 2011).

The second strategy is competitive factors. It includes the factors that beneficial to HTC's developmental vision, and negative factors for HTC's developmental vision and countermeasures. As highlight in the company’s statement, the factors that beneficial to HTC'S developmental vision includes work closely with the industry leaders to facilitate change of trends, cooperative teamwork, good execution, implements of global operation and cost control, strategic partnerships with the world's industrial leaders in telecommunications help understanding of customer's needs, and continual market expansion, particularly in the 3G platform market which is beneficial to the demand of data transmission. Thus, HTC are maintaining these factors to create competitive advantages for the company. While in the other hand, countermeasures will be determined in order to deal with all the negative factors for HTC’s developmental vision (HTC Strategy, 2011).

Vision and Mission Statement

Vision: To further reduce the distance between people, facilitate the management of information, and reinforce users' communications and lives (HTC Corporation, 2015).

With reference to the statement above, HTC’s vision is to bring brilliance to life of human being by leading innovation in smartphone and design’s experience. Transforming a personal computer to the palm of their customer hands are one the biggest vision thus far. They had led the way in the evolution from palm PC to smartphone. The smartphone is the most personal of all consumer devices and has become HTC digital hub, and link to a world of smart connect devices.

Furthermore, HTC takes a broader approach to serving society and making life better by closing the gap between every single human. They believe that they can make more of a difference looking beyond the obvious, reaching out to people and enabling them to make a difference, and in improving the way we do things.

Mission Statement: 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 (HTC Corporation, 2015).

HTC is working hard to establish a high volume manufacturing facility, and it is focusing on wireless capability, strengthening its R&D team, and developing a software team capable of creating world-class consumer and business applications that will enhance the value of our hardware. It is investing in growing engineering capability in GSM, GPRS and CDMA wireless technologies, investing in sophisticated wireless equipment for both manufacturing and engineering, and investing in protocol software and technology licensing.

HTC’s design is not only limited to creating great looking hardware but also extended their standard to manufacturing processes as well. That's why HTC’s factories are among the most environmentally responsible in the world, and their offices have earned global acclaim, setting the gold standard in energy efficiency. HTC also expanded their environmental initiatives to shape the entire customer experience. The product packaging is primarily made of fast-renewable materials such as bamboo and bagasse. In 2013, the HTC One (M7) was the first smartphone in the world built to international specifications of complete carbon footprint and lifecycle assessments. That’s an industry first that they are particularly proud of.

HTC’s Competitive Position – Porter’s Five Force Model

Threat of New Entry by Competitors

The threat of new entry by potential competitors comes from offering more functional and personal products with low cost and better networking service in Smartphone industry. However, the threat of new entry by potential competitors in this industry is low because numerous barriers prevent entrance into the industry which is created by existing players through their strategy and extremely investment. These barriers are shows as follow.

Economies of Scale

The operating cost and the investment on the research and development in Smartphone industry are very high which resulted the competition very cutthroat. For instance, HTC invested $12 million in its research and development in 2015 which is 11% of the operating revenue in the fiscal year. Furthermore, HTC had consistently invested its research and development around 10% to 15% of total revenue annually (HTC Corporation, 2015). As a result, economies of scale foe new entry have to be achieved a large volume for spreading the costs to make profit (Hill & Jones, 2008).

Brand Loyalty

It is difficult for new participants to extend piece of the overall industry from built up organizations which have huge brand reliability (Hill and Jones, 2008). As indicated by the new research report frame YouGov's Technology and Telecoms Consulting Team, it demonstrates that 81% of Apple proprietors would stay with the Apple brand and half of BlackBerry Smartphone proprietors and 44% of HTC proprietors were probably going to make rehash buys (Atkinson, 2010). In such manner, building up the reputation of firm to upgrade its image dedication and take away piece of the overall industry from existing own-image organizations is exceptionally difficult for new participant in this industry.

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