Htc Corp Analysis

657 Words3 Pages
Introduction HTC Corporation (formerly High Tech Computer Corp) is one of the world’s leading developers and manufacturers of Windows OS based pocket PCs, and smartphones. The company carries out both ODM and own brand business under the name HTC, and also supplies customized communication products to wireless operators around the world. By 2007 HTC achieved an estimated global Windows CE-based pocket PC market share of 68%. This report entails strategic actions required to achieve the goal of HTC Corp. in becoming the world’s leading smartphone company in the world. An analysis of resources, strategic capability, the environment and assessing stakeholders will be undertaken, as well as choosing a strategy by identifying, selecting options. With these recommendations we believe that HTC is a buy. Historical Strategy of HTC The company’s initial focus on laptops quickly diversified into handheld devices. HTC employed a competitive strategy in order to differentiate itself through offering mobile phone operators customized phones. HTC was seeing rapid growth in the performance of the company and expanded the business through further contracts from other geographic locations. Due to the ODM and mobile operator business bringing in profit margins as high as 20% compared to the industry average of 5%. Even with these returns, HTC was not considered as a threat due to their broad competitive scope. The phone industry, being dynamic, predicted the growth of smartphones to comprise a third of the world’s mobile phone market by 2013 which reinforced the need to review the strategy of HTC. Current Strategy of HTC With other competitors catching up in the ODM market, HTC found its self at a critical juncture. With the emergence of new CEO Chou who believed that HTC required changes to compete in the global market. First, he laid out a plan of branding and selling
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