Htc Corporation-Strategic Management

Basic Question to be Solved

How can HTC maintain a profitable and innovative position and create a new brand identity by differentiating itself in the smartphone and tablet business against major global brands by the year 2015?

Context

Situation: HTC was facing some challenges from the smartphone markets. The company’s patent issues with Apple Inc. in 2011 hurt HTC’s share prices. HTC’s two main OS suppliers Google and Microsoft allied themselves with competitors. Microsoft and Nokia entered a strategic partnership while Google planned to buy Motorola’s cellphone business. Another challenge for HTC Corp was Samsung which surpassed every competitor becoming the world’s largest smartphone company in Q3, 2011. HTC couldn’t make any significant headway to differentiate itself in tablet market either.

Industry trends: The product life cycle of smartphones were short: around 6 to 9 months because consumers perceived mobile phones as accessories and lifestyle statement. The two main operators in the U.S. were Verizon Wireless and At&T. U.S. networks were locked in contrast European market was unlocked. Worldwide demand was anticipated to surpass one billion units by 2015. As of July 2011, 40% of all mobile phone users owned a smart phone in the U.S. The smartphone market was largely defined by two business approaches: vertical and horizontal models. Competition was intense at each level.

Stakeholders

Within the context of this case HTC Corporation’s stakeholders are:

HTC Management, Governments, software (operating system) providers, phone operators, International Trade Commission (ITC), suppliers, customers, employees.

Criteria for Success

One of the most important criteria of success for HTC is to improve its position in tablet market. They

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