STRATEGIC ANALYSIS

Strategic Analysis of HTC



Contents

1.Executive Summary1

2.Introduction2

3.Discussion and Analysis3

3.1 Factors of Downfall3

3.2 Analysis of HTC's Strategic Situation4

4.Conclusion6

Strategic Analysis of HTC

Executive Summary

The report presents analysis of strategic situations of HTC, the firm well known for its smart phones. The firm started manufacturing and selling mobile phones in the year 2005, and began to design Android based phones in 2009. The company gained considerable success in early years of operation, even in the countries such as US.

HTC gained initial success as a smart phone vendor, but as the competitor's came up with innovative and competitive products, HTC begun to lose its market position. Especially, over the period of last few months, the global market share of company has significantly fallen down; revenues have dropped as did the sales.

The major causes of HTC's today's strategic situation are the strong market position of competitors in the smart cell phone market, and lack of HTC's differentiation. The declining positions of HTC have also generated concerns about the future growth and sales. Therefore, HTC has to revise its development, marketing and other business strategies in order to step back.

The company has launched various products this year, most of which suffer from threat of competitors. However some of the phones (from 'one' series) such as HTC one S provides the company with a good chance to generate revenue and gain back its global market position.

The report includes few recommendations for improving the company's strategic position. First, the firm must bring something new to market, by focusing on innovative product development. Second, the firm must search for new business markets.

Strategic Analysis of HTC

Introduction

This report intends to provide the manager with the information about current day strategic situation of mobile phone firm HTC. HTC worked as a contract electronics manufacture. Seven years back, the company started manufacturing mobile phones under its own brand (BBC, 2012). In the beginning (2005), the company manufactured Microsoft Windows Mobile Operating System based phones. In 2009, the company introduced the smart phones based on Android, and in 2010, Windows Phone OS.

The company gained success all over the world, and was considered as one of the pioneers in the Android sector. It used to be the third largest smart phone vendor of the world, and led the key markets such as US.

However, the company failed to hold the dominance over smart phone market. Over the period of past few months, there has been a considerable decline in sales of the firm, all around the world. The countries which used to be strong markets for HTC, such as China and Taiwan reported about 35% decline in HTC's sales. The possible cause of this decline seems to be the flaws in HTC's strategy as compared to the competitors in the smart phone market. The major competitors obviously include Apple and Samsung.

HTC is still ranked as top fifth vendor in the smart phone industry, as it has strong position in Asia-Pacific region (China Post, 2012). However, the declining values of global market share seem to be alarming ...