Htc Paper

Evaluate HTCs process to date. What atomic number 18 its competitive advantages and vulnerabilities? Cher Wangs vision was to turn a hand-held computing device like device and HTC eventually substantial its first PDA, the iPAQ in 2000. HTC has always been posterior the scenes by equitable selling eminent- whole tone, un dented phones to cell phone manufacturers and wireless network operators.Eventually, HTC was commissioned to be an original formula manufacturer (ODM), which means that HTC only had micro responsibility for gross sales, tradeing, or inventory focus as HTC manufactured smartphones for branded handset companies and it designed phones for usefulness providers such(prenominal) as T- alert and Vodafone and it supported operators by alleviateing them piddle unique value propositions and optimize their services. This back uped them describe from opposite ODMs and the busy phone operator pipeline provided better profit margins. thus HTC took the plunge and started its take in brand operations by designing phones, which would be change with the brand name of HTC. They complimentsed to oppose it from competitors and have greater control everyplace the comp whatsoevers future. They focus on high-end prosumer (the overlap of professionals and consumers) grocery store. Revenue had soared from $1. 1 jillion to $4. 6 meg in a span of 4 years and the unrefined profit jumped from a mere $212 trillion to a staggering $1. 5 billion dollars in the same time with sales in more than 70 countries.In 2009, the global recession threatened to verbose down consumer spending but since HTC had a diverse employm read base and focused on a high- maturation market place it pass judgment to remain sales growth. Because legal injury expectancies from a customer point of see to it were sooner low, HTC had to lower its average sales price. It had to summation the share of common components to deliver material improvements in terms of ec onomies of scale. They tried to do it by using lower ASP, which could help reduce its dependency on operators.They similarly lowered harvest-timeion cost by opening up a scrap production facility in in electrostatic and moving manufacturing to Mainland China. As far as the competitive advantages are concerned, a moral force chief executive officer who had laid surface a clear-cut vision led HTC. They started out with a PDA device that delineate more than 80% of its tax and they didnt stop at that point. The CEO was already thinking about the next growth platform, which was the runny telecommunication market. The influence of the CEO who is driven to achieve stretch goals has shown to be a heavy(a) strength to the company.Their move product groundwork gave them the position to struggle with heroic brands as Microsoft, Google and Vodafone. They became the first Formosan company to secure a 3G permit. exclusively of this led to HTCs share price to surge 1000% between 20 03 and 2006. As far as vulnerabilities are concerned, as one analyst accountabilityly predicted, mobile market is like soup du jour right away one brand is hot, and tomorrow its end. It means that the market is so quicksilver(a) that a company to be successful, it has to do a spread of investment in R&D to be commensurate to compete and drive product innovation which leave eventually bushel the company stronger.HTC was late to the already crowded mobile market, which could garner it a less familiar brand name. The company hardly had any patents, which means that they are bound to eviscerate high expenses on royalty correctments to otherwise companies. They were so used to selling custom ordered phones for niche market called prosumers and it could infract the position of HTC due to high be incurred by the company. Discuss HTCs run clays (OS) strategy. Going forward, should it focus on android or develop new directions?In 2009, the majority of Smartphones ran on one o f phoebe bird carcasss- Symbian, sasss Blackberry OS, apples OS X, Microsofts Windows peregrine and Palm. Despite of the high market share, the operational organization of Microsoft, Windows expeditious, shows more disadvantages and then advantages for HTC corp. The view of Windows Mobile does not fit with HTC anymore. HTC want to be seen as a menage with high-quality innovative products with attractive designs and function, where as Windows Mobile is seen by as customers as uncongenial with unattractive design.The new Touch infield Smartphone of HTC received bad reviews because of Windows Mobile OS and its interface. In comparison, Google android market is still young. Despite that it has no high market share yet, their share in the Smartphone OS platform market is likely to be duald by end of 2010. Android phones contribute already more then a third of HTCs essential sale, so this can only pull ahead some(prenominal) companies in a autocratic way and Android has no l icense fee in comparison to Windows Mobile. Creating an own in operation(p) system is a obedient possibility too.Because of the increasing competition on smart phones, HTC needs to pitch their brand name more then ever. With its high innovative power, it can create the right system that fits with the view of the company guidance on a high quality product that is inexpensive. Because creating an own operating system has major costs, HTC needs to drop Windows Mobile OS and save the operating fees that it has to pay for Microsoft. Having said that, it has to really create an OS that is very different than others and its a very big challenge.HTC might provoke Google if it decides to create its own operating system and might have to face about trouble. So, there are a lot of pluses and minuses from both sides. Below are almost of the advantages and disadvantages of creating a new HTC operating system Advantages The company is highly innovative and the product designs are excellen t and have already proven that it could move fast in the rapidly evolving mobile market. Company embraces a refinement of constantly experimenting with new ideas and technology.So an own Operating System fits the company, its culture and their competencies. Owning an operating system will establish the brand name of HTC. Disadvantages It would cost a minimum of $200 million to develop a new OS double what HTC spent in R&D. represent is a major disadvantage of creating operating system. The market for mobile OS is already very crowed. The HTC operating system will face severe competition. What are your recommendations for HTC to help it be fill in the leading Smartphone company in the world?HTC has proved itself to be a good competitor in smartphone business and to become the leading smartphone company it has to enter into developing countries like China and India where 3G networks has just opened up and hardly 5% of its total mobile market owns a smartphone. Geographically, Taiwan is so close to both the countries and since it has already built production and manufacturing facilities in China, it can really make a big difference in supply chain management. If it can come up with a wide variety of smartphones that is affordable by middle class people, it could make a huge difference in its revenue and profit margins.The immediate footstep to increase the sales would be to prat the area where companies/customers are looking for alternatives. unrivaled of those target areas should be businesses professionals as presently the straitsing from RIM is receiving a big beating with its service and HTC could prove to be a better alternative for RIM if it could develop phones that could offer seamless service to customers by offering better compatibility to exchange, IM customer and office desegregation apps.This will make them get on a strong customer base and also help HTC to build its brand value in the market place. HTC should also target the niche market with producing smartphones with greater processor speeds, better camera, big screen phones, phones with touch screens, phones with qwerty keypads, phones with better desegregation with gaming devices like PlayStation, Xbox and Wii, good consolidation with social networking apps like Twitter, Facebook, Linked In et al.It could also social functionner with several companies and come up with hardware and software integration apps that are available as part of its OS but the same apps are available for a fee on other phones. An example would be to offer free voice enabled GPS system on every HTC phone by partnering with companies such as TomTom or Garmin and sharing revenue with them. This would create an edge for its products and will be a better alternative for other company phones.