Htc Business Model
Executive summary
Using Google's Andriod platform has given HTC a boost, but now the Taiwanese handset maker are vulnerable to underwhelming sales in America and Europe. Their hope? China.
HTC only entered China in early 2010, much later than its established peers. It is playing catching up with international premium brands, such as Apple, Samsung and LG, where HTC is currently aiming to get a slice of the pie. However, the company is also facing stiff competition from local brands who operate at the lower price market.
In this Global Marketing proposal, we propose several initiatives for HTC to grow its current 1% marketshare in the China mobile phone market, including new products for HTC to tap into the lower price market as well as localized promotion campaigns to sell phones in rural areas.
It is time for HTC to sway away from satisfied with being 'quietly brilliant'.
Context analysis
Company Background
HTC Corporate, founded in 1997, was a relatively obscure Taiwanese original design manufacturer (ODM). Incorporated as High Technology Computer, HTC focused on manufacturing of computer notebooks. The company created the world's first pocket size PC in collaboration with Microsoft in 1998[1]; it later developed the iPAQ, one of the earliest PDA for Compaq in 2000.
HTC's close tie with Microsoft led them to develop XDA[2] in 2002, first ever smartphone operated on Windows. The company remained true to ODM principles when it produced smartphones by efficiently catering for carriers' specifications and requests. HTC's ODM smartphones continued to generate profit margin as high as 20% compared to industry average of 5%[3]. According to Harvard Business Review, HTC shipped more than 70% of the world's Windows smartphones in 2006 at its peak.
HTC won a reputation for excellent smartphones. But it wanted more, and began to invest more in innovation before eventually creating its own brand in 2007. HTC set up a unit called Magic Labs[4], where
Using Google's Andriod platform has given HTC a boost, but now the Taiwanese handset maker are vulnerable to underwhelming sales in America and Europe. Their hope? China.
HTC only entered China in early 2010, much later than its established peers. It is playing catching up with international premium brands, such as Apple, Samsung and LG, where HTC is currently aiming to get a slice of the pie. However, the company is also facing stiff competition from local brands who operate at the lower price market.
In this Global Marketing proposal, we propose several initiatives for HTC to grow its current 1% marketshare in the China mobile phone market, including new products for HTC to tap into the lower price market as well as localized promotion campaigns to sell phones in rural areas.
It is time for HTC to sway away from satisfied with being 'quietly brilliant'.
Context analysis
Company Background
HTC Corporate, founded in 1997, was a relatively obscure Taiwanese original design manufacturer (ODM). Incorporated as High Technology Computer, HTC focused on manufacturing of computer notebooks. The company created the world's first pocket size PC in collaboration with Microsoft in 1998[1]; it later developed the iPAQ, one of the earliest PDA for Compaq in 2000.
HTC's close tie with Microsoft led them to develop XDA[2] in 2002, first ever smartphone operated on Windows. The company remained true to ODM principles when it produced smartphones by efficiently catering for carriers' specifications and requests. HTC's ODM smartphones continued to generate profit margin as high as 20% compared to industry average of 5%[3]. According to Harvard Business Review, HTC shipped more than 70% of the world's Windows smartphones in 2006 at its peak.
HTC won a reputation for excellent smartphones. But it wanted more, and began to invest more in innovation before eventually creating its own brand in 2007. HTC set up a unit called Magic Labs[4], where