HTC Corporation
Situation Analysis
Introduction
This case study is concerned with HTC Corporation, an international Smartphone and technology manufacturer. Though HTC is a recent player in the technology market, its ability to produce highly technical and innovative solutions to real world technology problems, primarily through the design and introduction of the Smartphone, has made the company a global leader in the Smartphone market. Problematically, the highly volatile nature of this market has seen HTC’s market share and profits plunge in 2012 and 2013. As such, this case study situates HTC within the global market, considers its current market share loss, and provides viable solutions for the company’s return to greater profitability.
Company:
HTC Corporation, known prior to 2008 as High Tech Computer Corporation, was established in May 1997 by Cher Wang and H T Cho. Created with an initial investment of only US$172,000, HTC began its operations as a subcontractor of hand-held devices, primarily PDAs, for Western buyers like Compaq.1 However, HTC’s heavy R&D investments quickly revealed several technological possibilities that were to transform HTC from a PDF manufacturer for other corporations into a premium Smartphone manufacturer operating its own products under its own brand name or OBM. These technology innovations included designs and prototypes for things like color screens for PDAs and the possibility of fusing PDA technology with cellular phones to create Smartphones. HTC’s Smartphone was marketed by 02, Orange, and T-Mobile in 2002.2 The success of this launch allowed HTC to become a Smartphone original design manufacturer (ODM) for other companies. By 2006 HTC was able to launch its own Smartphone line under its own name. Since then, HTC revenues and market share have risen dramatically. HTC ended 2010 with revenues of approximately US$9.49 billion. This success ranked HTC fifth among global Smartphone manufacturers and ninth for total
Introduction
This case study is concerned with HTC Corporation, an international Smartphone and technology manufacturer. Though HTC is a recent player in the technology market, its ability to produce highly technical and innovative solutions to real world technology problems, primarily through the design and introduction of the Smartphone, has made the company a global leader in the Smartphone market. Problematically, the highly volatile nature of this market has seen HTC’s market share and profits plunge in 2012 and 2013. As such, this case study situates HTC within the global market, considers its current market share loss, and provides viable solutions for the company’s return to greater profitability.
Company:
HTC Corporation, known prior to 2008 as High Tech Computer Corporation, was established in May 1997 by Cher Wang and H T Cho. Created with an initial investment of only US$172,000, HTC began its operations as a subcontractor of hand-held devices, primarily PDAs, for Western buyers like Compaq.1 However, HTC’s heavy R&D investments quickly revealed several technological possibilities that were to transform HTC from a PDF manufacturer for other corporations into a premium Smartphone manufacturer operating its own products under its own brand name or OBM. These technology innovations included designs and prototypes for things like color screens for PDAs and the possibility of fusing PDA technology with cellular phones to create Smartphones. HTC’s Smartphone was marketed by 02, Orange, and T-Mobile in 2002.2 The success of this launch allowed HTC to become a Smartphone original design manufacturer (ODM) for other companies. By 2006 HTC was able to launch its own Smartphone line under its own name. Since then, HTC revenues and market share have risen dramatically. HTC ended 2010 with revenues of approximately US$9.49 billion. This success ranked HTC fifth among global Smartphone manufacturers and ninth for total
References: Bei, Lien-Ti and Chen, Shih-Fen. “HTC Corporation: A Smartphone Pioneer From Taiwan.” Richard Ivey School of Business (2011): 1-22. Dou, Eva and Aries Poon. “How HTC Lost Its Way With Smartphones.” The Wall Street Journal, June 23, 2013. Howley, Daniel, P. “iPhone 5c vs. Competition: Budget Friendly Smart Phones Compared.” Laptop Magazine, September 10, 2013. Rogers. Compare Price and Models. Rogers.com. Rogowsky, Mark. “More Than Half Of US Have Smartphones, Giving Apple and Google Much To Smile About.” Forbes, June 06, 2013.