Htc Corporation

COMPARITIVE MAAGEMENT
International Corporation

M.MASOOD AHMED QAMAR
01-111081-086
BBA 7th C

SUBMITTED TO: SIR COL.MANZOOR AWAN
5/6/2011

TABLE OF CONTENTS

COMPANY PROFILE 1 HISTORY 2 Introduction: 2 Products and Innovation: 2 SWOT ANALYSIS: 4 INTERNAL ENVIRONMENT: 5 Mission statement: 5 Policies: 5 Formal Structure: 7 Organization Division: 8 ORGANIZATION CULTURE: 10 EXTERNAL ENVIRONMENT: 11 Ways in which Strength are Exploited: 12 MANAGEMENT PRACTICES: 13 Brand Strategy: 13 Competitive Strategy: 13 Risk Management: 14 FACTORS CONTRIBUTING TO INTERNATIONAL SUCCESS: 15 REFERENCES: 17

COMPANY PROFILE

Company name: HTC Corporation
Stock name: HTC
Stock Code: 2498
Market type: TWSE- Listed
Industry type: Communications & Internet
Date of establishment: 15-05-1997
Capital: NT$8,176,532,850
Chairman: Cher Wang
Numbers of employees: 8,948(31-3-2010)
Tel: [phone]
Website: www.htc.com

HISTORY:
The history of HTC Corporation is described as follows:
Introduction:
HTC Corp produces powerful handsets that continually push the boundaries of innovation to provide true mobile freedom.
It is founded in 1997 by Cher Wang, Chairwoman, HT Cho, Director of the Board & Chairman of HTC Foundation, and Peter Chou, President and CEO, HTC made its name as the company behind many of the most popular operator-branded devices on the market. It has established unique partnerships with key mobile brands, including the leading five operators in Europe, the top four in the US, and many fast-growing Asian operators. It has also brought products to market with industry leading OEM partners and, since June 2006, under its own HTC brand.
HTC is one of the fastest-growing companies in the mobile sector and has achieved remarkable recognition over the past couple of years. According to Business Week ranked HTC as the second best performing Technology Company in Asia in 2007 as well as giving the company the number 3 spot in its Global listing in 2006.
According to HTC, 18 months ago the company has introduced dozens of HTC-branded products around the world.

Products and Innovation:
HTC is known for its innovation. It is constantly broadening the range of devices it offers – introducing devices to support specific applications and new form factors that meet the increasingly diverse needs of its customers and partners.
HTC's product portfolio offers easy-to-use solutions that embrace the full range of mobile multimedia resources, wireless anytime and Internet on the go.

It has a rich heritage of device 'firsts': * First color palm-size PC (1999) * First Microsoft Pocket PC (2000) * First Microsoft wireless Pocket PC (2002) * First Microsoft powered Smart phone (2002) * First Microsoft Smart Music Phone (2004) * Large 2.8" TFT touch-screen LCD display * First Microsoft 3G Phone (2005) * First Microsoft Windows Mobile 5.0 Platform Phone (2005) * First tri-band UMTS 3G device on the Windows Mobile platform (2006) * First Microsoft Windows 5.0 Smart phone (2006) * First Tri-band UMTS PDA touch screen to allow finger tip navigation (June2007)
In early 2006, HTC launched a powerful new device with a groundbreaking form factor: the HTC Advantage. The HTC Advantage is the world’s most powerful office, boasting a 5" screen and full detachable QWERTY keyboard. This was followed in early 2007 with the introduction of the HTC Shift. Equipped with Windows Vista this device includes a brilliant 7-inch widescreen touch display and a 40 gigabyte hard drive.
HTC launched the HTC Touch™ in June 2007 as the result of extensive R&D and the conviction that fingertip control would enable more intuitive navigation. The groundbreaking HTC Touch™ is equipped with TouchFLO™ so that consumers just sweep their finger across the screen to get access to the most commonly used content, contacts and features in a simple finger flick. HTC aims to continually develop smart new devices that empower users on the go, providing more freedom in the way they live their lives. (www.htc.com)
SWOT ANALYSIS:
The SWOT analysis will help to understand the position of HTC in the market:

Strength * Leading makers of PDA’s smart phones * Recognized brand’s name and good quality products * Product has good image in market * The Research and Development in HTC has given more importance * HTC has smart portfolio consisting of 42 phones * Their number of customers are increasing as the time passes | Weaknesses * HTC has not such a big share like other competitors e-g: Nokia, Apple, Blackberry which has big market share * The range of their cell phone is low as compared to their competitor , Nokia , which has greater variety of smart phones, from cheapest to most expensive one | Opportunities * HTC is providing touch screen cell phones, which are very much in demand now days. * HTC has collaborated with Google and launched their cell phones with Android operating system. * Google popularity plays huge role in success of HTC * HTC cell phones are working on new technology like3D, 4G and 5G technologies | Threats * The major threat to HTC is Apple iPhone. It is a big hindrance in the demand of HTC cell phones. * The financial crunch could also be threat for the company. That’s because HTC smart phones are expensive and not affordable for all smart phone users like Nokia and so people prefers Nokia over HTC. |
INTERNAL ENVIRONMENT: Mission statement: “HTC's mission is to become the leading innovative supplier of mobile information and communication devices by providing value-added design, world-class manufacturing and logistic and service capabilities.”
(www.htc.com/www)
HTC is committed to driving the growth and capabilities of smart phone technology. The company has developed strong R&D capabilities, pioneered many new designs and product innovations and launched state of the art PDA phones and smart phones for operators and distributors in the global telecoms industry. It has invested in a strong R&D team accounting for 25% of the total headcount and a world-class high-volume manufacturing facility, both based in Taiwan. Policies: HTC has its policies in written form in his public meetings and in stock markets. The main points are as follow: * Procedures for Acquisition or Disposal of Assets * Rules for Endorsements and Guarantees * Procedures for Handling of Derivatives Trading * Operational Procedures for Fund Lending
These are the points which are approved by the share holders meeting 18 June 2010.For every policy, detailed list of articles of company law is under governance of corporate environment. These company policies are approved by the concerning departments of a government department. This shows the internal environment of organization that governance is pure and meeting their missions and goals. It also shows that it also give courage to employs and concentrate towards it personal and organizational goals.
(www.corpasia.net/taiwan/2498/irwebsite/index)

Procedures for Acquisition or Disposal of Assets:
For purposes of enhancing the Corporation's asset management and effecting public disclosure of information, these Procedures for the Acquisition or Disposal of Assets are adopted in accordance with Article 36-1 of the Securities and Exchange Act and the Regulations Governing the Acquisition or Disposal of Assets by Public Companies issued by the Securities and Futures Bureau of the Financial Supervisory Commission, Executive Yuan.
Rules for Endorsements and Guarantees:
These Rules are adopted pursuant to the Regulations Governing Lending of Funds and Making of Endorsements and Guarantees by Public Companies issued by the Securities and Futures Bureau under the Financial Supervisory Commission, Executive Yuan, to protect the rights and interests of the Corporation's shareholders, ensure sound financial management, and minimize operational risk.
Procedures for Handling of Derivatives Trading:
These Procedures are adopted in accordance with the provisions of Taiwan-Finance-Securities-I-0910006105 of the Securities and Futures Commission, Ministry of Finance, to protect investment, effect public disclosure of information, and strengthen the risk management system for derivatives transactions established by the public company.
Operational Procedures for Fund Lending:
These Operational Procedures are adopted pursuant to the Regulations Governing Lending of Funds and Making of Endorsements and Guarantees by Public Companies issued by the Securities and Futures Bureau under the Financial Supervisory Commission, Executive Yuan, to ensure the Corporation's sound management of funds and to minimize operational risks.

(www.corpasia.net/taiwan/2498/irwebsite/index)
(www.cliffnotes.com)
Formal Structure:

As of 31-7-2010 (www.htc.com/www)

Organization Division: Division | Management Team | | Name | Title | Marketing | John Wang | Chief Marketing Officer | Global Sales | Peter Chou | CEO & President | Innovation Center | Horace Luke | Chief Innovation Officer | Global Product | Kouji Kodera | Chief Product Officer | Strategy | Ronald Louks | Chief Strategy Officer | R & D Center | David Chen | Chief Engineering Officer | Global Operation Center | Fred Liu | Corporate Senior Executive Vice President |

Procurement & Supply Chain MGT | Kenny Tseng | Special Assistant to President of Engineering and Operation | Information Technology | Eric Chou | Chief Information Officer | Manufacturing Operation Center | CS Wang | Vice President | Customer Service &Quality Assurance | Fred Liu | Corporate Senior Executive Vice President | Internal Audit | Vincent Tseng | Director | Finance & Accounting | Hui-Ming Cheng | Chief Financial Officer & Spokesman | Legal | Grace Lei | General Counsel |
(www.htc.com/www)

ORGANIZATION CULTURE: HTC’s culture is a guideline to provide high ethical standards for all employees in conducting HTC business activities. All employees of HTC Corporation., including branches and subsidiary companies, must follow these ethical standards regardless of the employees’ position, grade level, and location. This Code includes three major sections: * General Moral Imperative * Venders/Suppliers and Customers Relationship * Conflict of Interests The General Moral Imperative section requires that HTC commits to providing a safe and healthy work environment and equal opportunities, and that it establishes a behavioral code for the treatment of knowledge about the company’s assets/properties/ information.

The Venders/Suppliers and Customers Relationship section requires that HTC commits to maintaining a fair, legal, and long-term relationship with its venders/suppliers and customers to the benefit of all parties. The Conflict of Interest section describes the behavioral rules for employees in situations of divided interest.

This is superior to any other local regulations except certain mandatory laws/acts issued by the local government. Any violation of HTC Code of Conduct and applicable policies may cause disciplinary action up to and including the termination of employment. The employees are responsible for understanding and complying with the HTC Code of Conduct. The manager must ensure that each employee endorses the contents of the Code of Conduct and should review this document with each employee periodically (at least once per year). Both parties should then sign in the appropriate space on the last page.
(www.htc.com)
EXTERNAL ENVIRONMENT:
The external environment is comprised of various factors which are directly interactive or in-directly interactive.
The directly interactive forces are as: * Owners: The stock holders keep eye over their interests and provide a return on investment. * Customers: The main factor is demand satisfaction. If customers are satisfied with product then the company is in profit. * Competitors: The competitors for HTC are increasing day by day. The biggest competitors are Samsung, Motorola, Sony Erickson which are dealing in android and share the market place.

The indirectly interactive forces to HTC are as follow: * Socio-cultural * Demographic * Values * The political and legal dimensions * The technology dimensions * The economic dimensions * The Global influences
These are the factors which externally affect the HTC Corporation. The socio-culture is especially important in HTC, it includes demographic and values of a particular customer base. The political and legal environment effects too the HTC externally. Political parties create or influence laws, and business owners must abide by these laws. Tax policies, trade regulations, and minimum wage legislation are the external factors which affect the HTC. The technological dimensions of the external environment impacts the scientific process using in input to output. The economic and globally do effect highly affect HTC. The amount of earthquake is high in Taiwan region so it’s a natural factor which externally affects the HTC. (www.cliffnotes.com)
Ways in which Strength are Exploited:
HTC is effectively exploiting its strength to maximize the market share and profit margins. They first analyze their strengths and then using their think-tank they have exploited them.

* Using their PDA (Personal Digital Assistant), first company to make palmtops. They have used this technology and making their Smart Phones even smarter. Every day they are using new technologies in their smart phones to make them unique and exciting. Releasing first time phone with 3D technology without glasses to make it more exciting. The phone named HTC EVO 3D, using EVO technology to run 3D without glasses. HTC is releasing its Tablets with remarkable technology HTC Sense and HTC scribble, named HTC Flyer.

* HTC is highly recognized now days, firstly it was using windows operating system then after collaboration with Google they are permanently moved to android operating system. With this factor their customer track is increasing day by day. First Android phone was released by HTC in 2007 named, Google G1. Up till now they have make remarkable changes in their operating system and HTC is following them and updating their smart phones. This factor of innovation has caused the high market share and recognition among people.

* HTC has very strong and talented research and development department which is using effective techniques to research and develop new technologies which is appreciated by their customers. In 2009 they release the set HTC HERO which was powered by HTC SENSE which is generally called SENSE UI. The main characteristics of sense user interface is; sense update of weather widget, no GPRS and WiFi connection needed, sitting in a room your phone is ringing flip your phone and it turns silent without pressing anything. There are many uses of HTC SENSE which make it distinguish and unique from others which has developed by its research and development to tackle the market share.
MANAGEMENT PRACTICES:
The management practices are the key role of any company. It helps in making your strategy to compete with other company to make secure and make your brand at top.
HTC has focus on following points to practice management and make strategy:

Brand Strategy: Following are their management practices belonging to their Brand: * Focus on smart phone market; they are the leaders of MS OS and Android platform. There are many other operating systems like Symbian OS which is widely used by Nokia but it is out dated that’s why HTC don’t use that OS. * Build up brand value through innovative products and friendly user interface. If interface of your phone is user friendly and simple then it is widely accepted by customer. The good interface becomes value for a customer. By this strategy they are building brand value. * Fast response to the market changes and delivers product diversification to the market. The distribution Channel is quick that their product reaches in time at market.

Competitive Strategy: The competitive strategies to compete with other mobiles company are as: * Work closely with the industry leaders to facilitate change of trends. * Cooperative teamwork, good execution, implements of global operation and cost control. * Strategic partnerships with the world's industrial leaders in telecommunications help comprehension of customer's needs. * Continual market expansion, particularly in the 3G platform market which is beneficial to the demand of data transmission.

Risk Management: * Exercise tighter credit risk and channel inventory control. * Intellectual property rights risk management and accelerates patents application. * Operating expense control. * Provide various provisions in operational risks to ensure its appropriateness and sufficiency.
(www.corpasia.net/taiwan/2498/irwebsite/index)
Some are the achievements of HTC from 2003-2008:

* Best newly listed company in Taiwan for 2002
(Asia money, January 2003) * Strong R&D has made HTC a pioneer in the wireless industry
(Far Eastern Economic Review, September 2004) * HTC Smart phone named as the best choice for 2005
(T3, September 2004) * A leading maker of PDAs, PDA phones, and Smart phones
(Wall Street Journal, March 2005) * HTC Chairperson Cher Wang selected as an Innovator in the 2005 Stars of Asia: 25 Leaders on the Forefront of Change
(Business Week, July 2005) * Ranked No. 4 in the annual ranking of Asia's best-performing companies.
(Business Week, September 2006) * Ranked No. 2 in the annual ranking of Asia's best-performing companies.
(Business Week, September 2007) * Ranked No. 10 among global IT companies in the 2008 Info Tech 100
(Business Week, May 2008) (www.htc.com/www) FACTORS CONTRIBUTING TO INTERNATIONAL SUCCESS: Following are the key success factors involved in international success; * The main key factor to international success is collaboration with Google and starts new product line using Android OS, this increases their market share and people came to know about HTC especially in Asia. Using new innovative ideas and competing with up to date technology contributes to international success. HTC tends to try new technologies in their smart phones to keep their name in market. They are also releasing their phones with Windows 7 OS. Collaborating with well established companies contribute to international success. * The innovation factor of HTC is a big factor to international success. Using innovative technologies to satisfy their customer in a unique way. It results in a world wide success. HTC is currently working on 5G technology, they are currently releasing phone in 4G. They have transformed many technologies in their smart phones like EVO technology and 3D technology. The remarkable innovative technology is HTC Sense which has change the concept of smart phone. These technologies distinguish it with its competitors and contribute in international success * The collaboration of HTC with big telecommunication companies lead to key success internationally in Europe and America. Collaboration of HTC with Verizon, Sprint, T-Mobile, Orange, Vodafone are key success factor because they are high selling telecom companies which contribute in international success. * The important factor is their strategy; expanding their market then earning the profit. This strategy helps in brand awareness to people in world. This strategy helps in the key success to international success. In 2009 the Gross Profit and market share of HTC was as: North America 48.8% NT$ 70.7 Billion, Europe 30.4% NT$ 44 Billion, Asian & other countries 20.8% NT$ 30.2 Billion

Range of HTC phones with innovation of technology and time REFERENCES: DATA available on: http://www.htc.com/us/about http://www.freeswotanalysis.com/telecommunication-companies-swot-analysis/57-htc-corporation-swot-analysis.html http://www.corpasia.net/taiwan/2498/irwebsite/index.php?mod=profile http://www.htc.com/www/press/htc-story.html http://www.corpasia.net/taiwan/2498/irwebsite/index.php?mod=pages&id=2 http://www.corpasia.net/taiwan/2498/engovernancepage/2/EN/20100618-HTC%20Procedures%20for%20the%20Acquisition%20or%20Disposal%20of%20Assets_E.pdf http://www.corpasia.net/taiwan/2498/engovernancepage/2/EN/20100618-HTC%20Rules%20for%20Endorsements%20and%20Guarantees_E.pdf http://www.corpasia.net/taiwan/2498/engovernancepage/2/EN/20090619-HTC%20Procedures%20for%20the%20Handling%20of%20Derivatives%20Trading_E.pdf http://www.corpasia.net/taiwan/2498/engovernancepage/2/EN/20100618-HTC%20Operational%20Procedures%20for%20Lending%20Funds%20to%20Others_E.pdf http://www.corpasia.net/taiwan/2498/irwebsite/index.php?mod=pages&id=1 http://www.cliffsnotes.com/study_guide/The-Internal-Environment.topicArticleId-8944,articleId-8860.html http://www.cliffsnotes.com/study_guide/The-External-Environment.topicArticleId-8944,articleId-8859.html http://www.htc.com/uk/press.aspx?id=126904&lang=1033 http://www.corpasia.net/taiwan/2498/irwebsite/index.php?mod=strategy http://www.corpasia.net/canreport/main.php?ticker=2498&id=25&regionid=1 http://www.htc.com/www/about-htc/achievements.html [ASSESSED ON 31st March 2011]