HTC Corporation, formerly known as HTC Computer Corporation, is a Taiwanese multinational manufacturer of smartphones and tablets, headquartered in New Taipei City. The target market strategy of HTC is unique. It targets a wide variety of customers who crave for the latest innovations. However, these customers have many needs but the question is whether they can afford them.
HTC has addressed to their need and they have also worked out the financial issue by introducing a variety of products at many price ranges and each of these products has features which appeal to their targeted customers. So, by this project report, we tried to find development, and growth of HTC. We also did Internal Environment analysis, External Environment analysis, macro-environment analysis to figure out some facts like One of the most key legal issues for a Smartphone is its accountability of privacy. HTC segments its target market in terms of their demographic characteristics, geographic characteristics, psychological characteristics, and usage rate and product feature etc.
HTC makes devices that are very much important in every aspect of our life, and make our life richer.
SWOT Analysis of HTC Corporation
The analysis elaborates on the internal and external strategic analysis in terms of strengths & weaknesses of and opportunities & threats for HTC.
STRENGTHS of HTC Corporation
The internal power and ability that has helped HTC Corporation to become one of the recognized electronics company are known as its strengths.
Well-Founded Research & Development
HTC is always concerned about its research and development department. It has its most employees devoted to the companies R&D sector. This company invests annually 5-7 per cent of its total revenue on research and development. This company is continuously focusing on how to improve the user interface and add new experiences for its customers. Because of its massive concentration on R&D, this brand has been improving itself continuously and surprisingly.
Awards & Recognition
HTC has achieved numerous awards and recognition for its innovation and technology. It got 22 awards in 2016, and one of that is for HTC VIVE, which was announced as the “Recognition of excellence” at the India Mobile Congress. Also, it got awarded as the “Best Business Partner” by IVC Nutrition, Sports Nutrition Specialists and many more for its powerful and charismatic innovation and contribution to the electronic industry. These awards have made HTC the talk of the town among other influential industry leaders.
Partnership with Giant Brands
The company has made partnerships and a long term relationship with giant’s brands such as Microsoft, Motorola etc. that has helped this brand to grow more. As a result, HTC developed and launched new and innovative products that caught the market’s attention at the very first moment. And also created momentum to capture a significant market in Europe countries.
Product Innovation
Product innovation is something which works as the base for any company. And HTC is not different from that. As a mobile phone manufacturer, HTC has to face rapid changes in the market situation and customer demands. But it never stepped away from facing that challenge. It has offered its customers with a wide range of smartphones and proved itself as fierce competition among others. HTC has always been more focused on touch handled smartphones that is precisely what the people today want.
Related Reading: Strengths of Samsung
WEAKNESSES of HTC Corporation
The internal lacking of HTC that has made its growth rate slow and forced to face fierce competitions are known as its weaknesses.
Weak Marketing Campaigns
Despite a secure entry in the market with potential growth chances, HTC is still lagging because of its ineffective marketing and promotional activities. It couldn’t make people feel interested and connected to its mobile phones. This brand thought that its slogan, which is “Quietly Brilliant” is enough to create maximum craze. But that’s where they went wrong. In the marketing world, who keeps silence, tend to leave the market very soon. And that almost happened with HTC.
Product Launch Delays
Though it somehow managed to become popular among people, the delays of its product launching have affected its revenues devastatingly. The HTC One phone was delayed due to the scarce supply of cameras that affected its first-quarter revenues. These kinds of delays have given other companies to capture the floor and divert the hype of customers from its’s phones to their products. As a result, the company has lost both revenue and competitive advantage against its rival in the market.
Weak Global Distribution Network
Although the HTC has one of the most significant and efficient production capacity, the vulnerable distribution network has made it lose against other competitors globally. This company is constantly facing unavailability of their product in the market at the peak moment, which is disappointing their customers. This type of situation is forcing them to lose their market share that is resulting in fewer profits margin.
Too many Similar Products
It never gives any scope of doubt on the quality, but its product strategy didn’t bring any fortune. This brand is struggling with other brands in terms of variation. Though this brand is constantly launching a new phone, none of those is being accepted as their flagships products because of the similarities. Their phones are becoming hard to find any differences except for some minor ones. But those are not enough to compete with other brands with their eye-catching and mind-blowing designs and features.
Related Reading: Weaknesses of Nokia
OPPORTUNITIES for HTC Corporation
The opportunities represent the scopes for HTC to improve itself and secure the top position in the market.
Entering into New Markets
HTC doesn’t have any substantial market share in the developing countries of Asia and Africa or the Middle East. But these regions are considered as the biggest smartphone markets worldwide because of their higher population and growing standard of living. Competitors of HTC has already entered and captured a secured position there. HTC can do the same by creating a balance in their product’s price that suits these continents and increase their sales.
Increasing Promotional Activities
In today’s world, those who are superior in promotional activities are successful the most. And that’s where HTC is considered as the weakest. But if this company puts effort to switch this situation and starts compelling and engaging promotional campaigns worldwide, the whole scenario will change surprisingly.
Development of Versatile Products
People’s demand is continually changing is this digital world. No trend is stable for a long time nowadays. And HTC should research this situation and put more effort to detect future possibilities and opportunities and develop their products like that. Because the more versatility a brand presents to its customers, the more they get the attention and acceptance.
Improvement in Technology
VR and AI will dominate the next step of technology. And electronic brands are effortlessly researching on these areas and developing user interfaces. HTC should grab this opportunity and build their products based on that. Because it’s almost definite that these technologies are the next future and companies must adapt to the changes as early as possible.
Related Reading: Opportunities for Lenovo
THREATS for HTC Corporation
Threats represent the alarming factors that can cause harm to HTC due to the fluctuation of the business environment and market situation.
Fierce Competition
Competition among other giant brands such as Apple, Samsung, Sony, LG is increasing day by day. As they’re more mature and early entrants than HTC, they’ve both experienced and more extensive customer base. And if HTC doesn’t do anything to tackle this competition as soon as possible, it’ll difficult for this brand to retarget and protect their existing market share.
Cheaper Substitutions
The price of HTC’s smartphones is relatively high than other phones. And now the more reasonable substitutions of almost every brands have captured the market and getting popular as well. Brands like Xiaomi, Huawei, Oppo are new entrants in this industry and creating cheaper phones with dynamic technologies that have put other brand as well as HTC in danger.
More Related Readings
References
- https://www.dqindia.com/htc-vive-receives-recognition-of-excellence-award-at-india-mobile-congress/
- https://www.digitaltrends.com/mobile/the-decline-and-fall-of-htc/
- https://www.engadget.com/2009-08-03-htc-sees-revenue-falling-due-to-delays-in-product-launches.html
- https://www.ukessays.com/essays/marketing/htc-corporation-is-a-smartphone-manufacturer-marketing-essay.php
- https://research-methodology.net/htc-corporation/
- HTC official Website
- Wikipedia – the HTC Corporation
- Phone Arena
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