Htc Case Analysis
The Chums Consulting present the following recommendations to the board of directors of HTC for your review.
Challenge
HTC, while maintaining its current ODM business, will develop a strategy that leverages its core competence as a mobile phone manufacturer to create a premium HTC branded smart phone to achieve a 12% global market share of all end-user smart phones within 3 years.
HTC will form strategic partnerships with one or more operating system providers to ensure the design of the smart phone is tailored and optimised to the selected operating system(s).
HTC will reach customers and create a sustainable sales channel by developing a dynamic sales model that factors in the unique nature of different national and regional markets.
Alternatives
Alternative 1
HTC will develop a single high quality smart phone, utilising the Android OS. Utilizing HTC’s core competency in phone manufacturing, an exclusive partnership will be established with Google in order to create a user interface specifically tailored to the Android OS. HTC will continue to be an ODM, while using the experience acquired in this market, to provide a very high quality product for all Mobile Phone markets (i.e. US, Europe, Asia). With the partnership with Google significantly reducing licensing costs, the production cost of the phone will be lowered and the equivalent profit made will be used in creating a strong R&D department, focusing on developing a line of quality products for HTC. In order to reach the customers, a dynamic distribution strategy will be undertaken: HTC will supply its smart phone to a single tier one mobile carrier in the US market, allowing a reduction in the cost of the phone for end users through subsidies. In the EU and Asian markets the smart phone will be supplied to every carrier, without creating any strategic distribution oriented partnership. The main risk of this alternative, is the possibility of achieving a low market penetration, by providing a high
Challenge
HTC, while maintaining its current ODM business, will develop a strategy that leverages its core competence as a mobile phone manufacturer to create a premium HTC branded smart phone to achieve a 12% global market share of all end-user smart phones within 3 years.
HTC will form strategic partnerships with one or more operating system providers to ensure the design of the smart phone is tailored and optimised to the selected operating system(s).
HTC will reach customers and create a sustainable sales channel by developing a dynamic sales model that factors in the unique nature of different national and regional markets.
Alternatives
Alternative 1
HTC will develop a single high quality smart phone, utilising the Android OS. Utilizing HTC’s core competency in phone manufacturing, an exclusive partnership will be established with Google in order to create a user interface specifically tailored to the Android OS. HTC will continue to be an ODM, while using the experience acquired in this market, to provide a very high quality product for all Mobile Phone markets (i.e. US, Europe, Asia). With the partnership with Google significantly reducing licensing costs, the production cost of the phone will be lowered and the equivalent profit made will be used in creating a strong R&D department, focusing on developing a line of quality products for HTC. In order to reach the customers, a dynamic distribution strategy will be undertaken: HTC will supply its smart phone to a single tier one mobile carrier in the US market, allowing a reduction in the cost of the phone for end users through subsidies. In the EU and Asian markets the smart phone will be supplied to every carrier, without creating any strategic distribution oriented partnership. The main risk of this alternative, is the possibility of achieving a low market penetration, by providing a high