HTC Corp. in 2012 Essay

1579 Words Mar 2nd, 2014 7 Pages
Problem: Unsuccessful differentiation. Although HTC created different kinds of brands for their smartphones it failed to differentiate itself from competitors. It could not market the brand as a unique one in order to conquer customer loyalty as other companies did, such as Apple and Samsung. Hence, the failure of creating brand recognition set them apart from the differentiation strategy they were pursuing.

External Analysis
General Environment
Two factors best describe the general environment: technological and sociocultural.
Technological (Technologies are in continuous development, being competitive requires investing in R&D and staying up-to-date with the new trends in the industry; it became a need to perform different tasks
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HTC was always trying to be one step ahead of competitors by continuously innovating their products.

HTC are using internal as well as external growth. HTC corporate level strategy is related diversification. Along their history, HTC has proven to pursue this strategy: they have started the business by producing computers, than they switched to PDA, smartphones and lately to tablets, a new trend in mobile devices industry. Also they have acquired different businesses in the related industry to support their business level strategy and corporate level strategy (for example Beats by Dr. Dre, Dashwire and Saffron Digital).

HTC is facing serious problems that question the way the company should pursue further in order to survive the competitive battle. Company’s sales have decreased, their differentiation strategy has to be remodeled, decisions have to be taken regarding the tablets market and development of their own Operating System. Also, it has to mitigate problems regarding intellectual property wars.
HTC has to address all these problems before preceding any further.

Several courses of action could be taken by HTC:
A possible alternative for HTC is to develop their own OS that will help them to differentiate themselves from competitors and to become independent from the software providers the company does business with, such as Microsoft or Google.
A second alternative would be to

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