HTC Corp. in 2009 Case Study Analysis
Target Market Strategy:
HTC Corp. divides its target market into two main parts: the commercial market and the consumer market. The main target groups in the corporate market are management-level business professionals, entrepreneurs and small business owners becausedue to frequent business travels, continuous access to information, the need for basic software for mobile devices, employee management, and customer relationship; businessmenrely on mobile technology.
Marketing Strategy:
HTC Corp’s primary marketing strategy is to increase its brand awareness up to 65% in the consumer sector and 70% in the commercial sector. The sales target for the first year is 100,000 units ('08 / T3 15,000 units, '08 / T4 20,000 units, '09 / Q1 30,000 units and '09 / T4 30,000 units). In the second year; HTC Corp expects its unit sales to grow by 50%. In addition to this, HTC Corp expects to establish close ties with the major channels as well as the service providers, within the period of five months.
- Promoting brand strategy / product awareness.
- Radical changes in the features and benefits of HTC’s phones.
- Create enthusiasm for the product.
- Product face.
Focusing on target regions, namely: China and India, focusing on brands of all operating platforms - high-end smartphone series - Desire low-quality smartphone series - in collaboration with Samsung Galaxy and Apple iPhone service providers, for example:
Financial Strategy:
In the German market, HTC Corp expects a loss of $ 18.9 million in the first year due to a lack of brand awareness, aggressive advertising spending and high development costs. The goal reached a breaking point within 21 months of its introduction. The company expect a return of at least 15% per year for the first 4 years.
Decision
Samsung’s rise to prominence and Apple’s continued growth have reduced HTC’s market share. In terms of HTC performance; it has been declining since the year 2007. As if that weren’t enough, Taiwan is mixed to demand state support. Dear Wang, he stated that this is a Chinese brand and claimed that HTC is shipping poor quality mobile phones to Taiwan. Part of HTC’s slowdown was caused by bad marketing strategies, such as: the “move out of here” campaign, which incurred a massive cost but failed to bring the desired results. The dismissal of senior executives and some recent layoffs are not good for HTC, as a quarter of employees blamePeter Chou for HTC’s situation. HTC may cause a stir in the upcoming years, but the outlook seems bleak for now.
Best Way for HTC Corp. to Compete in Smart Watch Market
HTC is growing at a rapid scale. According to the annual report, "given that global demand for mobile phones is expected to continue in 2010; we can expect the tight supply situation to continue". HTC needs to make sure that its suppliers increase the productivity in order to meet the market demand. HTC also needs additional factories and facilities to meet the growing demand for HTC’s products.
Because HTC is growing so fast to meet the market’s demands;it always focuses on quality control to compete in the smart watch market. Similarly, when HTC launched its new HTC Hero in June 2009; HTC Hero won several awards, including: "Stuff Magazine," "Mobile Phone of the Year," "Gadget of the Year." Mobile Choice and T3 Magazine's "Best Phone of the Year." At the world’s largest annual telecom industry event: the 2010 Mobile World Conference; HTC Hero won the 2010’s Best Phone or Mobile Device award. "
In 2009, HTC shifted its focus towards European and North American markets. North American sales accounted for 48.8%, Europe accounted for 30.4% sales and Asia and other regions had the sale of 20.8%. North America in particular, is the most promising market, with an annual growth rate of 28.6%. HTC’s development strategy is to define the current global position of the HTC brand.
HTC offers different products to serve different market levels. First, the HTC HD2 is a a luxurious high-end product. Secondly, they can compete in the markets with mid-priced products from HTC Tattoo and HTC Touch2.
HTC is focusing on the smartphone industry and wireless technology, and this market is becoming increasingly complex. HTC is working with telecom companies to install its phones in stores, in order to increase the sales of its phones, such as: Verizon, Sprint and T-Mobile. HTC phones are now marketed in Europe, the Americas and Asia by major carriers and distributors. HTC has gradually entered the smartphone market in developing countries, such as: the Middle East, Central and South America, and Russia.
In 2007, HTC opened the world’s first HTC Care Customer Service Center in Taiwan. Fred Liu, Director of HTC, said: “HTC believes that quality after-sales support is our continued success. Many HTC care centers are open in Taiwan and overseas, so that our customers don’t miss a call while enjoying having a mobile phone. “Customer service centers are very valuable to customers. Customer service can save your time and improve the efficiency of solving the problems faced by the customers. Customers only need to come to the center for personalized advice on HTC products , warranty repairs and purchase of HTC products. HTC also provided a rental phone during the maintenance period. During this period; customers do not have to worry about alternate phones.
HTC’s most valuable device is its people. In recent years; HTC’s employees recruited exceptional talent in product design, user interface, brand promotion and sales and marketing. HTC has also employed professional employees in Europe as well as in the United States, which has enabled it to have an increase in its diversity, challenges, vitality and inspiration. "As of March 2010, HTC had 8,948 employees worldwide. The 169 non-Taiwanese employees employed by HTC account for 30% of the HTC's total management positions. Non-Taiwanese administrative and technical personnel account for 8.3% of all the positions. From the HTC’s current 557 worldwide leadership positions; the percentage hold by women is 21.4%.......................
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