HTC Corporation
Brief Description of the Company:
HTC Corporation is a multinational smartphone and tablets manufacturer company based in Taiwan. The company was founded in 1997 and it is head quartered in New Taipei city. HTC started its operations as original design manufacturer and original equipment manufacturer. The products include mobile phones, touch screen phones and PDAs based on windows software. In 2009, HTC focused on android devices and in 2011, the company launched windows phone. HTC became the 98th top brand on the Inter brand’s best global brands report 2011.
HTC is the founding member of the Open Headset Alliances.The group was the manufacturer of headsets and mobile network operators dedicated to develop the android system for operating the mobile.
In September 2013, the media reports showed that the market share of HTC Corporation was less than 3% of global Smartphone market. However, in 2015 the market share significantly increased to 7.2% due to the strong sales of HTC One and Desire series.
Due to the decrease in revenues and assets of the company, the share price has been falling since 2011 and has decreased by 90% in four years of the financial years of the company.
HTC Corporation’s Earnings/Revenue Segmentations:
There are total four different types of the products of HTC.The main product of HTC, which generates large revenues to the company, is its smartphone, and the second product is Tablet.Moreover, the third product comprises of cameras and the fourth product is virtual reality head set. Majority of HTC revenue come from the sales of smart phones across the world.
Advantages:
• More earnings segments enable the company to differentiate its risks.
• More than one market can be exploited.
• If revenues are less in one segments, then other segments’ revenue maintain the profitability of the company.
Disadvantages:
• The focusof the company may be divided as a result of different revenue segment and as a result there is more risk of failure.
• Costs related to the segmentations are high.
• There is a high chance of mismanagement with the company having different revenue segmentations.
HTC’s Market Analysis:
The market analysis of HTC can be performed on the basis of porter five forces;.................................
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