HTC Corp. in 2012 |
Individual Case Analysis |
Simon Teller |
COMM 445 – Section L
Dr. Jared North
HTC Corp. in 2012
HTC Corporation, once the darling of the smartphone market, is now facing hard times. Its stock price is tumbling; its revenues and earnings are falling and its once growing global smartphone market share, has dropped from 8.9% in Q1 of 2011 to 4.8% in Q1 of 2012 (htcsource.com).
Now the company faces many questions, as to how it will regain market share and stop the earnings and revenue bleeding.
How should HTC differentiate itself going forward in an attempt to stand out amongst all its competitors?
With companies like Microsoft and Google forming strategic alliances with other smartphone companies, what strategies should HTC employ, so as to not be left behind?
Intellectual property rights have become a major concern for smartphone manufacturers. How does HTC compete in a Smartphone market, where a few key competitors hold most of the patents?
With the tablet market heating up and expected to grow fivefold from 2011 to 2015, how should HTC approach this market?
An analysis of HTC’s internal and external environment, will allow for some recommendations to help turn this situation around and help the company grow going forward.
The Smartphone Industry
The Smartphone industry has experienced phenomenal growth, since the launch of the first smartphone in October 2002. From Q4 2009 to Q4 2010, smartphone growth was 88.6% (Canalys estimates, 2011). In the most recent year (2011), smartphone growth was 61% and smartphone market penetration worldwide is estimated to be 16% (eMarketer, 2011). With such a high growth rate and small market penetration, the smartphone market is an attractive place to be.
Using the Five forces of competition model, will look at the attractiveness of the smartphone industry.
1. Threat of New Entrants
The risk of new entrants is moderately low. High start-up costs, high...