The main objective of the paper is to undergo strategic situational analysis of HTC which is a mobile phone handset firm. It will attempt at preparing a SWOT analysis of the company. The study will also focus upon Porter’s five forces model as well as industry life cycle analysis. In order to comprehend the resources held with the company, the study will make use of the value chain analysis. PESTEL analysis will be conducted in order to comprehend the macro environmental factors affecting the products and the services of the company. Porter’s Five Forces Model In order to recognise the competitive scenario of the smartphone industry in which HTC operates, the Porter’s five forces analysis can be quite applicable. Entry Barriers There are several barriers that prevent companies from entering into the smartphone industry. A few of the barriers that may work in favour of HTC need to be determined. High fixed cost, which is required for research and development, is considered to be one of the biggest barriers to entry into the industry. High brand recognition of the established companies is considered to be other barrier to entry for the new firms since people prefer to purchase goods from those companies that they trust (Scribd, 2012). Bargaining Power of Buyer It has been observed that the bargaining power of the buyers of smartphone is quite high. There are innumerable substitutes available in the smartphone industry. The product differentiation is quite low in comparison to the competitors. The demand for smartphones is generally elastic because of the fact that they are not indispensable products (Scribd, 2012). Threat of Substitutes Products There are various substitutes available for smartphones which are generally utilised for mobile phone’s admittance to information. There are a few substitute products available in the market, which include laptops, cell phones, pagers and organisers. The cellular phones as well as laptops offer the services that are needed by most of the customers in terms of access to information for the consumers. The different complements that the consumers can use for the smartphones are e-mails along with maps, internet applications as well as software that are available over the phones (Scribd, 2012). Rivalry There is high competition in the smartphone industry and even though there are few strong competitors, the industry does not endorse numerous organisations. This is because of differentiation. Although there is greater differentiation between the casual as well as the professional users for smartphones there is limited capability to differentiate it. There is negligible scalability in order to generate more number of software by not directing the market to a small number of firms (Scribd, 2012). When customers purchase a regularly utilised product, they tend to put greater emphasis upon quality instead of price. There is minimum differentiation for price and the companies with recognized low quality as well as fewer budgets for research and development will face difficulties in competing within the market. Bargaining Power of the Suppliers The phones are normally assembled making use of the components from numerous suppliers. Original Equipment Manufacturer (OEM) has
Analysis of the Strategic Situation of HTC, the Mobile Phone Handset Firm Table of Contents Introduction 3 Porter’s Five Forces Model 4 SWOT Analysis 6 PESTEL Analysis 7 Value Chain Analysis 9 Industry Life Cycle 11 Scale and Scope 11 Conclusion 12 References 14 Introduction HTC Corporation was established in the year 1997 and was initiated as one of Taiwanese firms that creates and makes goods sold under other umbrella brands…
The author believes that the company’s different top executives possessed different views regarding market operations and it led to total disorder. The HTC could not adequately take advantages of the large US market as a result of its poor brand promotion strategies. Increased cost of production was another issue that threatened the existence of HTC.
........4 3. Analysis of the Company’s Strategic Capabilities…………………………...…………………8 4. Evaluation of Possible Future Strategies for Research in Motion (RIM)……..………………12 5. Implementation of Strategic Change in Research in Motion (RIM)……………..……………14 6.
The timely and fruitful management strategies are found to be the key factors that led the company to rapid growth. In addition, the top management is always willing to take reasonable degree of risk and this policy has largely contributed to the firm’s business efficiency.
Strategic management can be defined as the processes of analysing, taking decisions and actions that an organization assumes in order to create and to maintain competitive performance (The McGraw-Hill, 2010). An effective use of strategic management procedure can bestow a company with certain benefits that include gaining a scope for improving the performance of the company, establishing a future direction, introducing quality products and services to enhance future success prospects among others (Washington State Hospital Association, 2006).
This industry is likely to continue with the growing trend because of the increasing popularity of smartphones among the customers. Furthermore, the smartphone industrial sector can be characterised as a highly competitive market which is almost occupied by the giant players of this sector (Ko & et.
The biggest problem with this advertising tool is that customers usually harbour very high levels of intimacy with their mobile phones and hence any strategy chalked out to exploit the medium of mobile phone has to be customer sensitive (Hendery 2). Anything done to interact with the mobile phone owners will have to be cautious about the possibility of being viewed as an unnecessary and perhaps illegal intrusion.
Apple always offers products as per consumer’s needs and requirements. Apple has been focusing on the right marketing of the right product in the right market to the right consumers.
Mobile market has been doing well globally. Mobile market is
, the ‘competition rivalry’ between the fourth and fifth most valuable US companies is sharpening since the friendship turned sour last year after a conflict regarding a conflict over Google’s voice application which was refused by Apple (The New York Times).
It is now a
The Three UK brand was found in the year 2002. The company which operates the telecommunication networks under the brand name 3 in the United Kingdom is a common investment unit for the giant company Hutchison Whampoa. All the networks
7 pages (1750 words)Essay
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