Htc Strategic Options Essay

Words: 1803
Pages: 8

Table of Content
1. Introduction 3
2. Strategic Action 3
3. The Analytical Model 4
4. Overview of HTC Company 4
5. External Analysis 4
5.1 Macro-environment (STEEP) 5
5.2 Industry Analysis 5
6. Internal Analysis and the matching of capabilities with Key Success Factors 7
7. HTC’s Competitive advantage 8
8. Strategic Actions required to meet KSF or turn KSF into competitive advantage 9
8.1 Innovation and Agility 9
8.2 Brand and Equity 9
8.3 Economies of scale 9
8.4 Financial Resources 9
8.5 Product Portfolio 10
8.6 Overall Growth Strategy 10
9. Conclusion 10
10. References 10
11. Annexures 11

1. Introduction

This paper explores the strategic actions that HTC can adopt in order to become a leading smartphone company
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Economies of scale Costs There is generally a lack of economies of scale in HTC.
Financial resources Financial HTC’s Financial performance, as evidenced by such measures as Gross Margin% are on par with most of its strongest competitors,
Figure 3: Internal Analysis and the matching of capabilities with Key Success Factors

6.2 Value Chain Analysis
Value chain analysis describes the activities that take place in a business and relates them to an analysis of the competitive strength of the business. HTC Value Chain can be presented as follows:

Figure 4: HTC’s value chain
The activities that a business undertakes are directly linked to achieving competitive advantage. HTC value chain reveals that the company is very strong in the Hardware and manufacturing activities.

HTC enters into partnerships to deliver the other areas of the value chain, e.g. partnership with Qualcom for mobile phone chips, Microsoft and Google for software and various mobile operators to distribute their products. However, for HTC to achieve the vision of becoming a leading smart phone company in the world, they will have to outperform their competitors in all the value chain activities by integrating