Subject : Appraisal of a MNE's recent market entry (2007-2010) ( 1. Firm Motivations for internationalization 2. Entry Strategy 3. Corporate Strategy)
Question: Acting as a market analyst for the US Investment bank Merrill Lynch, you have been allocated the responsibility to produce an appraisal report relating to a client’s (MNE) recent market entry
In the appraisal I will discuss my findings on HTC’s entry into the Indian mobile phone market. HTC was founded in 1997, it has been making a strong name for itself internationally. In 2007, the company entered the Indian market and quickly made a name for itself providing the first touch and Android phone …show more content…
Instead, these individual companies joined together for combined ventures, opposed to creating “separate or new corporate entity” as explained in the Harrigan International Joint Venture definition. This was done to reduce the risk of entry barriers into the Indian market through companies already set up in the country and familiar with its consumers. It helped in gaining knowledge of the market as well as establishing a trusted name for mobile phones in India by using the partners’ recourses and their consumers trust.
HTCs Synergistic Motives for entering India: HTC is hoping to increase its market share from its current 20% to 25% by mid 2011. It has been able to take up the Indian market by first providing the first fully touch phone with the HTC Touch and the first fully Android powered device with the HTC Magic. This has proven analysts’ earlier predictions, about a difficult entry, to be wrong. Worries were that HTC could not handle the competition with Nokia, Samsung and others already well established in the Indian Mobile market. Instead HTC managed to take control of the latest trends in smart phones by concentrating on the upper class segments.
HTC’s Corporate Strategy
HTC has a transnational corporate strategy: The products are all standardized internationally and the R&D department is located only at the headquarters in Taiwan, while strategies are adapted to the each countries market and consumers. The