HTC Corporation SWOT & PESTLE Analysis

Strength

1. Pioneering innovations in smartphones: HTC has a rich history of innovations and is well credited with giving high tech offerings to the world beginning from PDAs to 5G ecosystem. It is acclaimed to launch the flagship windows based PDA then, smartphone, touch centric and 4G enabled Android device. The obsession of HTC for quality products could be understood by the fact that it launched the world's first metal body smartphone. HTC entered into several collaborations with sectorial industry leaders, namely, Under Armour, Valve and Google to launch the "Powered by HTC" devices like the famous Google Pixel, being one of the products with Google. It is currently developing the highly integrated, ahead of its time, gadgets of Virtual Reality, Artificial Reality, AI and 5G. In the VR and AR segment, HTC's VIVE has made huge investments to revolutionize the gaming, healthcare automation and education technology. The latest 5G hub is a combination of 5-inch touchscreen enabled high quality visual device and 5G hotspot hub, which can share network with 20 other devices. Besides, HTC boasts in its basket, about the Exodus series of block chain phones, which are one of its kind, to provide secured vault to contain and generate Bitcoins.

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Weakness

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Opportunity

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Threats

1. Fierce competition and price wars: Triple forces of marketing, pricing and product quality drive the smartphone market. The users of smartphones are usually millennials who tend to change choices frequently. Fierce competition of over 1300 smartphone brands lead to pricing and marketing war. HTC always focused on high end users. With U12 Life HTC tried to enter the mid range market segment of under $500 offerings but it seems to fail there too due to lower budgets of marketing and higher price for specs. The phone is priced at $384 with reduced specs compared to its predecessor U11 but it is considerably expensive than similar offerings from Xiaomi and Huewei. Xiaomi is already reining the Indian and Chinese market together and to beat it HTC needs to drive more efforts to reduce price and upscale product-focused marketing to get an edge over competitors. Moreover, the ongoing anti China sentiments could play for Taiwanese brands given they work on their brand awareness and consumer demands.

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Political

1. Taiwanese companies benefitted by US China Trade war: China had been the sweet spot for investors related to manufacturing. With the ongoing US China Trade war, the sweet spot is souring. US had been increasing the tariff on exports from China. In retaliation, China too increased tariffs on imports from USA. China lost exports worth $35 billion, out of which 63% were diverted to other exporters like Taiwan, Mexico, etc. Taiwan is an international manufacturing hub of core technologies since decades. Taiwanese companies are known for their talented workforce and home grown robust technology. It has good relations with the US and close economic tie-ups with China. As a result, Taiwanese companies are investing to start manufacturing in Taiwan itself, which has both, workforce and ready infrastructure. Moreover, many companies started migrating to Taiwan due to the trade war. In 2018, Taiwan was the major beneficiary of Chinese exports diversions to the USA with a share of $4.2 billion of diverted exports. HTC has manufacturing units in China but its core manufacturing hubs are in Taiwan. Moreover, HTC has long-term collaboration with Google since 2018, which allows its Taiwanese R&D personnel to work for Google from Taiwan itself. On one hand it can cater to global customers except USA through its facilities in China and on the other hand, it can increase its influence in the American market through Google by operating core technologies from Taiwan.

2. The rising Indo China rifts can play good for HTC: India, the fastest growing smartphone market, is undergoing simmering tensions with China over territorial issues. The government of India has sent clear directives to the people of India to boycott use of Chinese goods and minimize dependency on Chinese supplies. They have even cautioned its telecom operators from using Chinese offerings. Xiaomi rules the smartphone arena of India. HTC re-entered the Indian market in 2019 with its latest HTC wildfire. It is already making the phone in India through licensing of its design with InOne Smart Technology. Additionally, the Taiwanese technology titan has tied up with Flipkart, a home grown brand of Indian origin, now owned by Walmart, to brand it's phone in India. HTC could use the Make in India and Anti-China sentiments in India, to its advantage by creating a footage in the rapidly growing market of smartphones. Indian government is trying to get rid of Chinese dominance of trade in India, as it has banned its Air Force, an organization of immense respect among Indians, from using the Xiaomi phones. HTC can use the opportunity to tie up with the Indian government to create India centric offerings of smartphones and 5G Hub’s.

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Economic

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Social

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Technological

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Legal

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Environmental

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