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HTC Corporation SWOT & PESTLE Analysis

ID : 52727453| Sep 2020| 14 pages

COMPANY PROFILE -HTC Corporation

Business Sector :Consumer Electronics: Smartphones and VR/AR gadgets

Operating Geography :Taiwan, Asia, Global

About HTC Corporation :

HTC Corporation is a Taiwanese Electronics company that principally engages in the design, production and sale of smart mobile devices. The company offers touch phones, personal digital assistant (PDA) phones, smart phones, android phones and panel computers among other variants. HTC is headquartered in Xindian District, New Taipei City, Taiwan and has an international workforce of 4810 employees as of 2020. HTC consequently operates as an original equipment manufacturer for many of the world’s largest telecommunication companies including Orange, AT & T Wireless, and T-Mobile, among others. The Company was founded in 1997 by Cher Wang and Peter Chou. Within a few years, HTC gained prominence with the creation of its first Android phone, the HTC Dream (T-Mobile G1). The major elements of HTC’s success lie in their innovative ideas and approach. Their popular Touch series, introduced models that were visually pleasing in addition to their finger friendly TouchFLO interface. According to a report by Canaalys, the company was the biggest Smartphone maker in the US, shipping almost 5.7 million devices worldwide in 2011, 800,000 more than Samsung. HTP was the recipient of 22 awards at CES 2016, including Best in Show for Vive and Wereable’s best in Show for UA HealthBox.

HTC Corporation’s unique selling proposition or USP lies in being the largest manufacturer of the world’s Windows Mobile-based clamshell “smart phones” and personal digital assistants (PDAs). HTC’s mission statement reads, “Our mission is to become the leading supplier of mobile information and communication devices by providing value-added design, world-class manufacturing, and logistic and service capabilities.” HTC’s vision statement reads “Everyone has a good personality. People respect and support each other. Let us make the planet lovely together.”

HTC Corporation Revenue :


N$ 100 billion - FY ending 31st December 2019 (y-o-y decline 57.8%)
N$ 237 billion - FY ending 31st December 2018

Competitive Analysis of HTC Corporation

SWOT
PESTLE
The SWOT analysis of HTC Corporation is presented below in a matrix followed by the detailed analysis report:
StrengthsWeaknesses
1. Pioneering innovations in smartphones
2. The frontrunner of virtual reality arena
3. Robust R&D in the fields of 5G, VR, AR, AI and Blockchain
4. Third biggest vendor globally, in revenue for VR HMD shipments
1. Loss making enterprise
2. Focused on phones powered by sinking Microsoft OS
3. Smartphone business of HTC witnessed a long, drawn out, painful demise
4. Lack of scalability of product offerings
5. HTC U12 Plus lampooned for haptic button implementation
OpportunitiesThreats
1. Intellectual deal with Google gives HTC a lifeline to grow
2. Grab market share in the evolving gaming industry through partnership with Valve and launch of HTC VIVE
3. The stagnant smartphone industry to grow with advancement of burgeoning 5G technology
4. Dedicated to building the world’s largest virtual reality content platform, launching the VIVE Infinity membership service
5. Advancing into Medical Virtual Reality Products and transforming health care
1. Fierce competition and price wars:
2. Losing the Chinese and Indian market to Chinese mid range options
3. Betting huge on Virtual Reality in an ecosystem which is still in its infancy
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Detailed SWOT Analysis of HTC Corporation

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.

The remaining section of “Strength” is available only in the 'Complete Report' on purchase.

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.

The remaining section of “Threats” is available only in the 'Complete Report' on purchase.

Major Competitors :

  • Huawei
  • Xiaomi
  • Oppo
  • Samsung
  • Apple

Major Brands :

  • Exodus
  • Edge Sense
  • 5G Hub
  • HTC One
  • Vive
  • DeepQ Healthcare
  • Desire
  • U19e
  • Wildfire
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TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
References used in HTC Corporation Analysis Report

1. HTC 2019 Annual Report- file:///C:/Users/user/Downloads/2019_Annual_Report.pdf
2. Why HTC Suddenly Started Selling Handsets In India Again After Quitting Last Year - Why HTC Suddenly Started Selling Handsets In India Again After Quitting Last Year
3. Why Taiwan Is Benefiting The Most From The U.S.-China Trade War - https://www.forbes.com/sites/ralphjennings/2019/11/29/why-taiwan-is-benefiting-the-most-from-the-us-china-trade-war/#4d815ff91743
4. Why HTC's New Cheap High-End Smartphone Won't Revitalize The Company - https://www.forbes.com/sites/ralphjennings/2018/09/11/why-htcs-new-cheap-high-end-smartphone-wont-revitalize-the-company/#2d32a2484b3a
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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HTC Corporation SWOT & PESTLE Analysis - SWOT & PESTLE.COM

SWOT & PESTLE.com (2020). HTC Corporation SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/htc-corporation/ [Accessed 26 Nov, 2020].

In-text: (SWOT & PESTLE.com, 2020)

Copyrights and Disclaimer

HTC Corporation SWOT and PESTLE analysis has been conducted by Tej Narayan Shaw and reviewed by senior analysts from Barakaat Consulting.

Copyright of HTC Corporation SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

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HTC Corporation SWOT & PESTLE Analysis
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