HTC Corporation: A Smartphone Pioneer From Taiwan SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of HTC Corporation: A Smartphone Pioneer From Taiwan
The case describes how HTC, a pioneer of mobile computing from Taiwan, evolved from a local subcontractor of PDA (personal data assistant) to a global contender of smartphone. It analyzes the successful transition of the company from an anonymous supplier of Western clients (such as HP and Palm) to a brand marketer that is considered a major threat to Apple Computer (from its founding in 1997 to 2010). The key issue in this case is the introduction of the HTC brand carried by products delivered to network operators worldwide, such as AT&T, British Telecom, NTT DoCoMo, Rogers, Verizon, Vodafone, and so on. Unlike most subcontractors in the East that encountered strong resistance or even harsh retaliation from their current clients, HTC had the blessings of many Western buyers in the introduction of its own brand name. This case identifies the structural issues between a subcontractor and a client that can potentially dictate the branding status of the final product sold to end-users, namely, when a subcontractor should remain anonymous to end-users and when it should appeal to end-users by branding its own product.
Swot Analysis of "HTC Corporation: A Smartphone Pioneer From Taiwan" written by Lien-Ti Bei, Shih-Fen Chen includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Htc Subcontractor facing as an external strategic factors. Some of the topics covered in HTC Corporation: A Smartphone Pioneer From Taiwan case study are - Strategic Management Strategies, Collaboration, Emerging markets, Entrepreneurship, Innovation, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the HTC Corporation: A Smartphone Pioneer From Taiwan casestudy better are - – increasing commodity prices, increasing government debt because of Covid-19 spendings, competitive advantages are harder to sustain because of technology dispersion, customer relationship management is fast transforming because of increasing concerns over data privacy, digital marketing is dominated by two big players Facebook and Google, increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation,
challanges to central banks by blockchain based private currencies, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of HTC Corporation: A Smartphone Pioneer From Taiwan
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in HTC Corporation: A Smartphone Pioneer From Taiwan case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Htc Subcontractor, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Htc Subcontractor operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of HTC Corporation: A Smartphone Pioneer From Taiwan can be done for the following purposes –
1. Strategic planning using facts provided in HTC Corporation: A Smartphone Pioneer From Taiwan case study
2. Improving business portfolio management of Htc Subcontractor
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Htc Subcontractor
Strengths HTC Corporation: A Smartphone Pioneer From Taiwan | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Htc Subcontractor in HTC Corporation: A Smartphone Pioneer From Taiwan Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the HTC Corporation: A Smartphone Pioneer From Taiwan Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Strong track record of project management
– Htc Subcontractor is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Htc Subcontractor
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Htc Subcontractor does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Htc Subcontractor is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Htc Subcontractor is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in HTC Corporation: A Smartphone Pioneer From Taiwan Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Htc Subcontractor is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Lien-Ti Bei, Shih-Fen Chen can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Successful track record of launching new products
– Htc Subcontractor has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Htc Subcontractor has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
High brand equity
– Htc Subcontractor has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Htc Subcontractor to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Htc Subcontractor is one of the leading recruiters in the industry. Managers in the HTC Corporation: A Smartphone Pioneer From Taiwan are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Htc Subcontractor digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Htc Subcontractor has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Low bargaining power of suppliers
– Suppliers of Htc Subcontractor in the sector have low bargaining power. HTC Corporation: A Smartphone Pioneer From Taiwan has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Htc Subcontractor to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Htc Subcontractor has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in HTC Corporation: A Smartphone Pioneer From Taiwan Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Superior customer experience
– The customer experience strategy of Htc Subcontractor in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses HTC Corporation: A Smartphone Pioneer From Taiwan | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of HTC Corporation: A Smartphone Pioneer From Taiwan are -
Products dominated business model
– Even though Htc Subcontractor has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - HTC Corporation: A Smartphone Pioneer From Taiwan should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As HTC Corporation: A Smartphone Pioneer From Taiwan HBR case study mentions - Htc Subcontractor takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
No frontier risks strategy
– After analyzing the HBR case study HTC Corporation: A Smartphone Pioneer From Taiwan, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Capital Spending Reduction
– Even during the low interest decade, Htc Subcontractor has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study HTC Corporation: A Smartphone Pioneer From Taiwan, it seems that the employees of Htc Subcontractor don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High cash cycle compare to competitors
Htc Subcontractor has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
High bargaining power of channel partners
– Because of the regulatory requirements, Lien-Ti Bei, Shih-Fen Chen suggests that, Htc Subcontractor is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Workers concerns about automation
– As automation is fast increasing in the segment, Htc Subcontractor needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Low market penetration in new markets
– Outside its home market of Htc Subcontractor, firm in the HBR case study HTC Corporation: A Smartphone Pioneer From Taiwan needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the HTC Corporation: A Smartphone Pioneer From Taiwan HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Htc Subcontractor has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Htc Subcontractor is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study HTC Corporation: A Smartphone Pioneer From Taiwan can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities HTC Corporation: A Smartphone Pioneer From Taiwan | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study HTC Corporation: A Smartphone Pioneer From Taiwan are -
Using analytics as competitive advantage
– Htc Subcontractor has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study HTC Corporation: A Smartphone Pioneer From Taiwan - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Htc Subcontractor to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Htc Subcontractor to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Htc Subcontractor can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Htc Subcontractor can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, HTC Corporation: A Smartphone Pioneer From Taiwan, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Htc Subcontractor can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. HTC Corporation: A Smartphone Pioneer From Taiwan suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Htc Subcontractor can use these opportunities to build new business models that can help the communities that Htc Subcontractor operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Better consumer reach
– The expansion of the 5G network will help Htc Subcontractor to increase its market reach. Htc Subcontractor will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Htc Subcontractor is facing challenges because of the dominance of functional experts in the organization. HTC Corporation: A Smartphone Pioneer From Taiwan case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Htc Subcontractor in the consumer business. Now Htc Subcontractor can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Htc Subcontractor can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Leveraging digital technologies
– Htc Subcontractor can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Htc Subcontractor can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Htc Subcontractor can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Threats HTC Corporation: A Smartphone Pioneer From Taiwan External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study HTC Corporation: A Smartphone Pioneer From Taiwan are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study HTC Corporation: A Smartphone Pioneer From Taiwan, Htc Subcontractor may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Htc Subcontractor in the Strategy & Execution sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Htc Subcontractor high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Regulatory challenges
– Htc Subcontractor needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Htc Subcontractor with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Htc Subcontractor.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Htc Subcontractor can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study HTC Corporation: A Smartphone Pioneer From Taiwan .
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Htc Subcontractor business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Htc Subcontractor demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Technology acceleration in Forth Industrial Revolution
– Htc Subcontractor has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Htc Subcontractor needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Shortening product life cycle
– it is one of the major threat that Htc Subcontractor is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Htc Subcontractor will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Weighted SWOT Analysis of HTC Corporation: A Smartphone Pioneer From Taiwan Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study HTC Corporation: A Smartphone Pioneer From Taiwan needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study HTC Corporation: A Smartphone Pioneer From Taiwan is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study HTC Corporation: A Smartphone Pioneer From Taiwan is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of HTC Corporation: A Smartphone Pioneer From Taiwan is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Htc Subcontractor needs to make to build a sustainable competitive advantage.
