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 - – central banks are concerned over increasing inflation, technology disruption, increasing household debt because of falling income levels, there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs, increasing transportation and logistics costs,
competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , 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 -
Highly skilled collaborators
– Htc Subcontractor has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in HTC Corporation: A Smartphone Pioneer From Taiwan HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Strategy & Execution industry
– HTC Corporation: A Smartphone Pioneer From Taiwan firm has clearly differentiated products in the market place. This has enabled Htc Subcontractor to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Htc Subcontractor to invest into research and development (R&D) 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.
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.
Cross disciplinary teams
– Horizontal connected teams at the Htc Subcontractor are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Diverse revenue streams
– Htc Subcontractor is present in almost all the verticals within the industry. This has provided firm in HTC Corporation: A Smartphone Pioneer From Taiwan case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Innovation driven organization
– Htc Subcontractor is one of the most innovative firm in sector. Manager in HTC Corporation: A Smartphone Pioneer From Taiwan Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
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.
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.
High switching costs
– The high switching costs that Htc Subcontractor has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
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.
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 -
Aligning sales with marketing
– It come across in the case study HTC Corporation: A Smartphone Pioneer From Taiwan that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case HTC Corporation: A Smartphone Pioneer From Taiwan can leverage the sales team experience to cultivate customer relationships as Htc Subcontractor is planning to shift buying processes online.
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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study HTC Corporation: A Smartphone Pioneer From Taiwan, is just above the industry average. Htc Subcontractor needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
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.
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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study HTC Corporation: A Smartphone Pioneer From Taiwan, in the dynamic environment Htc Subcontractor has struggled to respond to the nimble upstart competition. Htc Subcontractor has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring
– The stress on hiring functional specialists at Htc Subcontractor has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
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.
Slow decision making process
– As mentioned earlier in the report, Htc Subcontractor has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Htc Subcontractor even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
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.
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.
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 -
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Htc Subcontractor can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Htc Subcontractor can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
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.
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.
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.
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.
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.
Creating value in data economy
– The success of analytics program of Htc Subcontractor has opened avenues for new revenue streams for the organization in the industry. This can help Htc Subcontractor to build a more holistic ecosystem as suggested in the HTC Corporation: A Smartphone Pioneer From Taiwan case study. Htc Subcontractor can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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.
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.
Learning at scale
– Online learning technologies has now opened space for Htc Subcontractor to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
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.
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.
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 -
Environmental challenges
– Htc Subcontractor needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Htc Subcontractor can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Htc Subcontractor needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Increasing wage structure of Htc Subcontractor
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Htc Subcontractor.
Stagnating economy with rate increase
– Htc Subcontractor can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
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.
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 .
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
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.
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.
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.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Htc Subcontractor can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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.