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 - – wage bills are increasing, talent flight as more people leaving formal jobs, challanges to central banks by blockchain based private currencies, geopolitical disruptions, increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels,
technology disruption, central banks are concerned over increasing inflation, 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 -
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 -
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.
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.
Lack of clear differentiation of Htc Subcontractor products
– To increase the profitability and margins on the products, Htc Subcontractor needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Htc Subcontractor is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Htc Subcontractor needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Htc Subcontractor to focus more on services rather than just following the product oriented approach.
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.
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.
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.
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.
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.
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 existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Htc Subcontractor supply chain. Even after few cautionary changes mentioned in the HBR case study - HTC Corporation: A Smartphone Pioneer From Taiwan, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Htc Subcontractor vulnerable to further global disruptions in South East Asia.
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 -
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Htc Subcontractor can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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.
Manufacturing automation
– Htc Subcontractor can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Building a culture of innovation
– managers at Htc Subcontractor can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Htc Subcontractor in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Loyalty marketing
– Htc Subcontractor has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
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.
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Htc Subcontractor to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Htc Subcontractor to hire the very best people irrespective of their geographical location.
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.
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.
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.
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 -
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 .
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.
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.
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.
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.
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.
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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Htc Subcontractor in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
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.
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.
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.
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.
