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 - – digital marketing is dominated by two big players Facebook and Google, wage bills are increasing, technology disruption, increasing energy prices, increasing household debt because of falling income levels, talent flight as more people leaving formal jobs, there is backlash against globalization,
there is increasing trade war between United States & China, geopolitical disruptions, 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.
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.
Ability to lead change in Strategy & Execution field
– Htc Subcontractor is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Htc Subcontractor in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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.
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.
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.
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.
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.
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.
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.
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.
Effective Research and Development (R&D)
– Htc Subcontractor has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study HTC Corporation: A Smartphone Pioneer From Taiwan - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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 -
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.
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.
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.
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.
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.
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.
Need for greater diversity
– Htc Subcontractor has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
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.
Interest costs
– Compare to the competition, Htc Subcontractor has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
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.
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.
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 -
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 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 .
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 .
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.
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.
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.
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.
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.
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.
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.