Case Study Description of Quietly Brilliant: Transformational Change at HTC
The case examines smartphone maker HTC's 2006 decision to become a branded company. The case focuses on the cultural and organizational shifts HTC underwent to successfully make the transition from an ODM, founded in 1997, to a leading branded manufacturer (7% market share of smartphones in 2010), with the adoption of the tagline: "Quietly Brilliant." Significant challenges considered in the case include: transitioning HTC from a Taiwanese to a global firm, developing and maintaining a functioning global structure, building a sales and marketing force, and finding the right cultural balance between eastern and western capabilities.
Swot Analysis of "Quietly Brilliant: Transformational Change at HTC" written by Michael L. Tushman, Kerry Herman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Htc Quietly facing as an external strategic factors. Some of the topics covered in Quietly Brilliant: Transformational Change at HTC case study are - Strategic Management Strategies, International business, Organizational structure and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Quietly Brilliant: Transformational Change at HTC casestudy better are - – increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, central banks are concerned over increasing inflation, there is backlash against globalization, increasing commodity prices, wage bills are increasing,
customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, etc
Introduction to SWOT Analysis of Quietly Brilliant: Transformational Change at HTC
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Quietly Brilliant: Transformational Change at HTC case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Htc Quietly, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Htc Quietly 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 Quietly Brilliant: Transformational Change at HTC can be done for the following purposes –
1. Strategic planning using facts provided in Quietly Brilliant: Transformational Change at HTC case study
2. Improving business portfolio management of Htc Quietly
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Htc Quietly
Strengths Quietly Brilliant: Transformational Change at HTC | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Htc Quietly in Quietly Brilliant: Transformational Change at HTC Harvard Business Review case study are -
High brand equity
– Htc Quietly has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Htc Quietly to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Htc Quietly has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Quietly Brilliant: Transformational Change at HTC 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 Quietly in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Htc Quietly in the sector have low bargaining power. Quietly Brilliant: Transformational Change at HTC has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Htc Quietly to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Htc Quietly digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Htc Quietly 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.
Innovation driven organization
– Htc Quietly is one of the most innovative firm in sector. Manager in Quietly Brilliant: Transformational Change at HTC Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Htc Quietly is one of the leading recruiters in the industry. Managers in the Quietly Brilliant: Transformational Change at HTC are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Leadership & Managing People field
– Htc Quietly 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 Quietly in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Htc Quietly has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Htc Quietly 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.
Effective Research and Development (R&D)
– Htc Quietly 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 Quietly Brilliant: Transformational Change at HTC - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Leadership & Managing People industry
– Quietly Brilliant: Transformational Change at HTC firm has clearly differentiated products in the market place. This has enabled Htc Quietly to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Htc Quietly to invest into research and development (R&D) and innovation.
Analytics focus
– Htc Quietly 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 Michael L. Tushman, Kerry Herman 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.
Weaknesses Quietly Brilliant: Transformational Change at HTC | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Quietly Brilliant: Transformational Change at HTC are -
Skills based hiring
– The stress on hiring functional specialists at Htc Quietly 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.
Aligning sales with marketing
– It come across in the case study Quietly Brilliant: Transformational Change at HTC 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 Quietly Brilliant: Transformational Change at HTC can leverage the sales team experience to cultivate customer relationships as Htc Quietly is planning to shift buying processes online.
High cash cycle compare to competitors
Htc Quietly 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, Michael L. Tushman, Kerry Herman suggests that, Htc Quietly 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.
Need for greater diversity
– Htc Quietly 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Quietly Brilliant: Transformational Change at HTC 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 Quietly has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Htc Quietly is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Htc Quietly needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Htc Quietly to focus more on services rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Htc Quietly 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.
Low market penetration in new markets
– Outside its home market of Htc Quietly, firm in the HBR case study Quietly Brilliant: Transformational Change at HTC needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Htc Quietly 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 - Quietly Brilliant: Transformational Change at HTC should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As Quietly Brilliant: Transformational Change at HTC HBR case study mentions - Htc Quietly 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.
Opportunities Quietly Brilliant: Transformational Change at HTC | 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 Quietly Brilliant: Transformational Change at HTC are -
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Htc Quietly can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Htc Quietly 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, Quietly Brilliant: Transformational Change at HTC, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Htc Quietly can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People 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.
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 Quietly 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.
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 Quietly 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 Quietly in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Loyalty marketing
– Htc Quietly 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Htc Quietly can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Quietly in the consumer business. Now Htc Quietly can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Htc Quietly to increase its market reach. Htc Quietly 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 Quietly can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Quietly Brilliant: Transformational Change at HTC 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.
Using analytics as competitive advantage
– Htc Quietly 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 Quietly Brilliant: Transformational Change at HTC - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Htc Quietly to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Htc Quietly is facing challenges because of the dominance of functional experts in the organization. Quietly Brilliant: Transformational Change at HTC 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.
Threats Quietly Brilliant: Transformational Change at HTC External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Quietly Brilliant: Transformational Change at HTC are -
Stagnating economy with rate increase
– Htc Quietly 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.
High dependence on third party suppliers
– Htc Quietly 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.
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 Quietly.
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 international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Htc Quietly 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 Quietly Brilliant: Transformational Change at HTC .
Regulatory challenges
– Htc Quietly 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 Leadership & Managing People industry regulations.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Htc Quietly in the Leadership & Managing People industry. The Leadership & Managing People 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.
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 Quietly business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Htc Quietly with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Htc Quietly 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 Quietly can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People 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.
Increasing wage structure of Htc Quietly
– 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 Quietly.
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 Quietly 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 Quietly Brilliant: Transformational Change at HTC 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 Quietly Brilliant: Transformational Change at HTC 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 Quietly Brilliant: Transformational Change at HTC 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 Quietly Brilliant: Transformational Change at HTC 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 Quietly Brilliant: Transformational Change at HTC 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 Quietly needs to make to build a sustainable competitive advantage.
