HTC Corp Case Study

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HTC Corp Case Study Introduction

SWOT Analysis is followed by an organization in order to control its power or potency and mainly deal with the internal factors. It also focuses on languish of the organization. PESTLE analysis on the other hand, can be defined as the framework to control macro conditions and build up a new business or entering into foreign markets.

Company Name

HTC Corporation

Type of Industry

Telecommunications equipment

Headquarters

Taoyuan City, Taiwan

Sales/Revenue

TWD 12 billion

Area served

Globally

Number of Stores

52

Competition

CSS Corp, Genpact, TTEC, Alorica and Sitel

USP

One of the top sellers of luxury telecommunication equipment

Target Group

Upper class social group

Products

Smart phones and tablets

Websites

https://www.htc.com/us/

HTC Corp SWOT Analysis

Strengths

  • HTC has a strong association with some leading players like Apple, Microsoft, Nokia and Philips
  • The company has a strong presence in markets of America, Europe and Asia Pacific, resulting in profit of $143 million
  • Customers are replacing laptops and tablets with Smartphone. Thus the revenue and market share of the company in on high demand
  • Launching of 4G-LTE Smartphone are helping the company to reach $610.7 billion in 2019

Weaknesses

  • HTC is a long way below Apple and Samsung in terms of market share
  • The company is facing impoverished financial performance, which has decreased its growth
  • The company has reduced its ASP because of increasing competition

Opportunities

  • HTC will be benefitted as the company has focused on developing VR devices and also decided to make a partnership with the Value and Launched HTC Vive
  • Globally the telecommunication equipment market is improving in the technological part, which is giving opportunities to the smartphone companies in order to create revenue and market share

Threats

  • Due to many competitions, HTC faced with the pressure to create innovative products and bringing those to markets. It also limits the market share of the company
  • Due to many developed telecommunication equipment companies, the pressure of high price is affecting the company in a negative way

Analysis

HTC Corporation is connected with some of the famous telecommunication providers in US. From the case study of HTC Corporation, it has been analyzed that this brand has invested in R&D, which allowed it to create a strong profile based on products (Brânduşoiu et al. 2016).

Because of the rapid changes in technology, HTC is getting affected and bound to do more R&D in order to do many changes as required. The company is also affected by pricing pressure for the rising competition and for this reason the ASP is gradually declining. As per the case study of HTC Corporation, it has been observed that as the telecommunication equipment market is gradually developing day by day (Inegbedion and Obadiaru, 2019). This provided opportunities to Smartphone companies to increase their revenue as well as market share. Moreover, there are scopes for the chosen company to be benefited as it has focused on developing the VR devices and also decided to make partnership with the Value and Launched HTC Vive. As per the case study of HTC Corporation, it has been observed that due to many developed telecommunication equipment companies, HTC is facing pressure to make more innovative products and also lessen its market share. The case study of HTC Corporation revealed that increase in pricing of products is a constant threat to the company.

HTC Corp PESTLE Analysis

Political

  • Employees in telecom industries struggle with shifts of work
  • Many countries like Argentina, Australia, Canada and Egypt seem to maintain trade barriers against the telecom companies of US

Economic

  • The fact of recession has affected deeply to the telecommunication industries which decrease its inflation rates
  • During the decline, the telecom industries reduced the price of landlines and with that the cellular network service slowed in its growth
  • Gross Domestic Product of Taiwan is 605.00 USD Billion
  • Based on the amount of the product the consumer is getting well featured product so they are spending money on it, it can maintain the economic growth of the company

Social

  • Use of 4G internet marketing has increased, with the majority of people using social media for fun and business
  • Use of smart phones has increased rapidly there by removing cultural barriers
  • Increase in speed and high features in phone has developed a high demand for telecom equipment company among the customers, this has increased the growth rate of the company

Technological

  • Use of mobile computing in on high demand
  • Computers and cloud computing have become the source of productivity
  • Selling of Smartphone and tablets are high in demand with the need of biometrics for business purpose
  • Launch of 5G is expected to change the present scenario with increased speed

Legal

  • Broadcasting regulations are regulated by FCC
  • TCPA and FCA Law are related to telemarketing, which the providers comply
  • Changes occur in the aftermath of the 9/11 attacks which gave rises the pressure of the providers of telecom

Environment

  • Smartphone are mainly the part of e-waste which are gradually increasing
  • Keeping concern about the environment the telecom industries providers Verizon are making products which will add 24MW green energy by 2025

Analysis

As per the case study of HTC Corporation, it has been observed that, for the security of the Government, it has taken major steps to monitor over the communication that is mainly related with the telecom industries. This system has put to concern after the terrorist attack on US and lots of hacking attempts (Fan, 2015). As per the case study of HTC Corporation, it has been observed that, the employees of the telecom industries struggled with the shifting hours. Beside this, the company is getting benefited because for the demand of the products, which increases in the profit growth of the company. As per the case study of HTC Corporation, it has been observed that new innovations that are the R&D department will help to reach the desired level of success (Sapolsky, 2018).

Since the growth of population is gradually increasing, therefore, the need of telecom equipment is receiving success. As per the case study of HTC Corporation, it has been observed that consciousness about the health of consumers is put to concern that no such technological equipment related to telecommunication can affect the consumer negatively (Sarwar et al. 2017). Environmental conditions are getting affected in a negative way with emergence of high speed network. Consumers can recycle electronics products by not throwing them. It has been observed that Sprint’s recycling program has recycled used smartphones which resulted in increased profit by 44%.

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Reference List

Brânduşoiu, I., Toderean, G. and Beleiu, H., (2016), June. Methods for churn prediction in the pre-paid mobile telecommunications industry. In 2016 International conference on communications (COMM) (pp. 97-100). IEEE.

Fan, Y. and Xiao, M., (2015). Competition and subsidies in the deregulated US local telephone industry. the RAND Journal of Economics, 46(4), pp.751-776.

Inegbedion, H. and Obadiaru, E., (2019). Modelling brand loyalty in the Nigerian telecommunications industry. Journal of Strategic Marketing, 27(7), pp.583-598.

Sapolsky, H.M., Crane, R.J., Neuman, W.R. and Noam, E.M., (2018). The Telecommunications Revolution: Past, Present and Future. Abingdon: Routledge.

Sarwar, D., Ramachandran, M. and Hosseinian-Far, A., (2017), January. Disaster Management System as an Element of Risk Management for Natural Disaster Systems Using the PESTLE Framework. In International Conference on Global Security, Safety, and Sustainability (pp. 191-204). Springer, Cham.

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