SWOT analysis of HTC

would like to share some points from my side:)

Strength:

1.HTC chose the right partners (giant players in software industry, such as Microsoft) to cooperate with to enter the market with less risk.

2.Strength in hardware design and strong manufacture capacity: provides high quality products with high technology and innovation.

3.ODM saved cost and avoid market entry risk.

4.Operator business, operators buy product from HTC and promote the sales themselves, is good for HTC to enlarge sales volume and market share with less promotion cost.

5.ODM and operator business brought high margin (20%) compared to an industry average of 5%.

6.The brand HTC was recognized by end users.

Weakness:

1.Operator business requested customization module for HTC, and customization increased the cost of product and reduced margin (ASP).

2.Too related on Microsoft’s platform which was not mainstream in the smart phone system market.

3.Brand awareness is weak.

Threat:

1.Other Taiwanese competitors were catching up in the ODM market

2.Lots of new entrants jumped into handset market. (Apple, Samsung, RIM…)

3.Lots of new entrants penetrated into system platform market. (Apple, RIM, Google)

4.More technology and innovation are used on smart phone.

5.Product cycles are getting short

6.Price will come down

Opportunity:

1.Smart phone category will seize 30% of the whole phone market in 2012.

2.Google’s system Android caught attention of end users, but Google has no device for it.

3.US market is critical for global smart phone industry while HTC only got 2% brand preference to buy.

4.3G tech. is booming in current years, and 4G is coming in the phone market.

I agree Roger absolutely.
especially,I think,the position of brand about HTC is proper perfect,smartphone is the proper choice.

The reachout for Google is absolutely smart decision for HTC.
Not only did HTC benefit from the new operating system to launch G1 and
following HTC Magic, but HTC managed to save extremely high licensing payments.
It seems HTC doesnt rely on Microsoft anymore.

There is no doubt that smartphone market is a potential market for HTC to keep
investing. However, in important market such as China and USA, the demands for
mid-range or mass price cell phones are still huge, given that the 200$ for a smart
phone in US and the majority people can only afford a cheap one. It might be a good
idea for HTC to launch a more mid-range sub-brand, htc,(for example)

Anyway, Roger, nice SWOT analysis for HTC, bravo~~~

Hey, Roger, this is very good analysis~~~Good job!!

My two cents: Google's Android is both an opportunity and a threat to HTC.
Opportunity:Android's raising will grab market share from HTC's competitors such as Apple/RIM/Nokia etc. If HTC can provide great Android based products it will catch this trend and grow.

Threat: Android is a platform that opens to everyone. This means HTC does not have exceptional competitive advantage on Android compare to other vendors such as Moto. Given the fact that HTC dominated the Window Mobile platform for a long time, it will be tough for them to adjust to the fierce competition on Android.

The look of HTC's phone is plein, simple and cool which stastisfy the customers' needs, the young peole in particular.

It also had a price advantage over iphone.

But HTC's system is slow and eaily crashes according my own experience.

I think the market is important. No matter how techonology develops. who can earn money is important. HTC should catch the end customers and let them recognize HTC's brand.Through this, no matter how change, the customers will buy HTC products.

I think HTC can establish some experience stores to improve customer experience quality or environment, and improve customer loyalty.