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Htc Case

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Submitted By patrick707
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Introduction
This paper will provide an analysis of High Tech Computer Corporation (HTC) a Taiwanese corporation operating in the mobile phone and smartphone industry, as described in ‘HTC Corp. in 2012’ by Yoffie, Alcacer, Kim (2012). It will aim to provide an insight into some of the challenges which HTC encounters, due to both internal and external developments, and how these challenges affect the strategic position of HTC, as well as the sustainability of its future. Lastly, this paper will conclude with a strategic advice to the directors of HTC on what steps they ought to undertake in order to move HTC into the top three of smartphone producers worldwide. Overall, the major challenges which HTC encounters can be related to two facts. Firstly: HTC operates in a highly competitive, fast growing market, which is driven by innovation and technology-based developments: In 2011 annual growth of the smartphone market was recorded at 61% (Yoffie, Alcacer, Kim, 2012). Competing in a high-growth market brings various opportunities as well as complications along, some of which will be discussed below. Secondly, the fact that HTC has recently switched from solely providing via operators to selling phones under its own brand name has brought about a variety of challenges which will be discussed below. Customization versus Scalability In the past, HTC has differentiated itself by providing customized products, i.e. by tailoring products to the needs of mobile operators, who could in turn better target different markets and target groups (Yoffie, Alcacer, Kim, 2012). HTC provided, therefore, a mix between service and goods (Kotler and Keller, 2016), in which close attention is paid to the specific wants and needs of different clients. Providing customized products, however, also means that operating costs are considerably high, since

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