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Htc Corp Analysis

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Submitted By jkjvj89
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The case finds HTC at an important junction in its growth within the mobile device industry. HTC is plagued with several challenges and faced with crucial decisions that could make or break the company’s future.
Performance
In the years leading up to the launch of its own brand, HTC developed strong relationships with mobile phone brands and network providers around the world. These relationships became the foundation of its success during the first few years of the smartphone era as it dominated the market under the leadership of HT Cho and Cher Wang. Right from the time the company entered the notebook computer industry, the leadership always demonstrated a great amount of adaptability and foresight – which, ironically, is what led the company to completely abandon the manufacturing of notebook computers. Upon realizing that the developments that were taking place at Microsoft aligned perfectly with its own vision of mobile computing, HTC leapt at the opportunity to become pioneers in this space. By using its first-mover advantage into the PDA space (and by extension the smartphone space), many branded handset companies and network providers went on to hire HTC to manufacture its devices. Lauded for its ability to customize products, the contract manufacturing business allowed HTC to establish itself as a leader in the eyes of handset companies and network providers. However, a key trade-off in this strategy was the lack of visibility the company was receiving in the eyes of the consumers. Peter Chou recognized this disadvantage that resulted from the company’s current position in the mobile technology industry and decided that it was in the company’s best interest to reposition itself vertically by branding and selling handsets under the company’s own name. Despite dissension among the directors on the board and a very limited marketing budget, the HTC brand

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