Project Report 2
Project Report 2
1Introduction
Mobile phones have become an everyday necessity in peoples lives.This project begins with a
basic understanding of the mobile phone industry. It gives an overview of the market size,
relevant market shares and the future growth projections. This Smartphone market attracts a lot
of companies and has become a highly competitive environment work also provides current data
about business units with respect to sales, revenue and market shares for the core products of
telecom companies.The smartphone became a standard device for modern society in the past
years. The Worlds mobile phone market is predicted to grow up to 23% in 2018. The global
mobile phone market is a highly competitive environment where a high number of firms
compete. While established mobile phone markets like the U.S. and Europe are mature markets,
there is growth in emerging markets like China. Apple, among
firms had high profit margins which decreased rivalry. The smart phone industry was expected to
grow exponentially by coming years and when growth is high rivalry decreases. In addition,
loyalty to certain brands of phones and service providers would decrease rivalry.
Apple
Samsung
Micromax
HTC
Nokia
Panasonic
Blackberry
Motorola
Karbon
Apart from these there are brands like Oppo, Xiomi, Intex
Videocon,Idea,Reliance etc which are in the market and are doing well in
their field of providing services to their customers and are in apposition of
giving the competition to their competitors in the market.
aggressive pricing
The Smartphones
Business strategy as the tool that manipulates the resources and create competitive advantage,
hence, viable business strategy may not be adequate unless it possess control over unique
resources that has the ability to create such a unique advantage. To gain competitive advantage, a
business strategy of a firm manipulates the various resources over which it has direct control and
these resources have the ability to generate competitive advantage.
Businesses identify their strategies of doing business in order to assist them to achieve their aims
and objectives through increasing their sales. HTC business strategy formulated by its
management has helped the company to enter numerous new markets, and also to efficiently
changes in regulatory procedures within existing markets.
Efforts are made for effective advertising is done in order to make strong position In the
market.
Innovation in both commercial as well as technical aspects.
Dealers management.
Low pricing offers.
Network optimization.
Entering into each others dominant productive areas and to ensure own policies.
Providing more option to a single product like different offer For STD calls.
"A firm is said to have a competitive advantage when it is implementing a value creating strategy
not simultaneously being implemented by any current or potential player"
CHAPTER-2
RESEARCH METHODLOGY
RESEARCH METHODOLOGY:
Research Methodology is a careful investigation or inquiry specially to search new facts in any
branch of knowledge the research word is combined word to words, first is re and second is
search means to search again. It is also systematically way to solve the research problem.
The main function of research is to add new knowledge. In simple word research can be defined
as critical investigation search for truth facts or for certainty.
Research is a way to systematically solve the research Problem. It may be understood as a
science of studying how research is done scientifically. In it we study the various steps that are
generally used by the researcher in studying his research problem along with the logic behind
them.
2.2RESEARCH DESIGN:
A research design is the arrangement of condition for collection and analysis of data in a manner
that aims to combined relevance to the research purpose .The research design is the conceptual
structure within which research is conduct. It constitutes the blueprint for the collection,
measurement and analysis of data.
Types of research
Descriptive
Exploratory
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Descriptive Research: The research in which includes surveys and fact finding enquiries of
different kind. The main purpose of descriptive research is description of sates of affairs as it
exists at present.
Exploratory Research: The primary objective of is to provide insight into, and understand of
the problem conducting the research. This is also known as Formulating Research study.
The research design used in this project is Descriptiv Research design.
DATA COLLECTION:
Primary data: The primary data are those data which are collected afresh and for the first time,
and thus happen to be original in character. The first hand information which is directly collected
by the investigator from the respondent is primary data.
Secondary data: The secondary data on the other hand, are those which have already been
collected by someone. Secondary data is the second hand data and is not collected directly by the
respondents.
In this project work I have used secondary data for the study.
order to provide customer satisfaction. The main objective of this project is to find out what are
the business strategies and the competitive advantage of HTC. The study only shows the
Companys performance and its competition and the advantages over rival firms and not of the
whole industry. Therefore the study is confined to the strategies of the company.
totally reliable.
Time constraint is also one of the limitations.
There are sites which provide incomplete information which are not totally reliable for
the study.
Public
Telecommunication
May 15, 1997
Xindian district, New Taipeicity Taiwan
Peter Chou(Vice Chairman)
Windows Mobile OS. It was the first Brew MP market to mobile network operators who were
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willing to pay a contract manufacturer for customized products. After initially making
smartphones based mostly on Windows Mobile, HTC expanded its focus in 2009 to devices
based on Android, and in 2010 to Windows Phone. HTC is also the pioneer in manufacturing the
Smartphone with Google Android operating system. HTC primarily releases and markets its
smartphones under the HTC brand, ranking as the 98th top brand on Interbrand's Best Global
Brands.
3.2 PRODUCTS :
HTC is a Taiwan-based smartphones manufacturing company engaged in design, development,
manufacturing and sales of
Smartphones
Accessories
Tablets
Cameras
HTC is dedicated to create user experience and believe that each mobile device needs to fit its
owner and not the other way around.Few main products of HTC includeHTC's latest mobile launch is the Desire 825.The smartphone was launched in February 2016.
The phone comes with a 5.50-inch touchscreen display with a resolution of 720 pixels by 1280
pixels.
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Desire 825
Desire 530
Desire 626 S
One X 9
Desire 816
One A9
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One E 9
One (E8)
The company offers its products in Europe, Asia pacific, North and Latin America, Africa and
Middle East The company has gained a reputation in terms of innovation related to the features
of their products as well as their design.
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During early 2012, HTC lost much of this U.S. market share due to increased competition from
Samsung and Apple Inc.
According to analyst firm comScore, HTC only accounted for 9.3% of the United States smart
phone market as of February 2013.
On September 27, 2013, HTC announced the sale of its entire stake (24.84 percent) in Beats
Electronics. The company will close the deal in the fourth quarter of 2013 and expects a US$85
million pretax profit.
In March 2014, HTC released the HTC One (M8), the next version of the HTC One flagship, at
press conferences in London and New York City.
In April 2014, the smart phone company reported sales climbing 12.7 percent to NT$22.1 billion,
the company's fastest growth since October 2011.
At the March 2015 Mobile World Congress in Barcelona, HTC announced a new Head Mounted
Display called the HTC Vive. At the same conference, they announced the HTC One M9 (the
2015 HTC One flagship device, which was the successor to the 2014 HTC One M8) and the
HTC Grip, in partnership with Under Armor. In July 2015, HTC has announced that HTCwon't
be available until end of the year.
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3.4
SWOT
ANALYSIS OF HTC:
Strengths:
HTC chose the right partners (giant players in software industry, such as Microsoft) to
Weakness:
Difficulty to obtain loyal fan base and brand advocates outside China
US market is critical for global smart phone industry while HTC only got 2% brand
preference to buy.
Too related on Microsofts platform which was not mainstream in the smart phone system
market.
Brand awareness is weak
Difficulty in after sales services and less care centres.
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Threats:
Opportunities:
Smart phone category will seize 30% of the whole phone market in coming years.
Googles system Android caught attention of end users, but Google has no device for
it.
3G technology is booming and 4G has also been launched.It will raise the demand of
salephones.
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HTC has many sources of differentiation such as quality, innovation, and style. HTC
creates a quality product for consumers by pairing great performance, reliability, and
partnering with great hardware and software companies to get the best performance,
availability, and messaging functions is relatively low. Therefore, brand name is a significant
factor for success in the intense competition.
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(3) Another core competency was their product design. HTCs customization creates value
because it reduces the number of common components used among devices, driving up the
average unit cost of components. This approach creates value for the end user because HTC is
able to take a product they previously designed and fix it in a way that satisfies their customers
wants and needs in just a few days
DISTINCT COMPETENCIES :
CHOICE OF MOVING AWAY FROM NOTEBOOK TO PDA INDUSTRY:
One key decision that HTC made to secure its future competitive advantage was to make the
risky choice of moving away from the notebook industry and into the PDA industry. This choice
was risky from the start because the company was losing money and needed a change that
created future profits to make them last.
RESEARCH AND DEVELOPMENT OF HTC:
Another large competitive advantage that HTC had over its competitors was the number of
Research and Development employees the company hired during its quick growth. Their R&D
department was given about 5% of their total revenue to devote their time on future product
development, when their competitors only dedicated around 2% of their total revenue to R&D.
THE INTER RELATIONSHIPS WITH OTHER PROMINENT COMPANIES:
Another competitive advantage of HTC would be the relationships they have created with other
companies such as Microsoft and Google. HTC first had a long relationship with Microsoft by
creating a significant number of Windows Mobile phones that would be sold around the world.
RESOURCE ACQUISITION:
HTC also has amazing resource acquisition which sets them apart from their competitors. These
resources vary from engineers and management to the software and hardware that goes into
HTCs devices.
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CAPABILITIES:
On the other hand, one of HTCs main abilities was their research and development. The CMO
of HTC created an internal research center called Magic Labs. These labs drove innovation in
terms of product design and technology.This new generation technology introduced a series of
new smartphones that had this capability, which was to be seen as the next big thing for
smartphones.. HTC formed many of their close relationships with other firms because of their
ability to move fast and take on the next challenge in the rapidly evolving mobile phone market
VALUE CHAIN:
Research and development are the first main primary activities that create value for the customer,
as well as the firm itself. Through different methods of research and development such as HTCs
internal research center called Magic Labs, HTC is able to experiment with the latest
technology for the consumers. In the Magic Labs the innovators are known as wizards.
These wizards collaborate with each other in an open work environment to develop products that
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meet customers needs. This creates value for the end-user because as technology grows and
expands within any other industries consumers expect the same within the cell phone industry. It
drives the company to be more innovative, which is why customers prefer HTC over other
companies.
Apple Inc.
Apple entered the mobile phone market in 2007 with the iPhone launch. The phone was
originally designed as an extension of the companys highly successful iPod media player. The
popularity of the brand is largely due to the fact that Apple has complete control over which file
formats, programming languages, and third-party applications can run on the device, allowing
Apple to have complete control over the user experience. Apples customer and product base is
more widely spread than any other competitor, which makes the brand more significant and adds
more brand awareness to the company and its products. The fact that the popularity of one
product category can feed off to another gives the company increased brand loyalty.
Motorola Mobility
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Another company that could be a threat and competitor in the U.S. smartphone market in the
future is the U.S.-based manufacturer Motorola Mobility, a spin-off of Motorolas former
smartphone section. Motorola Mobility generates about two-thirds of their total revenues in the
U.S. market. Their main business segments are mobile devices, wireless accessories, set-top
boxes, and video distribution system products
Blackberry
RIM was founded in 1984, and it is a leading designer, manufacturer, and marketer of innovative
wireless solutions for mobile communication. The companys flagship is its successful wireless
solution platform and handheld communication device BlackBerry. After a decade of tremendous
success, BlackBerry needed to reposition its brand. The brand was about to become irrelevant
since it only stood for technology and wireless e-mail functionality. In comparison to their key
competitors, the BlackBerry brand remains the most powerful brand for the business segment.
Although Black- Berry is a powerful brand with a high customer loyalty, it still has to focus on
innovation to draw in a large consumer.
Samsung
Samsung is a South Korean multinational corporation with a wide range of electronic products.
Within mobile phones, it has focused its development on smartphones, and it has been very
successful with its line of smartphones based on the Android operating system. In the U.S.
market, Samsung generally offers more low-priced models, bringing its average sales price
below Android competitor HTC differentiation is a big challenge for Samsung in the smartphone
market because the brand, together with companies like HTC, LG Corp, and Motorola, has a
wide variety of similarly functioned Android-based smartphones.
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5.1 FINDINGS:
HTC has many different resources and capabilities that were acquired to help the firm
products.
The brand is still unknown to large public. The brand awareness is weak.
HTC business strategy formulated by its management has helped the company to enter
for their
numerous new markets, and also to efficiently changes in regulatory procedures within
existing markets.
There are many mobile companies in market but the companies which can be called as
innovation. They are constantly experimenting with new ideas and technology.
The company is continuously focusing and has strengthened the hardware design.
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5.2
SUGGESSTIONS:
HTC should create an aggressive marketing plan to concentrate on building their brand
value.
The company should bring diversification into new product lines.
This will support our alternative recommendation of brand strategy because HTC will not
only be known for phones, but other technology products which will overall increase
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fans
base
outside
China.
5.3 CONCLUSION
From the whole study the conclusion is drawn that HTC has many different resources and
capabilities that were acquired to help the firm become successful and more well-known to the
telecommunications industry. One of HTCs most critical resources is their close relationship
with Microsoft. With Microsoft being the worlds best hardware maker, Microsoft helped knock
down many obstacles and challenges that HTC would have had to take on. consumers. Their
strengths were their hardware design and manufacturing. HTCs design innovation skills were
noticed by many different companies, like Handspring. HTC was recruited by Handspring and
helped design the first Treo Smartphone. On the other hand, one of HTCs main abilities was
their research and development. HTC formed many of their close relationships with other firms
because of their ability to move fast and take on the next challenge in the rapidly evolving
mobile phone market. HTC was known for its speed to take a product they had designed
previously and change it so that it would fit their customer needs. HTC supporting activities is
their human resource management. HTC only recruited employees from high level engineering
companies. All of their engineers had many years of past experience. Management encouraged
them to work in an open environment and to collaborate with one another. The area where
company needs to work is the Brand management and to provide products of affordable prices.
The company has high advantage over its several competitors.
BIBLIOGRAPHY
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Books:
Azhar Kazmi (Second edition) Business policy and Strategic management by Tata
Mcgraw-Hill Publishing company limited
Links:
www.htc.com/sea/(24-03-2016)
http://crowleyesarah.weebly.com(01-04-2016)
http:/googleweblight.com/?lite_url=http:/www.businessinsider.com/htc-one-salesstrategy-2014
www.businessinsider.com\here-htc-new-business-strategy-2015-2
http://www.themobileindian.com/news/18041_Micromax-Lava-Intexmost-trusted-Indian-mobile-phone-brands-Study
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