International Business Strategies By Rahul Gairola Subject : Appraisal of a MNE's recent market entry (2007-2010) ( 1. Firm Motivations for internationalization 2. Entry Strategy 3. Corporate Strategy) Question: Acting as a market analyst for the US Investment bank Merrill Lynch, you have been allocated the responsibility to produce an appraisal report relating to a client’s (MNE) recent market entry Executive Summary In the appraisal I will discuss my findings on HTC’s entry into the Indian mobile phone market. HTC was founded in 1997, it has been making a strong name for itself internationally. In 2007, the company entered the Indian market and quickly made a name for itself providing the first touch and Android phone …show more content…
India was lucrative since the Indian handheld market is booming and slowly becoming one of the world’s biggest and fasted growing markets. There being a lack of certain technology, gives HTC the opportunities to fill new market gaps. The company’s products are standardized for the global market, while strategies are adapted to respected countries. HTC seems to be efficiency seeking when looking especially at the Indian market. HTC is selling phones globally and in India they are trying to succeed through International Specialization. The company was benefiting at first, from the lack of top of the line mobile phones in the Indian market. Its future strategy is to keep this trend going. The company is trying to take over the top and middle class mobile phone market in India by being the first to offer the latest and greatest technology available and ignoring the lower class mobile market. It managed to do so already by introducing the first fully touch phone and fully Android powered phone. HTC’s Indian Market Entry Strategy In 2007, HTC made its entry into the Indian market with the collaborative launch of the HTC Touch together with Bhartia Airtel. Their portfolio of devices has been rising steadily, priced at between Rs 10,000 to RS 45,000. Targeting “high-end users” at first, their strategy has shifted since, to also attract mid-range users. While partnering up with Reliance
HTC’s competitive position is not sustainable. In fact, the disappointing financial performance in Q1 2012 and the increasingly decreasing operating margin all points to a slower growth. Besides the statistics, HTC also face several imminent threats, such as the popularity of Samsung and Apple’s smartphone offering, the increase in competitors in the smartphone market, the shift in market, from operator push to brand pull, and the ongoing patent war with Apple. However there are also opportunities HTC can take advantage of to keep its competitive position. The opportunities are presented in the high growth rate of Smartphone Market, 61% in 2011, and the lack of well made Android Tablet.
* HTC’s average product life cycle is approximately 3 quarters, which is about half of the industry average. This will give HTC more flexibility to react on market responses.
2000-2006: HTC made first time profits when it engineered and developed PDA for Compaq computer. HTC made an alliance with top hardware companies and became best hardware maker which led to release of the XDA, the first Windows based smartphone by collaborating with Microsoft. HTC operated in ODM business and Mobile operator business. HTC designed customized phones for Mobile operators based on their specifications which led them to gain attractive contracts from different Mobile operators. HTC contracts with mobile operators was reason for HTC’s early success. HTC relationship with Handspring to develop Treo smartphone facilitated the opportunity to learn about software and User-Interface design. By 2006, HTC was shipping more than 70% of the world Windows Mobile smartphones.
On October 4, 2011, in Cupertino, California, Apple announced the iPhone 4S. On October 7, 2011, it became available for preorder in seven initial countries (United States, Canada, Australia, United Kingdom, France, Germany and Japan) with the first delivery date set for October 14, 2011 and available on that same day for direct in-store sales in those countries. It was released in 22 more countries, including Ireland, Mexico, and Singapore on October 28.
smartphones, first dual-mode GSM/ WiMAX phone, first 3G Android phone, and first 4G LTE Android phone. Also, HTC Sense, launched in 2009, was a momentous breakthrough that revolutionized the mobile phone experience. Consistent innovative product launches also enhance the visibility of the company 's brand. The company 's significant R&D capabilities gives it’s a competitive edge to reach the market first with many industry leading innovations and features. Strong relationships with industry leaders The company has strong relationships with many technology companies and telecom service providers. It maintains strong long-term partnerships with technology industry leaders, including Microsoft, Google and Qualcomm, which serve as active labs of research and development and product evolution. For instance, HTC 's launch of the world 's first Windows Mobile smartphone and first Android smartphone is an example. These partnerships ensure that the hardware, software, and content management and delivery systems are united in seamless and intuitive ways. HTC 's products are currently sold through major carriers and local retail channels in major markets in Europe, the Americas and Asia.
HTC Corporation (HTC) is a Taiwanese operation founded in May 1997 in Taiwan, which is one of the most influential, creative and leading players in global telecommunications with an n increasing influence in the industry’s future (HTC quietly billion, 2012). HTC’s portfolio includes smartphones and tablets powered by the Android and HTC Sense™ operating systems (HTC Annual Report, 2010). Focusing on smartphone market; devoting to innovation and design in the mobile phone industry; and committing to develop exceptional technology and products to cater for the diverse and exceed needs of users are HTC’s current brand strategies. In addition, HTC response to market changes fast and provides
"HTC Corp. will adhere to its strategy of offering medium-to high-cost telephones, despite the fact that it has been attempting to contend in that price range in the midst of the expanding predominance of Apple Inc. also, Samsung Electronics Co." (Luk, L. what 's more, Poon, A., 2012). HTC, producer of cell phones, reported they 're not straying from the value-based pricing strategy that HTC says underpins their brand image and are pronouncing they won 't offer cheap cell phones in spite
Since the emergence of the mobile communication, mobile phone changed people 's life greatly. Especially the advent of the era of mobile Internet, the communication industry and mobile phone industry develop at top speed and become the new growth point of national economy. In a functional diversity and smartphones as mobile Internet terminal as the theme of today 's mobile phone market, the domestic mobile phone have, developed its own brand smartphone, Xiaomi mobile phone as a rookie, domestic handset has attracted the attention of more and more mobile phone enthusiasts, that also for the mobile phone market in China has brought new hope and expectation. Some people say that the success of the Xiaomi owe to it’s low price, and don 't think this success will go too far. But I think the low price is an aspect of success, but not the whole. Xiaomi’s unique business model and management strategy determines its success.
In order to optimize product exposure in the retail channels, Sony can issued is p lay
• Even though there were 50 companies in India selling mobile phones which is dominated by more than 60 percent share from Nokia there were still features, niches and categories that could be carved out by the new entrants
HTC has lost almost USD 45 Million in the two major investments that took place two years back. These investments were made in the form of major acquisitions and now HTC is evaluating the productivity of other acquisitions as well. Out of these $45 million, a major chunk of USD 40 million was lost in terms of investment made in OnLive Corporation. Although where HTC has announced few major investment ventures expected to be taking place in coming year, its major
At first we are going to talk the purpose and course of this case. The second we gonna talk is the firm introduction, the third one is the summary of network industry and then we gonna analyze the main issue on this case and strategy of HTC.
The phone industry in India of LG and SAMSUNG is one of the key success drivers of any growing economy and henceforth one of the world’s most important revenue generating sector. This industry has a wide range of organizations and companies which are engaged in the design, manufacturing, and selling of the products. It helps the improvement in various infrastructure facilities such as rail, road and power, thus playing a vital role in the rapid growth of the economic and industrial development. The Phone market is growing at a healthy pace because of the comparison with increasing levels of customers in India with respect to different companies in the larger phone markets of the world. Worldwide, the phone market has not only been focussing on manufacturing but also towards ensuring that one 's products are superior in terms of quality.
Motorola, famous amongst mobile phones, and one of the top cellular phone companies in the world till late 1990, later it was captured by the company Nokia. While writing this case we have thrown light on the challenges and problems faced by Motorola around 2006-2007. One of the ideas incorporated in order to recapture the market in the year 2006 was to slash the prices of almost all the cell phones which impacted the returns of the company. Motorola did announce in the year 2007 that they will revive shortly and would have the market share back.
HTC had been working hard to please their customers with a flagship phone that could compete with Samsung’s Galaxy line and Apple 's iPhones.