Corporate strategy Essay Example | Topics and Well Written Essays - 1500 words

Corporate strategy - Essay Example The HTC started its operation with the basic goal of developing small, handheld, computer-like devices. In order to achieve this goal, the company management decided to use the Windows CE as a basic platform. However, the HTC initially focused on the development of note books as a result of unavailability of skilled engineers to make handheld devices that time. Although the company succeeded to create the world’s first pocket-size PC with Microsoft a year later; high production costs, lack of brand recognition, and technical glitches put the firm’s main note book business into troubles. The ballooning loss figures persuaded the company to exit note book business and refocus on handheld devices. The HTC’s initial difficulties came to an end in 2000 when it manufactured a PDA, the iPAQ, for Compaq Computer. The Compaq commissioned HTC as an original design manufacturer with the purpose of engineering and designing the products for the company. In addition, the HTC also entered into ranges of other business segments such as mobile phone operator business. So as to accomplish its objective of international expansion, the HTC established a separate research and development team which can effectively design innovative models that would best fit with changing market trends. Recently, the newly appointed CEO, Peter Chou decided to brand and sell the products under company’s own name in order to overcome international growth limitations. Despite harsh comments from shareholders, HTC proceeded with its venture and the company faced stiff competition from the world’s biggest handset manufacturers. The company’s intention was to achieve a powerful global brand position as that of Nokia or Samsung Electronics. Although, the company could effectively confront with market challenges, the HTC brand still has a long way to go in order to accomplish its ultimate objectives. Question 2 From the case analysis, it seems that most of the iss ues that HTC faced emerged as a result of the strategic failure of the company management. Firstly, the company’s decision to brand and sell the products under its own name found to be a worse strategy since the HTC had not well established in the industry so that it struggled to defend the tough competition from global giants like Nokia and Samsung Electronics. The company’s different top executives possessed different views regarding market operations and it led to total disorder. For instance, Cher Wang, one of the founders of the firm gave more emphasis on market competition while the Chief Operating Officer Fred Liu and CMO John Wang focused on brand value building. The lack of conceptual coordination in the operation of the HTC management raised barriers to its rapid international expansion. Although, the company could perform well in Europe and Asia, its operations in US market were not satisfactory. The market surveys showed that the US had offered a potential market for mobile phone manufacturers. Therefore, the HTC could not adequately take advantages of the large and potential US market as a result of its poor brand promotion strategies. Increased cost of production was another potential issue that threatened the existence of HTC. An HTC sponsored survey reflected that 80% of the US consumers did not like to buy a phone that cost more than $200. However, HTC did not have the necessary scale to drive costs down and it gave opportunities to Nokia which had well excelled in the area. Moreover, it is observed that the company