Analysis of Htc

E-Business Marketing Project Name: chun ting, Chen ID: 42749409 Mail: ting19890129@gmail.com Date: 26/01/2013 Table of Contents Executive Summary 1. Background 2. Business concept 3. Analysis 3.1 Industry Analysis 3.1.1 SWOT Analysis HTC 3.2 Competitor Analysis 3.2.1 SWOT Analysis Apple 4. Business model 5. Strategy Plan 5.1 Strategy 5.2 Products 6. Recommendation References Executive Summary Nowadays, there are numerous companies established and raised in two decades. To give some examples, Apple, Samsung and HTC and so on are well-known companies. Following

by the internet, these companies not only reinforce its service and sell in real stores but focus the online marketing. The project aims at analyzing the high tech company of HTC and advising the company to solve problems of online marketing. This project focuses on exploring its disadvantages by comparing with other competitors. The result indicates that HTC should improve its delivery service and online service so that it can attract more consumers. 1. Background This project was prepared for HTC to make online marketing better. The definition of online marketing can be defined as decisions of investment which investors made depend on whether behaviors of the company are ethical (Hudson 2005, p. 641). The company, HTC is a high technology corporation, is founded in 1997. Initially, HTC designed the world's first touch and wireless hand-held devices in 1998, and then manufactured some of smartphones and tablets. At the beginning of making smartphones, it was mostly based on Microsofts Windows Mobile operating system (OS) software. However, it invented own system Android in 2010 (HTC 2012). HTC is popular as the company is behind many of the most operator-branded devices on the market. It has a rich heritage creating first devices, for example the first Color Palm-Size PC (1999), first Microsoft Powered Smart phone (2002), first Microsoft 3G Phone (2005) and first intuitive touch screen to allow finger tip navigation (2007). As it can be seen in figure1, HTC has achieved a new record in its growing market share. Its market worth holds at $33.88 billion, higher than Nokias market worth, which used to be the leading cellular manufacturer and only holds at $32.84 billion today (Fone Arena 2011). [pic] Figure1. The Market Cap of HTC 2. Business concept Besides the technology of smartphone, each technology company reinforces the part of online marketing and the after-sales service. Online marketing comprises three aspects: personalization, processes and proof. One of them processes contains several ways which contain website design, social media, SEO (search engine optimization), EDM (electronic direct mail) strategy link development, email marketing and social media etc. For the aftersales service, the warranty and the maintenance are more and more important for consumers. The first impression is very important so that the website can catch consumers attraction. Therefore, the website just the beautiful package of the company. It should have own style and characteristic of the corporation. In 1998, Google became the most popular search

engine than Yahoo. Facebook was launched in 2004 and it was redesigned for several times than Google and Yahoo (Goward 2013, P.2). Figure2. The website page of Google in 1998 [pic] Figure3. Facebook showed up until 2004 [pic] Since most of the consumers usually search the internet for various reviews of certain products, it is highly important for companies to put detailed information of each product they market online. And since the business has evolved in the way a company advertise its products, the HTC website develop a friendly approached pages which suited for all walks of life. As the climate of online services surge, all traditional business is shifting to the internet as one of the best ways to earn an income. It is more and more common for people to contact facebook, twitter, plurk or blog. Now a new word blogger appears in our world because these bloggers contributes their performance such as opinions, experiences or perspectives for people who desire to purchase something. Therefore, people can gather some information by browsing the web page. So the social media is essential for high tech corporations. The social media must be a huge wave in the next decade and companies will success or fail depend on using the social media (Falls & Deckers 2012, p. 6). About eight out of ten jobs come from the performance of service than product of manufacture in U.S (Patton & Bleuel 2000, p. 1). That is the reason why after-sales service is essential to marketing increasingly. For many customers, after-sales service is what makes one supplier stand out from another, often more than product or price. Good aftersales service can attract new business and can create a loyal customer. 3. Analysis The company's web design is a combination of gray and white, which is relaxing on the eyes. It is neat and clean and gives enough reason to visit the page particularly the engaging testimonials of consumers. The simplicity of the web design exudes elegance and class, which are the traits of HTC phones. 3.1 Industry Analysis The majority of the HTC smartphones are using the Android system and some old models are still using Windows OS. According to Gartner, Android Operating systems are the

second most used by users with 25% after Symbian which was used by Nokia with 37%. Moreover, Gartner announced that 72 percent of the smartphones sold in the Q3 run Google's Android operating system. Samsung increased its lead as the leading handset maker, while Nokia slipped from third to seventh (IT Business Edge, 2012). Because smartphones are multimedia tools, the process of manufacturing requires different industries suppliers of software and hardware solutions. According to (E marketer, 2011), the sales of the smartphones will increase by up to 63% in the next five years and will reach almost 102 million in sales volume by 2015. 3.1.1 SWOT Analysis HTC Strengths: The company has built a successful and recognized brand name with growing and attracting consumers from everywhere. HTC collaborated with Google to launch their smarphone with Google Android Operating System. Long experience in the networking: HTC has a long experience wit h the network suppliers. The company knew how to customize mobile phones according to the network suppliers. Touch Technology: The company is the first which developed the Touch Technology, even before iPhone. HTC hold the technology of Touch Technology, which is on of the most important point in the smartphone market. Weakness: A new brand: HTC is new brand comparing to another brand such as iPhone or Samsung. It is clear that is difficult for a new brand to have a place in a competitive market. Size of company: HTC is small company in the mobile market (revenue of 2008: 4651million), compared to the other players, such Nokia (revenue of 2008: 50710 million), Apple (revenue of 2008: 32479 million), Samsung (revenue of 2008: 121294 million).It is David against Goliath fight. Its clear that HTC have a limited resources comparing to the competitors. High cost of production of an HTC phone is higher comparing to the competitors. It will affect the research and development with a high cost of manufacture which increase the cost of the product (MBASkool.com, 2012). 3.2 Competitors Analysis

The fiercest competitor that Apple Incorporation is battling with is the HTC Corporation. Apple Computer, Inc. is a multinational corporation that creates customer electronics, computer software, and commercial servers. The companys best-known hardware products include Macintosh computers, iPod, iPhone and iPad. 3.2.1 SWOT Analysis Apple Strengths: Apple is a successful company than others. The favorable brand perception had also increased sales of Macintosh computers. So iPod gives the company access to a whole new series of segments that buy into other parts of the Apple brand. The sale of its notebooks is also very good and it represents a huge contribution to income for Apple. Brand is very important. Apple is one of the most established and healthy IT brands in the World, and has a very loyal set of enthusiastic customers that advocate the brand. Such a powerful loyalty means that Ample not only recruits new customers, it retains them i.e. they come back for more products and services from Apple, and the company also has the opportunity to extend new products to them. Weaknesses: There is pressure on Apple to increase the price of its music download file, from the music industry itself. Many of these companies make more money from iTunes (i.e. downloadable music files) than from their original CD sales. Apple has sold about 22 million iPod digital music players and more than 500 million songs though its iTunes music store. It accounts for 82% of all legally downloaded music in the US. The company is resolute, but if it gives in to the music producers, it may be perceived as a commercial weakness. Early in 2005 Apple announced that it was to end its long-standing relationship with IBM as a chip supplier, and that it was about to switch to Intel. Some industry specialists commented that the swap could confuse Apple's consumers (Marketing Teacher 2000). 4. Business Model Time have changed with preferences and needs of consumers, manufacturing companies have been shifting their business models completely from OEM (Original Equipment Manufacturer) and ODM (Original Design Manufacture) to develop their own brand. A business model can be described as the rationale of how an organization creates, delivers, and captures value (economic, social, cultural, or other forms of value). Taiwanese smartphone maker HTC has been on a buying spree to reshape its business and help defend against lawsuits, though it remains to be seen if the strategy will help it gain

ground on rivals such as Apple, Samsung and Research In Motion (RIM, BlackBerry maker). HTC has bought or invested in at least six companies in 2006, many of which provide technologies to improve how users consume and share content on its devices. It's a big change for the Taiwanese manufacturer, which focused for much of its existence on hardware, leaving software and content to its partners. HTCs business model actually brings search and transaction cost efficiency. It enables HTC faster and more informed decision making, wider product and service selection, greater economies of scale. This element has contributed to the satisfaction of customer of HTC when they find an excellent products and services in a wide range of smartphones with a reasonable and competitive cost (Wikipedia 2013). 5. Plan Online marketing strategy is an essential part of marketing strategy for companies in these years. Online advertisement, SEO (search engine optimization), social media, website design and development and PPC (pay-per-click advertising) can be categorized in short term and long term online marketing strategy which is different from traditional marketing strategy such as 4Ps (Lowery, S. 2012). 5.1 Strategy Products were delivered at consumers home if purchasing products on an official website. Shopping on websites become more and more popular than shopping in the real store because people can shop for 24 hours, save more time and save some money. Although HTC provides online service, this company does not sell its products to consumers directly but it authorizes the right to Yahoo and PChome (Taiwanese platform of online shopping). To set the special website for consumers by clicking the mouse is convenient and safety for purchasers. Moreover, customers can save the cost of freight via the official website. The online service is also necessary for a company such as online chat. Consumers can open the website to communicate with professional staff if they have any question. HTC have the service of online chat indeed but it is offline after 8:00 pm. It will be better if it is 24 hours for buyers who want to maintain the production or people who consider purchasing its products anytime. 5.2 The description of products The new product, Butterfly, was launched in 10 Jan 2013 in Taiwan. The function of this smartphone is better than other generations such as its 5-inch display, full HD entertainment, camera, amazing sound, unique design and shape. Transform the way you see and hear the world with the new Butterfly by HTC (HTC, 2012). Figure4. Information of Butterfly

|[pic] | |Display |5-inch super LCD3, HD 1080p, Gorilla Glass 2 | |Size |141*70.5*9.73 mm | |Weight |140g | |Platform Android |Android 4.1 (Jelly Bean) with HTC Sense | |Processor |Qualcomm APQ8064 Quad-core 1.5 GHz, MDM9615M | |Memory |16 GB, 2 GB RAM | |Network |CDMA:800/1900MHz;UMTS/HSPA: | | |850/900/1900/2100MHz;GSM/GPRS/EDGE: 850/900/1800/1900MHz;LTE | | |700 MHz (Band 13) (Verizon Wireless) | |Camera |8 MP main camera with auto focus, LED Flash, BSI sensor, f/2.0| | |aperture, 28mm lens, 1080p HD video recording, w/ HTC | | |ImageSense: 2.1 MP front-facing camera, Dedicated HTC | | |ImageChip | |Special features |Beats Audio built in, HTC ImageSense, Dedicated HTC | | |ImageChip | |Battery |2020 mAh LI-ION (embedded) | 6. Recommendation In the last decade, HTC grows very fast, from the 7th place to the 4th and this in less then 5 years. Even if it is positive point, the company must review and explore the marketing strategy. To build a unique brand and impression in the market is important. It is a big mistake HTC always build the similar identity of Apple. HTC should create its own identity and technology which make it different. Working with beats attracts more teenagers to buy its smartphones is a successful example. Secondly, the online marketing should be improved so that this company could attract consumers and enlarge the market. If HTC improves two points, it might explore numerous potential buyers.