| dc.description.abstract | The smartphone market saw a very high growth of annual sales volume although the smartphone market less than a decade for the following reasons: the widespread use of smart phones by consumers, heary R&D investment by smart phones manufacturers, the quality improvement of wireless network communication, and the increase of the proportion of smartphone sales from major telecom operators. HTC was founded around ten years ago, and it relied on PDA phone to lay the basis for early success. Next, it invented the networked PDA phone and smart phone, and chose to develop own brand in order to create value for itself, which put HTC in the top hundred brand name in the world. HTC grew with the right business model in the past, but with the wrong business model the firm suffered from its operating sluggish in recent years (2011 ~ present) which resulted in the rapid decline of stock prices, operating profit, shipments, and market share.
The main purpose of this study is to explore the past business model of HTC and its key success factors. In particular, this study attemps to explore the following questions: (i) What is the successful business model of HTC in the past (since the early start to 2010) and what are its key success factors? (ii) Why does HTC face operating difficulties in current stage (2011 ~ present)? (iii) In the face of turbulent environment, how should HTC reinvent its business model to make its business sustainable in the future? In this study, we use the 8-Cross Nation Model, the 8-Cross Business Model, and the 8-Cross Financial Accounting Model developed by Hann.T. Jeng (2013) to analyze, respectively, the impacts of external environmental factors upon HTC, and HTC’s business models during different periods, and the operating performances and financial conditions. Finally, this study proposes how HTC should reinvent its business model based on a SWOT analysis.
The conclusions of the study are as follows: (i) HTC should use the distinction of chip specification to design low-priced mobile phones, and enhance the marketing expense in China and emerging markets to face current market situation that even Apple, Samsung have launched the low-cost smartphone. (ii) HTC should take ＂bold, true and innovative and interesting” appeals so that the target customers know the value of HTC innovation. It creates customer acceptance and love towards the products by lots of marketing promotion, and sells by opening flagship stores and more creative ways. (iii) HTC should carefully evaluate organizational operations, and actively look for the talents with adaptive, learning, tolerance abilities, and strengthen internal exchanges to enable the organizational effective interaction. | en_US |