Htc, Way to Success

Executive Summary

HTC was a Taiwan-based smartphone manufacturer. Its business started in 1997 as the ODM of PDA for Western buyers. In 2002, HTC switched its focus to the ODM of smartphone, and become quite successful by establishing subcontracting relationships with major network operators worldwide. In 2006, eight years of its founding as a PDA subcontractor, HTC launched its own smartphone brand HTC. In 2007, the first popular model line HTC Touch was released and warmly welcomed by the consumers. Since that, HTC had released over 100 smartphone models under the HTC logo, and the market response had been very positive.

HTC’s success was not by luck. Instead, it’s the result of the efficient management team. We attributed HTC’s success to the following 5 points:

1. Right switches of the business focus at right timing. The switch from ODM of PDA to ODM of smartphone, and later to OBM, both occurred at the correct timing. That guaranteed HTC’s good performance during the transition.

2. Correct strategy in the smartphone ODM business. The partnership with Palm and Microsoft, and later with network operators brought HTC both technology and stable market share.

3. Suitable positioning the brand. The low profile tag “quietly brilliant” suitably matched the style and history of HTC, while left the consumers a good impression of its quality.

4. Efficient management team. CEO Chou and his team led the switch of the business focus at the right time, withstanding the challenges from the investors.

5. Consistent investment in innovation. HTC set aside sufficient funds for R&D since day one. Financial support from Chairwoman Wang and other investors was never wavering.

Although HTC products had gained credibility among mobile phone subscribers worldwide, it were still facing a rapidly changing competitive landscape. HTC was far from perfect. To keep thriving, HTC still had a lot to improve.

1. The lack of the core competency. The ODM business earned easy money...