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HTC Prezi

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by

Bill Cheatham

on 21 November 2013

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Transcript of HTC Prezi

History
Market
Agenda
History of
Situational Analysis
SWOT Analysis
Key Problems and Alternatives
Recommendations
Conclusion

Founded in May of 1997
Started out making notebook and handheld devices
Produced world’s first touch-screen smartphone
Created first Microsoft powered smartphone
Peter Chou became CEO in 2006
Launched their “
Quietly Brilliant
” campaign in 2009
Third largest smartphone maker in the world in 2011
Behind Apple and Samsung
Reported 35% year on year drop in revenue and 70% reduction in operating income in 2012
Situational
Analysis

Environmental Factors
Expanding market size
Manufacturing in other countries
Multi-national regulations
Company culture
Items covered in SWOT analysis
Strong R&D
Intense competition
Rapid technology change
Customer loyalty to competitors (i.e. Apple, Samsung)
Patent disputes

Industry
Porter's Five Forces Analysis
 
Bargaining Power of Customer
Customer bargaining power comes from having many options
Bargaining Power of Suppliers
Suppliers with intellectual property rights demand higher prices
Threat of New Entrants
Current market has high barriers to entry but emerging technologies may bring threats from unknown competitors
Threat of Substitute Products
Converging technology
Competitive Rivalry within Industry
Current competitors: Apple and Samsung


Marketing Strategy

Target Consumer
College students and young professionals
Ages 18-34
Always up to date on current trends
Values: socialization, peer acceptance and self-expression

Brand Personality
Simple
Fun
Professional
User-friendly
Instant

Value Proposition
Provide a sensory experience



Integrity is an integral part of
hTC
beliefs for all stakeholders
Innovation is what drives
hTC
to provide value to customers
Commitment to details and execution brings the best service and value to customers
 
Situational Analysis
Situational Analysis
Situational Analysis
Situational Analysis
Situational Analysis
Situational Analysis
Marketing Mix
Price
High margin/premium price
$600 for an unlocked handset (
hTC
.com)
Product
Consumers buy high quality mobile devices from
hTC
Place
hTC
sells integrated devices to carriers and users
Promotion
Promotion focused on demand generation
SWOT
SWOT
STRENGTHS
Climate suitable for creativity
Silicon Valley atmosphere
Hardware technical development
Speed to market with high quality
Manufacturing capability & capacity
Fast prototyping / R&D
B2B selling experience
User interface overlay for OS

WEAKNESSES
B2C sales experience
Low brand awareness
Lack of Products in low price category
Operating system deficiency
No app store
Resources divided between tablets and phones

OPPORTUNITIES
B2B sales
Contract hardware designing and manufacturing
Developing industry specific standards and products
Partnerships for operating systems, manufacturing and consumer sales
Create an app store
Growing mobile device market with short life cycle

THREATS
Competing B2C brands
Apple, Samsung
Low customer loyalty / brand recognition
OS companies entering exclusive contracts with other manufacturers
Apple, Google, Microsoft
Competing B2B brands
Foxxconn
Intellectual property infringement

Problem Identification
and Alternatives

Problems and Alternatives
Lack of differentiation
Phones, tablets, software
Competitive market
Sustainable differentiation
Root Causes
Ineffective marketing campaign
Current technology behind
Alternatives
Development of new technology
Unique and memorable B2C marketing campaigns
Problems and Alternatives
Patent Disputes
Apple
Drains resources
Root Causes
Can’t get user interface technology patent
Short patent market life
Alternative
Develop/acquire new technology

Problems and Alternatives
Dependent on Android Operating System
Failed at making their own operating system
Lack of preferential treatment
Root Causes
No exclusive partnerships with other companies
Not implementing a successful operating system
Alternative
Create a strategic partnership with OS developer
Problems and Alternatives
Ecosystem (music, apps, marketplace)
Contributes to the lack of emotional connection with customers
Inhibits customer loyalty
Hurts the user experience
Root Cause
Failed to fully recognize consumer preferences
Alternative
Create an ecosystem user interface
Problems and Alternatives
Lack of Brand Recognition
Minimal funding for branding
Contributes to lack of consumer brand awareness
Root Causes
Poor overall brand development
Poor strategic marketing
Competitors
Alternative
Brand redesign
Problem Identification
Inability to Maintain Market Share
Rapid growth followed by steady decline
Competing with Apple and Android
Root Causes
No emotional connection
Poor brand loyalty
Alternative
Identify a clear target market
Problem Identification
Failure in the Tablet Market
Retailer centric industry
Lack of leading smartphone diminished tablet sales
Slow mover in this industry
Root Causes
Lack of innovation
Rushing to market
Alternative
Customizable industry specific devices


Recommendations
Recommendation #1–Rebrand & Co-Brand in US
Strengths
Hardware development
Fast prototyping
Contract manufacturing
OS problems
Unable to capitalize on the
hTC
brand to consumers
Rebrand
Stop selling B2C
Start messaging B2C and co-brand selling B2B
“Samsung Galaxy – powered by
hTC

Recommendation #1–Rebrand & Co-Brand in US
Rebrand and Co-Brand to Align Performance with SWOT

Innovate
Re-Brand
B2C Relationships
-Communicate
-Engage

Re-Brand & Co-Brand

B2B Relationships
-Communicate
-Engage as a partner, not a competitor
-Sell

hTC's
philosophy is Integrity, Innovation and Execution

Recommendation #1–Rebrand & Co-Brand in US
B2C and B2B Relationship Efforts
Continue technology investments
Ensure adequate quality controls

B2C Relationship Efforts
Change B2C messaging
Provide information, do not sell
Focus on branding over demand generation
Stress high quality and reliability
Model Toyota perception messaging
Recommendation #1–Rebrand & Co-Brand in US
B2B Relationship Efforts
Change B2B messaging
Focus on branding over demand generation
Highlight performance value through supply chain
Cutting edge technology
High quality and reliability
On-time delivery
Reduced returns and warranty claims
Stress relational value
Short prototyping and development lead-times
Customers associate
hTC
with quality, durability and reliability

Recommendation #1–Rebrand & Co-Brand in US
Co-Brand Partner Segmentation
Able to obtain OS rights
Successful history of B2C marketing
Benefits from contract manufacturing
Aligned with high margin, mobile device market
Good co-brand candidates
Apple, AT&T, Samsung, Verizon
Microsoft
Bad Co-Brand Candidates
Cricket
Microsoft
Recommendation #2–Grow in Asian Markets
Headquartered near supply base in Asia
Presence in Asia can be used as leverage in developing partnerships with OS suppliers and carriers
Become the premier hardware and OS device integrator
Learn from struggles in the American market
Become the “iPhone of Asia”

Recommendation #2–Grow in Asian Markets
Opportunities
Sell high margin devices in developed countries such as Japan, South Korea and China
Benefit from earlier quality and durability efforts to sell refurbished devices with low margins in developing countries such as China
Re-establish communications in the Philippines following typhoon Haiyan

Recommendation #3
Co-Develop Standards in Emerging
Industries
The medical and military mobile device industries are evolving
Phones, tablets, and industry specific communication devices
The usages of new devices have not been fully realized
Network standards supporting niche markets are undefined
Contribute hardware expertise to partnerships
Develop markets for future benefit
Co-develop operating standards aligned with
hTC
capabilities
Become the first supplier of new standard compliant hardware

Execution
Plan

Execution Plan
Ensure adequate quality controls
Production’s responsibility
Expected outcomes
Decreased internal defect rates measured by production
Decreased external complaints/warranty claims measured by sales
Increase device performance capabilities
Measured internally by product development teams
Measured externally by third party testers and increased sales

Execution Plan - Rebrand & Co-Brand in US
B2C Messaging in the United States
Immediately change advertising to focus on
hTC
awareness and hardware message
hTC
= performance…quality…durability…reliability
Next, add online in-bound marketing engagement
Create an online social media experience

h
ow
T
ough
C
ontest
Allow consumers to submit ideas
Tape a tablet to airplane wing
Skip phone across a pond like a rock
Create video tests, posts content on website and selects winners
Modeled after “MythBusters”
hTC
controls content
Attractive content used as in-bound marketing to grow US consumer base
Expected outcome
Greater consumer perception of
hTC
as the highest quality hardware manufacturer
Measured through surveys and indirectly through improved sales

Execution Plan - Rebrand & Co-Brand in US
B2B Messaging in the United States

Immediately share next generation product ideas
IP protection must be in place
Share “what” the new products will do, not “how” they will do them
After B2C awareness campaign, create partnerships
Co-brand with partners
Samsung, Microsoft or Verizon
Become a “silent” supply chain partner to Apple
FoxConn is never included in Apple created marketing
Expected Outcomes
Measured by marketing and sales departments
Increased number of contracts, contract volume and revenue

Execution Plan - Grow in Asian Markets
Immediately establish an all-Asian hardware supply chain with redundant supplier agreements
Next, attract OS and carrier partners to Asian market
Sponsor a technical symposium
Capabilities of existing and upcoming products
Fast prototyping and development capabilities
Manufacturing capabilities
Improved marketing abilities following lessons learned
“Home field” advantage to companies looking for Asian partner
Expected Outcomes
Measured by marketing and sales departments
Increased number of contracts, contract volume and revenue

Execution Plan - Co-Develop Standards in Emerging Industries
Survey existing customer needs
businesses and governments (health care, military)
Develop “standardized” solution to meet current, transition, and future needs
Prototype, pilot test, and refine proposed solution
Publish results with industry influencers
Health Care - New England Journal of Medicine
Military - Defense Advanced Research Projects Agency
Gain sponsorship/endorsement
Expected Outcomes
Measured by marketing and sales departments
Increased number of contracts, contract volume and revenue

Commercial
Sources
http://htcsource.com/2013/08/nielsen-htc-takes-the-3-spot-in-us-smartphone-market-share-in-q2/-- august 2013
Questions
Conclusions
Full transcript