SWOT ANALYSIS FOR HTC :DEFINITION of SWOT: SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats.

By definition, Strengths (S) and Weaknesses (W) are considered to be internal factors over which you have some measure of control. Also, by definition, Opportunities (O) and Threats (T) are considered to be external factors over which you have essentially no control.

IMPORTANCE OF SWOT: SWOT Analysis is the most renowned tool for audit and analysis of the overall strategic position of the business and its environment. Its key purpose is to identify the strategies that will create a firm specific business model that will best align an organizations resources and capabilities to the requirements of the environment in which the firm operates. In other words, it is the foundation for evaluating the internal potential and limitations and the probable/likely opportunities and threats from the external environment. It views all positive and negative factors inside and outside the firm that affect the success. A consistent study of the environment in which the firm operates helps in forecasting/predicting the changing trends and also helps in including them in the decision-making process of the organization.

Strength:
Strengths- Strengths are the qualities that enable us to accomplish the organization s mission. These are the basis on which continued success can be made and continued/sustained. Strengths can be either tangible or intangible
1.HTC chose the right partners (giant players in software industry, such as Microsoft) to cooperate with to enter the market with less risk. 2.Strength in hardware design and strong manufacture capacity: provides high quality products with high technology and innovation. 3.ODM saved cost and avoid market entry risk. 4.Operator business, operators buy product from HTC and promote the sales themselves, is good for HTC to enlarge sales volume and market share with less promotion cost. 5.ODM and operator business brought high margin (20%) compared to an industry average of 5%. 6.The brand HTC was recognized by end users. 7. With the advent in market and desire for being an independent company it seems HTC doesnt rely on Microsoft anymore

Weakness:

Weaknesses- Weaknesses are the qualities that prevent us from accomplishing our mission and achieving our full potential. These weaknesses deteriorate influences on the organizational success and growth. Weaknesses are the factors which do not meet the standards we feel they should meet

1.Operator business requested customization module for HTC, and customization increased the cost of product and reduced margin (ASP). 2.Too related on Microsofts platform which was not mainstream in the smart phone system market. 3.Brand awareness is weak.

Opportunity:

Opportunities- Opportunities are presented by the environment within which our organization operates. These arise when an organization can take benefit of conditions in its environment to plan and execute strategies that enable it to become more profitable. Organizations can gain competitive advantage by making use of opportunities. 1.Smart phone category will seize 30% of the whole phone market in 2012. 2.Googles system Android caught attention of end users, but Google has no device for it. 3.US market is critical for global smart phone industry while HTC only got 2% brand preference to buy. 4.3G tech. is booming in current years, and 4G is coming in the phone market 5. There is no doubt that smartphone market is a potential market for HTC to keep investing. 6. The reachout for Google is absolutely smart decision for HTC.

Threat:
Threats- Threats arise when conditions in external environment jeopardize the reliability and profitability of the organization s business. They compound the vulnerability when they relate to the weaknesses. Threats are uncontrollable 1.Other Taiwanese competitors were catching up in the ODM market 2.Lots of new entrants jumped into handset market. (Apple, Samsung, RIM) 3.Lots of new entrants penetrated into system platform market. (Apple, RIM, Google) 4.More technology and innovation are used on smart phone. 5.Product cycles are getting short 6.Price will come down 7. . However, in important market such as China and USA, the demands for mid-range or mass price cell phones are still huge, given that the 200$ for a smart phone in US and the majority people can only afford a cheap one. It might be a good idea for HTC to launch a more mid-range sub-brand product.