International Business Strategies By Rahul Gairola Subject : Appraisal of a MNE's recent market entry (2007-2010) ( 1. Firm Motivations for internationalization 2. Entry Strategy 3. Corporate Strategy) Question: Acting as a market analyst for the US Investment bank Merrill Lynch, you have been allocated the responsibility to produce an appraisal report relating to a client’s (MNE) recent market entry Executive Summary In the appraisal I will discuss my findings on HTC’s entry into the Indian mobile phone market. HTC was founded in 1997, it has been making a strong name for itself internationally. In 2007, the company entered the Indian market and quickly made a name for itself providing the first touch and Android phone …show more content…
India was lucrative since the Indian handheld market is booming and slowly becoming one of the world’s biggest and fasted growing markets. There being a lack of certain technology, gives HTC the opportunities to fill new market gaps. The company’s products are standardized for the global market, while strategies are adapted to respected countries. HTC seems to be efficiency seeking when looking especially at the Indian market. HTC is selling phones globally and in India they are trying to succeed through International Specialization. The company was benefiting at first, from the lack of top of the line mobile phones in the Indian market. Its future strategy is to keep this trend going. The company is trying to take over the top and middle class mobile phone market in India by being the first to offer the latest and greatest technology available and ignoring the lower class mobile market. It managed to do so already by introducing the first fully touch phone and fully Android powered phone. HTC’s Indian Market Entry Strategy In 2007, HTC made its entry into the Indian market with the collaborative launch of the HTC Touch together with Bhartia Airtel. Their portfolio of devices has been rising steadily, priced at between Rs 10,000 to RS 45,000. Targeting “high-end users” at first, their strategy has shifted since, to also attract mid-range users. While partnering up with Reliance
* HTC’s average product life cycle is approximately 3 quarters, which is about half of the industry average. This will give HTC more flexibility to react on market responses.
2000-2006: HTC made first time profits when it engineered and developed PDA for Compaq computer. HTC made an alliance with top hardware companies and became best hardware maker which led to release of the XDA, the first Windows based smartphone by collaborating with Microsoft. HTC operated in ODM business and Mobile operator business. HTC designed customized phones for Mobile operators based on their specifications which led them to gain attractive contracts from different Mobile operators. HTC contracts with mobile operators was reason for HTC’s early success. HTC relationship with Handspring to develop Treo smartphone facilitated the opportunity to learn about software and User-Interface design. By 2006, HTC was shipping more than 70% of the world Windows Mobile smartphones.
Motorola, famous amongst mobile phones, and one of the top cellular phone companies in the world till late 1990, later it was captured by the company Nokia. While writing this case we have thrown light on the challenges and problems faced by Motorola around 2006-2007. One of the ideas incorporated in order to recapture the market in the year 2006 was to slash the prices of almost all the cell phones which impacted the returns of the company. Motorola did announce in the year 2007 that they will revive shortly and would have the market share back.
This paper explores the strategic actions that HTC can adopt in order to become a leading smartphone company
When Motorola tied up with FLIPKART for the launch of Moto-G exclusively for the Indian customers, it would not have been possible had it not been for the successful connectivity of the company with the customers across the wide geographic regions.
On October 4, 2011, in Cupertino, California, Apple announced the iPhone 4S. On October 7, 2011, it became available for preorder in seven initial countries (United States, Canada, Australia, United Kingdom, France, Germany and Japan) with the first delivery date set for October 14, 2011 and available on that same day for direct in-store sales in those countries. It was released in 22 more countries, including Ireland, Mexico, and Singapore on October 28.
HTC had been working hard to please their customers with a flagship phone that could compete with Samsung’s Galaxy line and Apple 's iPhones.
"HTC Corp. will adhere to its strategy of offering medium-to high-cost telephones, despite the fact that it has been attempting to contend in that price range in the midst of the expanding predominance of Apple Inc. also, Samsung Electronics Co." (Luk, L. what 's more, Poon, A., 2012). HTC, producer of cell phones, reported they 're not straying from the value-based pricing strategy that HTC says underpins their brand image and are pronouncing they won 't offer cheap cell phones in spite
HTC major setback because of OnLive Investment has been a headline in investment for over two weeks now. Where Samsung/ Apple saga enjoyed the lime light, investors and financial analysts had their eyes on recent blow to HTC in the form of heavy financial setback. It is the second major Asian company in the personal mobile appliances sector which has experienced a financial leash in last one month. Current investments made in the last financial year included many bad deals including acquisition of Beats Ltd, however it is the investment in OnLive Inc in the last financial year (which was intended to introduce the online games streaming into HTC sets) which has raised questions about the company's over all performance as an enterprise. Where the acquisition of OnLive was made in the best interest of the creditors (as per the company's statement), the deal included no transfer of previous shares and employees. Resultant was the total loss faced by HTC along with other major investors.
Let 's start to think about the implication from the case study on HTC as a pioneer in smart phone industry.
Since the emergence of the mobile communication, mobile phone changed people 's life greatly. Especially the advent of the era of mobile Internet, the communication industry and mobile phone industry develop at top speed and become the new growth point of national economy. In a functional diversity and smartphones as mobile Internet terminal as the theme of today 's mobile phone market, the domestic mobile phone have, developed its own brand smartphone, Xiaomi mobile phone as a rookie, domestic handset has attracted the attention of more and more mobile phone enthusiasts, that also for the mobile phone market in China has brought new hope and expectation. Some people say that the success of the Xiaomi owe to it’s low price, and don 't think this success will go too far. But I think the low price is an aspect of success, but not the whole. Xiaomi’s unique business model and management strategy determines its success.
In order to optimize product exposure in the retail channels, Sony can issued is p lay
The purpose of this phone website is to inform potential customers what phones are being sold on this website, the specifications of the phones, a bit about the history of the phones and also the cost. It will also have a bit of information about the actual company e.g. Sony, HTC, Samsung, Nokia etc. how they began and what type of electronic products they create and sell.
• Even though there were 50 companies in India selling mobile phones which is dominated by more than 60 percent share from Nokia there were still features, niches and categories that could be carved out by the new entrants
The phone industry in India of LG and SAMSUNG is one of the key success drivers of any growing economy and henceforth one of the world’s most important revenue generating sector. This industry has a wide range of organizations and companies which are engaged in the design, manufacturing, and selling of the products. It helps the improvement in various infrastructure facilities such as rail, road and power, thus playing a vital role in the rapid growth of the economic and industrial development. The Phone market is growing at a healthy pace because of the comparison with increasing levels of customers in India with respect to different companies in the larger phone markets of the world. Worldwide, the phone market has not only been focussing on manufacturing but also towards ensuring that one 's products are superior in terms of quality.