Strategic Audit and Analysis of Htc

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BUSN09044  

STRATEGIC MANAGEMENT

“Strategic audit and analysis of HTC”

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EXECUTIVE SUMMARY: HTC

Strengthening Marketing & Customer Service departments

HTC was handpicked for this report since it has experienced steady losses each year and no added value for its products. This report will analyse the current internal & external environment of HTC and recommend solutions to increase revenues by investing in key areas such as Marketing, Advertising & Service to bring the company back to profitability. HTC recently secured a $1.1billion dollar deal with Google and some of that cash can be used for this purpose since it currently lacks own resources.

Risks associated with spending more on marketing & customer service outlets can be numerous. HTC is going through a challenging phase where its smartphone business is facing the risk of closure whereas its Virtual reality platform is doing well. Its an industry with huge potential and might help HTC to recover the losses it has suffered for the past 6 years. But trying to revive an already perishing smartphone segment is a risky gamble, especially when huge amounts of money have to be pumped in to match its competitors and its benefits are dependent on market conditions.

On the other hand, the smartphone industry is in its growth phase and HTC is not a new brand trying to penetrate the market. A certain level of brand awareness still exists and reviving it at this point in time can bring back customers and if excellent quality products and services are provided it can still capture a decent market share.

• HTC has failed to create brand awareness among its customers and fell far behind when its rivals raced ahead. Samsung spent a staggering $10.2 billion dollars on marketing in 2017. Though Apple has stopped disclosing their marketing budget it is believed to be at least 65% of what Samsung spends.

• After Sales service is also an area where HTC needs to catch up. Smartphones are highly fragile both in terms of hardware and software. Quick and Efficient service is essential to retain customers. HTC is constantly criticized for sloppy customer service or unavailability of service centres. Opening up more customer service outlets in major markets is a great way to combat this issue.

Therefore, an emergent approach to strategy is recommended because HTC should be able to react and readapt according to situations.

Contents

INTRODUCTION        5