Case Analysis: HTC Communication Problem

By:
Dorian Leyva
Kevin Thompson
Rebecca Perez
Aide Bustamante










History
HTC standing for High- Tech Computer Corporation is a Taiwanese manufacture of smartphones
and tablets. Cher Wang and Peter Chou founded this corporation in 1997. This worldwide
corporation originally started as the original equipment manufacturer designing devices that
were based on the US Windows mobile. Later on it started to shift its manufacturing focus to
designing devices that were based on the Android and Windows phone. HTC became
successful by being one of the first manufacturing corporations to design touch and wireless
devices in 1988 and today stands in one of the top branded mobile phone companies.
Development
Today HTC faces the tough competitors Apple and Samsung. Leading HTC to design phone
devices based on these two mobile phone companies. They look out for the innovations that
customers like and strive for producing devices that will provide the customer with a great
mobile experience. HTC company states, A focus on product design with performance,
endurance, craftsmanship, and intuitive tools and interfaces, ensures an elegant experience in a
beautiful, minimalist package. HTC produces phones with the main goal of adjusting the device
to the customer working through collaborations to make this possible. HTC has working
relationships with Google. Microsoft, and Qualcomm with the purpose of providing the
costumer with some of the best technology tools.
HTC produces devices that include many innovations like a camera with two times bigger pixels
than other regular smart phones along with editing tools. Devices include the HTC Sense TV,
which browses TV shows through a graphic based guide. Mobile phones also contain the HTC

Boomsound system, which is a leveling software that matches the bass to the tremble providing
the consumer with a clear sound. Through these innovations HTC strives to provide the
consumer with features that other companies don't offer.
Growth
HTC has grown from a design and equipment manufacturer to a branded cellphone company
today. It has built many relations with many well-known technology companies through which
it has taken big growth steps. Although it has been one of the top mobile phone companies,
today they face very tough competitors. HTC has failed to reach their level of popularity and
have not reached sales as high as Apple or Samsung.
Vision, Mission and Goals
Success starts where it ends: with the customer, this is HTCs stated vision. They believe in
creating a customized experience for their users and that every mobile device should fit in with
their owner instead of it being the other way around. They believe in honoring their customers
and providing products that are made and customized for their own way. With a mission to
take care of their customers, HTC creates mobile devices designed with their customers in
mind. We insist on seeing through the eyes of this community, because doing so teaches,
challenges and prods us to get better at what we do empowering our customers through
personal experience. Making it their goal to maintain great customer satisfaction and provide
the best mobile devices in the market.

SWOT Analysis:

Strengths
HTCs strengths as a company are many. Working to connect their customers to their mobile
devices HTC has great motivation in providing the best customer experience they can for their
customers. Also they have released a decent amount of devices that have molded the way
other technology is made today. They have a great consistency when it comes to releasing new
mobile phones and have a great amount of industry firsts that they take great pride on. These
include creating a 1080 pixel display on the HTC DROID DNA in 2012, a smartphone with f2.0
aperture on the HTC One X and S in 2012 and a smartphone with integrated Beats Audio in the
HTC Rezound in 2011.
Weaknesses
Although HTC is a great company it also has its weaknesses. Having communication problems
and losing a lot of customers to greater companies. Their marketing strategies are weak and
therefore they are losing customers to other well-known companies such as Apple and
Samsung. Competing against these two is a very hard task for HTC but one that they can
probably pass.
Opportunities
No hope is lost for HTC however, they have a good number of opportunities to make a
comeback and form a new strategy to market their products. Along with creating a new product
to put into the market and sweep consumers off their feet. HTC also has great partnership with
many standing companies such as Pioneer, PlayStation and FitBit. Others include Google,
Microsoft and Qualcomm in which help develop product evolution.

Threats
Their greatest threat is their competitions marketing and on-coming new products such as
Apple and its iPhone series. Due to the fact that Apple is more popular, HTC sales are lower
than Apples when in comparison. This is also true with Samsung and its Galaxy phone series.
Customer satisfaction is also a threat, although HTC puts in the best effort in order to provide
their customers with great customer service and innovative technology, it can be hard for them
to outshine Apple and Samsung.
Nature of Companys Communication Strategy
HTC has not been number one in sales for the newest smart phones which is led by Apple and
Samsung. This is not what they are proposing for future sales. Words can only say so much,
although everyone will claim that their products are the best the only way to tell for certain is
to test the product itself. Now in order to do this the consumer must first purchase a phone
that they know nothing about. So will they choose HTC or go with the top choices? The answer
is obvious and HTC is aware of this. Which is why they are strategizing ways to make their
products stand out and get people to start trusting their technology.
Strategy #1 Merging
One of the first things that HTC is trying to do is merge with Chinese corporations or other
vendors to help increase the market. As stated in the article by Helen Ku HTC needs to
sharpen up business strategies, this implying that HTC is being blocked by other vendors not
allowing them access to the emerging markets. This is causing them not to be able to compete
with Samsung and Apple products. If they are able to get a foot-hold in these markets it would

increase their sales drastically making them a top contender. There are many emerging
markets that have never been high-tech users such as India, the Philippines, and even in China
itself. By capturing this market it will help boost sales. If able to merge with the vendors HTC
can lower assembly costs making them able to make greater profits from each device sold and
cheaper to the consumer.

Strategy #2 Cost to quality
Unlike Apple HTC has a variety of phones from low to high price range. Apple on the other
hand only hold high priced phones such as the IPHONE 4s and the IPHONE 5s. By capturing all
price arenas this allows the lower income group to purchase a quality smartphone. At the same
time the HTC X1 is up on top competing with the Galaxy S5 and the IPHONE 5. As long as they
continue to push forward with the quality of their phones they can become part of the top
competitors. Still holding Google and the Android system should help for a good backbone to
build a quality smartphone on.
Strategy #3 Press and Public Campaign
HTC will have to begin speaking aloud. They can do this by campaigning their products more
including press campaigns. By doing this they can put their products into popular magazines
that will allow their products to be viewed by many people at many different times. The press
campaign can also take in to being a sponsor in popular sports to bring the name to life and
gain publicity. Now for the public arena social media has blown out of proportion with
Facebook, Twitter, or even Youtube. These are places that are visited by billions of people

every day. Having their targeted audience being 15-35 year old trendy people, this is a perfect
opportunity to market its future plans and possibly even show company growth.
Capture the Big Picture
The main thing that HTC has to do is capture the big picture of becoming the top mobile phone
company. As mentioned in strategy #1 the merging with vendors can be a huge move forward
in lowering costs allowing that quality product to be made and sold for less, still achieving a
good profit margin. As for strategy #2 with cheap cost should not come cheap quality, having
the IPHONE and the Galaxy products as the competition quality has to be a main priority since
these products are top notch with the newest of technology. For the next strategy campaigning
is the way to be heard, HTC must get their name out there anyway they can, it is a must to have
HTC!!! pop up to keep people aware and interested in their products. Now these as well as a
few more strategies can give them a shot at the top. If they can make these low cost high
quality products and get them into peoples hands they will have the best advertising available
word of mouth, when consumers talk about it to their friends and friends of friends, it
becomes the newest hot fad that everyone has to have.
Current Communication Problem
The current communication problem for HTC has become extremely serious in the past few
years. As Apple and Samsung become more popular, all other smartphone manufacturers,
including HTC, are having a tough time getting consumers to believe that their products are just
as good as those from Apple and Samsung. Recently, HTC posted its first loss in the third
quarter of 2013. The news was definitely shocking, considering that HTC was the Americas

largest smartphone provider 3 years ago in 2011. According to Dailytech.com, HTC had
reported an unaudited operating loss of $119 million USD, and a net loss of $101 million USD on
a revenue of $1.6 billion USD. HTC had profited early on from being one of the first smartphone
carriers that used the Android platform. However, as smartphones have evolved with more
options from Apple, Samsung, Nokia, and LG, HTC has been trying to survive in the constantly
changing world.
HTCs chairwoman, Cher Wang, has spoken out on behalf of the company and said Our
communication does have a problem but we are improving on that. Its a gap between our new
products coming out and we are improving our innovation and our marketing. Basically she is
saying that the company understands that customers really do not believe that HTC products
are of the same quality or build as that of other smartphones offered today. The company
knows that they have a large communication problem with their customers, and is currently
trying to figure out ways to show consumers that are equal to other brands. According to
phonearena.com, Wang stated, We really do have the best technology and the best product.
Currently, HTC is rushing to come up with ideas to bring up their sales figures. They have
already launches of new phones and are expecting future launches to bring sales up, but that
does not mean that it will bring the company back to their former height just yet.
One of the strategies tried by the company so far is to bring the actor Robert Downey Jr. to
their commercials. Wang says they like Downey because he is seen as a change maker and
that is exactly the look that HTC is trying to put forward. In 2013 the commercials with Downey
did not give the company much of a sales boost, but they do plan on using him for the rest of
their 2 year contract with him. Simply put, HTC has realized that their main communication

problem is marketing. With new devices and accessories coming from Samsung and Apple, HTC
has not brought anything new or different to the public.
How would they market their products as the best technology when they have not come out
with much that is new or different? The world and its consumers are constantly changing. HTCs
phones do not offer anything different or better than products from Samsung. People want the
latest gadget that can do the newest thing, not an older model in a shiny or metal covering. HTC
is currently waiting on the release of several new products but until then, the public is stuck
with the same technology in different wrapping.
Again, the companys biggest communication problem comes down to marketing. The company
has already taken a fundamental step by hiring a celebrity to promote their commercials.
However, this is not going to be enough to pull the company out of their current predicament.
As stated before, the company needs to come up with something fresh and different. Proof is a
very powerful tool. They are going to need to prove to the public that their technology really is
the best and that they really do have the best products.
Solutions
With customers spending their money on rival products, HTC is having to think on its feet to
come up with new ways to bring new and old customers back to their products. The
communication problem stems from HTC not knowing what their customers are looking for
anymore. Companies like Apple and Samsung have figured out what the public is interested in
and have exploited those wants and needs. Communication with your customers is vital, and it
is something that Apple and Samsung have mastered.

Before marketing new products or focusing on new commercials, the company needs to survey
previous owners as well as current owners to learn how they can better their products. They
need to focus on the positives to make them even better, but also focus on the negatives to
make them positives. Asking customers what the negatives are is a great way to learn how to fix
those problems. Feedback from customers is the best way to figure out what is really good or
really bad about your products.
HTC has already started to try to reach out to its customers by hiring Robert Downey Jr. to be in
their commercials. As stated before, they feel that he can bring people back to their products.
We believe this is a good start. However, people like to see reviews and real stories from
normal people also. Most Samsung commercials do not include celebrities, they include normal
people talking about their products, saying what they can do and how they compete with Apple
products. HTC commercials have not shown us, the public, what is new or special about their
newest phones. They simply advertise that they are releasing a new phone, without stating
what is special about it. We feel that HTC commercials should show real people giving positive
reviews about the phone. Getting the public involved is the best way to reach out to other
members of the population. A company that has seen great success with their commercials is
Bing, a competitor to Google. In many of their commercials, we see Bing representatives asking
passerbys on the street to run two searches, one on Google and one on Bing. They then ask
which they believe is better, and clearly all would say Bing. They also give a small comment
about what they liked. We believe commercials like this would be perfect for HTC.
HTC is not a new company, they already have a customer base, but they need to focus on that
current customer base just as much as they do new customers. Apple sends out emails

regarding new products every month to their current customers. This is an easy way to keep
customers involved and let them know about new products that the company will be rolling out
soon, and how these new products are different from the old ones. People are always looking
for the next best device, or the latest version of their gadget, so this would be a perfect way to
keep current customers updated.
HTC is fully aware that they have a communication problem with their customers, and the first
step to solving any problem is acknowledging that there is one. They have this step complete,
now all they need to do is follow through with new ideas to get people looking at their products
again. The recently unveiled HTC One M8 has seen huge success. It is a device that was built off
the version before it, and they were able to not only make it look better, but also improved
everything the old phone while adding new features. Phones like this have caused huge success
for other companies, and HTC is finally starting to see that. They say they have the best
technology and best product, now is the time to prove that.








Work Cited
Ku , Helen. "ANALYSIS: HTC needs to sharpen up business strategies: experts - Taipei
Times." Taipei Times. The Taipei Times, 12 Aug. 2013. Web.
<http://www.taipeitimes.com/News/biz/archives/2013/08/12/2003569473>.
Ingraham, Nathan. "HTC says that marketing, not its declining financial position, is its
biggest challenge." The Verge. Vox Media , 7 Oct. 2012. Web.
<http://www.theverge.com/2013/10/7/4813084/htc-says-marketing-is-its-biggest-
challenge>.
Mick, Jason. "HTC Admits it Has a Communication Problem, Eyes Windows Phone
Escape Route." DailyTech. DailyTech LLC, 8 Oct. 2013. Web.
<http://www.dailytech.com/HTC+Admits+it+Has+a+Communication+Problem+Eyes+
Windows+Phone+Escape+Route/article33510.htm>.
F, Alan. "HTC's Wang blames lack of communication for sales slump." Phone Arena.
N.p., 8 Oct. 2013. Web. <http://www.phonearena.com/news/HTCs-Wang-blames-lack-
of-communication-for-sales-slump_id48090>.
"Company Overview." HTC. HTC Corporation, n.d. Web.
<http://www.htc.com/us/about/>.
UPDATE 1-Taiwan's HTC sees 2008 sales at high end of target. Reuters. Thomson
Reuters, 12 Sep. 2008. Web. <http://uk.reuters.com/article/2008/09/12/htc-taiwan-
idUKTP35359820080912>