A Strategic View Study of HTC’s Brand Developing Process
Date Issued
2014
Date
2014
Author(s)
Chang, Chen-Wei
Abstract
Is high-technology industry in Taiwan able to establish a long-term own branding and manufacturing with international branding value? Or restricted by the home market’s insufficient scale, must it focus on the international professional OEM? After twenty or thirty years Wintel (Microsoft + Intel) period to do OEM on personal computers, notebook computers, mobile phones, and other industries, the high-technology industry in Taiwan has developed the complete industrial chain upstream and downstream. It also cumulates innovation and intellectual property patent to make business operate sustainably. Because of the long-term OEM with low profits, own-branding is the only way to maintain profits. Originally, HTC Corporation is designed for OEM Wintel system, because it cuts into emerging smart handheld device industry in the blue ocean market at an early stage, it accumulates products’ innovation and research technology and establishes the foundation for the future HTC brand. However, with the explosion of smart handheld device industry which attracts the cannibalization among global top brand manufacturers, HTC Corporation is naturally lack of home market and vertically integrated resource of brand manufacturers with its own branding and business strategies. It indeed faces the severe challenges.
The subject of the paper aims at discussing whether HTC Corporation is able to continue developing Taiwan’s own branding and manufacturing. HTC Corporation is abruptly rising from the innovative research and development in the smartphone industry, successfully creating the brand and living on its own. When it faces the international top manufacturers which take the advantages of internationally renowned brand, and integrate the upstream and downstream chain industries’ abundant resources, or have the structural factors such as the huge domestic mobile phone market, how to fight a seat to survive in the excessively competitive global smartphone industry is a practical challenge.
The paper research uses "smile curve" proposed by Acer founder Stan Shih, indicating the main logical thinking behind that Taiwan factories fight for OBM, and using five forces analysis and value chain to clarify the corporate business strategy that HTC Corporation takes to make OBM and face the harsh challenges of intellectual property rights and product innovation competing with international companies, as well as the potential threats from China and other emerging markets’ mobile phone manufacturers taking advantage to rise. The manufacturers of upstream and downstream vertical chain come the result of the growth and decline of the global market share; while using industry life-cycle analysis to investigate the applicability of the corporate business strategy that HTC Corporation currently applied. Finally, taking HTC Corporation as case study, based on the challenges it faces when developing OBM, to interpret whether the high-technology industry in Taiwan equips the structural elements of OBM and the basic conditions of getting rid of the fate to do OEM.
This study attempts using different analytical viewpoints to investigate the business strategies whether it is necessary or because of the inevitability of the history that HTC Corporation takes HTC as its OBM. Even though OEM is a reliable business strategy, the way HTC Corporation takes a chance to build OBM, regardless of the future success, will set a good example for the high-technology industry in Taiwan.
Subjects
智慧型手機
價值鏈
五力分析
破壞式創新理論
Type
thesis
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