The Need for Inorganic Growth – Case Study on HTC Corporation
Date Issued
2012
Date
2012
Author(s)
Wayan Lee, Wei-En
Abstract
“Organic Growth”, in simple terms, is the process of business expansion by maintaining to operate its primary businesses in existing or new markets while using the same enterprise model. “Inorganic Growth” on the other hand is the method of growth that a company deals with mergers or acquisition of new businesses to “open-up” new markets and innovations.
Looking at HTC’s transaction lists throughout history, it is well documented that the company had always been an ODM, relying on adding new capacity and manufacturing services to build “High Tech Computers” or smartphones for consumers. During the 2010-2011 period, there was a rush of transactions including Abaxia (Mobile software company, 2010), OnLive (Cloud computing video games, 2011), Saffron Digital (Mobile videos, 2011), KKBOX (Online music, 2011), S3 (Graphic chipsets, patents, 2011), Dashwire (Cloud computing software for syncing, 2011) and Beats (Music accessories and software, 2011).
Although Taiwan is a relatively small market when compared to the world with only 23 million people (Official National Statistic, 2011) vs China’s 1.3 billion and United States 312 million people, Taiwan is considered one of the biggest contributors of global technology with HTC Corporation (TT:2498) recently awarded #1 brand in Taiwan and top 100 brand globally (Interbrand, 2011).
This abstract will elaborate on HTC’s strategic reasons for entering the stage of inorganic growth. Furthermore, the abstract will discuss HTC Corporation’s (“HTC”) historical decisions, and its transition to become a dominant brand. This report will discuss the different types of growth strategies with the rationale for increasing hardware, content, and software to enhance its products.
Subjects
M&A
HTC
Inorganic Growth
Type
thesis
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