8/10/2019 HTC Scenario

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Introduction to Management - Final Case Scenario

HTC Corp. in 2009, HBS Case 9-709-466, revised: December 8, 2009. Clarification: Date of the case: December 17, 2009.Quotes maybe fictitious.

Paul Chou, HTCs CEO notes that the globalfinancial crisis continued to influence generaleconomic conditions through 2009. Whilepersistently weak economic fundamentalsworldwide dampened momentum for growth inthe smart phone sector, smart phone salesmomentum remained strong in comparison

with sales in the overall mobile phone industry.

With a touch of prescience, Chief MarketingOfficer John Wangforecasts that 2009 will bea year of major change in the smart phonesector. This will be most apparent in the areaof operating systems. Operating systems withexceptional third party software ecosystemssuch as Android OS will demonstrate theircommercial feasibility and value. 2009 will bethe year when telecommunication serviceprovider investments in 3G telecom networksbegan delivering value through an increasinglydiverse array of mobile digital services andcompetitive rate plans. These and otherdevelopments will spur growing numbers ofmobile telecommunications consumers tomigrate from traditional mobile phones tosmart phones.

Chief Operating Officer and R&D Divisionexecutive, Fred Liu, noted that HTC hasinvested consistently and strategically in thedevelopment of exceptional in-housecapabilities in R&D and innovation. Today,HTC holds market leadership in both WindowsMobile and Android platforms. HTC Sense,

our advanced user interface first introduced onAndroid platform and was developed fromsquare onewith the user in mind in order todeliver a mobile telecommunicationsexperience that is simple-to-use and highlyintuitive.

"Quietly Brilliant", the message driving ournew brand position launched in 2009, commitsHTC to design, manufacture, and supportproducts that enhance life and integrateseamlessly with consumer preferences andneeds. Principal HTC brand promotion

activities include sponsorship of TeamColumbia-HTC in the Tour de Francecompetition; launch of the HTC YOUcampaign in all major markets; andsponsorship of the Wallpaper Annual DesignAwards. Consumer awareness of HTC and itsbrand value have, as a result, risenconsiderably. We will continue to invest inbuilding HTC brand value and in strengtheningoverall brand management.

Innovation is encoded into HTC's corporateDNA. After releasing its first Android-basedmobile phone in 2008, HTC in July 2009launched the first Android phone to featureHTC Sense, HTC's proprietary user interface.Bringing mobile devices more "in touch" withconsumer expectations and preferences than

ever before, this totally new interface confirmsHTC's market leadership in Android-basedsmart phones. By the close of 2009, HTC willhave launched 6 Android phones. In additionto the 3.2-inch touch screen model, HTC alsoprovides a 2.8-inch screen ultra thin modeland a model featuring a sliding keyboard.

In its Windows phone product line, HTC willlaunch the HTC HD2, which features agenerous 4.3-inch touch screen and 1GHzmobile processor. The HD2 is the world's firstWindows phone to incorporate capacitivetouch (touch screen) technology. With high-end product specifications and anexceptionally smooth user interface, the HTCHD2 is expected to earn strong reviews and agrowing worldwide consumer following.Leadership in applications for the Androidplatform and continuous enhancement of itsWindows Mobile-based devices underscoresHTC's R&D depth and the company'suncompromising commitment to and passionfor innovation.

HTC will make its global announcement inLondon of HTC Sense, an intuitive and

seamless experience that will be introducedacross a portfolio of phones beginning with theHTC Hero. Apart from a distinctive new look,HTC Hero packs a powerful suite of featuresaccessible through the new interface. HTCHero sets a new high water mark for Android-based phones. HTC Sense is focused onputting people at the centre by making yourphone work in a more simple and natural way.This experience revolves around three basicprinciples: "Make It Mine", "Stay Close" and"Discover the Unexpected". In addition toobserving and recording consumer habits and

preferences as well as listening to theirexpectations and needs, HTC conducted anextensive series of consumer interviewsdesigned to define and distill user needs inorder to incorporate such in onboardapplications and services.

The "Quietly Brilliant" branding strategy isinspired and sustained by a corporate culturededicated to satisfying consumer needs and toconsistent breakthrough and innovation. HTC

8/10/2019 HTC Scenario

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Introduction to Management - Final Case Scenario

HTC Corp. in 2009, HBS Case 9-709-466, revised: December 8, 2009. Clarification: Date of the case: December 17, 2009.Quotes maybe fictitious.

is doing great things in a humble way, with thebelief that the best things in life can only beexperienced, not explained. The "QuietlyBrilliant" campaign has been promotedthroughout the HTC organization and is todaya solid cornerstone of our corporate culture.

The founding vision of HTC was torevolutionize the lives of people worldwidewith its converged mobile devices. After theturbulence of 2009, prospects for smart phonesector growth are rebounding and steadilystrengthening. The relative strength in thissector is attracting greater competitor attentionand investment. In facing this increasinglycompetitive environment, HTC is confidentthat its well-established strengths in innovationand consumer-centered brand commitmentwill lead the corporation to continued growthand business success.

Yet, mobilizing voice, data and the enterpriserequires reliable, up-to-date information on keytechnologies behind mobile networks, serviceenablers and the security that protects them.Widespread consumer acceptance in the U.S.has made it harder for carriers to finduntapped markets than was the case in yearspast.

Chief Innovation Officer, Horace Luke,understands the competitive nature of HTCand has a predilection to use outside talent,

suggests that the fresh eyes, sharp mindsand creative skills of the newly hiredmanagement and technology employees willprovide insight into the interplay betweenmanagement and technology and our historyof innovativeness. As one of those new-hires,(from an Eastern U.S. business school ofManagement and Technology), you are taskedwith creating a line of inquiry that reveals theinterplay of forces within this industry onHTCs sustainable growth. At a minimum,this line of inquiry suggests identification of therelationships between: international users,

service providers, apps use, dependenttechnologies, telecommunications marketsand corporate leadership.

As you and your team prepare for this task,you generally considerthe following: Who specifically are change agents in this

industry?

Who are the competitors? Do they offer a closesubstitute?

What are the critical success factors in ourbusiness segments? How do we measure

them? Are they changing? If so, to what? What do we know about the current impact of

our management style, specifically examining:risk taking, R&D, intellectual property,standardization and global interoperability?

What are the conditions of sustainabilityof our

technologies? Can we continue our growth rate?

How do we communicateour redefined strategyinternally and externally?

The purpose of your meeting with Luke andother executives is to present your line ofinquiry that leads to a roadmap: animplementable strategy. It is the answers tothese questions that constrain the scale andscope of this strategy. Lukeruminates:

Why is Microsoft so focused on transformingitself from a PC firm into a multi-platform

infrastructure services company? Does thecompany perceive a migration away from a PC-centric to a multi-device model?

Why is Intelso intent on transforming itself froma leading microprocessor producer into amanufacturer of mobile networking andcommunications products? Are they anticipatingthe impact of emerging mobile innovations on thehardware ecosystem?

Why is Nokia reinventing itself to become a

major player in the mobile economy instead of anarrowly focused cell-phone manufacturer? Arethey positioning themselves to become the Ciscoof the mobile economy?

Why is Sony attempting to make on-the-go, in-hand entertainment the next gaming frontier? IsSony quietly becoming a dominant handset andcontent player in the mobile space?

How will our company bring the Web into thephone and tap the mobile commerce market?

What must the strategic road map look like tofacilitate information, communication, andcommerce today, tomorrow, and in five years?

You will present a 25-minute proposed line ofinquiry briefing session to Luke and hisexecutive management team, followed by a 5-minute caucus, then engage in a 20-minutequestioning period and end with a 5-minutedebrief. Time waits for no one; so, coupledwith thoroughness promptness, timemanagement and conciseness suggestthemselves. Lukes expectation of priorpreparation prevents poor performance drivesyou and your team to excel on this firstopportunity to display your skills and talents tosenior management.