Amplifying Position and Market Share of Organization - Case Study Example

Recommendation Paper Executive Summary This paper mainly highlights the defects experienced by the s using the product line d, HTC one 2 M8 of HTC. Along with this, it also includes the strategies that the organization used to resolve the problems so as to retain its popularity and image in the market. Apart from this, it also includes an in-depth of the micro-environment of the organization of HTC, prior implemented the recommendations for further improvement so that, the organization might improve its brand value and position in the market among others. Introduction The purpose of this research paper is to present a brief history of the company of HTC as well as its product lines. Other than this, the research paper also comprises of in-depth analysis of the business practices of the company of HTC and the problems faced by it. Moreover, the ideas and business strategies implemented to resolve all sort of issues of HTC one mobile phones so as to enhance its image and reputation in the market among other rival players. Finally the paper is concluded with a recommendation so as to improve its market presence and competitive position among others. History of the HTC HTC Corporation is one of the recognized organizations operating in the segment of telecommunication equipments. Since 1997, HTC, the Taiwanese developer of smart mobile phones and tablets expanded its wings a captured a high range of developing and developed countries of the entire globe. Then, within a very small time-frame it positioned itself as designer and developer of OEM branded smart mobile devices that amplified its market share and brand image by almost 18 percent in the entire world among others. Moreover, introduction of android or windows powered tablets and mobile phones amplified its competitive position and reputation in the market that enhanced its distinctiveness and equity among others. However, the entire credit of the success of the organization of HTC is due to its highly intelligent CEO, Mr. Peter Chou, Chairwoman, Cher Wong and Chief operating officer, Fred Liu (Digitaltrends, 2012). So, the organization of HTC became able to develop a varied line of inventive products as presented below: Product lines of HTC Source: Digitaltrends, 2012 However, in spite of extensive involvement and thinking power, the HTC one mobile device comprises of varied types of problems and issues that reduces its reputation and dominance in the market among others. Discussion Complains about the issues of HTC one mobile phones The organization of HTC is a reputed organization, comprising of a quite high brand value and reliability in the market. In spite of high brand image, the organization of HTC faces numerous issues due to its smart phone named, HTC one 2 M8. Some of the issues are presented below: Camera issues: the customers of HTC one 2 M8 stated that the camera is almost unable to click pictures until and unless the ISO and contrast button is switched on. Due to this problem, the customers failed to take any sort of pictures in case of emergencies and as a result, the demand and craze of this product in the market is reducing significantly as compared to many other rival players. Moreover, due to internal problem in the android set, the camera remained either frozen in the static image or failed to return to the home screen. As a result, the CEO, Mr. Peter Chou tried to make an update of the configurations of android in order to resolve it. However, he failed to resolve the problem and this created significant loss of the market value and reputation of the organization of HTC in the market among others. Unusual Audio of HTC one 2 M8: the audio of HTC one 2 M8 offered a very static sound for the consumers listening to the music with the help of headphones and speakers. Other than this, significant gaps are also recognized within the music that presented a worst feeling to the customers. This is also another important issue of HTC one 2 M8 that hindered the market value and profitability of the organization of HTC in the market. Overheating: the HTC one 2 M8 also gets extremely heated due to over using it for the purpose of gaming or internet accessing. As a result, the aluminum body of the smart mobile phone of HTC presents a warm feeling to the consumers. Quality issues: at times, the consumers also analyzed quality issues like gaps within the strange bulges of the plastic and metal as well as numerous scratches in the entire body of the smart phone. As a result of which, the profitability and demand of the product line of HTC one 2 M8 reduced that declined its position and sustainability in the market. Due to which, the level of reliability and dependability of the product named, HTC one 2 M8 declined significantly as compared to others (Inoyori, 2014). Proximity sensor: apart from numerous issues presented above, the HTC one 2 M8 also comprised of faulty sensors. As a result, the buttons of the mobile phone not even switched on or responded, after switching on the phone. Due to such type of faulty sensors, both business as well as personal activities of the customers is affected significantly. This lowered its growth rate and popularity with in the minds of the customers that declined its portfolio. Unresponsive home and back keys: due to software errors, the home and back keys remained unresponsive. As a result, the organization of HTC failed to retain its image and popularity in the market. Defective Wi-Fi and Bluetooth: numerous customers reported the organization of HTC about the defects in Wi-Fi and Bluetooth. As a result of which, the customers are almost unable to download any sort of information and pictures from any other sources. Moreover, due to problems in Wi-Fi, the customers are also unable to attain quick internet services in their mobile phone devices. As a result of these problems, the total sale and revenue of the organization of HTC remained quite low that declined its productivity and dominance significantly. Sim card error: the HTC one 2 M8 also comprised of the problem of sim card error that hindered the connectivity of the mobile phone (Inoyori, 2014). Charging port: the organization of HTC failed to offer charging port in the packs of numerous customers that created a serious problem for them. Low resolution of the camera of HTC one 2 M8: the resolution of the camera of HTC one 2 M8 is quite low as compared to its competitors such as Samsung Galaxy S5. Due to which, the customers failed to attain clear pictures and videos. Therefore, from the above mentioned points, it might be clearly stated that HTC one 2 M8 mobile device comprises of varied types of problems or issues that hindered its growth and reputation in the market. Moreover, due to the presence of above mentioned defeats, the profitability and equity of the product line of HTC reduced significantly as compared to its competitors such as Sony Xperia Z2, Samsung Galaxy S5 and many others. Solutions offered by HTC to fix the problems The issues described in the above mentioned paragraph are both related to hardware and software. As a result, the organization of HTC offered varied types of solutions to resolve the issues of HTC one 2 M8. These are presented below: Software update: in order to resolve the problems of software’s such as poor quality of sound of the microphones, speakers etc, update is offered. By doing so, the quality of sound improved by a significant extent that improved its brand value and position in the market (Hill, 2010). Rebooting of the power button: in order to reduce the problem of unresponsiveness of the home and back keys of HTC one 2 M8, rebooting of the power button might prove effective. By doing so, the reliability and trust of the customers over the brand, HTC enhanced that improves the sale of HTC one 2 M8 (Gupta, 2004). Re-checking of the memory circuit: the re-checking the memory circuit of HTC one 2 M8, the problem of over-heating might be reduced. This might help in improvement of the market value and popularity of the organization among other rival players such as Sony Xperia and Samsung, Nokia and many others. Rechecking of the internal software configuration: by rechecking the internal software configuration of HTC one 2 M8, the defects of Wi-Fi, touch-screens etc might get reduced. Rechecking the configuration of Sensors: by rechecking the configuration of the sensors, the internal defects of proximity sensors might get resolved easily. This might prove effective for the organization of HTC to enhance its brand image and distinctiveness in the market among many others (Grant, 2005). Replacement of the microphones: in case of defective microphones, replacement is the best possible option. This might improve the effectiveness and productivity of the products of HTC one 2 M8 within the minds of the customers. Avoid exposure to direct sun-light: in order to reduce the over-heating of HTC one 2 M8, direct exposure of sunlight need to be avoided. Only then, this problem might be resolved easily that may amplify the total sales and profit margin of the organization of HTC (Inoyori, 2014). Reloading the software’s: in order to reduce the defects of Wi-Fi, the software’s need to be reloaded. Only then, the reputation and popularity of the organization of HTC might be retained within the minds of the customers (Digitaltrends, 2012). Thus, by presenting all the above mentioned solutions, the problems of HTC one 2 M8 might be resolved thereby amplifying its total sale and dependency within the minds of the customers. How the above mentioned solutions helped the organization of HTC All the above mentioned solutions helped the organization of HTC in the below mentioned way: 5th largest leader in smart phone handset 9th largest player in mobile devices 31st organization offering inventive products and features Best organization offering value added services to its customers (Digitaltrends, 2012) Therefore, it might be stated that implementation of the above mentioned solutions the organization of HTC improved its position and reputation in the market. Due to which the inner strengths and opportunities of the organization of HTC enhanced to a significant extent thereby reducing its defects and weaknesses. Market status of HTC due to the presentation of possible solutions Regions Market Share HTC share CAGR US 18% 6.0% 11.6 EUROPE 20% 10% 11.5 CHINA 27% 8% 26.2 INDIA 30% 10% 57.5 Source: (Digitaltrends, 2012) Financial results of HTC after presenting varied types of solutions All Values in million ($) 2012 2013 2014 Revenues 9922.1 24982.4 34655.6 FCFF (millions $) 5919.5 6140.7 8509.2 EPS ($) 6.9 7.2 10.0 Hence, it might be clearly stated that the solutions offered to the problems recognized with the products of HTC one 2 M8 improved its financial condition and status in the market among varied other rival players. In-depth Analysis of micro environment of HTC organization Analysis of the HTC might be evaluated with the help of SWOT. Strengths: Strong concentration over research and development: the organization of HTC always tries to offer high concentration over research and development in order to introduce new products and satisfy the changing demands of the customers. Presence in numerous markets: presence of HTC in numerous developing and developed markets helps the organization of HTC to enhance its market value and market share (ESOMAR, 2008). HTC smart phones equipped with android OS, HD video recording: due to the presence of numerous advanced technologies, the demand of the product lines of HTC increased. Weaknesses: Numerous defects: due to the presence of numerous defects, the demand and profitability of the organization of HTC declined. High manufacturing cost: due to high manufacturing cost, the demand and portfolio of the product lines of HTC declined effectively in the market among other rival players (Johnson & et.al. 2011). Opportunities: Expansion in new markets: expansion in new markets might prove extremely beneficial for the organization of HTC as compared to its rival players. Demand of touch-screens: the organization of HTC might try to develop touch-screen, as its demand is extremely high in the markets. Threats: High competition: the level of competition is extremely high in the market. Therefore, in order to compensate the level of competition, the organization of HTC need to develop highly advanced features (Johansson, 1997). Rapid technological change: in order to cope up with technological changes, the organization of HTC might develop inventive techniques and features such touch screen, 3G etc (Keegan, 2002). Thus, it might be clearly depicted that the micro environment of HTC is extremely competitive due to the existing rival players and rapid changing technologies. In spite of such a cut-throat competitive environment, the product of HTC one 2 M8 presented varied types of defects and issues, that reduced its market share and image. Therefore, in order to enhance its positive and competitive advantage in the market, the organization of HTC might try to offer inventive features and high concentration over research and development department. Apart from this, the organization of HTC might try to offer effective customer services in order to resolve any sort of queries or replacement so as to retain the loyalty and dependency of the customers in this age of extensive rivalry. Only then, the organization of HTC might retain its position in the market among other rival players. Recommendations In order to improve the position of the organization of HTC, it needs to implement varied types of strategies or policies. These are stated below: Collaboration with Google: the organization of HTC might try to collaborate with Google, so as to install the android OS within the newly launched product lines. Only then, the demand of the product lines of the organization of HTC might get enhanced in the market among its rival players such as Samsung, Sony and Nokia. Other than this, by implementing the android OS software within the product lines, the problems specified above might also be lowered significantly that may amplify its dominance and loyalty. Strategic partnership with leading brands: the organization of HTC might also undertake strategic partnership with the leading partners of the market so as to amplify its competitive advantage. Only then the brand image and sustainability of the organization and its product lines might get enhanced in the coming era. Innovation: the organization of HTC might try to recruit highly skilled and talented workforces so as to introduce inventive products and features such as 2G and 3G etc. Only then, the organization might easily cope up with the changing demands and requirements of the customers in this age of extreme competition. High concentration over research and development: the organization of HTC needs to offer high concentration over research and development in order to introduce, value-added products. By doing so, the financial condition and market share of HTC might get enhanced in the market. High-ended technologies: the organization of HTC might try to develop product with high-ended technologies in order to amplify its demand and craze within the mobile savvy youths (Digitaltrends, 2012). Lowering its market price: in order to amplify its supremacy and leadership in the market, the organization of HTC need to lower its prices. Only then, the customers of varying income groups and life styles might get attracted towards the brand thereby amplifying its total sales and profit margin in this age of extensive competition. Moreover, by implementing this strategy, it might enhance customer loyalty and trust that may prove effective for the organization to defeat its rivals such as Nokia, Apple, and Samsung. High supervision: the organization of HTC might offer vivid supervision, in order to reduce the above mentioned quality issues, hardware and software related issues. Only then, the image and position of the brand might get amplified within the minds of the customers. This might prove worthy for the organization of HTC to increase its leadership and supremacy in the market among others (Drummond & Ensor, 2006). High-ended advertisements: in order to improve the total sales of the products of the organization of HTC, high concentration need to be offered over advertisements and promotions. This might increase the level of awareness of the customers that may enhance the productivity and consistency of HTC (Bradley, 2007). Expansion in new markets: in order to substantiate the rate of competition of the existing rival players, the organization of HTC might try to penetrate new markets. Only then, the range of customers might get enhanced resulting in amplification of its market share and sales volume. Introduction of value-added products: the organization of HTC might try to offer value-added products so as to satisfy the demands and needs of the customers. By doing so, the customers might get attracted towards this brand that may amplify its profit margin and productivity among others (Beall, 2010). High-ended customer services: the organization of HTC might try to recruit highly experienced customer service individual so as to resolve the defects and queries effectively. By doing so, the level of confidence and reliability of the customers might get enhanced resulting in amplification of its demand and brand value. Thus, it might be depicted that if the organization of HTC implements all the above mentioned strategies within the organization, then it might retain the inner trust and consistency of the customers. Moreover, the organization of HTC might easily compete with the rival players such as Nokia, Samsung, Motorola and many others. Conclusion Conclusively, it might be clearly analyzed that the organization of HTC needs to offer high concentration over its research and development, in order to amplify its position and market share. Only then, the organization might become successful in developing varied types of inventive products and features that may satisfy the changing needs and demands of the customers. Moreover, by recruiting experienced and skilled individual, the organization of HTC might easily resolve varied types of problems or issues specified in the above paragraphs. This might amplify the brand image and productivity of the organization of the HTC in the market among other rival players such as Samsung, Nokia and others. Other than this, it might try to penetrate new markets in order to increase its customer bases and profit margin. This might amplify its total sales and demand of product lines to a significant extent thereby reducing its challenges and threats. Furthermore, the organization might try to present value-added products at lowest cost so as to enhance its competitive position and dominance in the market. This strategy might prove effective in attracting a wide range of customers that may improve its total revenue. References Beall, A, E. (2010). Strategic Market Research: A Guide to Conducting Research to solve problems. Boston: Harvard Business School Press. Bradley, N. (2007). Marketing Research: Tools & Techniques. New York: McGraw-Hill. Drummond, G. & Ensor, J. (2006). Introduction to Marketing Concepts. New York: Cengage Learning. Digitaltrends. (2012). Mobile HTC-One problems. Retrieved from: http://www.digitaltrends.com/mobile/htc-one-problems/. ESOMAR. (2008). Market Research Handbook. London: Sage. Grant, R, M. (2005). Contemporary Strategy Analysis. London: Sage. Gupta, S, L. (2004). Marketing Research. New York: McGraw-Hill. Inoyori, R. (2014). HTC One 2 M8: 10 Critical Issues Owners May Face Similar To HTC One Smartphone. Retrieved from: http://au.ibtimes.com/articles/534421/20140115/htc-one-2-m8-10-critical-issues.htm Hill, C. (2010). International Business Mc Graw Hill 8th International Edition. New York: McGraw-Hill. Johnson, G. & et.al. (2011). Exploring Strategy: Text and Cases. (9th edn). London: Harlow Pearson Education Limited. P: 115. Johansson, J, K. (1997). “Global Marketing: Foreign Entry, Local Marketing, and Global Management”. New York: McGraw-Hill. Keegan, (2002) Global Marketing Management, 2002. London: Pearson Education. Read More