Executive Summary

The telecommunications device industry is rapidly evolving and HTC needs to find a way to sustain a competitive advantage. First we defined what we perceived to be HTC’s problem statement. We then went into an industry analysis using Porter’s Five forces. Then we conduced a firm level analysis. First we identified HTC’s resources and capabilities. We then discussed the value chain with primary activities being: research and development, product design, sourcing, manufacturing, and market research. Secondary activities defined were brand management, product engineering, and human resource. After we assessed the value chain we then identified what we believed to be HTC’s core competencies, which create superior value to the company. These include R&D, partnerships with Microsoft, and innovative product design skills. Next, we examined HTC’s competitive advantage. We took HTC’s core competencies and analyzed what they do that allows them to competitively compete against other firms in the industry. HTC’s competitive advantages are their R&D, customization abilities, and partnerships with software, operators. We when used these competitive advantages to describe why HTC has sustained good market positioning. Next we touched on the vertical coordination efforts of HTC.

As a phone manufacturer HTC has taken steps to take more control over parts of their value chain by entering into partnerships and alliances with other leading companies including: Microsoft and Google. Although they do not own these parts of their value chain, by relying on these other leading companies they have been able to ensure that they use the best quality components in their phones. This has led to HTC’s dominant business diversification level. This has allowed HTC to focus on improving customer satisfaction due to their ability to personalize their phones. These levels of