Downfall of HTC

In this blog, Judy talks about the downfall of HTC, a Taipei based smartphone business. Two years ago the business expanded quite fast and exploded its sales globally. However, its stock price is falling beyond anyone can imagine now. Also, it profit is falling every quarter.

In Judy’s opinion, the company is declining because it does not have a focus. In the past HTC focused on Android phones, however, it is focusing on Microsoft, Android and Facebook phones. The business now is completely in a mess because it does not have a clear focus. I totally agree with the writer that the business should have a clear focus. The value proposition of the business should be quite clear. For example, good quality Android smart phones. If the business is focusing on too many segments, it cannot do as well in each segment as in only one segment. As a result, HTC can not differentiate its products.

 

 

Blog link: https://blogs.ubc.ca/judychiang/

Original resource: <http://www.nytimes.com/2013/09/09/technology/a-long-fall-for-taiwan-smartphone-maker.html?pagewanted=all>.

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