Analysis of the Strategic Situation of HTC, the Mobile Phone Handset Essay

Analysis of the Strategic Situation of HTC, the Mobile Phone Handset Firm - Essay Example The main objective of the paper is to undergo strategic situational analysis of HTC which is a mobile phone handset firm. It will attempt at preparing a SWOT analysis of the company. The study will also focus upon Porter’s five forces model as well as industry life cycle analysis. In order to comprehend the resources held with the company, the study will make use of the value chain analysis. PESTEL analysis will be conducted in order to comprehend the macro environmental factors affecting the products and the services of the company. Porter’s Five Forces Model In order to recognise the competitive scenario of the smartphone industry in which HTC operates, the Porter’s five forces analysis can be quite applicable. Entry Barriers There are several barriers that prevent companies from entering into the smartphone industry. A few of the barriers that may work in favour of HTC need to be determined. High fixed cost, which is required for research and development, is c onsidered to be one of the biggest barriers to entry into the industry. High brand recognition of the established companies is considered to be other barrier to entry for the new firms since people prefer to purchase goods from those companies that they trust (Scribd, 2012). Bargaining Power of Buyer It has been observed that the bargaining power of the buyers of smartphone is quite high. There are innumerable substitutes available in the smartphone industry. The product differentiation is quite low in comparison to the competitors. The demand for smartphones is generally elastic because of the fact that they are not indispensable products (Scribd, 2012). Threat of Substitutes Products There are various substitutes available for smartphones which are generally utilised for mobile phone’s admittance to information. There are a few substitute products available in the market, which include laptops, cell phones, pagers and organisers. The cellular phones as well as laptops offer the services that are needed by most of the customers in terms of access to information for the consumers. The different complements that the consumers can use for the smartphones are e-mails along with maps, internet applications as well as software that are available over the phones (Scribd, 2012). Rivalry There is high competition in the smartphone industry and even though there are few strong competitors, the industry does not endorse numerous organisations. This is because of differentiation. Although there is greater differentiation between the casual as well as the professional users for smartphones there is limited capability to differentiate it. There is negligible scalability in order to generate more number of software by not directing the market to a small number of firms (Scribd, 2012). When customers purchase a regularly utilised product, they tend to put greater emphasis upon quality instead of price. There is minimum differentiation for price and the companies with recognized low quality as well as fewer budgets for research and development will face difficulties in competing within the market. Bargaining Power of the Suppliers The phones are normally assembled making use of the components from numerous suppliers. Original Equipment Manufacturer (OEM) has

Gas prices Essay Example | Topics and Well Written Essays - 1000 words

Gas prices - Essay Example (How Gasoline Works) The economy of the United States has witnessed four major shocks in connection with the oil price which occurred during 1973-74, 1979-80, 1990-91, NS 1999-2000 with a time span of 25 years. There was a unanimous view among the analysts that holding of energy independently would be the pivotal factor for designing a relevant National energy policy. If higher energy efficiency is mastered the aftermath of the oil price shock on the economy can be controlled. This effect has been proved for the year 1999-2000 where the oil price shock had a negligible effect on the economy when compared to the recent past. The candidates for the presidential campaign brought to light the necessity for greater American energy independence and expressed the idea of less dependence on oil import. Even though the United States has a hold to effect the gas price, it is to be understood that the market is not national but international. The American energy policy proves to be relatively undeterred force of s upply and demand which allowed constituting the prices for various energy sources. The public consumption of the energy source is also effected through this policy. The prices that are thought to be particularly sticky are wage contracts, publication subscriptions and items from catalogues. (Labonte; Makinen, 2000) The totally market based national energy policy argues that the market prices may blend all the relevant costs to the individual it may exempt the cause that are relevant to the nation. It is important to note that the prices may fall short to bring in a premium that would counteract any unwarranted foreign influence on the foreign and domestic policies of the United States. In the end, since the oil supply shocks are fickle and less anticipated market prices can soar high when they occur. So when this jerk disrupts, as in the past, it will have a considerable effect on Gross Domestic Product -- GDP, employment and inflation. Oil being an inevitable ingredient in the production and transit of most goods, naturally an oil price hike will affect the cost of production for the producers. This effect will also be shunned by products which use supplementary energy sources since those prices would have also experienced a hike. Thus the supply shock decreases an economic output and increase s the price level in a short run. If there is flexibility in the prices then the producers could reduce input prices such as wages excluding the total output and total price level. Only then, there would be no decline in output or hike in the price level. But when sticky prices persist then producers have no other alternative than to lower the rest of the input prices quickly which would result on a price hike that would affect the consumers. The consequence would be the rate of output is lowered as people decide to buy fewer goods, the prices being higher. Price of labor would be compensated with some employers signed off. So with fewer workers, only a lesser output is produced, so a rise in the price of oil and the inefficacy of other prices to accommodate temporarily results in the reduction of the rate of growth of output that is produced by an economy. (Labonte; Makinen