This paper examines the indusrty of Android phones in the eyes of HTC company. We examine the market situation and what can happen if the market is acquired and transfromed to be a part of the Triangle Solutions.
Introduction
HTC is an acronym for HI Tech Computer Corporation. It is a technological company based in Taiwan and focuses in the manufacture of Smartphone devices. Traditionally, HTC used to center in production of commodities and then brand them codenames such as “hermenes” and the likes. They would eventually sell the finished products to established telecommunication companies. Some of the companies that HTC traded with include I-mate, T-mobile, and Orange amongst others. However, since 2006, HTC started offering products under their own brand name. HTC is famous in Asia, Europe, and North America. This paper aims to explore HTC marketing strategy of using social media as an advertising tool as well as the strengths and weaknesses that come with this method (HTC, 2012).
HTC aims to reach its online customer base by employing online media. Because the majority of the target market is online, HTC believe that online marketing would be an effective method of reaching its customer base. Because of the influence of the social media in the net, HTC aims to use social media as an effective way to gain exposure and brand recognition to a highly target market segment. HTC uses common social networks such as Facebook, Twitter, and YouTube amongst others. Some of the reasons why HTC uses social media are because social media groups such as Facebook enables HTC to target specific users by age, interests, location and education level. By using Facebook pages, HTC would be able to pin point target market s through Facebook adds as relatively cheaper and more efficient ways than using television adds (Kleinmann, Tobias, et al, 2010).
Social media also have the advantage of creating trust between customers and business. By sharing information and interacting online, a HTC will be able to build a network of trust with its social media network. The trust will be enhanced with HTC’s capacity by viewing applications such as likes (Facebook), comments, and posts on HTC’s social page. In addition to building social network, social media are a informative in spreading the word of mouth about new technologies across the globe. Users of the social media sites can take the picture of new smart phones, comment about new technologies, or write criticism about new phones. The social media’s ability to connect people would be the strongest and cheapest method that HTC can use to expand its international connection and market (HTC, 2012).
In addition to increasing market base and serving as a promotional tool, the social media are a valuable tool for improving workers relations.
Social media allow for workers to communicate internally about business issues as well as outside business thereby creating teamwork. In addition, workers can stay in touch with old customers that can make it possible to acquire new customers. Moreover, workers can be useful in acquiring new markets for the firm across the world using their online friends (HTC, 2012).
Schiller (2009) writes, “The essence of the market power is the ability to alter the price of the product” (p. 147). This is possible if the firm in question is able to produce a commodity at a cheaper price that no other producer can. In a monopoly, “the monopolistic firm owns the ballpark and can set the rules of the game” (Schiller, 2009, p. 149). The emergence of the monopoly obliterates the distinction between the industry demand and the demand curve facing the firm. This makes the monopolistic the firm the industry. As a result, there is only one demand curve in a monopoly and that is the market (industry) demand curve. Like all business players, monopolists are in the business to maximize profits. However, monopolists do this differently than competitive market. In a perfect competition, firms maximize profits by price taking, which refers to the process of adjusting the rate of output to the market price. In monopoly, the firm (monopolistic firm) sets the market price. HTC can employ the attributes of monopoly in the android phone market.
Burns ( 2012) writes that the android phone system is falling in demand as the apple takes center stage. The Wireless Career Financials report that the i- Phone accounted for fifty nine percent of the smart phones sales in the first three months of the year 2012. The i-Phone 4s was the most popular phone beating all androids phones. Apple is doing well and is on the verge of being the first trillion dollar company in history thanks to its products and services that are mostly trivial.
Schiller (2009) writes, “The essence of the market power is the ability to alter the price of the product” (p. 147). This is possible if the firm in question is able to produce a commodity at a cheaper price that no other producer can. In a monopoly, “the monopolistic firm owns the ballpark and can set the rules of the game” (Schiller, 2009, p. 149). The emergence of the monopoly obliterates the distinction between the industry demand and the demand curve facing the firm. This makes the monopolistic the firm the industry. As a result, there is only one demand curve in a monopoly and that is the market (industry) demand curve. Like all business players, monopolists are in the business to maximize profits. However, monopolists do this differently than competitive market. In a perfect competition, firms maximize profits by price taking, which refers to the process of adjusting the rate of output to the market price. In monopoly, the firm (monopolistic firm) sets the market price. HTC can employ the attributes of monopoly in the android phone market. In our proposal we intended to dominate the android market by producing goods at a cheaper price that our competitors making them unable to compete. This is the reason Triangle Solutions would like to acquire HTC.
Conclusion
The most crucial aspect of marketing is ensuring that there is the availability of the product to all the clients who want it. This means that the consumer can easily find HTC products whenever they want it. Using social media will make it possible for the company to acquire low levels and mid level income earners like college students and young adults. The social media will present a detailed analysis on where the products can be available such as local kiosks, shopping malls and other HTC dealers. Place marketing mix should market the product by always being available to the relevant consumers. The main tool HTC is the creation of awareness of a new product or one that has been in existence but has in the lost marketability in the past, under Triangle solutions, we intend to proceed with HTC’s models.
References
HTC. “Social Media – What is it?” HTC SMARTPHONES, NEWS & WEB DESIGN TIPS. HTC, 2012. Web. 20 May 2012. <http://www.briancee.com/media-marketing/>.
Kleinmann, Tobias, et al. HTC Marketing Plan. N.p.: GRIN: Publsh and Find Knwoledge, 2010. Print.
Schiller, Bradley. Essentials of Economics. New York: McGraw-Hill irwin, 2009.
