High Cost of Htc Products

HTC products have high cost aiming at middle and upper class customers, while its competitors e.g. NOKIA has a trend of Smartphone from low level all the way to the upper level standard of living.

HTC high costs are caused by costly research e.g. the global campaign conducted in 26th august 2009, which cost about $50 million. Costs of customization making Smartphone designs and developing them to satisfy customer by changing its designs and development in a short period of time to satisfy customer’s desires this also raise the amount of costs the company is encountering. Lack of operating system, using android HTC have to pay for the product this can be costly rather than implementing their own OS and lastly but not least high lost of manufacturer one of the HTC manufacture is Google manufacturing the software platform HTC has to pay for the services. All these services lead to increases in product price as they have no option but sell in high price to recover the expenses incurred

The Porter’s five forces analysis is named after Michael Porter. According to Porter, “It is a simple framework for assessing and evaluating the competitive strength and position of a business organisation”. In other words, it is a competitive structure or model of an industry that can be contemplate using its five forces. It also helps to determine or identify where the business lies in the industry. HTC Corporation can be analyzed using such model to evaluate the forces in its industry.