Showing posts with label 2498. Show all posts
Showing posts with label 2498. Show all posts

Saturday, 16 November 2013

HTC shifted from a unique strategy to a copy-cat strategy, guess what happened?

There are strong forces towards conformity in society; for instance individuals dress in similar fashion and eat similar food. Human beings are social animals and it is easier for us to belong if we conform. I am not denying the existence of non-conformity, just stating that there are forces towards conformity in society.

A similar force towards conformity can be found among companies strategies. Academics use the fancy word isomorphism to describe the situation. Isomorphism can be created by CEOs having similar background, CEOs copying seemingly successful companies, CEOs' compensation contract, government regulation, and a number of other factors. This note will illustrate the disastrous effect of isomorphism on HTC, a company producing mobile phones.