In fall 2017, HTC CEO and Chairperson Cher Wang was driving the company to focus on virtual reality (VR). HTC's first VR product, VIVE, released in spring 2016, was applauded for its superior immersive room-scale capabilities. However, early adoption of VR beyond gamers and technology enthusiasts was off to a slower start in general due to high cost, lack of quality content, and some user discomfort while using the technology. Wang endeavors to be the leading VR company, though competition from Sony, Facebook, and other technology leaders is mounting, and several, like HTC, are already pursuing second generation tetherless VR technology. As Wang seeks to develop the ecosystem by partnering with developers, creating a content platform, investing in VR startups, and launching VR arcades, she must decide the appropriate balance of fostering innovation in hardware, software and services, or both.
Keywords: Virtual reality; strategy; competition; technology; Strategy; Competition; Innovation and Management; Technology Industry;
Citation:
Yoffie, David B., Andy Wu, and Allison M. Ciechanover. "HTC and Virtual Reality." Harvard Business School Case 718-421, October 2017. (Revised August 2018.) View Details