Sharp Corporation - Beyond Japan: Case Study Essay

1930 Words Feb 24th, 2014 8 Pages
Executive Summary:

Faced with major losses from operations, Sharp Corporation’s president, Mikio Katayama, questioned the whether it was necessary to reform the current business operating model. Sharp’s current operating model contained several flaws. It placed sensitive, high-value-added operations such as research, development, and component manufacturing near its headquarters in Japan. Faced with threats such as intense industry competition, currency risks, very high transportation and utility costs, and extremely high infrastructure costs and high corporate tax rates, Sharp Corporation needs resources in the forms of new methods, technology, and approaches to doing business in the modern world. It is recommended that the company
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Please refer to Appendix A for full SWOT analysis.

Sharp has a strong international presence and is a well known brand. It offers a variety of diverse products to its customers, including TV’s, laptops, and home appliances. A diversification of product portfolio is important as it protects company against risk of exposure in any particular line of business (Johnson, 2006). Therefore Sharp is relatively strong in this aspect. In addition, Sharp places an intense focus on research and development of new technologies and products, ensuring that their output is the best in the industry.
Opportunities for Sharp Corporation increase over time as the demand for technology is constantly increasing in the world. This presents the company with many potential opportunities to explore new and emerging markets in order to expand its international market share (Dubovskiy, 2012). In addition to the steadily growing market, Sharp’s new Sakai facility involved numerous partners including co-located suppliers as well firms using the output from the plant (Lehmburg, 2012). These opportunities to create partnerships offer a variety of potential advantages for the company.

Although Sharp Corporation’s international market presence has increased over the years, more than 60% of sales account for the Japanese market (Lehmburg, 2012). The company has the largest domestic share of the cell phone market, and is one of the largest players in the LCD in their home country. As…

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