Sharp - a Strategic Analysis

1697 WordsJun 14, 20117 Pages
1. Why has Sharp been so successful for so long? What are its business and technology strategies? Sharp’s market entry to the electronics industry was through low cost assemble. However, Sharp soon realized that it could not complete in scale the well-established industry leaders such as Sony and Mutsuhito by playing catching up. Sharp’s decision to abandon this strategy of catching up in sales volume was a sound one, as well as its refocus where it thought it could win. Sharp also realized that the electronics assembly industry was a lost cost industry and margins were very minute. The only way to make money was to concentrate on cost efficiency. Ultimately, in order to be profitable, Sharp had to go for product differentiation strategy…show more content…
By staffing these projects with the best individuals, Sharp can take advantage of its top resources in order to advance the progress of keystone initiates. Funding these initiatives also encourages divisions to bring new ideas forward without being concerned about costly R&D projects. As for coordination between divisions, transfer prices are negotiated and are based on fair market value. Although this process has worked for the organization to date, concerns regarding priority within the company versus external buyers may become an issue with the ability to buy and sell externally. 4. Should Sharp enter into the Intel and Apple joint ventures? Analysing Intel’s portfolio we can see that it is a leader in the component manufacturing industry. In addition, Intel has a lot of expertise in the semiconductor industry. Both of these are in line with Sharp’s core competency and definitely the two companies can benefit from shared intellectual property and joint design. Since Sharp’s biggest challenge is uncovering new technology opportunities, expanding its resource and knowledge base would be the right step towards progress. As a result, a joint venture with Intel would a recommended course of action due to the possible synergies between the two companies. On the other hand, Apple’s core competency lies in its proprietary user interface (software; operating system) and its keen sense of aesthetics. The company designs its products to
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