Sharp

Sharp Corporation Problem

How can Sharp Corporation redesign its business model to gain access to an international market of middle and lower class customers where product differentiation will not give them a competitive edge against its competitors, Panasonic and Sony, that offer product cost far below Sharp’s current level.

Analysis (600 Words)

Sharp is recognized as a leading competitor in developing electronic components and final products. Although it had never been at the forefront of CRT technology, it quickly recognised the future profitability of investing in LCD (Liquid Crystal Display) Technology. When LCD was introduced by RCA it was for use as a flat screen television. “However, RCA had later concluded that the technological barriers LCD faced were too high and ceased development”. Sharp saw potential in LCD for the use in calculators and watches were LCD could provide advantages over other technologies.

LCD research and development was not solely done by Sharp. Much of the advancement of LCD was done through the corporation of firms and exchanging of information. Sharp eventually saw this exchanging of knowledge as a major problem. “By the time production technology reached its filth generation, it had been improved to the point that firms with little to no LCD experience could buy a new plant and get it to function reasonably well with limited outside help”. This could lead to the loss of Sharp’s LCD competitive edge and initiated Sharp’s secrecy regarding their LCD technology. Their business model is one where all products are developed, produced and manufactured by Sharp, with little no more cooperation with other firms.

Sharp introduced its first two LCD television sets in 1995. At the time these television sets provided few advantages over CRT sets and carried a large price, however sells were above what they had expected. In 2001 the Aquos line of LCD TV sets were introduced. “The Aquos line caused a major...