Case Name :      Sharp Corporation: Beyond Japan

Authors :           Derek Lehmberg

Source :             Ivey Publishing

Case ID :            W11039

Discipline :        General Management

Case Length :    16 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

Faced with major losses from operations, Sharp Corporation’s young and unconventional president questioned the company’s long-standing operating model. Sharp was a leader in the area of liquid crystal display (LCD) technology and manufacturing. It also held strong positions in several categories of consumer electronics in the Japanese market. Although Sharp had been increasing its involvement in overseas markets, it had yet to replicate its successes overseas. Sharp’s operating model placed sensitive, high-value-added operations, such as research, development and component manufacturing near its headquarters in Japan. The company jealously guarded its LCD knowhow and had implemented strict security measures at its LCD panel plants. As Sharp’s international sales grew, limitations with its business model became apparent. Operating primarily in Japan had drawbacks, such as exposure to currency risk, high infrastructure cost and high taxes. Additionally, the logistics of shipping large items, such as LCDs and solar panels, overseas presented other dilemmas. Sharp needed to reconsider this model and develop an approach that was more suitable to the environment it now competed in.