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Transcript of Sharp - Strategic Managemnet
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UNIVERSITY OF MUMBAI
M.COM. PART - I
(FIRST SEMESTER)
ACADEMIC YEAR
2012 - 2013
A PROJECT ON :
SHARP CORPORATION- STRATEGIC MANAGEMENT
PROJECT BY
MR. PANCHAL HIREN SURESH
ROLL NO. 47 DIVISION : B
PROJECT GUIDE
PROF . SHRIRAM DESHPANDE
MITHIBAI COLLEGE OF ARTS, CHAUHAN INSTITUTE OF
SCIENCE & AMRUTHBEN JIVANLAL COLLEGE OF COMMERCE &
ECONOMICS.
VILE PARLE (WEST)
MUMBAI - 400 056
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DECLARATION
I, MR. PANCHAL HIREN SURESH student of MITHIBAI COLLEGE, studying
in M.COM (PART I) Roll No. 47, hereby declare that i have completed my project,
titled “SHARP CORPORATION- STRATEGIC MANAGEMENT” for the
subject - STRATEGIC MANAGEMENT in the academic year 2012 - 2013.
The information submitted here is true and original as per my research and
observation.
DATE OF SUBMISSION
8TH OCTOBER 2012.
SIGNATURE OF STUDENT
(MR. PANCHAL HIREN SURESH)
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CERTIFICATE
THIS IS TO CERTIFY THAT MR. PANCHAL HIREN SURESH, STUDENT OF
M.COM PART I OF MITHIBAI COLLEGE, HAS COMPLETED THE
PROJECT ON “ APEC - TRADE AND INVESTMENT LIBERALIZATION ” IN
THE ACADEMIC YEAR 2012 - 2013.
THE INFORMATION SUBMITTED IS TRUE AND ORIGINAL TO THE BEST OF
OUR KNOWLEDGE.
SIGNATURE OF PRINCIPAL SIGNATURE OF PROJECT GUIDE
(PROF. SHRIRAM DESHPANDE)
COLLEGE SEAL SIGNATURE OF EXTERNAL EXAMINER
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ACKNOWLEDGEMENT
At this juncture, I would extend my gratitude to a number of people without whom
this informative project would have been impossible. Every work that is appreciated
is supported by various hands. This project would just not be complete without the
valuable contribution from various people whom i have interacted with in the course
of its completion.
I would like to sincerely acknowledge my guide PROF. SHRIRAM DESHPANDE
for providing me with an excellent and splendid opportunity to present this project on
STRATEGIC MANAGEMENT which definitely has given a further professional
approach.
I am extremely grateful to the University of Mumbai for having prescribed this
project work to me as a part of the academic requirement in the MCOM -PART 1
course
lastly, I would like to appreciate the management and staff of MITHIBAI College,
MCOM-1 for providing the entire state of the art infrastructure and resources to
enable the completion and enrichment of my project.
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TABLE OF CONTENTS
Sr. No. Title Page no.
1 STRATEGIC MANAGEMENT 6
2 ELEMENTS OF STRATEGIC MANAGEMENT 9
3 SHARP CORPORATION - INTRODUCTION 11
4 MISSION & VISION OF SHARP 13
5 PRODUCTS OF SHRAP CORPORATION 15
6 BACKGROUND OF SHRAP 16
7 IMPORTANT MILESTONES IN SHRAP’S HISTORY 20
8 SWOT ANALYSIS OF SHARP 24
9 CASE STUDY : SHARP’S LCD BASED INNOVATION 27
10 CASE STUDY : SHARP’S CLOBAL TOP STRAYEGY 35
11 BIBLIOGRAPHY 39
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STRATEGIC MANAGEMENT
Strategic Management is all about identification and description of the strategies that managers can
carry so as to achieve better performance and a competitive advantage for their organization. An
organization is said to have competitive advantage if its profitability is higher than the average profitability for all companies in its industry.
Strategic management can also be defined as a bundle of decisions and acts which a manager
undertakes and which decides the result of the firm’s performance. The manager must have a
thorough knowledge and analysis of the general and competitive organizational environment so as
to take right decisions. They should conduct a SWOT Analysis (Strengths, Weaknesses,
Opportunities, and Threats), i.e., they should make best possible utilization of strengths, minimize
the organizational weaknesses, make use of arising opportunities from the business environment
and shouldn’t ignore the threats. Strategic management is nothing but planning for both predictable
as well as unfeasible
contingencies. It is applicable to both small as well as large organizations as even the smallest
organization face competition and, by formulating and implementing appropriate strategies, they
can attain sustainable competitive advantage.
Strategic Management is a way in which strategists set the objectives and proceed about attaining
them. It deals with making and implementing decisions about future direction of an organization. It
helps us to identify the direction in which an organization is moving.
Strategic management is a continuous process that evaluates and controls the business and the
industries in which an organization is involved; evaluates its competitors and sets goals and
strategies to meet all existing and potential competitors; and then reevaluates strategies on a regular
basis to determine how it has been implemented and whether it was successful or does it needs
replacement.
Strategic Management gives a broader perspective to the employees of an organization and they can
better understand how their job fits into the entire organizational plan and how it is co-related to
other organizational members. It is nothing but the art of managing employees in a manner which
maximizes the ability of achieving business objectives. The employees become more trustworthy,
more committed and more satisfied as they can co-relate themselves very well with each
organizational task. They can understand the reaction of environmental changes on the organization
and the probable response of the organization with the help of strategic management. Thus the
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employees can judge the impact of such changes on their own job and can effectively face the
changes. The managers and employees must do appropriate things in appropriate manner. They
need to be both effective as well as efficient.
One of the major role of strategic management is to incorporate various functional areas of the
organization completely, as well as, to ensure these functional areas harmonize and get together
well. Another role of strategic management is to keep a continuous eye on the goals and objectives
of the organization.
Two Approaches to Strategy
The idea of strategy has received increasing attention in the management literat- ure. The literature
on strategy is now voluminous and strategic management texts grow ever larger to include all the
relevant material. In this book our aim is not to cover the whole area of strategy – that would
require yet another mammoth tome – but to present a clear, logical and succinct approach to the
subject that will be of use to the practising manager. We do not attempt a summary of the field,
rather we present what we see as a useful framework for analyzing strategic problems based on our
own experience of teaching the subject on a variety of courses and to a variety of audiences over the
years. Our premise is that a firm needs a well defined sense of its mission, its unique place in its
environment and scope and direction of growth. Such a sense of mission defines the firm’s strategy.A firm also needs an approach to management itself that will harness the internal energies of the
organization to the realization of its mission.
Historically, views of strategy fall into two camps. There are those who equate strategy with
planning. According to this perspective, information is gathered, sifted and analysed, forecasts are
made, senior managers reflect upon the work of the planning department and decide what is the best
course for the organization. This is a top-down approach to strategy. Others have a less structured
view of strategy as being more about the process of management. According to this second per-
spective, the key strategic issue is to put in place a system of management that will facilitate the
capability of the organization to respond to an environment that is essentially unknowable,
unpredictable and, therefore, not amenable to a planning approach. We will consider both these
views in this text. Our own view is that good strategic management actually encompasses elements
of each perspective.
There is no one best way of strategy. The planning approach can work in a stable, predictableenvironment. Its critics argue that such environments are becoming increasingly scarce, events
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make the plan redundant, creativity is buried beneath the weight and protocols of planning and
communication rules. Furthermore, those not involved in devising the plan are never committed to
its implementation. The second approach emphasizes speed of reaction and flexibility to enable the
organization to function best in an environment that is fast-changing and essentially unpredictable.
The essence of strategy, according to this view, is adaptability and incrementalism. This approach
has been criticized for failing to give an adequate sense of where the organization is going and what
its mission is. Critics speak disparagingly of the ‘mushroom’ approach to management.
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ELEMENTS OF STRATEGY
Definitions of strategy have their roots in military strategy, which defines itself in terms of drafting
the plan of war, shaping individual campaigns and, within these, deciding on individual
engagements (battles/skirmishes) with the enemy. Strategy in this military sense is the art of war, or,
more precisely, the art of the general – the key decision maker. The analogy with business is that
business too is on a war footing as competition becomes more and more fierce and survival more
problematic. Companies and armies have much in common. They both, for example, pursue
strategies of deterrence, offense, defense and alliance. One can think of a well developed business
strategy in terms of probing opponents’ weaknesses; with- drawing to consider how to act, given the
knowledge of the opposition generated by such probing; forcing opponents to stretch their
resources; concentrating one’s own resources to attack an opponent’s exposed position;
overwhelming selected markets or market segments; establishing a leadership position of
dominance in certain markets; then regrouping one’s resources, deciding where to make the next
thrust; then expanding from the base thus created to dominate a broader area.
Strategic thinking has been much influenced by military thinking about ‘the strategy hierarchy’ of
goals, policies and programmes. Strategy itself sets the agenda for future action, strategic goals state
what is to be achieved and when (but not how), policies set the guidelines and limits for permissible
action in pursuit of the strategic goals, and programmes specify the step-by-step sequence of actions
necessary to achieve major objectives and the timetable against which progress can be measured. A
well defined strategy integrates an organization’s major plans, objectives, policies and programmes
and commitments into a cohesive whole. It marshals and allocates limited resources in the best way,
which is defined by an analysis of a firm’s unique strengths and weaknesses and of opportunities
and threats in the environment. It considers how to deal with the potential actions of intelli- gent
opponents.
Management is defined both in terms of its function as those activities that serve to ensure that the
basic objectives of the enterprise, as set by the strategy, are achieved, and as a group of senior
employees responsible for performing this function. Our working definition of strategic
management is as follows: all that is necessary to position the firm a way that will assure its long-
term survival in a competitive environment. A strategy is an organization’s way of saying how it
creates unique value and thus attracts the custom that is its lifeblood.
To understand the strategy of a particular firm we have to understand, unless we are in a start-up
situation, what factors have made the firm what it is today. This involves answering questions such
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as: How did the organization reach its present state? Why is it producing its particular range of
products and services? What kind of products or services does it intend to produce in the future –
the same or dif- ferent, and, if different, how different? If it is thinking of altering its current range,
what are the reasons? Strategy usually reflects the thinking of a small group of senior individuals, or
even one strong leader, the strategic apex of a company. Why are the people who make up the
strategic apex in this position? How do they think? Are there other (more) fertile sources of
strategic thinking elsewhere in the organization that could be usefully tapped? If necessary how can
one go about learning from the ‘collective wit’ of the organization, the creative voice that so often
remains silent? How are decisions made in the organization? What is its
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"Make products that others want to imitate."
Sharp Corporation (Sharp) is a Japan-based consumer/information products company. The company
is engaged principally in manufacturing, developing, designing, and marketing a range of electronic
products. The company’s products include PCs, audio and video products, printers and cell phones,
CD and DVD players, video cameras, air conditioners, vacuum cleaners, and refrigerators, among
others. It also offers LCDs, solar cells and other electronic devices. The company’s subsidiary,
Sharp Electronics Corporation, offers solar products that find application in both residential and
commercial markets. Sharp operates through 64 subsidiaries in 25 countries across North America,
Europe, and Asia-Pacific. The company is headquartered at Abeno-ku (Osaka), Japan.
Sharp founder Tokuji Hayakawa coined this phrase to embody the management concept at Sharp. In
1912, he invented the snap belt buckle and three years later brought the Ever-Sharp mechanical
pencil to the market. Since then, Sharp has been on the cutting edge of technology, consistently
innovating new appliances, industrial equipment and office solutions, and changing the lives of
people around the world.
In 1962, Sharp expanded outside of Japan and established Sharp Electronics Corporation in the
United States—the company's first overseas sales base—and in 1979 it set up the Sharp
Manufacturing Company of America to create a manufacturing base in the U.S.
Sharp didn't limit itself to sales and manufacturing in the U.S. In 1995, Sharp opened Sharp
Laboratories of America, its U.S.-based research and development laboratory designed to take
advantage of American ingenuity and research.
As the array of products offered by Sharp grew, Sharp Electronics Corporation expanded to include
a new sales office in Los Angeles, California, in 1996. In this same year, Sharp made its presence
known on the Internet, with the creation of www.sharp.co.jp and www.sharp-world.com.
As a manufacturer, Sharp contributes to society by being the first to make unique products that meet
the new needs of each decade. Successive generations of Sharp leaders have, in their own way,
pursued this concept by making products that contribute to society, in the process creating a
corporation known and trusted around the globe.
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From the first solar-powered calculator to the largest commercially available LCD monitor, from
copiers to solar cells, from air purifiers to steam ovens, and from microelectronics to microwave
ovens, Sharp covers all of the needs of the contemporary lifestyle.
Sharp aims to realize its business philosophy throughout all its activities. Possessing a "gene of
creativity" since its foundation, Sharp will continue to offer one-of-a-kind products and new
lifestyles as a corporation trusted around the world.
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MISSION AND VISION OF THE COMPANY
MISSION STATEMENT
Ever since the company's establishment in 1912, innovation has been an integral part of our
corporate philosophy. Correspondingly, the company's name Sharp is derived from our first major
invention, the “Ever Sharp Pencil”, the first mechanical retractable pencil in the world.
Our goal has been and will continue to be to win our customers' and partners' confidence through
honesty and creativity. We are open to new things and oriented towards our customers' and users'
wishes.
Today we are a leading manufacturer of digital information technologies. We not only strive to
continually expand our business volume – we are also committed to contributing to the culture andthe well-being of people all over the world with our unique, innovative technologies.
• Business Philosophy
We do not seek merely to expand our business volume. Rather, we are dedicated to the use of our
unique, innovative technologies to contribute to the culture, and welfare of people throughout the
world.
It is the intention of our corporation to grow hand-in-hand with our employees, encouraging and
aiding them to reach their full potential and improve their standard of living.
Our future prosperity is directly linked to the prosperity of our customers, dealers and
shareholders... indeed, the entire Sharp family.
• Business Creed
Sharp Corporation and its subsidiaries are dedicated to two principal ideals: Sincerity and Creativity
By committing ourselves to these ideals, we can derive genuine satisfaction from our work, while
making a meaningful contribution to society.
Sincerity is a virtue fundamental to humanity... always be sincere.
Harmony brings strength... trust each other and work together.
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Politeness is a merit... always be courteous and respectful.
Creativity promotes progress... remain constantly aware of the need to innovate and improve.
Courage is the basis of a rewarding life... accept every challenge with a positive attitude.
VISION OF THE COMPANY
Sharp’s corporate vision is to become an Eco-Positive Company. By “Eco-Positive Company,”
Sharp means a company that works with all stakeholders in creating solutions that have
significantly more positive impact on the environment than the negative impact caused by business
activities. One important effort towards this vision is the reduction of greenhouse gas emissions. In
addition to reducing greenhouse gas emissions from its business activities, Sharp is developing and
spreading the use of energy-creating solar cells and energy-saving products.
Eco-Positive Strategy
Sharp is striving to realize its corporate vision by carrying out its Eco-Positive Strategy worldwide.
Under this strategy, Sharp is pursuing environmental efforts from four aspects (see diagram to the
left). We are placing particular emphasis on “businesses” (products, solar power-related business,
and others) and on “operations” (mainly factories), since these have a direct effect on reducing
greenhouse gas emissions. Ever
since operations started at the
Kameyama Plant in fiscal 2003,
Sharp has been going all out to
assess and certify the
environmental performance of
its products and factories based
on in-house standards. This
system has spurred friendly
competition among different Sharp business groups and has resulted in significant advances in
making Sharp greener.
Through the Eco-Positive Strategy, all Sharp divisions in Japan and around the world are setting
environmental goals and working together—not just to reduce the company’s greenhouse gasemissions but to increase Sharp’s overall positive impact on the natural environment
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PRODUCTS OF SHARP CORPORATION
Core technologies and products include: LCD panels, solar panels, mobile phones, audio-visual
entertainment equipment, video projectors, Multi-Function Printing Devices, microwave ovens, air
conditioners, cash registers, CMOS and CCD sensors, and flash memory.
The first commercial camera phone was also made by Sharp for the Japanese market in November
2000. Recent products include the ViewCam, the Ultra-Lite notebook PC, the Zaurus personal
digital assistant, Sidekick 3, and the AQUOS flat screen television.
Sharp manufactures a variety of consumer electronic products. These include LCD televisions, sold
under the Aquos brand, mobile phones, microwave ovens, Home cinema and audio systems, air
purification systems, fax machines and calculators.
For the business market, Sharp also produces ranges of projectors and monitors and a variety of
photocopiers and Laser Printers, in addition to electronic cash registers and Point of sale
technologies.
Sharp is a pioneer and innovator in the field of multi-functional devices (MFD) having won many
awards from BLI and BERTL - the two major authorities providing competitive intelligence and test
reviews in the print industry. SHARP's latest products - MX2600N and MX3100N have once again
broken new ground with the launch of version 3 Open System Architecture (OSA3). This feature
enhances productivity further still by letting third party developers directly integr ate their business
applications with the MFD.
Sharp Solar has for a number of years been a leading sup plier of silicon photovoltaic (PV) solar
cells, Now, it offers solar TV. In Q1 2010 they were rated the #1 producer of solar PV systems, in
terms of revenues.
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BACKGROUND OF SHARP COPARATION
Sharp Corporation develops, produces, and markets advanced consumer electronics, business
products, and electronic components. For most of the 1980s Sharp's reputation--and sales--lagged
behind those of arch-rival Sony Corporation. In the 1990s, though, Sharp emerged as the leader of
the liquid crystal display (LCD) industry. LCD panels are lighter and thinner than the cathode ray
tube screens common in televisions, and have revolutionized calculators, computer screens, video
recorders, and hand-held devices. However, Sharp is more than an LCD manufacturer. The
company also does a brisk business in integrated circuits, digital copiers, fax machines, and
household appliances. Although 65 percent of its sales are generated in Japan, Sharp has
subsidiaries around the world.
The Hayakawa Metal Industrial Laboratory: 1912-42
The company was founded as a small metal works in Osaka in 1912 by an inventor and tinkerer
named Tokuji Hayakawa. After three years in business, earning a modest income from gadgets and
repair jobs, Hayakawa engineered a mechanical pencil he called the 'Ever-Sharp.' Consisting of a
retractable graphite lead in a metal rod, the Ever-Sharp pencil won patents in Japan and the United
States. Demand for this simple and durable instrument was immense. To facilitate greater
production, Hayakawa first adopted an assembly line and later moved to a larger factory.
Hayakawa's business, as well as his personal life, were dealt a devastating blow on September 1,
1923. On that day, the Great Kanto Earthquake caused a fire which destroyed his factory and took
the lives of his wife and children. Hayakawa endured severe depression, and it was a year before he
reestablished his factory. The Hayakawa Metal Industrial Laboratory, as the company was called,
resumed production of the Ever-Sharp pencil, but Hayakawa became interested in manufacturing a
new product: radios.
The first crystal radio sets were imported into Japan from the United States in the early 1920s.
Hearing one for the first time, Hayakawa immediately became convinced of its potential. With little
understanding of radios, or even electricity, he set out to develop Japan's first domestically produced
crystal radio. After only three months of study and experimentation, Hayakawa succeeded in
receiving a signal from the broadcasting service which had begun programming&mdashø a very
small audience--only a few months before, in 1925.
The radio entered mass production shortly afterward, and sold so well that facilities had to be
expanded. Crystal radios, however, are passive receivers whose range is limited. Hayakawa felt that
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powered radios, capable of amplifying signals, should be the subject of further development. While
competitors continued to develop better crystal sets, Hayakawa began work on an AC vacuum tube
model. When the company introduced a commercial model, the Sharp Dyne, in 1929, Sharp was
firmly established as Japan's leading radio manufacturer. The company expanded greatly in the
following years, necessitating its reorganization into a corporation in 1935.
The laboratory, for all its success, was not a leader in a wide range of technologies; it led only in a
narrow section of the market. In addition, the company did not have the benefit of financial backing
from the zaibatsu conglomerates or the government. In the realm of the national modernization
effort, it was an outsider. This may have been its saving grace, however, as the government had
become dominated by a group of right-wing imperialists within the military. Whatever their
political opinions, the leaders of Japan's largest corporations were compelled to cooperate with the
militarists in their quest to establish Japanese supremacy in Asia. Hayakawa, on the other hand, was
for the most part left alone.
World War II and Postwar Challenges
During World War II, though, Hayakawa and his company were forced to produce devices for the
military, and even to restructure, as new industrial laws intended to concentrate industrial capacity
were passed. Renamed Hayakawa Electrical Industries in 1942, the company emerged from the war
damaged but not destroyed. While other industrialists were purged from public life for their support
of the militarists, Hayakawa was permitted to remain in business. His biggest concerns were
rebuilding his company and surviving Japan's postwar recession.
By 1950 more than 80 of Hayakawa's competitors were bankrupt. But Hayakawa's officials
personally guaranteed the company's liabilities when the company suffered a critical drop in sales,
and Hayakawa Electric was able to obtain the cooperation of underwriters until the first major
expansion in the Japanese economy occurred in 1952.
Hayakawa considered television, a field that had not yet proved commercially successful, a highly
promising new area. The company began development of an experimental TV set in 1951, even
before plans had been made to begin broadcasting in Japan. Two years later, when television
broadcasting started, Hayakawa Electric introduced its first commercial television set under the
brand name 'Sharp,' in honor of the pencil. Hayakawa's good timing was essential in allowing the
company to establish and maintain a significant and profitable market share.
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Innovation in the 1950s and 1960s
The company started development of a color television in the mid-1950s. In 1960, with the advent
of color broadcasting in Japan, Hayakawa introduced a line of color sets. This was followed in 1962
by a commercial microwave oven, and in 1964 by a desktop calculator. The Compet calculator was
the first in the world to use transistors. In 1966 the microwave oven received a rotating plate and
calculators shrank with the use of integrated circuits.
Hayakawa recognized the great sales potential of the United States; a sales subsidiary was
established there in 1962. It served the dual purpose of facilitating sales and observing the market.
By the late 1960s, the Sharp brand name had become well-established in North America. Sales in
the United States provided the company with a large and increasing portion of its income. In
addition, subsidiaries were established in West Germany in 1968 and Britain in 1969.
Hayakawa Electric made two major breakthroughs in 1969. That year the company introduced the
Extra Large Scale Integration Calculator, a device now reduced to the size of a paperback book. The
other new product was the gallium arsenide light-emitting diode (LED)--in effect, a tiny computer
light. Like the radio and television before them, improved versions of both the calculator and LED
were subsequently introduced in future years.
New Leadership in the 1970s
Tokuji Hayakawa retired from the day-to-day operations of his company in 1970, assuming the title
of chairman. He was replaced as president by Akira Saeki, a former executive director. Saeki
oversaw an important reorganization of the company intended to establish a new corporate identity
and unify product development efforts. That year, Hayakawa Electric Industries also adopted its
new name: Sharp Corporation.
Embracing LCD: 1986-94
President Saeki retired in 1986, continuing to serve the company as an advisor. He was succeeded
by Haruo Tsuji, a 'numbers man' with an exemplary record in middle and upper management.
During Saeki's tenure, Sharp had diversified into a wide range of consumer products.
Eschewing the more glamorous development paths of rivals such as Sony and Matsushita, who
expanded by acquiring a number of Hollywood-based entertainment companies during the 1980s,
Sharp instead focused on research and development. In consumer electronics and appliances, the
company engaged in a measured effort to move upmarket, introducing more expensive, but higher
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quality, products. By the late 1980s Sharp had developed a number of innovations in its product line
such as a video disc player capable of reproducing three-dimensional images, a cordless telephone
with a 100-meter range, and Zarus, a highly successful computerized personal organizer, capable of
reading handwritten Japanese text.
But the most significant changes took place in another area of business. New president Tsuji quickly
recognized the potential of LCD devices, and unflinchingly focused the company's resources on
developing the technology. Tsuji committed 10 percent of Sharp's total sales revenues to research
and development. With this push, Sharp soon began to add LCD screens to all its products. By the
late 1980s, Sharp succeeded in producing a thin film transistor LCD--a display with impressively
sharp definition that opened the door to color laptop computers and portable televisions.
Sharp's LCD advances propelled the company forward. Between 1991 and 1994, Sharp's LCD
business grew by more than 35 percent each year, and by the close of fiscal 1994, LCD screens
accounted for over 30 percent of Sharp's total revenue. While rivals Sony and Matsushita watched
their profits drop in 1994, Sharp's earnings rose by 25 percent over the same period.
In 1995 Sharp announced that it would again increase capital investments in its electronic devices
division. In particular, the company planned to pour funds into its LCD and semiconductor
manufacturing operations. Sharp's goal was not merely to produce LCD screens. Rather, the
company sought to place cutting-edge LCD technology at the core of the emerging multimedia
field.
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IMPORTANT MILESTONES IN SHARP’S HISTORY
1912 to 1914
• Company’s Founder, Tokuji Hayakawa, invents a snap belt buckle
requiring no fastening holes.
• Tokuji Hayakawa invents, manufactures and sells the Ever-Sharp
Mechanical Pencil, one of the most innovative
and popular writing instruments of its time.
1931 to 1936
• An originally designed intermittent belt conveyor system is completed in 1936. A first in
Japan, this system achieves an unprecedented level of quality and efficiency. The system's
mass production capability makes it possible to build a single radio in just 56 seconds.
1937 to 1944
• World War II drives demand for Sharp radio sets.
1945 to 1952
• Korean War brings a boom in procurements by the US forces, boosting the Company's
fortunes which had declined in the difficult period immediately following World War II.
• The Company successfully introduces a “Super Radio Set” in response to newly expanded
radio broadcasting in Japan.
1960 to 1961
• Company begins mass production of color televisions.
• The Company begins research on computers, semiconductors, ultra-short wave technology
and microwave ovens. All are future product categories in which the Company excels.
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1969 to 1970
• Cooperative agreement with Rockwell Corporation of the United States leads to production
of extra large-scale integrated (ELSI) chips that form the core of Sharp's popular cutting-
edge Microcompet calculator.• The Company changes its name from Hayakawa Electric Industry Co., Ltd. to Sharp
Corporation. The new name reflects the Company’s broad vision and competencies.
1971 to 1972
• Sharp produces the first 4-bit microprocessor in Japan. It is incorporated in a new point-of-
sale terminal produced for Coca-Cola Co., Ltd.
• Sharp enters what is then called the photocopier business.
1976 to 1978
• Sharp develops a TV employing an EL panel that is a mere 3 cm thick. This thin TV attracts
a great deal of attention at electronics shows.
• The Company introduces the world's first card-sized, sensor-touch electronic calculator.
• Sharp sells the world's first "Picture-in-Picture" TV sets.
• Sharp enters the controller market in earnest with a "sequence controller."
1979
• Sharp establishes Sharp Manufacturing Company of America (SMCA) in Memphis,
Tennessee. This is the company's first overseas manufacturing facility in the industrialized
world. Production of color TVs and microwave ovens gets under way the same year.
• Sharp begins to produce VCRs in Japan as part of an integrated audio-visual lineup of
products. The Company includes an arsenal of innovative features in its new products, such
as a proprietary APSS (automatic program search system) and front-loading configuration.
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1980 to 1984
• Sharp becomes the first company in the world to successfully mass-produce thin film EL
panels. These devices are ideal for displays in office equipment and measuring instruments.
Because of their thinness, reliability and low power consumption, they are chosen for use inthe US Space Shuttle.
1987
• The name Sharp becomes inextricably linked with LCD. The Company creates a TFT LCD
module containing 92,160 pixels, the most in the industry, and incorporates it into an LCD
color TV.
• After a two-year development, Sharp debuts its electronic organizer (known as the Wizard in
the US). The new organizers give users a calendar, memo pad, phone book, scheduler and
calculator, all in a single unit. Also, users can add to the built-in functions by inserting IC
cards for specific applications.
1992
• Sharp completes a new facility for manufacturing the most advanced VLSI chips.
• Sharp releases a 16:9 widescreen, ultra-high-resolution HDTV with 1,125 scanning lines,
more than twice as many as on conventional TVs.
1993
• The LCD ViewCam grows into a flagship product that shows the world that "LCD is Sharp"
and contributes to boosting the company image.
1994
• Sharp announces development of a 21-inch TFT color LCD, the world's largest. This is 1.5
times larger than the 17-inch model Sharp introduced in 1992, showing the world Sharp's
high standard of LCD technology. Sharp finally breaks the 20-inch barrier with this wall-
mounted TV.
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1997
• Sharp launches the Environmental Protection Group and promotes a 3G1R strategy
company-wide. (The three Gs stand for Green products, Green factories, Green mind, and
the one R stands for Recycling business.) Sharp aims to become the No.1 environmentallyresponsible company from product planning, factory operation, and work processing to
employee actions.
1998
• Using new CG-Silicon (continuous grain silicon) technology developed through a joint
venture, Sharp makes a splash with its prototype ultra high-definition 60-inch rear projector
that uses three 2.6-inch CG-Silicon LCD panels.
1999
• Sharp announces the world’s first 20-inch LCD TVs in February and begins sales the
following month. The large 20-inch screen is the ideal size for a main TV in a home. With a
thickness of only 4.95 cm, these TVs save space and use only 43% of the power consumed
by conventional models.
2000
• Having provided many world-first and industry-first copiers since entering the market in
1972 with a wet-type electrostatic copier, Sharp's total worldwide copier production reaches
10 million in 2000. Sharp becomes the second copier manufacturer to achieve this
outstanding milestone.
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SWOT ANALYSIS
SWOT analysis is considered to be one of the most effective analytical tools used assess strengths,
weaknesses, opportunities and threats associated with a business. The following table represents
summary of the SWOT analysis conducted for Sharp Corporation.
Strengths:
• Diversified product portfolio
• Constant focus on research and development
• Strong brand
• Wide international market presence
Weaknesses:
• Sluggish performance in key products such as PCs
• Heavy reliance on Japanese market
• Lack of scale of operations
Opportunities:
• Increasing demand for technology
• Expansion into new emerging markets
• Growing mobile phones market in Asia
Threats:
• Intense competition
• Availability of cheaper alternatives
• Growing environmental concern
Strengths
According to Johnson and Scholas (2006) diversification of product portfolio is important as it
protects company against risk of exposure in any particular line of business. Therefore, Sharp is a
relatively strong in this area as it has a diversified product portfolio. The company manufactures
wide range of consumer electronics, home appliances, and audio-video and communication
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equipments. Moreover, by entering into electronic components market as manufacturer and supplier
the company has balanced its consumer oriented business.
Sharp has a strong international market presence as well as well-recognised brand. The company
has more than 20 subsidiaries operating in over 25 countries across Europe, North America and
Asia. The expansion of international market presence has allowed the company to reduce its
reliance on Japanese market. In 2010, the revenue from international sales accounted for 39% of
company’s total revenues.
Weaknesses
Although Sharp’s international market presence has increased significantly in recent years, the fact
that more than 60% of company’s sales account for Japanese market indicates that company is
heavily dependant on Japanese market exposing its large proportion of operations to market risks in
Japan.
Compared to its competitors such as Sony and Toshiba, Sharp’s scale of operations is a relatively
small in terms of revenue. The lack of scale may reduce bargaining power of the company and
considering the competitiveness of consumer electronics market this can be a significant
disadvantage (Kotler and Keller, 2009).
The decline in sales of key elements such as PCs is another area for concern. Revenues from Japan
decreased by 4%, while contribution from Europe and America declined by 12,7% and 27,8% in
2010.
Opportunities
Due to growing demand for consumer electronics, PCs and home appliances from first-time buyersfrom emerging economies such as China, India, Brazil and Russia the global electronic market has
been growing steadily. This presents Sharp potential opportunity to explore these new emerging
markets and expand its international market share and presence.
Moreover, the growth of mobile market in Asia Pacific region, the world’s largest mobile phone
market which accounts for more than 40% of global phone market, is another huge opportunity for
the company considering its strong market presence in Asian mobile phone market.
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Threats
Without doubt, the major threat for the company is that intense competition it faces from its
competitors as companies such as Sony, Samsung and Toshiba have competitive advantage over the
Sharp in terms of scale of operations and international market presence. Moreover, the emergence
of Apple as a market leader in mobile phone and personal tablet market further increased the
competition. Therefore, Lancaster et al (2002) argue that increased competition can result in
reduced profit margins and declined revenues which in turn could harm the company’s business.
In addition, the growing concern for global environment could pose another threat for the
company’s business increasing number of governments introducing regulations and rules requiring
companies to reduce use of raw materials, the consumption of energy and omission in
manufacturing electronic products.
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CASE STUDY ON SHARP’S LCD BASED INNOVATION
INTRODUCTION
InJuly2005,Sharp began the mass production of the world’s first ‘dual-functionLCD’, which
displays information in right and left viewing directions. It has also developed an LCD, which
can be switched between wide and narrow viewing angles. These innovations have given rise to
a new dimension to competition in the global LCD market. With a turn over of ¥2,539billion
by March2005, Sharp expects additional revenue of about ¥10 billion from these two innovations
in 2005-2006, and a substantial increase thereafter. In its ninety years of existence, Sharp, through
its innovations, has created new categories of‘never seen before’ products .The company itself
came into existence through an innovation.
Sharp's LCD Based Innovations
To make the calculator smaller meant tackling the biggest problem, making the display smaller. The
principles used in liquid crystal displays had been known for some time, but had not become a
reality. Sharp engineer’s decided it could be done and developed the world's first electronic
calculator, better, smaller and lighter. In a single stroke, the calculator was miniaturized. Sharp
engineers wanted to use LCDs to display more than numbers and letters, by displaying images. In
order to make advanced displays, Sharp needed the technologies to mount thin-film transistors on
the 0.2 millimeter wide picture elements (pixels) that make up the unit. LCD production requires
ultra-high precision production technology similar to those of LSIs. These ultra-high precision
mounting technologies presented a huge challenge.
In October, 1986, Tsuji made what was known as the "LCD shift." According to Mr. Saruda of
Nikkei Research Center, "In addition to facing the technological challenge, it was the internal
development of these key components for future applications that was envisioned." The idea was to
give liquid crystal a new role as a kind of electronic paper that could accept electronic input. The
dream then grew to include larger and larger sizes, and better and better image quality. The LCD
division was established within the electric parts business unit and an LCD research center was
established within the corporate development center. Located within this center is an LCD plant
whose facilities are at the leading edge of technology. Because LCD's hate dust particles, at this
factory the amount of dust particles is limited to less than 10 particles, each three ten-thousands of
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millimeter in diameter, within a volume of one cubic foot. That is 300,000 times cleaner than a
typical office.
In 1986, the first TFT-LCD color TV was successfully introduced. In 1987, the 3- inch color LCD
TV using TFT was introduced. In 1988, the world's first 14-inch LCD display was developed. In
1989, the 100-inch LCD projection system was introduced. In 1992, the Sharp’s LCD ViewCam
was introduced. Sharp’s LCD developments have include:
• 1970: set up the development center in Tenri
• 1973: 1st calculator using LCD display
• 1986: established LCD division and LCD research center
• 1987: introduced 3-inch LCD color TV
• 1988: developed the 14-inch TFT color display
• 1989: introduced the 100-inch LCD projection set
• 1991: built a new LCD plant at Tenri and in the Washington state, U.S.A. 1992: developed 17
inch TFT color display and introduced the LCD ViewCam.
• 1993: began construction of new LCD plant in Mie Prefecture.
• 1994: developed 21-inch TFT color display for multimedia use.
The 3-inch color TV resulted in the development of advanced image technology called "normally
white," meaning that the LCD looks white when the power is off. It was applied to the LCD
projection set to get larger picture sizes. LCD parts were applied to the TV set projector and the
ViewCam. New technology helped the company to create new segments and hold a dominant
position in those markets. According to Tsuji,
In order to expand our LCD business, work is to achieve breakthroughs in three complementary
areas. First, we intend to push development of high-level LCD technology. Second, we intend to
make a breakthrough in production technology so we can offer reasonable prices. Third, we intend
to push development of products that use LCDs.
Advanced components produce a group of new products that generate the next generation of
products out of mature products.
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In response to the current recession, Sharp was focusing again on the development of key
components. In R&D, the central focus was on improving the light characteristics of LCDs
through semiconductor developments for use in next generation products. While multimedia
business opportunities were still unclear, Sharp planned to continue developing new and
better selling products related to LCDs. The real test would come as the battle for multimedia
business brings in many new competitors.
TFT Improvement Efforts
TFT-LCD is Sharp's core technology. For LCDs to challenge the $10 billion CRT market, Sharp is
looking to develop the next generation thin-film-transistor by the year 2000. Between 1993 and
1995, Sharp planned to invest one billion dollars in LCD-related product R&D including the
construction of the next generation of TFT-LCD. The objectives of its new development theme
included reducing the thickness by half, increasing the brightness, and increasing the picture size.
Sharps "next generation LCD display kinkyu project" included 42 people selected from across the
organization. Eight of the 42 were immediately transferred to their new post under the supervision
of the video business division manager. Team members were selected from the information
technology research center, the opto- electric business division, and the IC business division. They
were not necessarily replaced in their old organizations.
LCDs are already much thinner and lighter than traditional CRTs. Efforts to make TFT screens even
thinner were steadily producing results. The 9.5 inch color TFT for personal computers is 10
millimeters thick and weighs 590 grams. Compared to 1990, it is one half the thickness and one-
third the weight. The thinnest TFT is Mitsubishi's 9.5 inch LCD with 8.9 mm thickness and 550
grams in weight. It incorporates a 3 mm diameter cold cathode tube for backlight and uses
automated tape bonding for automated assembly. At the 6.4 inch size LCD, Sony builds 6.8 mm
thin models. This is the thinnest product ever developed and may be used for "color" information
terminal applications.
Since LCD doesn't generate its own light, it needs a light source, called backlight, to give its
brightness. More backlight increases power consumption which detracts from the merits of LCD.
The final brightness level represents only a few percent of the original light source. Light emitting
tubes have 300 candela per square meter but TFT emits only 100 candela. Brightness depends on
the area of one pixel that is "open" for light to emerge. Half of the light source's output is absorbed
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in the process. Metal parts used in TFT devices, the color filter, and polarization all restrict or
absorb light. Miniaturization and micro- fabrication cannot solve this problem.
Continuing Pressure on Performance
Despite strong international sales of Sharp's new ViewCam and electronic devices such as LCDs
and semiconductors, consolidated overseas sales declined by 2.3 percent between fiscal years 1993
and 1994. During 1993, the world economy continued to have mixed results. While business
activity in the U.S. was showing signs of recovery, ASEAN countries and China exhibited growth
rates around ten percent. Japan's economy remained flat, depressed by limited personal spending
and restrained investment in new facilities and equipment. The continuing rise in the value of the
yen, and the effects of an unseasonably cool summer of 1993, had further dampened Japan's
economic growth.
Despite favorable overseas conditions, Sharp's overseas sales were down from $7.6 billion in 1993
to $7.3 billion in 1994 as shown in Table 6. In the Japanese market, where the economy had yet to
recover, innovative products like the ViewCam showed healthy growth along with electronic
devices. Domestic sales increased by 4.2 percent, up from $7.1 billion in 1993 to $7.4 billion in
1994. Consolidated sales increased 0.8 percent, from $14.8 billion in 1993 to $14.9 billion in 1994.
Net income increased 7.4 percent, up from $296 million in 1993 to $318 million in 1994.
Sharp also attempted to compress total assets to make the company more efficient. Total assets were
reduced in the first half of 1993, ending in September, by $245 million as compared to $500 million
in the prior year. Inventories were reduced by $132 million in six months compared to $163 billion
over 12 months. Inventory amounted to 1.2 months supply. As shown in Table 7, capital
investments was being held around $800 million through 1993 and 1994, keeping investments
within the depreciation range. For the years from 1990 through 1992, capital investment had been
held around $1.1 billion. Interest bearing liabilities increased from $1.9 million to $2.3 billion by
September, resulting in an increase from 51.9% to 55.1% in the debt to equity ratio as compared to
40.6% in 1985.
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LCD Technologies
Liquid crystal displays (LCD) was considered to be the second semiconductor industry and was
seen as the industry to sustain Japan's prominence in hi-tech products into the 21st century. If
semiconductors were equated to Japanese rice, then flat panel displays, like LCDs, were like a new
strain of rice. It was considered an indispensable part of Japan's sustained economic growth.
The liquid crystal phenomenon was discovered by F. Reinitzer, an Australian, in 1988. He found an
organic substance which was between a solid crystalline and liquid state within certain temperature
ranges. Unlike usual liquid substances, liquid crystal demonstrated a crystalline structure and
related refraction characteristics. Depending on the crystalline states, different refraction's are
possible.
1. In the pneumatic phase, the long axes of the molecules lie in a largely parallel orientation with a
random distribution of molecules.
2. In the smectic phase, the parallel orientation of molecules are structured into layers.
3. In the cholesteric phase, the layers of parallel structures are stacked in a spiral structure. Reinitzer
found this phase to act as a thermo-sensor.
4. In the discotic phase, a structure of plate-style molecules are combined like cylinders. This phase
was discovered in 1977, but has yet to find an application.
Calculators, digital watches, portable word processors, and note PCs all use nematic liquid crystal
which change their structure with the application of electric voltage. The LCD panel is formed by
sandwiching liquid crystal between a set of super thin glass plates attached to electrodes and
polarized films.
The twisted nematic (TN) technique is the basic method used for liquid crystal displays. The
nematic liquid crystal properties are used to obtain two parallel orientations of molecules. The
polarizing films that sandwich the liquid crystal are criss-crossed when the current is off, and the
liquid crystal aligns its molecules in parallel with the polarized film. Thus the molecules are twisted
at right angles between the films. Incoming light twists at right angles through the molecules and
penetrates the other side. If voltage is applied to the cell, the molecule's orientations are
straightened and light can no longer penetrate the film.
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The segment electrode method is applied in calculators and digital watches. Generally seven
electrodes are placed to indicate one digit number. Depending on the combination of electrodes that
are activated, a number is created. Dot matrix techniques are used to display more complicated
patterns of alphabets, symbols, and graphics used in word processors or PC notebooks.
Passive matrix, or simple matrix techniques are composed of vertically and horizontally paneled
slim belts or electrodes and an intersection of a pair of perpendicular electrodes called dots or
pixels. When both axes of electrodes get voltage, the pixel shows an "on" status. Active matrix
techniques utilize a separate switch for every pixel. This provides a better image contrast than the
passive matrix. The application of these technologies results in three LCD types:
1. Super Twisted Nematic (STN) is a passive matrix system that uses a twisted angle of more than
180 degrees. It is capable of making larger size LCDs than TN types.
2. Thin-Film Transistor Twisted Nematic (TFT-TN) has transistors switches located at every pixel.
Its production cost is much higher than passive matrix, but it provides a much higher, sharper image
that is more suitable for color displays. The larger the display, the greater the perceived difference
in display quality.
3. Metal-Insulated-Metal Twisted Nematic (MIM-TN) is essentially the same as TFT-TN, except
that it uses a thin-film diode for its switching device. The quality is relatively lower than the TFT-
TN type, but is cheaper to manufacture.
In comparing the quality and cost of these three types of LCDs, the Table provides comparisons of
STN, TFT, and MIM displays.
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LCD Technology Comparisons:
Type of LCD STN Passive TFT Active MIM Active
Quality:
display contrast
viewable angle
response speed (ms)
brightness (candella/m2)
flickering
voltage leaks (crosstalk)
20:1
60
300
60
strong
high
150:1
120
50
60
weak
almost none
100:1
100
50
80
weak
little
Cost: (yen)
glass cutting
color filter and assembly yield
percentage
module cost
total cost
2,000
8,000
50%
28,000
48,000
25,000
8,000
50%
30,000
96,000
2,000
10,000
50%
35,000
79,000
The TFT-TN display uses a combination of traditional nematic liquid crystal and microscopically
small, thin film transistors. These transistor switches are located on each individual picture pixel
and have a function of improving deficiencies in twisted nematic. TN cannot store the picture data
without continuos electric voltage to keep the image on the display. This voltage is only supplied by
the transistors.
TFT-TN is expensive to produce and are difficult to produce in larger sizes. A single pixel that does
not work will cause the display to be scrapped. With market demand growing for more and larger
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LCDs, the number of pixels per square inch must also increase, making the problem more serious.
Screens of standard personal computers comprise about 300,000 pixels. Modern television sets have
600,000 pixels. High resolution systems, like those used for CAD applications, require as many as
10 million or more pixels.
An Alternative Technology
One alternative to TFT-TN technology is called ferroelectric liquid crystal (FLC). FLC applies a
passive matrix structure and the structure is far less complicated. For example, in case of a display
with 1000 x 1000 pixels, FLC needs only 2000 electrodes compared to 1,000,000 TFTs. FLC also
allows for rapid switching, vivid pictures and can store data. No voltage is needed to maintain the
picture. The costly TFT transistor is replaced by the material itself, thereby reducing the cost of
production. This allows for high quality, high resolution applications. FLC technology has several
technical hurdles to overcome before it is commercially applicable. The most significant problem is
the quality of alignment of the smectic phase, on which the technology is based. It is more sensitive
to mechanical stress than the nematic phase used for TFT displays. Development of practical
ferroelectric LC mixtures will be key for its technical success.
The major players in the LCD market are currently concentrating on TFT-TN display technology.
As shown in Tables 9 and 10, they are investing heavily in production facilities. It will be a number
of years before LCDs will displace CRT displays. However, if FLC technology is developed, it
could quickly displace TFT with a lower cost, high quality display that could be used for most CRT
applications.
Sharp had about 40 percent of the LCD market. Production sites were in Nara and Tenri Japan.
Investment was planned at 80 billion yen between 1993 and 1995, to primarily increase TFT
production. Capacity of TFT production was to increase to 95,000 sheets per month in 1995, with
the opening of the world's largest flat panel display factory in Mie Prefecture. Growth in STN
production was being increased from 45,000 sheets per month.
Toshiba was producing a full range of displays. Small and medium sized TFT and STN displays
were produced in Himeji; TFT and STN at Fukaya, and large sized TFT at were being produced in a
joint venture with IBM for PC and workstation applications. NEC specialized in TFT for PCs, and
planned to produce small and medium sizes for car TVs and navigation systems. In-house
consumption accounted for 90 percent of use. Seiko Epson produced monochrome STN and TN in
its Toyoshima factory, but was expanding into MIM and TFT in its Suwa facilities. Small TFTs
were supplied for viewfinders.
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CASE STUDY ON SHARP’S GLOBAL TOP STRATEGY
Sharp was founded in 1912 and operates under a business creed developed by its founder Tokuji
Hayakawa of sincerity and creativity. As a manufacturing company, Sharp’s development activities
are conducted from the perspective of the customer and it seeks to create products that will beimitated by competitors.
A key aspect of Sharp’s business is its “only-one” and “spiral” strategy. Under the “only- one” side
of the strategy, Sharp seeks to develop electronic devices from proprietary technology, which it then
further develops as products to be enjoyed by customers and users. Next, the under the “spiral” side,
any problems or further customer needs are fed back to the stage of technology development to
create a new product.
Sharp’s corporate vision and strategy is defined by a concentration in core competencies, in
particular to realize a true and ubiquitous network society with the world’s best LCDs and to
contribute to society through environment and health-related businesses with energy- saving and
energy-creating equipment as the core.
From the stage of design to development to manufacturing, the entire workflow is termed
monozukuri. In achieving monozukuri, it is necessary to be very thorough in two particular aspects.
First is to produce products that will impress people and second is that to produce such products the
requisite technology must be developed for both the production and manufacturing processes. For
example, even if Sharp possessed the technology to create a life-sized LCD television set, unless
efficient production processes were similarly developed to produce the television at a low cost, it
could not be feasibly manufactured.
Under the flow of monozukuri, first there is R&D, followed by product development, and thendesign and procurement, production and sales. Each point in time has a specific focus, such as for
production the lead-time needs to be shorter and for design the period of time should be reduced
(see Figure 1).
For the home appliances industry, Sharp faces several challenges to putting its products on the
market, namely a fluctuating amount, short lifecycle, variation and falling market prices. This is the
environment in which it does business. To remain competitive, Sharp must make strong choices in
the global environment, produce good quality products, act quickly in response to the market and
advance human resource development and the transfer of know- how within the production field.
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Sharp is constantly pursuing better and better monozukuri. In so doing, it first needs to understand
its unique strengths and from there improve on them. Second is the need for teamwork in producing
products or designing and developing products. Concerning unique strength and teamwork, Sharp
has strengths in certain devices and they are the bases for its products. This is necessary to create
something unique and there should be good teamwork between the device engineers and product
engineers so that the company has a good basis for technologies in these fields. This is the reason
Sharp can enjoy a synergistic effect.
There are certainly different ways to take advantage of teamwork, but one way used by Sharp is a
very unique system called Project Team for Quick Action. This is a team for product development
to commercialize Sharp’s original products based on the company’s unique technology as soon as
possible.
Sharp adopts a global perspective in deciding where to locate its factories, but what factors decide
which plants are to be located domestically in Japan? Basically, high value-added core devices are
necessary to create products, so Sharp believes that that function should be carried out domestically.
Super-short-term production for quick delivery should also be undertaken in Japan. Finally, as
monozukuri requires very refined know-how together with human resource development, a kind of
model factory is necessary somewhere and Sharp believes that as it is a Japanese companymonozukuri know-how and the human resource bases should also be located in Japan.
Overall, with monozukuri it is important to share excellent skills and expertise and to combine them
so that they can be further enhanced. Today, it is quite difficult for one company to do everything,
so a variety of technologies must be put into one place to allow a company to enjoy the further
evolution of its technology with better products and higher competitiveness. Sharp is a
manufacturer, and technological strength and monozukuri power are the keys to determine success.
Even with good capabilities to develop good products, the production costs will be too high if a
company lacks production capability. In that case, it may end up being a supplier to other
companies if it cannot come up with unique high added-value products. In short, both technological
strength as well as monozukuri power need to be embraced by companies.
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INTERVIEW WITH MR. ATSUYOSHI NAKAMURA
Atsuyoshi Nakamura
Division General Manager; Production Technology Development Center; Production
Technology Development Group; Sharp Corporation; Nara, Japan
Question: What is Sharp’s strategy in the development of human resources? It is an
accepted fact that Japan is now experiencing a shortage of manpower, especially on the high
end such as software engineers. Is Sharp open to training or securing resources from other
Asian countries?
Mr. Nakamura: Sharp has a training program but we regret that people’s interest in science
and technology is gradually declining. It is unlikely that Sharp will be able to secure
sufficient engineers only from within Japan. Therefore, Sharp recently set up an R&D base
in China where it is training engineers. Also, as the skill level of people who work on the
production lines has to be raised, Sharp is bringing engineers to Japan for training sessions.
From now on, these engineers from Asia will be working not only in the region; instead,
Sharp will come up with a system so that they are active at bases throughout the world as
well.
Question: In monozukuri, how do you communicate your product with the market? Is it by
developing the product first and then getting the marketing people and commercial people
to work after that, or do you include them from the beginning, or even from the design?
Mr. Nakamura: To state the current situation, marketing people do not have very close
contact with the engineers and production engineers, at least at the R&D phase. However,
under the Quick Action Projects, sales and marketing people as well as planning people join
from the very beginning of the process, all coming together to consider what the product
should be like. Teamwork is key here and marketing and sales people and engineers have to
have very close communication.
Question: Other than 3D simulation, what kinds of IT technology is Sharp using to link a
chain together and support a global operation?
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Mr. Nakamura: Concerning IT, the biggest strength is being real-time and high speed. In
addition to simulation, within the factory Sharp tries to make visible and real time the
quality situation and the product situation, including the amount of production. It is quite
important that top management has real-time information about production ongoing in the
factory. There is a variety of know-how to make the data information visible, but we are
trying to enhance our capability. Another thing is that to improve quality, we have a variety
of systems data. For the device production system, we have data generated every day, and as
we only have to use part of the data generated from the line, there are unused data. This may
be where we can find good hints to improve the yields and productivity, so we have to find
better ways to use existing data.
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BIBLIOGRAPHY
WEBSITES
• www.sharp-world.com
• www.sharpusa.com
REFERENCES
• Sharp Corporation: Developing a Technology Strategy
• Dobson - strategic management
• Sharp Corporation - Financial and Strategic SWOT Analysis Review