Essay about Sharp Co.
The electronic consumer products industry consists of companies that produce and sell electronic components as well as finished electronic products. Demand is increasing at the international level, although industry growth is slowing due to a worldwide economic recession. The industry is fragmented with many competitors. The low barriers to entry indicate potential increases in fragmentation. Though, quality and size lacks as a differentiator, especially in the television set business, it cannot be ignored. Preferable competitive advantage is defined as a low cost producer or high in innovation. As a result, profitability swings on firm’s competitive advantage and …show more content…
Logistic in Sharp Co. is a major source of weakness. High cost of labor and infrastructure is hurting the organization’s operation and its capabilities. This production is causing the end products to lose value during the distribution process which appears as a competitive disadvantage the firm.
Sharp’s organization structure supports its increasing pricing strategy while other competitors are pursing decreasing in prices. This is due to the fact that Sharp produces larger size of televisions which can be seen as a valuable attribute in differentiation. However, this strategy can only remain as a temporary distinctive competency because the strategy is imitable
Assumptions and Justifications
Net Present Value (NPV) Analysis
Exhibit 1: Porter’s 5 Forces * Bargaining power of suppliers is low as they have many customers * Bargaining power of customers is high as there are many suppliers for their needs * The threat of substitutes is high as any