Essay about Sharp - a Strategic Analysis

1694 Words Jun 7th, 2011 7 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
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However, the company’s primary focus was on key components and hence they were primarily a component company. Sharp had a distinct advantage in producing differentiated components that were vital parts of the overall hardware solution. Although most of the company sales came from end products, Sharp’s distinct competitive advantage and core competencies derived from its component business and its component specialization. This was evident in its pursuit and leadership in the LCD panel development. Although the firm developed its products with the end-product in mind, Sharp’s R&D was always focused on “nucleus” parts as it moved away from being an assembler to a differentiated component manufacturer. 3. How is Sharp able to integrate and coordinate activities across the company?
Sharp’s organizational structure is an important part of its company integration and coordination. The company breathes on innovation and the role of corporate head office is crucial in fostering innovation throughout the company. The creation of cost and profit centers ensures that costs and revenues are controlled at all levels. By creating a division performance based middle and front-line management incentive program, senior executives focus on strategic initiatives such as product development and organizational direction. In order to integrate the organization; division heads are responsible for representing their respective teams. This is where research breakthroughs and

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