Sharp Corporation - Lcd Business

• Today, we are going to make a presentation on our case study which is about Sharp Corporation and specifically its LCD business.

• We will start by sharing some basic facts about the company and its operations.

• Then we will focus on Company’s business model and its success story so far.

• Following this, we will elaborate on external developments and challenges faced by Sharp.

• After, we will discuss the possible future options and strategies with you guys.

• And in the end we will present our recommendations.

So….

•  Sharp Corporation was founded in September 1912

•  Company is headquartered in Osaka, Japan

•  Sharp produces a wide range of electronic products. From Mobile phones to home appliances, home office equipment to Audio-Visual products.

•  But today we will only focus on company’s LCD business in which Sharp is the worldwide leader.

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However;

Current outlook for Sharp is not so bright.

In the spring of 2009, Sharp has reported its first operating loss in 60 years as its sales went down by almost 20 %.

This downward move in the sales figures were mostly related with global recession as Sharp’s all competitors faced with the same fate.

Moreover, whatever the reason was Japanese yen appreciated by 23% during the last 6 months of 2008.

And probably there was also a market saturation in high income countries which was Sharp’s core markets as most of the consumers in that countries had already changed their conventional CRT TVs with the new flat ones.

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But now let’s have a look at Sharp’s Business strategy which brought the success to company earlier.

The reason behind the Sharp’s impressive success in LCD was its strategy called BLACK-BOX.

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But what is Black Box Strategy?

Black box strategy of Sharp was based on secrecy.

Outsiders were not allowed to see the inside of Sharp’s LCD plants.

Even key suppliers and equipment providers were not admitted beyond loading dock.

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Why such a strategy is needed?  

Sharp developed processes, systems, and structures that allowed the company to build and exploit its knowledge of and competence in LCD technology.