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Sharp Strategy

Autor:   •  January 21, 2013  •  Research Paper  •  1,033 Words (5 Pages)  •  1,426 Views

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CASE STUDY

Sharp are facing the financial problem with a net loss, as expected, up to Y450 bn this year. It’s not hard to see that the Sharp’s current strategy helps them solve some problem, but it also have some drawbacks that need to be fixed.

Current Strategy.

To solve funding problem, Sharp was right to mortgage its headquarters building , seek an investment from Hon Hai Precision Industry and extension of loan. Moreover, they cut down jobs and wages to have more fund. Sharp was trying to cut back and simplify to the core to climb out of a financial nosedive.

Current Strategy problem

Sharp suffer losses because of failing in liquid-crystal display manufacturing and also the significant decrease in price for flatscreen televisions and other household items

Currently, Sharp stock price has been downgrade to junk status by rating agencies. It makes the investors worry about the survival of Sharp.

By selling several oversea factories, Sharp is less focused on television manufacturing than rivals such as Panasonic or Sony, and has suffered accordingly as the TV industry’s competitive centre of gravity has shifted from Japan to South Korea and Taiwan. Attempts by Sharp to shift production at its liquid crystal display facilities toward more profitable Smartphone and tablet computer screens have been fraught with problem and delays, and its president resigned earlier this year.

SWOT analysis

Strengths

Diversified product portfolio

Constant focus on research and development

Strong brand

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

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