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



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)

2



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

3



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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http://www.managementstudyguide.com/swot-analysis.htm





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 literature. 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 different, 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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http://www.sharp.co.jp/

http://www.sharp-world.com/









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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http://en.wikipedia.org/wiki/Sharp_Solar

http://en.wikipedia.org/wiki/Photovoltaic

http://en.wikipedia.org/wiki/Multifunctional_device

http://en.wikipedia.org/wiki/Point_of_sale#Point-of-sale_technology


http://en.wikipedia.org/wiki/Photocopier

http://en.wikipedia.org/wiki/Laser_Printer

http://en.wikipedia.org/wiki/Cash_register


http://en.wikipedia.org/wiki/LCD_projector

http://en.wikipedia.org/wiki/Visual_display_unit#LCD

http://en.wikipedia.org/wiki/Air_purifier

http://en.wikipedia.org/wiki/Fax_Machine

http://en.wikipedia.org/wiki/Sharp_Aquos

http://en.wikipedia.org/wiki/Mobile_phone

http://en.wikipedia.org/wiki/Microwave_Oven

http://en.wikipedia.org/wiki/Home_cinema


http://en.wikipedia.org/wiki/LCD_Television

http://en.wikipedia.org/wiki/Personal_digital_assistant

http://en.wikipedia.org/wiki/Sidekick_3





















http://en.wikipedia.org/wiki/Calculator

http://en.wikipedia.org/wiki/Calculator

















http://en.wikipedia.org/wiki/Television

http://en.wikipedia.org/wiki/Television

http://en.wikipedia.org/wiki/AQUOS

http://en.wikipedia.org/wiki/AQUOS







http://en.wikipedia.org/wiki/Zaurus

http://en.wikipedia.org/wiki/Zaurus

http://en.wikipedia.org/wiki/Notebook_computer

http://en.wikipedia.org/wiki/Notebook_computer

http://en.wikipedia.org/wiki/Camera_phone

http://en.wikipedia.org/wiki/Camera_phone

http://en.wikipedia.org/wiki/Flash_memory

http://en.wikipedia.org/wiki/Flash_memory

http://en.wikipedia.org/wiki/Charge-coupled_device

http://en.wikipedia.org/wiki/Charge-coupled_device

http://en.wikipedia.org/wiki/CMOS

http://en.wikipedia.org/wiki/CMOS



http://en.wikipedia.org/wiki/Air_conditioner




http://en.wikipedia.org/wiki/Microwave_oven

http://en.wikipedia.org/wiki/Microwave_oven

http://en.wikipedia.org/wiki/Multifunction_printer

http://en.wikipedia.org/wiki/Multifunction_printer

http://en.wikipedia.org/wiki/Video_projector

http://en.wikipedia.org/wiki/Video_projector



http://en.wikipedia.org/wiki/Photovoltaic_module

http://en.wikipedia.org/wiki/Photovoltaic_module

http://en.wikipedia.org/wiki/LCD

http://en.wikipedia.org/wiki/LCD



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

16



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

18



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.

21



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.

22



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.

23



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

24



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.

25



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.

26



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

27



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.

28



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

29



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.

30



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.

31



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.

32



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

33



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.

34



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.

35



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.

36



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?

37



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.

38



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

http://www.sharpusa.com/

http://www.sharpusa.com/

Sharp - Strategic Managemnet

Documents

Transcript of Sharp - Strategic Managemnet