Sharp Strategy
Autor: bagolti • January 21, 2013 • Research Paper • 1,033 Words (5 Pages) • 1,352 Views
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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