Sharp Corporation
SHARP® CORPORATION: BEYOND JAPAN
INTERNATIONAL BUSINESS MANAGEMENT
TABLE OF CONTENT
PROBLEM STATEMENT ……………………..…… 3
ANALYSIS ………………............… 3
DISCUSSION OF ALTERNATIVES ………………………….. 4
RECOMMENDATION …………………………. 5
EXECUTIVE SUMMARY …………………………. 5
CITATIONS ………………………… 7
EXHIBITS ………………………… 8
PROBLEM STATEMENT
Sharp Corporation needs a major overhaul of its business model. Sharp’s previous model of “make in Japan, sell overseas” has been successful until recently. Currently, with the increased mobility in engineering talent and technology transfer, companies from new emerging markets such as South Korea and Taiwan are gaining the competitive advantage over Sharp’s outdated business model that no longer fit with the firms strategy or the business environment.
ANALYSIS
Sharp’s previous president, Katsuhiko Machida, adhered to the principles of keeping manufacturing in Japan.3 Following this principle had some advantages in the domestic market but had major disadvantages for fulfilling demand in the international market. Sharp is becoming popular in the international market with significant increases in foreign sales revenue (Exhibit 1). Due to the fact that all of its products were manufactured in Japan, Sharp were unable to keep up with the international demand for its product. With more than 54% accounting for international demand, implementing an effective supply medium to deliver its product is imperative for Sharp’s success2 (Exhibit 4). Some products lost as much as 10% of its value, in the shipment time duration it required to reach its target market.6 With Sharp’s products not flowing to the target market smoothly, competitors including South Korean and Taiwanese companies were gaining a competitive edge. Sharp’s inability to supply their product efficiently to the international market correlates to the negative effect on the domestic
INTERNATIONAL BUSINESS MANAGEMENT
TABLE OF CONTENT
PROBLEM STATEMENT ……………………..…… 3
ANALYSIS ………………............… 3
DISCUSSION OF ALTERNATIVES ………………………….. 4
RECOMMENDATION …………………………. 5
EXECUTIVE SUMMARY …………………………. 5
CITATIONS ………………………… 7
EXHIBITS ………………………… 8
PROBLEM STATEMENT
Sharp Corporation needs a major overhaul of its business model. Sharp’s previous model of “make in Japan, sell overseas” has been successful until recently. Currently, with the increased mobility in engineering talent and technology transfer, companies from new emerging markets such as South Korea and Taiwan are gaining the competitive advantage over Sharp’s outdated business model that no longer fit with the firms strategy or the business environment.
ANALYSIS
Sharp’s previous president, Katsuhiko Machida, adhered to the principles of keeping manufacturing in Japan.3 Following this principle had some advantages in the domestic market but had major disadvantages for fulfilling demand in the international market. Sharp is becoming popular in the international market with significant increases in foreign sales revenue (Exhibit 1). Due to the fact that all of its products were manufactured in Japan, Sharp were unable to keep up with the international demand for its product. With more than 54% accounting for international demand, implementing an effective supply medium to deliver its product is imperative for Sharp’s success2 (Exhibit 4). Some products lost as much as 10% of its value, in the shipment time duration it required to reach its target market.6 With Sharp’s products not flowing to the target market smoothly, competitors including South Korean and Taiwanese companies were gaining a competitive edge. Sharp’s inability to supply their product efficiently to the international market correlates to the negative effect on the domestic
Citations: 1 SHARP Corp. (2009) Opening New Frontier Annual Report, Consolidated Statement of Operations (p. 44) 2 SHARP Corp 3 SHARP Corp. (2009) Opening New Frontier Annual Report, New Business Model (p. 8) 4 SHARP Corp 5 John, J. W, & Kenneth. L. W, (2012). International Business: The challenges of Globalization, Sixth Edition. Pearson Hall 6 Lehmberg, D Exhibit 2: International Sales Vs Domestic Sales for SharpCorporation Exhibit 3: Foreign Exchange US $ vs Japanese ¥ (2007 – 2009) Exhibit 4: Sales by Region, Sharp Corporation Exhibit 5: Sharp Corporation (2009) Annual Report