Sharp Corporation Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Sharp Corporation Case Study Solution

Sharp Corporation’s President Mr. Katayama analyzed the weak financial position of the company and huge losses which had raised the question whether the company’s current business model was compatible with the objectives and scope set by the company. However, it consisted of some problems such as high corporate taxes, high transportation and infrastructure cost and the major threat for the company was the rapid fluctuations in the exchange rates which resulted in the currency risk for the company as it was involved in exporting its products more than its domestic sales. Moreover, opportunities for the company were to form a strategic alliances with its competitors or with Chinese firms through joint venture to enhance its effectiveness of value chain activities as well as increasing the knowledge and expertise to capture more customer base by expanding in new geographical areas with the help of intensive marketing campaigns and high sales promotion on LCDs as well as to promote the high quality panels by offering them at a relatively higher price by creating differentiation in its products to attract high-income class and medium-income class consumers

Problem Statement:

How could Sharp Corporation recover from financial crisis and record breaking losses due to rapid decline in its sales growth which was against its objectives to obtain sustainability in its sales revenues and financing done through raising its capital?

Analysis:

The major causes of the problem identification need a thorough analysis of the situation arising within the company’s internal and external environment and it is done through performing analysis by looking at the Strengths, Weaknesses, Opportunities and Threats faced by Sharp Corporations.

Sharp Corporation Harvard Case Solution & Analysis

Internal Environment Analysis:

Strengths:

If we analyze the strengths of Sharp corporations, it needs a detailed internal analysis. The case mentions that the company is having a global presence which has been achieved by the struggle from company for a long time. Company is offering diverse product line to its domestic customers as well as it exports of products. This has developed a big brand name for the company which is maintained by providing differentiated products to its customers which are unique in nature and is engaged in providing products such as, home appliances, TVs and Laptops which have received high acceptance from its consumers and its demand is increasing day by day. Company is leading with the highest market share in the Japanese handset market which is maintained since last five years by the company.

Weaknesses:

However, as far as its weaknesses are concerned, company is unable to maintain its sales growth in all the product lines offered by the company which is resulting in the weak financial position of the company and company is facing the losses which has created a severe problem for them. So, company needs to evaluate its position and identify the weak areas which are going on the losses. The exhibit shows that the company is able to generate more from LCDs by exporting them internationally whereas weakness is to maintain the cannibalization effect in the domestic market. Sharp decline in the sales in year 2009 has resulted into the loss for the company and it has been reduced domestically as well as in overseas market.

External Environment Analysis:

Threats:

If we consider the external environment of the company by looking at the international business concept so the threats will be the increase in cost due to the increasing corporate taxes and the increasing infrastructure cost which is resulting due to the production unit in Japan as it is costing more than its competitors which are producing in Korea and are enjoying a relatively lower cost of production. Company is facing a major threat which is a disadvantage for Sharp Corporation is that the exchange rate is fluctuating quickly and rapidly which is resulting in the currency risk for the company which is faced by its competitors well. Moreover, higher cost of transportation is also creating a disadvantage for the company as they are using expensive medium of conveyance such as sending quick deliveries by airline and the easy and cheap mediums used by the competitors are creating a big threat for the company. Increasing competition is creating threat for the company and maintaining the operations globally for component and final products is really problematic for Sharp corporations. Biggest threat is the strategic partnership by its competitors which results in the weaker performance of company and its revenue growth is decreased as compared to its competitors..................

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