Faced with major losses from operations, young and innovative president of Sharp questioned the long operating company model. Sharp is a leader in liquid crystal displays (LCD) technology and production. He also held a strong position in several categories of consumer electronics in the Japanese market. While Sharp has been increasing its participation in foreign markets, it is not to repeat its success abroad. Operating model Sharp, the placement of sensitive, high-value-added activities such as research, development and production of components near its headquarters in Japan. Company jealously guarded their LCD know-how and implemented strict security measures at its plants LCD panel. Sharp as international sales grew, the restrictions on their business model became apparent. Operating primarily in Japan were shortcomings, such as exposure to currency risk, high cost of infrastructure and high taxes. In addition, the logistics of shipping large items, such as LCD displays and solar cells abroad are other dilemmas. Sharp to revise the model and develop an approach that was more suitable for the environment now competed in. "Hide
by Derek Lehmberg Source: Richard Ivey School of Business Foundation 16 pages. Publication Date: March 9, 2011. Prod. #: W11039-PDF-ENG
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