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
However, there were many risks associated with expanding production to a foreign country. Thorough investigation on the feasibility of this option needs to be scrutinized accordingly.
Changing operating model from vertical integration to horizontal integration for the company’s production technologies and manufacturing capabilities will give it a better standing in the competitive market. Forming alliances with local companies in major markets such as China, to establish a value chain would maximize efficiency and cash flow (Exhibit 5). Up until recently Sharp has been building plants in Japan for front-end processes with their own resources5. With its knowledge centres and infrastructure located solely in Japan, Sharp could benefit from it by bolstering cutting edge production technologies/manufacturing capabilities nationally and extending its technologies gradually to global sites. Aiming to create a value chain in the consumption area/major markets, encompassing each step from procuring materials through manufacturing and sales; an internal company concept known as “local production for local consumption”, would allow Sharp to receive a return on its proprietary technologies and technology assistance fees such as initial payments, royalties, dividends and revenues from joint ventures. This serves to