Sharp Corporation - Beyond Japan: Case Study Essay
Faced with major losses from operations, Sharp Corporation’s president, Mikio Katayama, questioned the whether it was necessary to reform the current business operating model. Sharp’s current operating model contained several flaws. It placed sensitive, high-value-added operations such as research, development, and component manufacturing near its headquarters in Japan. Faced with threats such as intense industry competition, currency risks, very high transportation and utility costs, and extremely high infrastructure costs and high corporate tax rates, Sharp Corporation needs resources in the forms of new methods, technology, and approaches to doing business in the modern world. It is recommended that the company …show more content…
Without a doubt, the largest threat to Sharp Corporation is the intense industry competition that it faces from companies such as Apple, Toshiba, and Sony. The availably of cheaper, more advanced, and more easily accessible alternative products from these manufacturers is damaging to Sharp’s product sales.
Other threats that Sharp is faced with include currency risks, very high transportations and utility costs, and extremely high infrastructure costs and high taxes when producing in Japan (Lehmburg, 2012). The company was spending Japanese Yen to produce products that were shipped abroad and sold in numerous local currencies, generating a currency risk, questionable price stability, as well as questionable business stability and prosperity. Sharp Corporation saw this threat come to life in 2008, when