Corporate Strategy Case Study

Sharp in 2007: Betting high on LCD TV

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Abstract:
There had been a change in the consumers' preferences in the global TV industry due to the growing demand for flat TV sets. Sharp Corporation, which had dominated the LCD (liquid crystal display) TV market, fell behind Sony, Samsung and Philips in 2006. The company felt that this loss in the market share was due to its inability to meet the rising demand for flat panel TVs globally. Apart from the challenges by the LCD manufacturers, Sharp had to compete with the giant screen plasma TVs. Therefore, the company planned to increase its output by setting up a US$66.3 million factory in Mexico. It also decided to produce bigger and more expensive TVs, which would fetch Sharp bigger profit margins. The case deals with Sharp's journey through LCD technology and the challenges it faced in the recent years from the other LCD manufacturers. It gives an insight into Sharp's strategic initiatives that were taken to regain its leadership status in the LCD TV market. The case also highlights the global flat TV market.

Pedagogical Objectives:

Keywords : GSharp; Sony; Samsung; Philips; LCD (liquid crystal display); Plasma; CRT (cathode ray tube); LG (Lucky Goldstar Corporation); Panasonic; SED (surface-conduction electron-emitter display); Flat TV; Aquos brand; Consumer electronics; Giant TV; Matsushita