Sharp Corporation Case Solution
However, as far as the opportunities for the company is concerned, sharp corporation has to enter into the strategic partnership with other countries such as Chinese companies which will be a joint venture between both companies. Moreover, they have the opportunity to grow their sales by maximizing their profits and expertise of its Joint Venture Company Sony which has the expertise in TVs. Moreover, Sharp Corporation has an opportunity to grow its product line and sales of Panels which are of high quality and its rapid growth in demand. Company has opportunity to fulfill increasing demand in emerging markets as well.
Discussion of alternatives:
The problems which company is facing are very severe and it needs appropriate alternatives after analyzing the pros and cons of all the alternatives. Two alternatives which have been selected after diagnosing the whole situation and possible alternatives.
First alternative which has been selected consists of reducing the competition with Sony, Samsung and LG rather than involving itself by forming strategic alliances with them. The strategy consists of the diversifying its Global presence through market development strategy by going for the geographical expansion with its current hit products such as LCDs and high quality panels through effective and heavy sales promotions and marketing campaigns internationally to capture the market share over there as well. Advantage of this alternative will be the sales growth by capturing the new geographical markets and increase in the number of potential customers. Whereas, its disadvantage is concerned, Sharp Corporation may face the problem to enhance its market share and control its production cost by expanding globally and it may not match with the growth in sales whereas this disadvantage can also result in the advantage for the company if the company is able to enhance its profits and pay back their liabilities which will reduce the finance cost for them.
As far the current business model is concerned, company is facing so many issues which needs to be solved with the help of this alternative by revising the current business model and developing strategic alliances with the other firms which may result in the maximization of its sales growth and positive cash flows along with the profitability from its operations. Strategic partnership can be formed by Horizontal Integration such as with Sony and developing Joint Ventures as well. The advantages of this alternative will be numerous but the major advantages which the company may enjoy results in the competitive edge over others as well as economies of scale by reduction in its cost as well as helping each other with the knowledge management system by sharing the knowledge, experiences and expertise with their joint partners and it will also result in the coordination and better communication with the help of integration of the company with other firms either competitors or with distributors or it may be with the suppliers of the company to make the value chain stronger and cost effective. However, disadvantage may be the conflict of interest and sharing of profits by the strategic partners and this may result in slow decision making and lack of autonomy among them.
After analyzing the situation and the possibility of suggested alternatives, it is recommended to the company that Sharp Corporation should go for the alternative which overrides the disadvantages over advantages and as company is facing weak financial position which can be solved by entering into the joint venture and strategic partnership with Chinese company to expand globally and reduce its costs. This will help them to achieve their objectives of high sales growth and maintaining their capital structure to an acceptable level and financing through raising capital by improving their financial position. This alternative will lead to the better arrangements with the external environment and it will also help in maintaining the leading position of Sharp corporation in the market by enhancing its share as well as capturing more and more customers through effective value chain which can provide high quality products to its customers quickly and at relatively lower prices than its competitors.
Company will be able to strengthen their operations by the expertise and experience of its strategic partner and this will lead to the more knowledge sharing and the cheap labor cost as it will decrease its production cost and will result in higher profits by utilizing the modern technologies and novel ideas to run their business and create better position in the minds of its customers. This will lead to create competitive edge of the company………………
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