Sharp Company Case Study

Sharp has been successful because of the following reasons:

* First, Sharp was focused on introducing first-of-the-world products and it was important to maintain the uniqueness of its products, which is consistent with the S-curve rule that says that during the introduction phase of new technologies, uniqueness plays a major role in capturing value. Sharp was able to capture value by following the principles of Akira Saeki of developing products that competitors cannot imitate even if they want to do so thereby maintaining the uniqueness of its products. In contrast to aggressively competing on price and exploiting scale economies, the firm focused on providing unique features and functions in its products and also, invested a great deal in protecting its intellectual property through patents that led to its competitive advantage. In-house development of key components was another strategy to preserve uniqueness of its products.

* Secondly, Sharp continuously anticipated disruptive technologies such as Liquid Crystal Displays (LCDs) and invested in R&D for the key technological components that would enable implementation of disruptive technologies. Additionally, by closely monitoring the customer needs and identifying important attributes, Sharp was able to create additional value.

* Thirdly, the clear organization structure, which consisted of eight manufacturing units, five sales and marketing groups, an international business group, a corporate research and development group, and a number of central service groups, that underwent frequent reconfigurations in response to market and technological changes was a great enabler of company's short-term performance and long-term innovative capabilities. Additionally, by fostering paternalistic relationship with its employees and reforming the performance measurement and reward system, Sharp motivated employees to contribute towards company's success.

* Globalization and, opening of research and development centers and manufacturing factories in developed countries helped Sharp mitigate U.S. trade frictions and exploit rapid changes in technology.

* Last but not the least, company's vision and culture that encouraged innovation was strongly supported by its creed of 'Sincerity' and 'Creativity' along with its superior core capabilities in processes that guaranteed success for Sharp.