Sharp Corporation Case Report

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TECHNOLOGY STRATEGY

Sharp’s business philosophy is to use its innovative technology “to contribute to the culture, benefits and welfare of people throughout the world” (Noda 25). Sharp is constantly trying to position itself as a leader in innovation as further supported by its business creed, which states to “constantly be aware of the need to innovate and improve” (Noda 25). However, this focus on innovation and creativity has not always been consistent with how the company has been operated. The history of the company is replete with periods of both innovation and imitation.

The company was founded on innovation when Hayakawa set up a small shop to manufacture snap belt buckles of his own design. Three years later, he invented the first mechanical pencil, and business grew rapidly until the Great Kanto Earthquake of 1923 wiped out the small factory. When Hayakawa reestablished the business, it was to assemble crystal radio sets that he had reverse engineered from one imported from the U.S.

Thus began a long period of imitation, manufacturing products that were invented elsewhere. Sharp operated in industries in which products were easy to imitate and followed a dominant design. In addition to making refrigerators, washing machines, and air conditioners, Sharp also manufactured televisions licensed from RCA and microwaves licensed from Litton. Though Hayakawa promoted innovation, “the company remained primarily an assembler” of consumer goods (Noda 2). Sharp’s relatively small size and limited capital prevented it from developing a vertically integrated business and forced it to contract with other companies for significant portions of the value chain. This meant that it could not maintain control over its intelle...

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... Early adopters of the Wizard would then convince the majority of the market to abandon their old paper organizers in favor of the better, more portable system.

Sharp’s business philosophy is to focus on developing innovative products to benefit people and society. However, for much of its history, the company was too small to successfully develop and market its own new products and instead relied on imitating others. Only recently has the company grown large enough to be able to research and develop innovative new technologies and products that truly differentiate it from its competitors.

Works Cited

Noda, Tomo. “Sharp Corporation: Technology Strategy.” Harvard Business School Boston: Harvard Business School Publishing, 1993. Print.

Shane, Scott. Technology Strategy for Managers and Entrepreneurs. Upper Saddle River, NJ: Prentice Hall, 2009. Print.

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