Sharp Co.

In: Business and Management

Submitted By neilsuh
Words 638
Pages 3
harDate and time received
_________________

External Assessment
The electronic consumer products industry consists of companies that produce and sell electronic components as well as finished electronic products. Demand is increasing at the international level, although industry growth is slowing due to a worldwide economic recession. The industry is fragmented with many competitors. The low barriers to entry indicate potential increases in fragmentation. Though, quality and size lacks as a differentiator, especially in the television set business, it cannot be ignored. Preferable competitive advantage is defined as a low cost producer or high in innovation. As a result, profitability swings on firm’s competitive advantage and its capabilities.
The industry is facing increasing demand from China entering the electronic software/hardware industry. Chinese companies are expressing their interests in adopting the next-generation LCD production. China providing an attractive business environment in low cost structure provides competitive advantage of being a low cost producer. International companies can exploit this opportunity by either a form of joint venture with Chinese companies or direct foreign investment; investing in physical plants. This successful integration will help achieve to become a low cost producer in the industry due to China’s cheap labor and infrastructure costs. Currently, the market is saturated with low ability to differentiate the end products. This is leading to price wars, forcing companies to lower prices and lower costs. In order to mitigate this threat to profitability, companies need to change their processes and business models to be more efficient. Capabilities of achieving new innovation with superior efficiency and finding alternatives are necessary for companies’ future growth.
Internal Assessment

Define the…...

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