The Intent of Sharp’s Offensive and Defensive Strategies
Sharp and Toshiba, two large corporations that once epitomized Japan as a consumer electronics superpower, could hardly differ more in their performance and outlook. On June 5, Sharp announced offensive and defensive strategies of issuing up to ¥200 billion in new shares to improve its financial standing and of acquiring Toshiba’s PC business. Although it later scuttled the stock plan due to market instability arising from recent trade tensions, it illustrates two years after undergoing restructuring as a subsidiary of Taiwan’s Foxconn Technology Group, its efforts to return to a growth path through a Japan–Taiwan alliance. In contrast, Toshiba, who lacks a strong partner, has been unable to develop a growth strategy and has repeatedly had to resort to selling off its business units.
Sharp President Tai Jeng-wu explained at a press conference that the firm is increasing management freedom with the aim of full rehabilitation. The acquisition of Toshiba’s PC business announced together with the now abandoned buyback scheme can be viewed as a specific management strategy embodying such freedom.
The Appeal of Toshiba Engineers
Sharp has had the bitter experience of pulling out of the PC business, which was a priority undertaking for the company. Under the Mebius brand, Sharp sold notebook computers incorporating its mainline LCDs and proprietary technology in semiconductors and communication technology. In the 1990s, Sharp developed the world’s smallest notebook computer with both floppy disk and hard disk drives, and in 2009 Sharp launched products with optical sensor LCD pads enabling handwriting input. These products, however, did not become big hits, and Sharp quit the PC business in 2010.
Eight years after its exit, Sharp is reentering the PC business by acquiring Toshiba’s PC-related subsidiary, Toshiba Client Solutions, for ¥4 billion in October 2018. Sharp will retain the Dynabook brand familiar to many consumers and will use Foxconn’s powerful parts supply and production capacities to quickly turn the PC unit into a profit center. read the rest here