Subject category:
Marketing
Published by:
IBS Research Center
Length: 18 pages
Data source: Published sources
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Abstract
Since the launch of its Aquos brand in 2001, Sharp had maintained its leadership position in the liquid crystal display (LCD) TV market. The company?s leadership was a result of early investment in the LCD technology and manufacturing processes, development of the Aquos brand and concerted efforts in sales and marketing, and constant introduction of new models. However, with the demand for LCD TV?s estimated to reach 50 million units worth US$47 billion in 2007, competition was getting intense. Companies like Sony and Samsung were setting up new manufacturing facilities along with launching new brands while second tier manufacturers were undercutting prices. As a result, Sharp?s market share had declined from 50% in 2003 to 35% in 2005. The challenge for Sharp was to sustain its leadership position and maintain its operating margins with increasing competition in the LCD TV market. This case has scope for discussion in the following areas: (1) the strategy of the company to make LCD its core technology; its pros and cons; (2) the steps taken for the development of the Aquos brand; (3) the future plan of action adopted by the company; and (4) the steps taken by Sharp to address its competitors.
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Abstract
Since the launch of its Aquos brand in 2001, Sharp had maintained its leadership position in the liquid crystal display (LCD) TV market. The company?s leadership was a result of early investment in the LCD technology and manufacturing processes, development of the Aquos brand and concerted efforts in sales and marketing, and constant introduction of new models. However, with the demand for LCD TV?s estimated to reach 50 million units worth US$47 billion in 2007, competition was getting intense. Companies like Sony and Samsung were setting up new manufacturing facilities along with launching new brands while second tier manufacturers were undercutting prices. As a result, Sharp?s market share had declined from 50% in 2003 to 35% in 2005. The challenge for Sharp was to sustain its leadership position and maintain its operating margins with increasing competition in the LCD TV market. This case has scope for discussion in the following areas: (1) the strategy of the company to make LCD its core technology; its pros and cons; (2) the steps taken for the development of the Aquos brand; (3) the future plan of action adopted by the company; and (4) the steps taken by Sharp to address its competitors.