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Authors:
Published by:
Amity Research Centers (2016)
Length:
13 pages
Data source:
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Abstract

Foxconn, the multinational electronics manufacturing company, was established by Terry Gou in 1974 at Taiwan with its main operation in mainland China. It was a part of Hon Hai Precision - the largest producer of consumer electronics. Foxconn products were being utilised by numerous global tech companies such as Apple, Microsoft, Nokia, Blackberry and Sony. The Taiwanese company's acquisition of Sharp was historical. It was the first foreign takeover of a major Japanese manufacturer. The company intended to move forward from OEM manufacturing to creating its own brand name and better vertical integration. The company was expanding its operations globally. New investments in Brazil enabled the company to have direct access to the local market. Foxconn had initiated business diversifications ranging from electric car to robotics for higher margins and lower labour requirement. The company was keen to revive Sharp and gain the image of a global brand in household electronics. The two companies had the major task of successfully integrating their different corporate cultures and operations for global expansion. At the same time, Foxconn had planned a series of measures for Sharp's turnaround. Would Sharp's acquisition enable Foxconn to fulfil its dream of becoming a global electronics leader?

Topics

OEM manufacturing; Robotics; Business diversifications; Corporate cultures; Integrating operations; Competition; Brand name; Technological advances; Sharp; Acquisitions; Electronic devices; Vertically integrated model; Bargaining power; Value chain; Foxbots
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2016

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