Sharp Electronics (UK) Ltd - Consumer
Electronics - United Kingdom
Sharp Electronics (uk) Ltd
Strategic Direction
·
Sharp Corporation aims to be at
the frontline of the high-end consumer electronics market. The company invests
a great deal on research and development in order to continue to launch innovative
products.
·
Having a wide portfolio of
products, including electronic components and computer hardware and
peripherals, Sharp anticipates it will enjoy some level of protection against
the risk of over-exposure in a particular business segment.
·
The increase in the number of
products manufactured in low-cost countries in East Asia, primarily in China
and South Korea, will put the company under strong pressure and it will face
severe threats in most of its business sectors.
·
The growth of the LCD TV industry,
together with the growth of the mobile phone market in Asia, are likely to
contribute to the company’s future sales performance, as it finds itself
well-positioned in these sectors.
Key Facts
|
Full name
of company:
|
Sharp
Electronics UK Ltd
|
|
Address:
|
4
Furzeground Way, Stockley Park, Uxbridge, Middlesex, UB11 1EZ
|
|
Tel:
|
+44 (0)208
734 2000
|
|
Fax:
|
+44 (0)208
734 2400
|
|
www:
|
www.sharp.co.uk
|
|
Activities:
|
Manufacturer
of electronic components and computer hardware and peripherals.
|
Source: Euromonitor International from
company reports, Trade press
|
|
2004
|
2005
|
|
Net sales
(GP£ million)
|
374.1
|
354.6
|
|
Net profit
(GP£ million)
|
2.8
|
9.5
|
|
Number of employees
(company-wide)
|
n/a
|
56,800*
|
Source: Trade press, Company research
Note: *Worldwide
Company Background
·
Sharp dedicates all of its
resources to the development and manufacture of electronic equipment. It can
claim one of the widest ranges of business and lifestyle products under a
single brand name in the world.
·
In 1912 Sharp's founder, Tokuji
Hayakawa, was awarded a patent for the "Tokubijo" snap buckle and, in
the same year, he established a small metalworking shop in Tokyo. The company
was incorporated as Hayakawa Metal Works Institute Co in 1935 and it changed
its name to Sharp Corporation in 1970. The first overseas expansion took place
in 1962 with the creation of Sharp Electronics in the US.
·
In 2001, Sharp established
Sharp Telecommunications of Europe, a subsidiary aimed at developing mobile
phones. Sharp now has 58 subsidiaries and maintains operations in 25 countries
spanning North America, Europe, Asia, and Oceania.
·
In 2004 Sharp, together with
D&Amp, M Holdings, Kenwood, Onkyo, Pioneer, Sony, JVC, and Yamaha,
established Any Music, a joint venture created to distribute music services. In
the same year, Sharp began producing photovoltaic modules from its
manufacturing base located in Wrexham, North Wales.
·
In 2006, Sharp reported net sales
of £11,249 million. Japan is the largest geographical market for the company,
accounting for almost 60% of total sales. The Americas follow with 11.4% of
sales, followed by China with 11.2% and Europe with 10.6%.
·
Sharp won the 2007 “What Home
Cinema LCD Awards” for its LC-42XD1E 42-inch LCD TV that increases contrast
ratio and detail and reduces image lag. The company also won the “What
Satellite and Digital TV” award for its LC-42XD1E, a large LCD screen that
works as well with standard definition digital material as it does with high
definition action. Sharp has also introduced a Blu-ray disc recorder with 1-TB
hard drive.
·
Sharp signed an agreement in
2007 with Fujitsu, Mitshubishi, NTT DoCoMo, Renesas Technology and Sony
Ericsson to develop the functionality of the third-generation mobile phones.
·
In 2007, Sharp successfully
developed a 108V-inch LCD TV, the world’s largest. In the same year, the
company launched the High-Power Blue-Violet Laser Diode GH04P21A2G, a device
that allows high-speed recording on dual-layer Blu-ray discs.
·
In 2007, the company announced
an agreement to acquire 14% of the capital of Pioneer, its objective being to
enter the DVD player and navigation system subsectors.
Production
·
Sharp manufactures and
distributes all of its consumer electronic products, including televisions, CD
and DVD players, video cameras, mobile phones, desktops and printers. It
operates from 64 bases in 30 countries and its products are distributed to 164
countries worldwide.
·
Sharp’s production activities
are organized into two main areas: 1) consumer and information products, which
includes audio-visual and communication equipment, information equipment and
home appliances and 2) electronic components, which includes integrated
circuits, LCDs and other electronic components.
Competitive Positioning
·
In 2006, Sharp ranked eighth in
the UK’s TV and projectors subsector with a volume share of 7.8%. In TV and
VCR/DVD combinations subsector, the company held a volume share of 2.6%. Sharp
is benefiting as the LCD industry booms and as consumers switch from
traditional cathode-ray TV formats to digital formats.
·
In the mobile phone sector,
Sharp ranked ninth in 2006 with a volume share of 0.6%. Prospects are
nevertheless very optimistic due to the anticipated expansion of the mobile
phone market in the Asia Pacific region.
·
Sharp’s desktop business
segment has not performed well due to the strong competition of the market and
to the more expensive products that it sells.
·
One of the company’s major
weaknesses is its dependence on the Japanese market, which accounts for almost
60% of the company’s total sales.
·
The high level of competition
in the marketplace and the increasing availability of cheaper products from
East Asian countries are likely to pose challenges to Sharp’s future sales
performance.
|
Product
type
|
Volume
share %
|
Rank
|
|
Televisions
and projectors
|
7.8
|
8
|
|
TV and
VCR/DVD combinations
|
2.6
|
5
|
|
Mobile
phones
|
0.6
|
9
|
Source: Euromonitor International
