Sharp 2013 Annual Report Download - page 8

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Shift to Value Markets (Compete in Advantageous Fields)
Competition
BtoC Business
Digital
information
equipment
(Audio-Visual)
Small- and
medium-size/
large-size
LCDs Electronic
devices
Fluctuation risk in profitability
High
Communi-
cation
systems
Communi-
cation
systems
Health and
environment
Solar
cells Solar
cells
Business
solutions
BtoB Business
Device Business
Global Value Market
Added value for each customer
type can be pursued
Global Scale-Driven Market
Scale-driven competitiveness
is required
Regional Value Market
Local adaptation for
each region is required
Product Device
Small- and
medium-size
LCDs
Electronic
devices
Low
 
 
  
   •฀LCD฀TVs
฀ (volume฀zone) 
•฀Smartphones฀(high-end) 
•฀Industrial/car฀applications
Expand฀orders฀with฀
our฀high฀resolution฀and฀
high฀technology฀models
Contributes฀to฀differentia-
tion฀of฀customers฀via฀swift฀
response฀at฀early-stage฀
concept฀design
•฀Smartphones
฀ (volume฀zone)
•฀Ultrabook™,
฀ tablet฀terminals
Control฀volatility฀with฀
strategic฀alliances฀with฀
large฀clients 
6 SHARP CORPORATION
Medium-Term Management Plan for Fiscal 2013-2015: For Recovery and Growth
Five Strategic Measures to Realize Recovery and Growth
1Restructuring our Business Portfolio
Sharp will expand its business in advantageous fields while
controlling fluctuation risk in profitability.
(1) Shift to value markets
(2) Directions of innovation on each business
When considering medium- and long-term growth strategies,
Sharp identified three markets from the perspective of “differ-
ences in competitive environment.”
Global Scale-Driven Market
Scale-driven competitiveness on a global basis is required
Global Value Market
Added value for each customer type can be pursued on a
global scale
Regional Value Market
Local adaptation for each region is required
Digital consumer electronics, such as LCD TVs, and commod-
ity-type devices is a business domain where dominant business
scale in the global market is a key competitive determinant.
Sharp will seek to rebuild its business portfolio by shifting from
this “global scale-driven market” to “value markets” in which a
variety of winning methods exist.
We will minimize fluctuation risk in sales and profits and in-
crease operational stability by allocating core management re-
sources mainly toward “advantageous business domains (tech-
nologies, fields, and regions)” in which we are strong, such as
shifting to high value-added zones including IGZO and MEMS,
and expanding our presence in the domestic solar cell market,
where we have a robust business foundation.
Under the Medium-Term Management Plan, Sharp will under-
take a widespread reassessment of its entire operations with the
aim of concentrating management resources on fields and mar-
kets that it has identified as advantageous.
An urgent priority is to improve the profitability of our TV busi-
ness in Europe, Blu-ray Disc recorder/player businesses, and solar
cell businesses in Europe and the U.S. Here, we will formulate
drastic measures going forward.