Scribd
Upload
10 views1 page

The Strategy That Companies Have Shown in The LCD Business: 2022123268 Seoyeon Park Business Administration

The document summarizes the strategies of LCD manufacturers since 2000. It discusses how Sharp aggressively invested in LCD technology while others held back in 2006. It then describes Sharp's financial difficulties in 2015 which led to job cuts and eventual acquisition by Foxconn in 2016. Finally, it notes that today China leads the LCD industry, with companies like BOE expanding production as Samsung and LG scale back investments.

Uploaded by

parkseoyeon623
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
10 views1 page

The Strategy That Companies Have Shown in The LCD Business: 2022123268 Seoyeon Park Business Administration

The document summarizes the strategies of LCD manufacturers since 2000. It discusses how Sharp aggressively invested in LCD technology while others held back in 2006. It then describes Sharp's financial difficulties in 2015 which led to job cuts and eventual acquisition by Foxconn in 2016. Finally, it notes that today China leads the LCD industry, with companies like BOE expanding production as Samsung and LG scale back investments.

Uploaded by

parkseoyeon623
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

The Strategy that Companies have shown in the LCD Business

2022123268 Seoyeon Park

Business Administration

1. Since 2000, LCD manufacturers have continued to build new factories to produce
the latest generation of screens. Each new generation of LCD has contributed to
lowering the price of screens used in cell phones, computer monitors, and flat-panel
TVs. Because LCD manufacturers have tried to become competitive by lowering the
price of goods by building new factories. So in 2006, they all wanted to build an
eighth-generation factory, but only Sharp companies in Japan actually did. The reason
is that financial returns have decreased in factories of 6th and 7th generations. As a
result, most manufacturers, including Samsung, believe that it is too early to
manufacture large screens in the display industry, and have put the construction of 8th
generation plants on hold. Sharp companies, on the other hand, attempted aggressive
investments in LCD based on their previous experience. Sharp has a company culture
that values invention of original products, and this strategy led to the invention of hit
products such as the world's first liquid crystal electronic calculator and the world's
first desktop electronic calculator. On January 1, 2000, they introduced a TV
commercial that abandoned existing CRT televisions and took only LCD televisions,
saying, "Leave the old ones behind, take the new ones." This means Sharp has tried
their strategy once again, and the target is LCD panel technology.
2. In 2015, Sharp suffered from severe financial difficulties and needed outside help to
solve their problem. The loss of competitiveness of LCD panels, which was their
flagship business for Korean and Chinese manufacturers, put them in a serious crisis.
In response, Sharp limited display panels, consumer electronics, solar panels, and
growing competition, which were the main business of the Osaka-based company,
and suspended television sales in North America, South America, and the United
States, where sales were low. 1 They also tried to overcome the company's crisis by
laying off about 3,000 employees, attempting drastic restructuring within the company.
Despite Sharp's efforts, in 2016, they were on the verge of being acquired by Taiwan's
Foxconn, a manufacturer in the computer and electronic devices sector. On March 30,
2016, both Foxconn and Sharp finally approved the merger and acquisition agenda,
which led to Sharp's acquisition by Foxconn and Foxconn's full ownership of Sharp's
66% stake.2
3. Today, the LCD industry is led by China. Starting in 2017, the market share of large
LCD panels between Korea and China has reversed, and the difference is larger over
time. BOE, China's largest display manufacturer, invests in the LCD industry with all the
government's support, capital, and brain resources. On the other hand, in response to
BOE's active expansion, both Samsung and LG in Korea are rather hesitant to invest in
the LCD industry. Samsung Display and LG Display are seen closing their production
lines and it must be accelerating China's rise in the LCD panel business.

1
Asian Business News, ‘Sharp to Explore Options for LCD Panel Business’, (2017.1)
2
중앙일보, ‘7 조원에 ‘일본의 자존심’ 샤프, 대만 훙하이가 삼켰다’,
https://www.joongang.co.kr/article/19634426#home

You might also like