In a bold move made 2 years back when LCDs were in great demand with the boom of flat panel TVs, Sharp embarked on building a USD11 Bn, 32 baseball stadium size state of the art plant to produce high tech, high quality products. The idea is to vertically integrate suppliers & service providers under one compound to work as one virtual company, facilitate just-in-time supplies, stream-line production, and cut cost. This is seen as a litmus test for the new mode of Japanese high tech manufacturing in contrast to lower cost productions in Korea & China.
Sharp’s impressive massive new plant in Sakai city, close to Osaka.
Sharp decided to build this new facility at a time when it had recorded 5 straight years of unprecedented profits. In 2008, business suffered as consumers damped spending. Not curbing production quick enough, Sharp was saddled with excess inventory and posted its first annual loss in nearly 60 years in the fiscal year ended March 2009.
Only customers can tell if they will buy.
I am a supporter of high tech, high quality, and companies that made bold moves. This is on condition that the premium they charge is not excessive and that there is perceivable product differentiation.
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