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Mercyhurst University
Sharp Corporation
Strategic Plan and Analysis
Group 6: Brett Ball, Andrea Novoa, Kaleb Schwab, and Brianne Smail
BADM 405-02
December 3, 2014
Prepared for Dr. Kris Gossett

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Contents
Sharp Corporation........................................................................................................................ 6
Company Description:.............................................................................................................. 6
About This Report: ................................................................................................................... 6
Section 1 – Historical Analysis..................................................................................................... 7
1. Historical Analysis of Sharp Corporation ...................................................................... 7
2. Historical Analysis of Consumer Electronics Industry ............................................... 32
3. Historical Analysis of Key Competitors........................................................................ 36
Competitor #1 – LG Electronics........................................................................................ 36
Competitor #2 – Panasonic Corporation.......................................................................... 39
Competitor #3 – Samsung Electronics .............................................................................. 48
Competitor #4 – Sony Corporation................................................................................... 53
4. Discussion of Relevant Historical Environmental Changes in the Industry ............. 56
Macro-environment of the Consumer Electronics Industry........................................... 56
Historical Competitive Forces of the Consumer Electronics Industry .......................... 58
Historical Dominant Economic Features for the Consumer Electronics Industry....... 59
Works Cited – Section 1 ......................................................................................................... 60
Section 2 – Current Analysis...................................................................................................... 62
Subsection #1 – Company Profile.......................................................................................... 62
1. Discussion of Sharp Corporation’s Current Overall Strategy ............................... 62
2. Discussion of Sharp Corporation’s Current Competitive Advantage in the
Industry................................................................................................................................ 64
3. Discussion of Sharp Corporation’s Current Strategy Relative to the 3 Tests of a
Winning Strategy ................................................................................................................ 64
1. How well does the strategy fit the company’s situation?................................... 64
2. Is the strategy helping the company achieve a sustainable competitive
advantage?....................................................................................................................... 65
3. Is the strategy producing good company performance? ................................... 66
4. Discussion of Sharp Corporation’s Current Strategic Vision / Mission.................... 66
5. Identification of Sharp’s Core / Distinctive Competencies ......................................... 70
6. Current SWOT Analysis ................................................................................................ 71
Strengths .......................................................................................................................... 71
Weaknesses...................................................................................................................... 73
Opportunities................................................................................................................... 74
Threats ............................................................................................................................. 75

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7. General Discussion of the Current State of the Following Components ................... 77
A. Finance / Accounting Analysis .................................................................................. 77
Balance Sheet Discussion ............................................................................................. 78
Income Statement Discussion........................................................................................ 80
Statement of Cash Flows Discussion ............................................................................ 82
Stock Discussion ........................................................................................................... 83
Ratio Analysis ............................................................................................................... 85
B. Marketing Analysis .................................................................................................... 91
Products ....................................................................................................................... 92
Promotion .................................................................................................................... 99
Price............................................................................................................................ 103
Place............................................................................................................................ 105
C. Management Analysis.............................................................................................. 107
Subsection #2 – Industry Profile.......................................................................................... 112
1. Identification and Discussion of Relevant Competitors ........................................ 112
A. Relevant Information Regarding the Financial Position of Key Competitors
112
Competitor #1: LG Electronics................................................................................ 112
Competitor #2: Panasonic Corporation.................................................................. 115
Competitor #3: Samsung Electronics...................................................................... 118
Competitor #4: Sony Corporation........................................................................... 120
Financial Position Comparison of Competitors Using Ratio Analysis ................ 122
B. Relevant Information Regarding Current Marketing Strategy of Key
Competitors ................................................................................................................... 127
Competitor #1 - LG Electronics............................................................................... 128
Competitor #2 – Panasonic Corporation................................................................ 133
Competitor #3 - Samsung Electronics..................................................................... 137
Competitor #4 - Sony Corporation.......................................................................... 141
C. Relevant Information Regarding Current Corporate Structure, Leadership
Transitions, or Management Team of Key Competitors .......................................... 146
Competitor #1 – LG Electronics.............................................................................. 146
Competitor #2 – Panasonic Corporation................................................................ 148
Competitor #3 – Samsung Electronics .................................................................... 150
Competitor #4 – Sony Corporation......................................................................... 153
2. Discussion of Relevant Economic Factors Affecting the Industry ....................... 156

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3. Dominant Economic Factors.................................................................................... 160
4. Identification of Key Competitive Forces in the Industry .................................... 162
5. Discussion of the Current Driving Forces in the Industry .................................... 166
6. Creation and Discussion of Strategic Group Map................................................. 167
7. Identification and Discussion of Industry Key Success Factors ........................... 169
Works Cited – Section 2 ....................................................................................................... 173
Strategic Plan............................................................................................................................. 178
1. Discussion of Likely Strategic Maneuvers from Relevant Competitors in the Next 3
Years....................................................................................................................................... 178
Competitor #1 - LG Electronics....................................................................................... 178
Competitor #2 - Panasonic Corporation......................................................................... 180
Competitor #3 - Samsung Electronics............................................................................. 182
Competitor #4 - Sony Corporation.................................................................................. 185
2. Identification of Competitive 3-Year Strategy for Sharp Corporation ....................... 188
A. Discussion of Which Generic Competitive Strategy is the Best Fit for the Next 3
Years................................................................................................................................... 188
B. Identification of Offensive Strategies to Exploit Against Competitors and Which
Competitors You Will Use Them On .............................................................................. 192
C. Identification of Defensive Strategies to Protect Competitive Advantage from Other
Industry Participants and Which Participants You Should Implement Them For ... 195
D. Discussion of General Timeline to Implement Offensive and/or Defensive Strategies
in Next 3 Years .................................................................................................................. 196
Year One:....................................................................................................................... 196
Year Two: ...................................................................................................................... 196
Year Three:.................................................................................................................... 196
E. Discussion on Other Potential Supplemental Strategies........................................... 196
3. Identification of Relevant Issues Concerning International Markets and / or
International Suppliers......................................................................................................... 198
4. Brief Discussion of Functional Policy to Accommodate Strategic Plan....................... 200
A. Discussion of Strategic Policy Relative to Finance / Accounting ............................. 200
B. Discussion of Strategic Policy Relative to Marketing Strategy................................ 203
C. Discussion of Strategic Policy Relative to Management Strategy ........................... 207
Works Cited - Section 3........................................................................................................ 211
Contact Information................................................................................................................. 212

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Sharp Corporation
“Make products that others want to imitate.”
-Tokuji Hayakawa, Sharp Founder
(58)
Company Description:
Sharp Corporation is a Japanese multinational corporation that designs and manufactures
consumer and industrial electronic products. The company was founded in September 1912 by
Tokuji Hayakawa (59). Sharp is headquartered in Osaka, Japan. As of March 2014,
approximately 50,000 people are employed with the company (59). Sharp offers a variety of
products including LCD monitors, TVs AQUOS, mobile phones and smartphones, air purifiers,
solar panels and cells, home appliances, along with many other consumer, business, and
industrial products (60).
About This Report:
This report was compiled for Dr. Gossett’s Business Policy and Strategy Class for the Fall 2014
Semester at Mercyhurst University by Brett Ball, Andrea Novoa, Kaleb Schwab, and Brianne
Smail. It is a strategic plan for Sharp Corporation containing a historical analysis, a current
analysis, an industry profile, and a three year strategy for Sharp Corporation and the consumer
electronics industry.

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Section 1 – Historical Analysis
1. Historical Analysis of Sharp Corporation
Disclaimer: Most of the information used in this section came from PDF1 which is Sharp’s
historical document directly from their website, unless otherwise noted.
Tokuji Hayakawa founded Sharp Corporation in 1912. He opened a metal working
business with two other men, a craftsmen and an apprentice (PDF1). He first started producing
the Tokubijo buckle. His second product was the adjustable-flow faucet that took one minute
installing instead of thirty minutes like the other ones (PDF1).
In 1915 writing instrumental manufactures placed a large order of metal fittings for use in
a mechanical pencil, this product was considered the predecessor of the Sharp Pencil (PDF1).
Tokuji has set a goal of improving the mechanical pencil and after working for days he was
successful, the Hayakawa Mechanical Pencil was born (PDF1). Tokuji was reunited with his
older brother, the two established Hayakawa Brothers Company (Hayakawa Keitei Shokai) they
worked together to sell the mechanical pencils. They were exporting to the United States and
Europe (PDF1).
In 1916 Tokuji developed a super-fine pencil lead and they named it Ever-Ready Sharp
Pencil (2). Then they introduced more products including more affordable models, also luxurious
products made of gold and silver, and models incorporating a watch or a lighter (PDF1).
The company established a branch factory in 1920 in Oshiage and then purchased the
land for the third factory in Kameido (PDF1). The original Sharp Pencil was exhibited at the
Peace Commemoration Tokyo Exposition in 1922, where it received a gold medal that furthered
enhanced its reputation for quality and aesthetics (PDF1). Tokuji lost everything in the Great

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Kanto Earthquake in 1924, so he relocated to Osaka for a fresh new start. He established
Hayakawa Metal Laboratories (Hayakawa Kinzoku Kougyo Kenkyusho) (2).
1925 was a big year for Tokuji. He was looking for a new business area. He started
looking into radios, in April of this year he succeeded in assembling a radio, which was the birth
of the first crystal radio produced in Japan (2). Test radio signals began being broadcast from a
station in Osaka two months after they had succeeded with the radio, the radio worked perfectly.
It was their first step to becoming an electronics manufacturer (PDF1). They set up a sales office
in Osaka and began selling their products and also imported vacuum-tube-radios and parts
(PDF1).
In 1926 they started to export radios and radio parts to China, India, Southeast Asia, and
South America. Tokuji introduced an AC-powered vacuum-tube radio in 1929, which was as
good as the imported models but cost much less (2). In 1933 they started exporting to Europe,
Australia, and Africa too (PDF1). Hayakawa Metal Industry Institute Co., Ltd. (Kabushikigaisha
Hayakawa Kinzoku Kougyo Kenkyusho) was established in 1935 and Tokuji Hayakawa was
appointed president (PDF1). The company employed 564 workers. 1936 was the year the
company changed its name to Haykawa Industrial CO., Ltd. A new plant was built in Hirano.
The company broadened its sales network in 1937 by opening branch offices in Korkura,
Nagoya, Shizuoka, Sendai, Kanazawa, Hiroshima, Okayama, Kochi, Kumamoto, and Kagoshima
(PDF1). A new intermittent belt conveyor system was introduced to the radio production line,
based on Tokuji’s own design. Year by year the production increased dramatically; from 58,000
to 88,000 units in 1938, and then to 130,000 in 1939 (PDF1).
In 1942 they changed the name again to Hayakawa Electric Co., Ltd (2).1948 was the
year the company increased its capitalization to 30 million yen. The capital increased at the end

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of the year so they began trading its share through the Osaka Securities Dealers Association
(PDF1). In 1949 the company’s stock was listed on the Osaka Securities Exchange. The selling
price for the first trade was 42 yen per share (PDF1).
The new Sharp 5R-50 Superheterodyne Radio was introduced in 1950 it was a compact,
mass-produced model (PDF1). It had enough selectivity to prevent interference among broadcast
signals. A television prototype of a console-model television was completed in 1951; it was a
success at receiving television signals (PDF1). In 1952 Tokuji visited the Radio Corporation of
America in the United States and he signed a technical assistance agreement, and it led to
Japan’s first mass produced televisions (PDF1). The government approved the alliance with
RCA and the company started working on a design for a TV. Three models were created a 12, 14
and 17-inch screen, tests results were excellent (PDF1). The Sharp TV3-14T TV was the first
domestically produced television in Japan. The company also began publishing Sharp News, an
informational magazine that served as a bridge between retailers and the company (PDF1).
In 1953 Hayakawa Electric introduces its first commercial television set under the brand
name Sharp (2). 1953 is regarded as the first year of electrical appliance era in Japan. At the
beginning of the year they only produced 15 TV sets, but then the production volume increased
they knew it would get to 1,000 TV sets per month they reduced the prices (PDF1). To increase
production, the company continued to build extensions to its plants in 1954, with TV production
capacity eventually reaching 20,000 sets per month (PDF1).
The TB-50 from 1957 had the world’s first push-button tuner. This tuner allowed users to
quickly select a station simply by pressing a button, without having to turn a channel-selector
dial (PDF1). They announced a new business policy in which they were going to expand to
become a comprehensive consumer electronics manufacturer by adding more home appliances to

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the lineup (PDF1). They started with electric fans, refrigerators, washing machines, toasters,
electric rice cooker, and air conditioners. In 1958 Sharp Electric Co and Hayakawa Electric
became inseparable; one was dedicated to manufacture and the other to sell (PDF1).
In 1959 Hayakawa Electric began research and development on solar cells, a program
that would later become one of their top earners (PDF1). Hayakawa Electric also established
quality control in their plants this year (PDF1). In addition they constructed a new plant in order
to expand their consumer electronics division (PDF1). They finished out the year coming to
dealer agreements with two Southeast Asia companies, expanding their sales network (PDF1).
In 1960 Hayakawa Electric was instrumental in issuing in the color TV era with high
quality TVs (PDF1). They also constructed their first plant in Nara, Japan (PDF1). In the same
year they established their corporate health insurance program, developing medical products of
their own, and began using IBM computers at the corporate headquarters (PDF1). Hayakawa
Electric continued work on their value chain the next year by establishing a central location for
all the research the company does helping to decrease redundant behavior therefore decreasing
operational costs (PDF1). The President received the medal from Blue Ribbon for his work in
social welfare (PDF1).
In 1962 Hayakawa Electric created their first overseas sales base in the US when they
established Sharp Electronics Corporation (SEC) and began selling commercial-use microwave
ovens (PDF1). They also showed strong signs of corporate social responsibility (CSR) when the
President donated his own funds to build a Municipal building to help the elderly and disabled
(PDF1).They continued by providing Buddhist memorial services for deceased employees
beginning this year as well (PDF1).

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In 1963 Hayakawa Electric reorganized themselves into three divisions, radio, home
appliances, and industrial equipment (PDF1). They also expanded their solar cell research this
year, placing it on a much larger scale (PDF1).
In 1964 Hayakawa Electric released the world’s first all-transistor diode electronic
desktop calculator weighing in at 55 pounds (3). Hayakawa Electric began the research and
development at this point to make it smaller and more portable (PDF1).
In 1965 Hayakawa Electric adapted silicon transistors dropping the weight of the
calculator down to 35 pounds with the new CS-20A to be released the next year (PDF1). The
president also received the Japanese Order of the Sacred Treasure, Gold Rays with Neck Tie for
his success in both business and social welfare (PDF1). This was also the year Hayakawa
Electric began its five-year plan to get its outlet stores to account for 70% of their sales; it was to
be accomplished by 1970 so it was called the “70 Strategy”. Hayakawa Electric began its
“Attack Team of Market” (ATOM) this year when their inventory was backed up due to a
downturn in the market (PDF1). Hayakawa Electric was forced to shut down production for a
while, and they sent out employees from the manufacturing and engineering departments to sell
having no previous knowledge of selling (PDF1). This would turn into a successful program
helping to boost sales (PDF1).
In 1966 Hayakawa Electric developed the CS-31A, the first calculator to use integrated
circuits as opposed to transistors (PDF1). A Japan lighthouse used Hayakawa Electric’s solar
technology to harness solar power (PDF1). They also released the first microwave oven in Japan
with a turntable (PDF1). SEC dramatically increased their profits with the help of the CS-20A
(PDF1).

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In 1967 Hayakawa Electric finished construction of a dedicated radio production facility
outside of their normal production area (PDF1). The U.S. had reached 1.28 million TVs in
production for the year compared to 5,000 in 1962 (PDF1). They released the first microwave to
emit a ding when it was done (PDF1). Hayakawa Electric held fairs showcasing their products in
major Japan city department stores for their 55th anniversary (PDF1). Hayakawa Electric made a
step toward vertical integration by buying Sharp Electric (PDF1). They also managed to be the
first major Japanese consumer electronic company to get into Okinawa, then under US rule
(PDF1). This made them a domestic company and bolstered their southern market share ahead of
the competition (PDF1).
In 1968 a large scale plant dedicated to color TV production was completed to keep up
with demand (PDF1). Sales have doubled from 1966 to 1968 (PDF1). Hayakawa Electric held
their first presentation to establish the mission and the vision to the management, this has been a
mainstay ever since (PDF1). The CS-16A was released bringing the weight down to eight
pounds and moving ever closer to the personal calculator (PDF1). Exports had become 38% of
sales (PDF1). Hayakawa Electric spent the money they would have at an expo on opening up a
new Advanced Development center meant to develop new technologies (PDF1).
In 1969, they managed to release the world’s first battery-powered electronic handheld
calculator the QT-8D, and developed a signal to aide in the adjusting of color TVs (4). They also
ran a moral image campaign after finding their image worse than what they wanted (PDF1).
They rebranded themselves as a first class business possessing superior technology (PDF1). The
president began raising funds for social welfare and to increase their corporate social
responsibility image (PDF1). Hayakawa Electric began working with LCD technology (PDF1).

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In 1970, Hayakawa Electric was less recognized than Sharp forcing a name change to
Sharp Corporation (PDF1). Sharp developed the first infrared detecting light, later to be known
as LED lights (PDF1). President Tokuji Hayakawa was named chairman and Senior Executive
Director Akira Saeki was named president (PDF1). Sharp began developing a copier (PDF1).
Sharp’s plant was independently established as Sharp Precision Machinery Co (PDF1). This year
began a lawsuit of Sharp working against anti-dumping laws that would last until 1987 when the
lawsuit was dropped for good, this cost a lot in legal fees (PDF1).
In 1971 Sharp officially completed the plan to have 70% of their sales come from their
outlet stores (PDF1). Sharp got into the cash register business this year (PDF1). Sharp
established an Australian sales base (PDF1). They were also awarded the Okochi Memorial
Production Prize for their innovation in calculators (PDF1).
In 1972 Sharp’s first copier was released and was the first copier of its kind (PDF1).
Sharp recognized LCD’s as the next big step in innovation and began research and development
(PDF1). A new sales company system was organized by consolidating 61 regional companies
into 16, in order to create a larger sales force (PDF1). Sharp Systems Products was formed from
Sharp’s computer systems marketing division (PDF1). A Product Reliability Control Center was
established to better care for the customer creating another competitive advantage for Sharp
(PDF1). Due to consumer demand they established nine Business Cooperation Centers
throughout Japan (PDF1). Hayakawa Electric established a Europe sales base in West Germany
(PDF1).
In 1973, Sharp established the Business Philosophy, Business Creed, and Basic Business
Principles that have been guiding the companies these years (PDF1). Employee savings scheme
was established along with a new manufacturing base in Korea called the Sharp Data

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Corporation (PDF1). They released a pocket-sized calculator utilizing LCD technology. Sharp
began working on ways of preventing energy waste (PDF1).
In 1974 Sharp released the HAYAC-5000 an office computer doing spreadsheets
previously only able to be done by large computers; in addition they released another smaller
calculator (5). They also combined their Refrigeration Equipment with the Air Conditioning and
vending machine divisions to create the Commercial Equipment Division (PDF1). They also
developed a thinner, power saving, higher quality than CRT screens (PDF1). Canadian and
Malaysian Branches were established along with company-wide quality standards to
accommodate the quickly expanding company (PDF1).
In 1975 the Australian branch began manufacturing and selling color TVs (PDF1). This
was also the beginning of a major shift in strategy to improve their balance sheet (PDF1). Sharp
implemented a plan to reduce debt, improve their Capital to Assets ratio, and lower their break-
even point (PDF1). This was set into motion by departments reducing their Accounts Receivable
and inventory levels (PDF1). This gave them the ability to invest more. The 9 mm calculator
came out this year (PDF1).
In 1976 Sharp released the world’s first solar powered calculator (PDF1). They also
managed to find a quick cost-effective way to put large-scale integrated circuits (LSIs) into small
calculators and make smaller lighter copiers this way (PDF1). This was a major innovation in the
calculator industry in which they were already the leader (PDF1). This forced them to build a
new manufacturing plant at the end of the year (PDF1). They began a new plan called the New
Life product strategy where they proposed a new lifestyle to the baby boomers (PDF1). They
began looking at their customers and then picking the products that suited them as opposed to
taking their products and identifying what customers could use them; this is an innovative

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strategy that works for many successful companies today (PDF1). The first products in this new
strategy were a 16 inch color TV that was as heavy as a 14 inch TV, and a refrigerator with the
refrigerator on top with a vegetable drawer that could have the temperature controlled separately
in response to housewives that wanted to keep vegetables fresh without them drying out (PDF1).
Sharp solar cells were also sent to outer space on a Japan satellite, the quality assurance had to be
outstanding because repairs were near impossible once the ship was launched (PDF1). Sharp
began research on LCD TVs this year (PDF1). This was the first year in ten straight years of
growth for the company (PDF1).
In 1977 a new committee was formed to inform all employees of the New Life strategy
(PDF1). Sharp also began creating task forces from multiple departments to deal with company-
wide issues as they arose; 14 task forces were established this year (PDF1). They also released a
calculator that took advantage of the LSI capabilities and was the first C-MOS based calculator
that included games (PDF1). Another calculator came out that got rid of buttons to be touch
screen and was 5 mm, this was effectively marketed on commercials claiming “The button war is
over” (6). Sharp’s first pocket computer came out this year when they added programming
capabilities to a calculator (PDF1). Sharp System Service was formed from the service
departments of Sharp’s Office Equipment sales offices as a dedicated centralized service office
for office equipment (PDF1). This is also the year manufacturers voluntarily agreed to limit the
export of color TVs to the U.S. (PDF1).
In 1978 Sharp came out with a 3.8 mm calculator that was manufactured through an
automated process at a low price. This calculator was introduced as a permanent exhibit in the
museum of modern art (PDF1). Sharp released their first personal computer this year as a build-
it-yourself (PDF1). They also released the first desktop computer to scan documents like it was

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taking a picture (PDF1). Sharp began a new three-year plan to quickly “Advance, Challenge, and
Expand” mostly by introducing automation to many assembly lines (PDF1). Nine equipment
sales departments were organized into two different departments, one for Eastern Japan and
another for Western Japan (PDF1). Sharp met with U.S. government officials to get approval to
have their first production base in the U.S. (PDF1).
In 1979 Sharp introduced its first electronic translation device (PDF1). Two new
departments were created, one to focus on selling medical equipment, the other in application
software development (PDF1). The first U.S. manufacturing site was built (PDF1). A Swedish
marketing and sales division was formed (PDF1).
In 1980 Sharp formulated the “New Business Style at work” campaign to pair with the
new life style strategy formed previously (PDF1). Sharp had two new products that generated
multiple new interests this year, a new VCR and a new double cassette player (PDF1). A new
plan to reach one-trillion yen in sales by 1987 was introduced (PDF1). This is the year the
founder Hayakawa passes away (PDF1). A new group was formed to commercialize solar power
(PDF1). The next generation of Sharp’s pocket computer was introduced with more
programming capabilities than the previous generation (PDF1). A fax machine was introduced
capable of sending and receiving text much more clearly (PDF1). A nationwide industrial
equipment department was formed from multiple equipment divisions (PDF1). A new computer
design program was introduced that reduced design time down to one-tenth the normal time
(PDF1). A manufacturing base was built in Malaysia (PDF1).
In 1981, Sharp developed its laser technology coming out with multiple laser technology
products such as a product that detected moving pictures as they were forced to scale back their
solar energy program because the solar energy market was declining (PDF1). They discovered a

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longer lasting laser technology that significantly extended the life of a laser to 40,000 hours
giving them a new competitive advantage (PDF1). A new electronic translator came out with
voice detection capabilities. Sharp released their high-end personal computer model this year
(PDF1). The personal computer division was placed under the Calculator division (PDF1).
Twelve companies combined to form Sharp Consumer Electronics Company this year resulting
in four companies that span Japan (PDF1). Sharp became the leader in US copiers because they
were the only one’s offering compact copiers (PDF1). Sharp finally began full-fledged marketing
in China (PDF1). Mass production began on CD players using the laser diode technology Sharp
had developed (PDF1). The anti-dumping suit was halted by a US judge (7).
In 1982 Sharp came out with their first electronic typewriter, this was meant for offices
(PDF1). They came out with a screen that could be used as both a TV and a PC screen (PDF1). A
manufacturing base was established in the Philippines (PDF1).
In 1983 Sharp’s first facility with the ability to mass produce electroluminescent screens
that were 2mm thin, ran at one fifth the power of a normal screen, and no blurring opened
(PDF1). A TV screen that uses LCD technology was created (PDF1). Sharp Engineering
Corporation was formed from 10 consolidated service companies (PDF1). The anti-dumping
case was reopened in the U.S. for only a few companies; one of those companies was Sharp (7).
In 1984 a copier small enough for personal use was released (PDF1).
In 1985 Sharp altered their “New Life” strategy to “New Life People”, changing from
focusing mostly on family to now focusing on a younger demographic with “unique personalities
and a strong sense of individualism” (PDF1). The plan to reach one million yen in sales by 1983
reached is culmination this year, two years late (PDF1). Export sales were beginning to shrink
(PDF1). Sharp began its Attack ’90 plan looking ahead to the 90’s to have management

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strengthened (PDF1). A major part of this plan was establishing a creative environment for
managers and their employees (PDF1). A 0.8 mm thick calculator was introduced (PDF1). Sharp
released their first high-speed copier (PDF1). The Fukuyama plant was established and used
robots in all of its production (PDF1). Sharp established a UK manufacturing plant (PDF1). A
marketing base was established in Malaysia (PDF1). Sharp held a technology showcase in China
to get the news of their products marketed in China (PDF1). A center to hold focus groups for
Sharp was established by the then Director Tsuji (PDF1). Sharp established a Communication
Audio Division inside their audio division in response to the telephone market opening up this
year (PDF1). Sharp showcased the first English-to-Japanese translation system for
minicomputers (PDF1). The LCD research and development paid off with a prototype 3 inch
LCD TV (PDF1). Sharp released a facsimile, a compact fax machine (PDF1). Sharp also
established their own import company (PDF1).
The start of 1986 brought about some major changes for Sharp Corporation as a whole.
On June 27, 1986, Saeki resigned as the President of the company and became a new acting
chairman (PDF1). Haruo Tsuji, previously a senior executive director, was appointed the new
President upon Saeki’s resignation (PDF1). In January, the LCD department was upgraded to the
Liquid Crystal Display Division, which indicated the company’s determination to focus
specifically on LCDs (PDF1). In October, efforts were made to revitalize the business with a
variety of 116 items companywide: such as the introduction of new products, the utilization of
parts procured from overseas, and the review of different expenses (PDF1). Throughout the year,
Sharp consolidated the separate marketing groups that existed for consumer electronics and
information equipment into one organization (PDF1). Sharp introduced a variety of products into
the market during 1986 including a desktop-size high-precision colored scanner, an answering

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machine, and the first products from the U’s series: a toaster and microwave oven (the RE-102)
and a combination microwave and refrigerator (the SJ-30R7) (PDF1). During the Japan
Electronics Show in Tokyo in 1986, Sharp Corporation exhibited a 3-inch TFT LCD television
with about 92,000 pixels (PDF1).
In January of 1987, Sharp introduced the world’s first kanji-capable electronic organizer,
which had five personal information management functions: a calendar, scheduler, memo
function, phone book, and calculator (8). The X68000 Series was introduced in March and had
natural color graphics and superb sound quality (PDF1). The company introduced the WD-540
word processor in May of 1987, which was loaded with the artificial intelligence dictionary that
was developed by Sharp (9). On June 26, Saeki retired from acting chairman and became a
corporate advisor (10). The 3C-E1 3-inch LCD color television was released in October, and an
ultra-low-power CJ-S30 cordless phone was introduced at the end of the year in December
(PDF1). After stepping in as the new President of Sharp Corporation, President Tsuji introduced
and set a company-wide slogan: “Catch the opportunity in change and create new demand. Have
a creative spirit for innovation and act upon it (PDF1).” Other important events in Sharp’s
history from 1987 that should be noted are that the company released the ES-X1 washer and
dryer that incorporated a washing machine and dryer in one unit, they developed an ultra-high-
luminance 5,000 mcd LED lamp which expanded the application of LEDs to electronic
billboards, tail lights for automobiles, and other uses, and the name ‘Sharp’ became linked with
LCD (PDF1).
April 1988 brought about the introduction of the low-power CJ-S100 cordless phone
(PDF1). As Sharp was beginning to prepare for its 80th anniversary in 1992, they implemented a
new company-wide strategy to use optoelectronics as a core technology to expand the size of the

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business and it also called for placing more emphasis on information and electronic devices, as
well as other new areas (PDF1). Two employee focused programs were started including: an
internal application program where employees could tackle areas that the company was pursuing
and a program that sent employees for a limited time inside and outside the company so that they
could gain a wider range of knowledge in the field (PDF1). During 1988, Sharp introduced the
WV-500 laptop word processor, completed the first prototype of the 14-inch color TFT LCD,
and commercialized a series of mobile information tools under the brand name of Bware
(Business Ware) (PDF1). Sharp Corporation also made it clear in their basic corporate policy
that it intended to become a comprehensive electronics company with optoelectronics as its core
technology (8).
Sharp Corporation continued their endeavors into the year 1989, when it introduced an
industry first – a refrigerator with a dual-swing door that could open to the right or left (the SJ-
38WB) (11). Another industry first was introduced in September of the same year when the
company introduced the first low-power cordless phone with an answering machine (the CJ-
A300) (12). Sharp also introduced its first full color copier (the CX-7500), the LCD projection
system which made it easy to create a 100-inch display (the XV-100Z), and the industry’s first
video camera with a color LCD viewfinder which made it possible for users to identify objects
by color (PDF1). The LCD projection system received the grand prize at the 1989 Nikkei
Outstanding Products and Services Awards (PDF1). A new personnel evaluation system was
implemented where employees had an interview with their superiors to set goals and evaluate
their performance (PDF1). In 1989, Sharp embarked on the development of a global network
linking all of its business locations around the world using dedicated telecommunications lines
(PDF1).

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The year 1990 saw the introduction of a home use fax system, (the UX-1), that could be
placed beneath a telephone in October (13). Two months later, in December, Sharp introduced a
VCR that had a vacuum deposition head and enabled users to enjoy high-quality images, even
when playing them back in extended play mode (PDF1). A new up-to-date model of Sharp’s
word processor was released in 1990, (the WD-A340), which included Super Outline Fonts that
could be printed beautifully regardless of the font sized used (PDF1). A classroom / learning
support software developed by Sharp System Products that utilized networks and supported the
creation of teaching materials was introduced in 1990, as well as the AX386LC color TFT LCD
Laptop PC (PDF1). Sharp developed an EL display capable of processing handwritten text that
users could input as if they were writing on paper (PDF1). The company also revealed a
convection microwave that it had been developing that incorporated fuzzy logic control (8).
In April of 1991, Sharp Corporation instituted a system to oversee product quality and
reliability and different environmental issues (8). The company achieved two industry firsts in
the year of 1991. The first was the introduction of a fully automatic washing machine, (the ES-
B750), which used air bubbles to clean (PDF1). The second was the first wall-mount LCD TV,
(part of the 9E-H series), which also incorporated the industry’s largest 8.6-inch TFT LCD with
437,760 pixels (8). Aside from producing industry firsts, 1991 also brought about the
introduction of the business use word processor (the WD-SD70), the release of a high-speed
copier (the SD-2075), and the introduction of a pocket cordless phone with an answering
machine function, which featured an easily portable handset (PDF1). Throughout 1991, Sharp
continued to reinforce its leadership position in the LCD field by completing a new LCD plant in
Japan, as well as a new facility for mass-producing LCD panels in the United States (PDF1).

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The global network of telecommunications lines that was started in 1989 covered sixty
two bases in thirty countries as of April 1992, which meant that these countries were able to be
globally connected to one another (PDF1). One electronic product that was debuted in October
of 1992 was the ViewCam, which had a promotional concept of “shoot, watch, and enjoy” and
ushered in a new era of video cameras (14). The year 1992 saw the release of a portable word
processor with handwritten input via a pen-stylus (the WV-S200), the release of a high definition
television with a built-in MUSE decoder (the 36C-SE1), and the release of a 16:9 widescreen,
ultra-high-resolution high definition television with 1,125 scanning lines, which was more than
twice as many as conventional televisions (PDF1). Sharp Corporation introduced a variety of
products into the market in 1992 including: a word processor that allowed handwritten editing
using a pen-stylus (the WD-A751), a fully automatic washing machine (the ES-BE65), an
electronic organizer with a pen-based operation, and the RZ-A765 for system products with a
duty color LCD (PDF1). As a corporation, Sharp celebrated its 80th anniversary and also added
six new sales organizations, which made for a total of nine subsidiaries in nine countries (PDF1).
Sharp Corporation signed a long-term business partnership with Intel Corporation of the United
States, with a major focus on research and development and the production of flash memory
(PDF1).
In 1993, Sharp Corporation debuted the world’s smallest and lightest portable MiniDisc
player of its day that took the industry by storm (15). Two different refrigerator models were
introduced and developed throughout 1993: the SJ-V45K which used a newly developed CFC-
free vacuum insulation material and the SJ-SE40R which became number one in the industry for
energy savings (PDF1). The LCD ViewCam that was introduced in 1992 grew into a flagship
product for Sharp during 1993 and showed the world that “LCD is Sharp” (PDF1). The growth

23. 23 | S h a r p
of this product contributed to the boosting of the company image (PDF1). A new PDA, the
Zaurus, was developed and incorporated new features such as facsimile transmission, PC linking,
handwriting recognition, and multimedia (16). The Zaurus became one of Sharp’s flagship
products alongside the ViewCam (PDF1).
Sharp Corporation continued their innovative success into 1994 as they developed and
introduced more products into the industry. Sharp developed the industry’s first reflective color
TFT LCD that was easily viewable, even outdoors, and did not require a backlight in 1994 (8). A
new residential solar power system consisting of monocrystalline solar cells with high
conversion efficiency and compact power conditioner to handle the grid interconnection was
introduced (PDF1). The company also introduced an enhanced version of their digital copier, the
AR-5040, which made physical copies after first storing digital images of the originals on a built
in hard drive (PDF1). Sharp announced the development of a 21-inch TFT color LCD wall-
mount TV, which was the world’s largest up to that point in time (8). This development showed
the world Sharp’s high standard of LCD technology and broke the 20-inch barrier in the industry
(PDF1). Aside from introducing and developing new products in 1994, Sharp was also in the
process of expanding their production facilities. The company established a new plant in
Indonesia for the production of color televisions and refrigerators (PDF1). A new production line
was also started in August of 1994 that would produce four 104-inch LCDs from a second
generation glass substrate (PDF1).
Sharp Laboratories of America, Inc. was established in 1995, which continued the
expansion of the company (17). This facility, located in Washington State, was founded so that
researchers in America could use rapidly advancing multimedia technology to create original
products for the company (17). The year 1995 also brought about the introduction and launches

24. 24 | S h a r p
of more new products from Sharp Corporation. The Mebius notebook PC, (the AV1/50CD), was
launched as a core Pi2T product (PDF1). Sharp introduced products including an updated version
of the digital copier originally introduced in 1994 that included facsimile functions (the AR-
5030FR) and the RZ-A505 for system products with an 8-inch color TFT CLD display (PDF1).
A Window series of LCD televisions that included the 10.4-inch LC-104TV1 model was also
introduced in 1995, which was promoted as a line of personal televisions that could be set up
almost anywhere (PDF1). The company announced their development of a 28-inch LCD using
next-generation LCD technology (PDF1).
In May of 1996, Sharp Corporation was among the first companies to establish an online
presence in the early days of the commercial Internet (17). Websites were created in Japanese
and English in order to provide company information and new product news to the public (8). A
new air conditioner was introduced in October that featured conventional dehumidifying,
heating, and cooling functions but also featured a ventilation function and a humidifying function
that did not require a water supply (PDF1). This air conditioning model was an industry first.
The MR-1 was introduced in 1996, which included different functionalities, such as internet
access and PC communication (PDF1). A colored version of the Zaurus PDA was released (8).
Sharp Corporation’s innovation and different products won them awards and got the company
recognized globally. The colored version of the Zaurus PDA won numerous awards throughout
Japan and the United States of America (8). Japan’s leading economic daily newspaper chose
Sharp Corporation as the second best domestic company, out of 1,054 companies, for fiscal year
1995 (8). The newspaper rated Sharp highly for the development of key devices and original
products with unique features such as the company’s LCDs, its constant effort of developing and

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releasing demand-creating products, and increased sales and profitability for four continuous
years (8).
October of 1997 brought about Sharp Corporation’s effort to promote environmentally
sustainable management by establishing the Environmental Protection Group (8). The
Environmental Protection Group promotes a 3G1R strategy company-wide: Green products,
Green factories, Green mind, and Recycling business (8). Sharp aimed to become the number
one environmentally responsible company in the industry with respect to all aspects of the
company (8). Sharp launched a website that was specifically designed and catered towards
material procurement (PDF1). The company began satellite based digital communications
service in 1997 (PDF1). The Sharp Middle East Free Zone was established which managed the
markets of the Middle East, Africa, and Central Asia and worked to expand sales throughout the
entire region (PDF1). Sharp Corporation announced success in the development of a 42-inch
plasma addressed liquid crystal (PALC) display to drive LCDs, but ultimately ended up shelving
the product for certain reasons (PDF1). Although this product was shelved after development, it
still proved that large screen could be done which was a huge step for Sharp Corporation in the
industry (PDF1).
On June 26th of 1998 brought about changes for the leadership of Sharp Corporation.
Corporate Senior Executive Director Katsuhiko Machida was named the new Sharp President,
while President Haruo Tsuji became a corporate advisor for the company (17). Corporate advisor
Saeki became a corporate senior advisor for Sharp on this day as well (PDF1). In August of
1998, the new president declared that all televisions sold in the Japanese domestic market would
be replaced with LCD televisions by the year 2005 (17). With this decision, President Machida
chose the LCD business as Sharp Corporation’s focus (PDF1). A decision to streamline

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operations and strengthen the frontline of sales in October of 1998, meant that Sharp’s sales
companies for home appliances and information products were to merge into one segment
(PDF1). Company changes were not the only thing to occur in 1998; new products were also
developed and introduced to the marketplace. Sharp developed the world’s first System LCD
(PDF1). The company also succeeded in becoming the first company in the world to create a
stacked CSP for mobile devices that layered two LSIs to fit into a smaller package, which in turn
enabled the creation of smaller devices (PDF1). The J-SH01 mobile phone was developed, which
could display text messages that were eight characters by six lines long (PDF1). This model
became very popular and was the key to success for Sharp into getting in the mobile phone
business (PDF1). Sharp introduced an easily portable B file size notebook PC, the Mebius PC-
PJ1 (PDF1). A new series of Sharp’s multifunctional printers were developed in 1998 – a 3-in-1
unit which combined copier, fax, and printer functions into one (PDF1).
The Crystal-Clear Company Declaration was made in January of 1999 by Sharp’s
management, which called for the company to become the only company of its kind that shined
with unique technologies like LCDs (PDF1). Sharp Corporation announced the world’s first 20-
inch LCD televisions in February of 1999 and began sales immediately in March (8). The
world’s first Internet-capable microwave oven was released during this year, which let users
download recipes from the Internet that included automatic heating instructions (8). Building off
of the environmental program that was started a few years earlier, Sharp took measures to reduce
waste and greenhouse gas emissions and established Green Factory Guidelines (PDF1). The
company also felt that it was important for stakeholders to know what environmental policies the
company was enacting. Sharp Corporation began publishing the Sharp Environmental Report,

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which disclosed environment-related information and enhanced communication with its
stakeholders (PDF1).
From January 1st through January 4th of 2000, Sharp Corporation ran a massive
commercial campaign on TV to advertise and promote their LCD televisions and the LCD
business (PDF1). The company released the FU-L40X PC1 air purifier in October (PDF1). This
air purifier used the world’s first Plasmacluster ion air purification technology, which emits
positive and negative ions into the air, in turn deactivating impurities (8). This air purification
technology was also developed by Sharp (8). The J-SH04 was introduced to the market in
November of 2000, which was the industry’s first mobile phone that was equipped with a camera
(18). This phone also enabled users to send and receive photos as email attachments (18). The
next version of the mobile phone, the J-SH05, was introduced the following month in December
(PDF1). This version of the mobile phone was a flip-type phone with a TFT LCD that could
display 65,536 colors (PDF1).
Sharp Corporation introduced a variety of new products into their LCD television market
in January of 2001 including the 20-inch LC-20C1, the 15-inch LC-15C1, and the 13-inch LC-
13C1 (19). The company’s LCD televisions took on the nickname AQUOS, also in January
2001, which combined “aqua” (water) and “quality” to express the image of liquid crystals
(PDF1). The debut of AQUOS occurred in August 2001 at IFA, Europe’s largest exhibition of
AV and multimedia products (PDF1). The next model of Sharp’s mobile phone, (the J-SH07),
was introduced in June, which was a flip-type mobile phone that was equipped with a camera
and TFT LCD (PDF1). Sharp Corporation used the PC1 generators that it developed in air
conditioners, clothes dryers / dehumidifiers, refrigerators, humidifiers, and humidifying ceramic
fan heaters (PDF1).

28. 28 | S h a r p
In 2002 marked Sharp Corporation’s 90th anniversary (PDF1). July of 2002 brought about
the development of the groundbreaking 3D LCD that did not require special glasses to be worn
by the viewer (PDF1). The same technology was used for the SH251iS mobile phone from NTT
DoCoMo and for the Sharp PC-RD3D notebook PC (PDF1). A company-wide campaign was
launched in 2002 called the ‘Be Sharp Initiative’, which aimed at improving the company’s
brand power (PDF1). Management wanted to build a stronger brand by creating a new vision and
developing products that reflected such a vision (PDF1). In November of the same year, Sharp
commissioned Hittsubashi University’s Professor Kunio Ito, (who helped develop a method to
measure the value of branding), to assist and promote branding activities for the company
(PDF1). Sharp Corporation introduced the 37-inch LC-37BD5 into the market, which
incorporated the HDTV LCD panel and also utilized quick shoot technology that ensured clear
images (PDF1).
In April of 2003, Sharp Corporation instituted the Sharp Charter of Conduct, which
placed an emphasis on the importance of observing regulations and respecting corporate ethics
(PDF1). Sharp shifted to high-resolution LCDs in 2003 for mobile devices and began a full-scale
production of System LCDs (PDF1). The company began their solar production in the United
States at Sharp Manufacturing Company of America in Memphis Tennessee, which produces a
variety of modules for commercial and residential solar installations (8). Sharp developed and
implemented a technology that enabled the repeated recycling and reuse of waste plastic as
material for use in new products such as in air conditioners, television sets, refrigerators, and
washing machines (8). This technology used by Sharp Corporation in 2003 was an industry first
(8).
Tokuji Hayakawa phrased the embodiment of the company in a single slogan “make

29. 29 | S h a r p
products that others want to imitate” (8). Sharp has been a leader in technology with new
innovations for electronics, appliances, industrial equipment, and office use. Since Sharp’s
expansion out of Japan in 1962, the company has prospered in the United States for the past 50
years. The era of Internet reliance from the past two decades has helped Sharp make a more
definitive presence in the technology world. “From the first solar-powered calculator to the
largest commercially available LCD monitor, from copiers to solar cells, from air purifiers to
steam ovens, and from microelectronics to microwave ovens, Sharp covers all of the needs of the
contemporary lifestyle” (8).
Within the last decade Sharp pioneered several new products such as the state-of-the-art
Kameyama Plant in 2004. The Kameyama Plant created and incorporated the manufacturing of
TVs and introduced popular high-quality LCD TVs that came to be known as “Kameyama
models” (PDF1). This plant helped establish the concept of environmental technology to the
company that became critical for their growth. The Kameyama Plant was also Sharp’s first
Super Green Factory and promoted environmentally friendly production through reduced CO2
emissions and 100% recycling of wastewater. The facility was built to withstand natural hazards
including earthquakes. From this development, Sharp began to expand to energy-creating solar
cells and energy-saving LCD TVs. Sharp has also developed Illuminating Solar Panels that
utilize high-luminance LEDs (light-emitting diodes) with transparent, high-conversion-efficiency
thin-film solar cells. These solar panels allow light to pass through them and can provide
illumination in the evening due to the implanted LEDs. Additionally in 2004 Sharp integrated a
Superheated Steam Oven. This innovative appliance promotes greater health with technology
“that achieves low-calorie, low-salt cooking using superheated steam at about 300°C. The
process enjoys three major features—reduced fat, lower salt, and preservation of vitamin C in

30. 30 | S h a r p
foods” (8). Sharp continuously reached to be a company with zero global warming impact. They
desire to balance the greenhouse gases emitted from production through distribution of energy-
saving and energy-creating products. In 2004, Sharp rapidly expanded business in overseas
markets such as China. Through the year, Sharp established the SHINE (Sharp International
New Experience) program. This provided an opportunity for a training system allowing young
employees to earn work experience and learn a language abroad.
Sharp became a leader for solar cell production and environmental companies and in
2005 they introduced a 65V-inch Digital Full-HD LCD TV, which was the largest in the world at
the time. Continuing their leading steps towards environmental friendliness they installed a 4.5
kW Sharp solar system in Major League Baseball’s San Francisco Giants’ AT&T Park. “The
system generates 120 kW of clean electricity that is fed back into the grid serving PG&E's
customers throughout northern and central California” (8). Also in San Francisco, they built a
904 kW Sharp solar system at FedEx’s hub at Oakland International Airport. This provides
around 80% of the electricity that the system needs.
LCD panels are a large part of Sharp Corporation and therefore they created a system that
stabilizes a system to ensure a dependable supply. They adopted “eighth-generation glass
substrates (2,160 x 2,460 mm), a world first, and sets up a global five-base production system
with the goal of producing products in the region in which they are used” (PDF1). Also in 2006,
the Japanese Environment Association awarded Sharp with the Eco Mark, which is a Type I
environmental labeling. After this recognition Sharp developed samples of laser diode that can
reach a 10,000-hour service life. At the time this was the longest in the industry and only used
168mW of power. “This diode is ideal for playback of next-generation DVDs, such as Blu-ray
Discs and HD-DVD” (PDF1).

31. 31 | S h a r p
At the 2007 Consumer Electronics Show in Las Vegas, Nevada Sharp presented a 108V-
inch LCD TV that was created at the Kameyama Plant made from the first eighth-generation
glass substrates. During this year, Sharp continued to produce various LCD technologies. The
Mobile Advanced Super View LCD and System LCD technology with embedded optical
sensors; these feature touch-screen and scanning capabilities (PDF1). Sharp establishes its solar
system on the Google headquarters in California. It was the largest commercial solar installation
at the time. “In addition to roof-mounted arrays, the system also features a new structure that
encompasses two carports under which employees can park – and if they drive a plug-in hybrid -
recharge their car” (PDF1).
In 2008, Sharp continues their development with LCD TVs and released the Next-
Generation X Series AQUOS® LCD TVs. This product shows off their Mega Advanced Super
View LCD, which incorporates superb picture quality, a thin-profile design, and exemplary
environmental performance. Sharp uses 1-Bit digital amp for optimal sound quality. Sharp’s
growth lead to a joint venture with Italy’s largest power company Enel SpA (Enel). They agreed
to operate as an independent power producer (IPP). The agreement leads to the development of a
number of solar power plants with a total capacity of 189 MW by the end of 2012 (PDF1).
Another accomplishment that they achieved in 2008 was to produce the one millionth solar
module at Memphis factory and grow production capacity at Sharp Manufacturing Company of
America (SMCA) to 100 MW.
By 2009, Sharp revealed the DL-L60AV LED lamp. It features a remote controller for
changing the color of the light; this is also an industry first. “Users could select their preferred
shade of white according to the weather, season of the year, or time of day. For example, warm
white during the winter or at dinnertime when a relaxing atmosphere is desired, or a crisp cooler

32. 32 | S h a r p
daylight white during the summer or in the morning for a refreshing wake-up” (20). Sharp
pushed its aim to become an eco-positive company in 2009. They had accomplished an
environmental vision of energy creating and saving products to balance greenhouse gas
emissions. They set goals for 2012 to have reduced greenhouse gas emissions by more than
double. “In fiscal 2007, Sharp captured a dominant 43.9% share of the LCD TV market in Japan
(based on Sharp research). Sales of AQUOS LCD TVs in particular received a further fillip in
2009, when the Japanese government enacted its Eco-Point program. This economic stimulus
package used a system of incentives to encourage citizens to purchase energy-saving and eco-
friendly home appliances such as air conditioners, refrigerators, and TVs compatible with digital
broadcasting” (PDF1).
In 2010, Sharp implemented its Eco-Positive Vision to the corporate level and defined the
image that they would work to achieve. Sharp released new LCD TVs that utilized four-
primary-color 3D LCDs, an industry first. This was based on their UV2A technology, adding
yellow to the three red, green, blue, primary colors. This was introduced as LV Series AQUOS
Quattron 3D LCD TVs (20).
2. Historical Analysis of Consumer Electronics Industry
Sharp Corporation is part of the Consumer Electronics industry. Consumer electronics is
based on electronic devices used most often for communication, entertainment, home and office.
Sales of electronic products in the United States grew from some $200 million in 1927 to over $2
billion in 2000. The new U.S. Consumer Electronics Sales and Forecasts report projected that
total industry revenue will reach a record $211.3 billion in 2014; a steady, two percent increase
from $207 billion in sales in 2013 (35).

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Best Buy is the largest consumer electronics retailer in the world; selling a variety of
brands of electronic devices such as cameras, mobile phones, computers, televisions, appliances,
video games etc. also repairing and installing the devices. Richard Schulze founded Best Buy in
1966. Best Buy has more than 1,400 stores and locations, employs around 140,000 and earns
more than 40 billion dollars in revenue (21). They have around 1,100 stores in the United States,
and around 490 international Best Buy stores (22). Best buy acquired Carphone Warehouse and
The Phone House, which are two European retail store chains focused on mobile phones and
accessories (22). After that they operate about 2,390 mobile stores in Europe and 305 mobile
stores in the United States (22). Circuit City was the only significant direct competitor to Best
Buy, since they went bankrupt, this stimulated competition among big retail chains including
Walmart, Costco, and Amazon. Best Buy is concentrating on advancing its marketing strategy to
“more targeted, personalized and relevant customer communication, including the shift away
from traditional TV advertising to more relevant digital marketing” (22). Best Buy wants to
accelerate the growth of their online segment by making this their main focus and update its
website to get on par with Amazon and other competitors (23). They are aiming to reduce its cost
of goods sold by increasing its supply chain efficiency and modifying its return and replacement
policy (23).
Amazon is one of the biggest Internet based companies in the world based on revenue
and number of employees. This company industry is Internet and catalog retail, but being part in
one of the biggest retailers in consumer electronics. Amazon is a strong competitor of Best Buy
as mentioned before. Jeffrey Bezos founded Amazon in 1994 in the United States; employing
around 117,300 people and having sales of 74.45 billion dollars (24). The company operates in
two principle segments: North America and International (24). The North American segment

34. 34 | S h a r p
consists of retail sales of consumer products and subscriptions through North American-focused
websites (24). The international segment consists of retail sales of consumer products and
subscriptions through internationally focused locations (24).
Walmart is another big retail store for consumer electronics. Sam Walton was the founder
of Walmart in 1962. Each week more than 245 million customers visit their 11,000 stores in 27
countries, having 473 million dollars in sales. Walmart employs around 2.2 million people (25).
Walmart’s strategy is to offer the best prices, being lower than any other retailer “the big box
retailer has started offering a number of large discounts on consumer electronics, and the
company’s executives are hoping that the price cuts will help drive stronger sales, ultimately
resulting in more encouraging earnings” (26).
There have been many big and important creations in the consumer electronic industry
through the years. Some of the biggest inventions have been the telephone, radio, mobile phone,
computers and others. The telephone was one the biggest inventions. Alexander Graham Bell
was the inventor of the telephone in 1876, he was granted the first official patent for his
telephone. Bell had the idea in 1874 as he explained that his thoughts were “If I could make a
current of electricity vary in intensity precisely as the air varies in density during the production
of sound, I should be able to transmit speech telegraphically” (27).
The invention of the radio was one of the big inventions of this industry. It all started
with the German physicist Henry Hertz when he discovered the radio waves and also gave the
methods to transmit and detect them (29). Then Guglielmo Marconi developed, demonstrated
and marketed the first successful long-distance wireless telegraph and in 1901 broadcast the first
transatlantic radio signal (28). His company’s Marconi radios ended the isolation of ocean travel

35. 35 | S h a r p
and saved hundreds of lives, including the passengers who survived from the sinking Titanic
(28).
The invention of the television was another big one in the consumer electronics industry.
In 1884 Paul Gottlieb Nipkow patented the first mechanical television, which included a
scanning disk and a spinning disk (30). In 1926 John Logee Baird transmitted monochromatic
images, by doing that he created the first true television that could transmit silhouettes and
monochromatic images (30). In 1927 Philo Farnsworth transmitted an image through the
electronic means of a device called an “image dissector”, this was the first all-electronic
television (31). In 1936 BBC transmitted the first public TV broadcast; it claims to be the
birthplace of TV broadcasting (30). Robert Adler was the inventor of the TV remote control in
1956 (30). In 1962 AT&T launched the first television satellite, people could watch the same
channel even if they are 1 million kilometers apart, this was one of the events that started the
Modern Television Era (30). The introduction of General Electric's compact and
lightweight Porta-Color set in 1966 made watching color television a more flexible and
convenient proposition. In 1972, sales of color sets finally surpassed sales of black-and-white
sets (30).
The mobile phone was a huge change to the world and the consumer electronics industry.
In 1973 Martin Cooper and his team at Motorola developed the mobile phone, which was the
size of a brick, that would not be sold commercially sold for another decade (32). In 1989 the flip
phone was introduced, Motorola came out with a new design where the mouthpiece flipped over
the keyboard. In 1993 developers in Europe came up with a way to send written messages over
the mobile phone (32). The first smartphone is invented which could send and receive emails in
2002; also a company called Sanyo invented a phone that could take pictures. In 2007 Apple

36. 36 | S h a r p
released their IPhone that changed the cellular industry, since it featured a touchscreen and
allowed users to do almost anything they could do from a home computer (33). Now there are
many companies who have many different types of mobile phones.
Computer was another of the big inventions in the Consumer Electronics industry. The
first and most famous computer was the Electronic Numerical Integrator Analyzer and Computer
(ENIAC) was built by the University of Pennsylvania to do ballistics calculations for the US
military during World War II (34). In 1974 a company called Micro Instrumentation and
Telemetry Systems (MITS) a computer kit called the Altair (34). Years after Steve Jobs and
Stephen Wozniak built a homemade computer that would change the world the Apple I, it was
more sophisticated than the Altair; it had more memory, cheaper microprocessor and a monitor
with a screen (34). After that they made the Apple II that had a keyboard and color screen (34).
As time passed they kept improving the computers and now there are many companies who
make computers.
3. Historical Analysis of Key Competitors
Competitor #1 – LG Electronics
LG Electronics was established in 1958, and was known as GoldStar was born as Koo In-
Hwoi saw the possibility of a new business in the electronics industry (PDF5, p.12-24). In 1959
before the inauguration of the company GoldStar’s design laboratory had already started
designing the new radio model (PDF5, p.12-24). In November the first domestic radio A-501
was designed. In 1960 they developed its second radio T-701 which was beyond the vacuum
tube, using new technologies, but it was a disaster since the market demand was very limited, it
put the company’s existence at stake (PDF5, p.12-24). They had to consider whether or not to
keep the company in 1961. They found a way to enter the market since 5.16 military government

37. 37 | S h a r p
announced its decision to supply radios to rural and farming areas. Sales of radio rose to 1
million (PDF5, p.12-24). The company was recording 1,034,00 in 1962 in sales (PDF5, p.12-24).
Also this year was the first domestic radio exports.
In 1964 Korea’s first electronic appliances were monochrome TVs, air conditioners,
refrigerator, and others (PDF5, p.12-24). GoldStar introduced Korea’s first television in 1966
(PDF5, p.12-24). The Korean electronic industry was taken to another level. The year 1968 was
when the first air conditioner came out of the assembly line (PDF5, p.12-24). In 1969 the first
washin machine nicknamed White Swan was created; this was an event, which impacted Korean
housewives lifestyle (PDF5, p.12-24). GoldStar declared its Communication division an
independent business and established the GoldStar Communications subsidiary, also the Wiring
division was separated from the company to establish the GoldStar Cables subsidiary (PDF5,
p.12-24).
LG introduced the first cassette recorder in the market in 1973. They developed a variety
of models including one that combined radio, television and a cassette tape recorder (PDF5,
p.12-24). GoldStar was the first to establish a central research laboratory in 1975 that was
dedicated to technology enhancements (PDF5, p.12-24). In 1976 they developed their first color
TV. The company established Korea’s first overseas local production subsidiary GoldStar
America, Inc in 1980 (PDF5, p.12-24).
In 1991 the company further expanded its industrial design contest global-wide,
contributing to the growth of the international design industry (PDF5, p.12-24). In 1994 GoldStar
officially announced the merge and acquisition of the GoldStar Communications as part of the
company’s comprehensive management plan toward the 21st century. In 1995 they renamed the
company to LG Electronics (PDF5, p.12-24). Korea initiated the world’s first CDMA platform-

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based digital mobile service in 1996 (PDF5, p.12-24). LG Electronics entered the CDMA market
with its new LDP-200 mobile phone. LG developed Korea’s first 40-inch plasma display panel
in 1997, showing their advanced digital technology (PDF5, p.12-24). In 1998 LG Electronics
developed and unveiled the world's first clutch less Turbo drum washing machine targeting the
worldwide market (37). LG Electronics and Philips joined to launch their joint venture in 1999
(37). With that LG Electronics was able to reinforce its financial structure and secure resources
to invest on businesses. In the year 2000 LG Launched the world's first Internet
refrigerator Exports synchronous IMT-2000 to Marconi Wireless of Italy (37). Also having the
products exported to Verizon Wireless in U.S. In 2001 GSM mobile handset Exports to Russia,
Italy, and Indonesia, they also established market leadership in Australian CDMA market (37).
Also that year LG launched the world's first Internet washing machine, air conditioner, and
microwave oven (37). In 2002 LG Holding Company system separates into LG Electronics and
LG Corporation (37). The year 2003 was a big year they achieved monthly exports volume
above 2.5 million units (37). They were the top global CDMA producer (37). The year 2004 was
a big year for LG; they commercialized the world’s first 55 inch all-in-one LCD TV and also
commercialized world’s first 71 inch plasma TV (37). They also developed the world’s first
satellite and terrestrial-DMB handsets. In 2005 they became the fourth largest supplier in the
mobile handsets market worldwide (37). In 2006 the first model in LG’s Black Label series of
premium handsets sells 7.5 million units worldwide (37). From 2000 to 2007 they were the
world’s largest air conditioning unit manufacturer (PDF5, p.12-24).
They posted the number one spot in U.S. frontloading washers in five consecutive
quarters in 2008 (37). Also they unveiled the world’s first Bluetooth headset combined mobile
phone and also the first Blue-ray network storage (37). They recovered over one hundred million

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units of LG air conditioners in accumulated sales (37). The year 2009 was a great year for them
as they became the second largest LCD TV provider worldwide and the third largest supplier of
mobile handsets market worldwide (37). They also became Global Partner and Technology
Partner of Formula One (37). In 2010 they unveiled the world’s first and fastest dual-core
smartphone and they also unveiled the world’s first full LED 3D TV, entering the smartphone
market (37). In July 2010, LG Group was ranked 67th in the Fortune 500 list of largest
companies with revenue exceeding $100.5 billion, operations in over 60 countries, and
employing approximately 186,000 worldwide (37). In 2011 LG introduced Cinema 3D Smart TV
combining industry-leading 3D technology and smart TV capabilities. (37)
Competitor #2 – Panasonic Corporation
Note: Panasonic from 1918-2000 is from Panasonic’s website unless otherwise noted. (38)
Panasonic was founded in 1918 by Konosuke Matsushita with three employees in a small
two story building in Japan. The initial idea by Matsushita was to tap into the untapped market of
high quality household electrical fixtures. These were of higher quality and cheaper than any
competitor offered. In February 1920 Matsushita had a company trademark of an M overlaid
with an arrow and surrounded by a wide diamond. It was meant to symbolize reaching a target
and driving through all obstacles in the way. One such obstacle was keeping up with demand.
This was overcome in 1922 when the company leased a site nearby their two-story building to
work as a factory and office. This resulted in more than 50 employees working for the company
by year end.
Around this time Matsushita developed a bullet-shaped bicycle lamp, called Excel, which
soon became a major product for Panasonic. The Earthquake near Tokyo in 1923 demolished
their sales network, but in 1924 Tokyo established a new office rebuilding the sales network.

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Shortly after that Matsushita signed a three-year exclusive sales agreement with Yamamoto
Trading Company for their Excels. This deal had tension as Yamamoto rejected Matsushita’s
attempt to guide the marketing of Excel. A new square-shaped battery lamp was developed, later
called the National, by Matsushita during this agreement with Yamamoto. He had to fight with
Yamamoto for the rights to marketing this new product, and ended up paying ten thousand yen to
market his own product. The product began marketing in April 1927 and was a massive success
selling 30,000 units a month in their first year.
These early successes were accomplished by risky campaigns from Matsushita in which
he put the company’s future at risk by providing free initial orders to stores to prove the product
would work. In 1927 the company began moving into products that produced heat through
electricity. They hired Tetsjiro Nakao as head or their research and development division, he
would stay until his death in 1981. Nakao is largely responsible for turning Panasonic into a high
quality technology company. In 1929 the company was renamed to Matsushita Electric
Manufacturing Works. This was followed by the stock market crashing which created an excess
amount of unsold stock. Matsushita halved production and did not lay off a single employee.
After two months the excess inventory was gone and demand had recovered.
In 1930 Panasonic began working in a joint venture to manufacture quality radios, which
by 1931 Matsushita himself took over the partnership and instructed Nakao to develop a higher
quality radio. The product was made and was recognized as one of the best radios of the time. In
1932 Matsushita announced a new mission to help overcome poverty that would take 250 years
to complete. The mission would consist of ten 25 year periods in which it would start with a ten-
year “construction” phase followed by a ten year “fully active” phase, finishing with a five year
“fulfillment” phase. They also began exporting this year. In July of 1933 Matsushita moved the

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Head office and factory complex to a new 70,000m2 facility in northeast of Osaka to
accommodate the growing demand for their products. Matsushita devised a system to
autonomously manage corporate divisions that was innovative for the time.
By 1935 the company employed 3,500 people, and twelve million yen in revenue. In
1938 the company began importing. When the Pacific war broke out in 1941 the company had
continual issues getting commercial products. In 1943 the company began building ships and
airplanes for the military effort. This was conducted by orders from Japan, and would cost the
company greatly after the war. In 1945 after the bombs dropped the employee roll dropped to
4,400 from 26,000. Panasonic lost 32 factory and office facilities in Japan. Overseas factories
and sales outlets were confiscated. However, the head office and main factories were still
standing and under Matsushita’s control. The company was forced to rebuild.
In 1946 the Allied Powers were forcing Matsushita to step down because of his help with
the war efforts. However, in 1947 the Allied Powers reversed their decisions when the
company’s labor union declared that Matsushita was a mainstay and that his loss would mean the
destruction of the company. This was contrary to what most labor unions in Japanese companies
believed of their management. In addition to the fight to keep their management, the company
also had to fight to get help with recovery. From 1945 to 1950 Panasonic was classified as a
family-controlled industrial and financial combine, which would get no relief from its huge
wartime debts. This designation was supposed to be in place to break up businesses with power
that had been around for generations. In 1950 the designation was lifted.
After these issues Panasonic laid off 567 of its 4,438 employees; one of the few layoffs in
the company’s history. Then in 1951, Matsushita announced his plans for reconstruction as
global instead of just focusing nationally. He then went on a three month tour of the US getting

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to understand the world’s most successful economy. He identified he needed a technical partner
in the US. This partner he determined was Philips. This partnership led to the establishment of
Matsushita Electronics Corporation in 1952 and a factory in Takatsuki, Japan. The company
began production of washing machines in 1951. Research and development of TV technology
was restarted in 1950, they were on the market by 1952. In 1953 the company began selling
refrigerators and built a new laboratory to conduct new research on modern products. In 1956
Matsushita announced a bold five year plan to quadruple annual sales to eighty billion yen and
increase employees from 11,000 to 18,000. This was achieved in four years.
In January 1961 Matsushita announced his resignation as president and took a lesser role
as a chairman handing control to family member Masaharu Matsushita. Then the company began
providing technical assistance to companies that needed it to combat poverty as the founder
continually brought up as part of the mission. In 1965 the new President Matsushita developed a
plan that was accepted within the company for a new national sales network. This began with a
nationwide reorganization of the sales company network, initiating direct transaction and
bypassing sales offices, and creating a new credit sales system. In addition Panasonic became
Japan’s first major manufacturer to introduce a five day work week. The Panasonic’s sales
department began to feel a push for sales companies to find what the customer wanted; this lead
to a succession of hit products and rapid expansion such as console stereos, an automatic
washing machine, and a console TV in 1965. In 1967 President Matsushita announced the
company’s first management slogan that contained three goals; “promote management to make
the company outstanding in world-class terms, to make creative efforts to double productivity,
and to develop innovative new products based on cutting-edge technology” (39). The next year
was the 50th anniversary in which Panasonic grew in sales 34.5%. This was partially due to the

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multiple technology exhibitions they attended and would continue to attend in the coming years
that have helped enhance public awareness of Panasonic as a high-technology company.
In 1970 Panasonic held an Expo that resulted in a time capsule visited by seventy-six
million people and containing 2,098 objects representative of the current culture for people living
5,000 years in the future. In 1971 in an effort to become more globalized Panasonic registered to
trade its share on the New York Stock Exchange. In 1973 Chairman Matsushita retired and left
Arataro Takahashi as the new chairman. The company made donations to social welfare projects
totaling five billion yen in Japan to commemorate the event. Then in 1977 President Masaharu
Matsushita replaced Takahashi as chairman, and Toshihiko Yamashita became the new
president. Yamashita began immediately recovering profitability and maintaining profit margins.
Yamashita stayed and was instrumental in developing a VHS department, but by 1986 resigned
to a senior adviser position letting Akio Tanii become the President while Japan was in a
recession.
In 1987 Tanii began pushing for better product design that responded to human need
combined with advanced technologies. This was also the year they adopted a unified accounting
year for the Panasonic group. Tanii also signed the first agreement with China in the post-war
period in which they would create picture tubes for color TVs. On April 27, 1989 the company
founder Konosuke Matsushita died at the age of 94. MCA was bought by the Panasonic Group in
1990 to work together on new electronic entertainment technologies in both hardware and
software. Panasonic had the audio and video technology, and MCA had the software resources
that could be combined to create better profitability. In 1991 Panasonic adopted the
“Environmental Charter” that says to adopt the latest environmentally-friendly technologies and
processes. All of Panasonics operating units are responsible for following this charter. In 1993

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Tanii stepped down and Yoichi Morishita was appointed President. This same year Philips was
bought out of their agreement by Panasonic ending a 40 year partnership. In 1996 Panasonic
released the lightest mobile phone yet; venturing into the expanding cell phone market. In 1998
Panasonic got an early lead on the industry by releasing digital television sets and reception
adapters compatible with all broadcast formats. This was followed by digital HD television sets
in 2000.
In 2000 management was replaced President Morishita with Senior Managing Director
Kunio Nakamura, implementing a new plan emphasizing what he called the 5 S’s; speed,
simplicity, strategy, sincerity, and smile. The company was beginning to lose the public’s trust,
and was attempting to get it back by reorganizing in 2003. Part of this was unifying the brand
under Panasonic to create global recognition of their products.
In 2004, Panasonic began an expansive partnership with Matsushita Electric
Works. The union of this joint venture initiated a new corporate group with significant
management resources. The 21st century has brought about more global competition and
therefore consumers demand products and services catered to their changing values and
increased reliance on technology and networks. By the end of 2004, the combined companies
operations released the first set of “Collaboration V-products,” including toilets, kitchenware,
and furniture (38). “Products…featured a combination of Panasonic Corporation’s energy-saving
and resource-saving technologies, user-friendliness that had been spawned by research results,
and Matsushita Electric Works’ space design technology and home solutions competency. This
was followed up by collaborative products in areas such as home safety, open area security, and
lighting” (38). The joint operations between Panasonic and Matsushita Electric lead to growth
and domination in the car navigation system market, which was boosting their revenue and

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profits (40). “Car-navigation sales make up 40% to 50% of $4.2 billion of revenue at
Matsushita's car electronics unit, Panasonic Automotive Systems. The subsidiary accounts for
6% of Matsushita's total group sales” (40).
Leading into 2005, Panasonic reached further to achieving a milestone of becoming the
number one share of plasma TV sets. “The Amagasaki Plant (the Third Domestic Plant), the
world's largest plasma display panel (PDP) plant, started operations in September 2005. By the
end of November, the plant achieved full manufacturing performance of 125,000 units monthly
in the first phase of operations” (38).
This was part of Panasonic’s efforts to accomplish their “Leap Ahead 21 Plan” starting in
2004, under President Nakamura. The plan, with the mission statement of “De-coustruct &
Create,” achieved the goal of “global survival levels,” where there was an operating profit ratio
of 5% or more and consolidated CCM of 0 or more (38). However, during this installation of
these goals, Senior Managing Director Fumio Ohtsubo took over as president of the company
and Nakamura moved into the chairman position. Ohtsubo declared that his mission as carrying
the brand name to be a representative of global excellence. “President Ohtsubo redefined [it
as]…making Panasonic into a company supported by stakeholders the world over by maintaining
innovation that is unyielding and implementing sound business activities on a global scale” (38).
Ohtsubo prompted a company that incorporates the strengths of each employee into a flowing
sequence of operations that leads to the manufacturing of goods and services that are strong and
reliable.
In the following year, a fourth plant was built and the total plasma display production
(PDP) reached a combined monthly tally of 460,000 units. In January 2007, the new mid-term
plan was announced: continue “steady growth accompanied by profits” to win the right to

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challenge for “global excellence” by 2009” (38). The construction of a Fifth Plant was
announced at the end of 2007 and would become operational by 2009. “In January 2008, the
latest panel technology was displayed at the Consumer Electronics Show held at Las Vegas,
USA. The cutting-edge and original technology of Panasonic Corporation revealed a significant
increase in the luminous efficiency of plasma panels, creating a huge sensation and winning high
accolades” (38). There was greater emphasis on panel displays that were thinner and larger
along with high definition and energy-saving features.
Ohtsubo’s idea of global excellence was more than just profitability and company
expansion; it also focused on environmental initiatives. Panasonic stated its “Eco Ideas
Declaration,” where accelerated environmental management. “The goal of paramount
importance was the reduction of CO2 emissions in manufacturing activities. Panasonic
Corporation has positioned CO2 emissions as a key management indicator along with sales,
operating profits, inventory, CCM, and others” (38). There were three goals that included an
approach to eco-friendly ideas in manufacturing with reducing CO2 emissions and conserving
resources and waste materials. One of those goals was creating energy-saving products and
recycling efforts and finally developing an environmental outreach with the local community as
well as overseas. This overall eco-friendly and environmental initiative increased Panasonic’s
competiveness in the growing market.
Panasonic brought the concept of sterilizing washers in China, in 2007; this was highly
effective here due to consumer preference and Panasonic taking advantage of that analysis. They
were the first big multinational to do so and were able to bolster consumer trust by releasing data
showing the technology’s effectiveness. As a result in no less than a year, the company’s sales
and place in the market for front-loading washing machines went from 3% to 15% in China (41).

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This has stimulated Panasonics to increase their global outlooks. “The company has placed new
emphasis on studying consumer lifestyles in additional markets so that it can continue to create
products that meet specific local needs. In 2009, Panasonic established a lifestyle research center
in Europe (Wiesbaden, Germany) and in 2010 brought similar capacities to India (the Volume
Zone Marketing Research Center in Delhi)” (41).
Since 2008, Panasonic has been attempting to increase its brand recognition. “According
to the CoreBrand Corporate Brand Index®, which has been tracking both the reputation of both
Matsushita and Panasonic brands since 2001, the Matsushita brand has been declining in Brand
Power at a slow but steady rate. Conversely, Panasonic has been growing in Brand Power, just as
steadily” (42). Panasonic’s brand power and recognition had been steadily increasing since 2006,
where brand power was 49.9 and by 2008 they reached 54.3. Panasonic began weighing the
brand with the familiarity and favorability rather than rebuilding the declining corporate brand.
“Much of this brand strength comes from the advertising behind Panasonic’s product brands. For
example, Toughbook has been marketed heavily under the Panasonic brand name…appeal to
public safety and emergency personnel and the advertising is quite effective in standing out in a
crowded field” (42).
Panasonic’s announcement in 2009 stated that they would restructure their motor
division, they hoped for strength in its management that would lead to further growth.
“Panasonic aims for further strengthening both finished product manufacture and device
businesses by vertically integrating Home Appliance and Automotive Motor, Industrial Motor
businesses, and finished products, which are expected to create the mutual synergy effects” (43).
Panasonic hoped that this synergy effect would strengthen its business structure. They focused
on customer relations and expanding through energy efficiency in home appliances as well as

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developing innovative automotive motor unit business. “Panasonic will liquidate Panasonic
Motor Matsusaka Co., Ltd., which is Panasonic's subsidiary company, for accelerating
manufacturing at global optimal locations after transferring compact AC geared motors and
industrial brushless motors to Panasonic Motor (Zhuhai) Co., Ltd” (43).
Competitor #3 – Samsung Electronics
Samsung Group was founded in 1938 by Byung-Chull Lee on March 1st (44). Lee started
his business in Taegu, Korea with 30,000 won (44). When the business first began, it primarily
focused on trade exports, selling dried Korean fish, vegetables, and fruit to Manchuria and
Beijing (44). A little over a decade later, Samsung had established its own flour mills and
confectionary machines, as well as its own manufacturing and sales operations (44). Samsung
established Samsung-Sanyo Electronics in 1969 (46). The newly established Samsung-Sanyo
Electronics began production on the Black-and-White television, model P-3202, the following
year in 1970 (44). The first Samsung black-and-white television went on sale in 1970 (46).
The decade of the 1970s brought about change for Samsung in regards to their exports
and market. Samsung Electronics was already a major manufacturer in the Korean market, but
during the seventies the company began exporting their products for the first time (44). The year
of 1972 brought about the production of black-and-white televisions for domestic sale (44).
Samsung Heavy Industries Company was incorporated in the year 1974, the same year that
Samsung Petrochemical was established (44). The company began production on washing
machines and refrigerators (44). Samsung’s black-and-white television market was booming by
1976, and the following year in 1977, the company started exporting colored televisions (44).
The mass production of microwave ovens began in 1979 for Samsung (44).

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During the 1980s, Samsung challenged itself to restructure old businesses and enter new
ones with the overall goal to become one of the world’s top five electronics companies (44). This
was the decade that Samsung began exporting more of its products to North America (46). Air
conditioners were produced by the company at the start of the decade in 1980 (44). The first
microwave ovens, model RE-705D, were exported overseas to Canada in 1981 (44). Two years
later, in 1983, Samsung began its production on its’ line of personal computers (44). The first
video cassette recorders (VCRs) were exported to the United States of America in 1984 (44). The
year 1986 brought about the development of the world’s smallest and lightest 4mm video tape
recorder (44). Samsung opened a new facility in 1987 for research and development purposes –
the Samsung Advanced Institute of Technology (44). This facility was one of the two institutes
that helped Samsung expand its reach into electronics, semiconductors, high polymer chemicals,
genetic engineering, optimal telecommunications, aerospace, and new fields of technology
innovation (44). Founding chairman Byung-Chull Lee passed away in 1987 after running
Samsung for almost 50 years (44). Byung-Chull Lee’s son, Kun-Hee Lee, succeeded him as the
new Chairman of Samsung (44). It was decided in 1988, with the merger of Samsung
Semiconductor & Telecommunications Company, that home appliances, telecommunications,
and semiconductors would become the core business lines for Samsung (44).
In a decade that presented difficult challenges for high-tech businesses due to mergers
and acquisitions, Samsung made the most of any opportunities that it was presented with (44).
Samsung completed the development of their mobile phone handset with the start of the new
decade in 1991 (44). The year of 1992 brought about many new developments for Samsung, as
well as other successfully ventures. The company developed a new mobile phone system, a
250MB hard disc drive, and the world’s first 64M DRAM (44). Samsung also made an