Chapter 6 Creating, Growing and Protecting Knowledge-Based Competence: The Case of Sharp's LCD Business

Abstract

Sharp Corporation, established in 1912, has always tried to identify unique niches that its competitors do not enter, while at the same time continuing to pursue innovation and knowledge creation in those niches. The liquid crystal display (LCD) business is a typical example of Sharp's strategy and innovation. Sharp developed the first successful LCD product – a pocket calculator with a small black and white LCD in 1973 – and since then the company has released a series of unique products with LCDs, including PDAs and camcorders. In 1998, in the face of increasing competition in the traditional cathode-ray tube (CRT) TV market, Katsuhiko Machida, the company's new president and strategic leader, announced his vision of upgrading all bulky CRT televisions sold in the domestic market to flat screen LCD sets by 2005. This vision was bold, since Sharp was the first producer of color CRT TVs and its business was still profitable at the time. However, Machida as strategic leader, predicted tough price competition in the CRT business in the future and began to mobilize Sharp's employees to gain and sustain competitive advantage in the new market.

Citation

Ichijo, K. (2007), "Chapter 6 Creating, Growing and Protecting Knowledge-Based Competence: The Case of Sharp's LCD Business", Hooijberg, R., (Jerry) Hunt, J.G., Antonakis, J., Boal, K.B. and Lane, N. (Ed.) Being There Even When You Are Not (Monographs in Leadership and Management, Vol. 4), Emerald Group Publishing Limited, Leeds, pp. 87-102. https://doi.org/10.1016/S1479-3571(07)04005-9