GLOBAL MANUFACTURING COLLABORATION: A CASE STUDY OF TAIWAN’s HON HAI PRECISION INDUSTRY COMPANY AND JAPAN’S SHARP CORPORATION

Abstract

In April 2016, Taiwan’s Hon Hai Precision Industry Co. invests Japan’s leading electronics makers Sharp Corp. The strategic alliance does not focus on the financial advantages. On the contrary it focuses on increasing sales, strengthening supply chains and increasing manufacturing capabilities and productivity. The final objective of the alliance is to strengthen Sharps’s global competitiveness. After three quarters since the alliance is effective, Sharp is expecting a yearly gain compared to the loss for the last two years. This research summarizes the characteristics of both companies from their individual stories. Then, the research states the success of the alliance, and tries to explain the reasons of Sharp’s failure. This research then shows the key factors of the successful operation in the alliance. This research reviews the history and financial statements of Sharp. Finally we reach to a conclusion. That is, if the company could figure out the major problem actually was the organizational management, not the low demand and price of LCDs or the poor financial structure, the sorrow could be avoided. Finally, this research pinpoints the challenges of new Sharp in sales management of brand-name products and in debt management.