Foxconn Technology Group: Acquiring Sharp to Move Up the Value Chain (Simplified Chinese Version)
(8 pages of text)
Case (Pub Mat)
In August 2016, Foxconn Technology Group (Foxconn) acquired a majority stake for US$3.8 billion in Sharp Corporation (Sharp), which was on the verge of bankruptcy. In addition to gaining more liquid crystal display (LCD) capacity, Foxconn was combining Sharp’s advanced technology and marketing resources with its own to expand and move up the value chain in both research and development and brand building. However, the post-acquisition integration to realize such value-creation potentials faced several challenges, including the probability that Sharp’s Japanese style of management might not assimilate well within Foxconn’s organization. Now in 2018, what should Foxconn do to seamlessly integrate the two entities? How could Foxconn achieve its efficiency, cost, and innovation goals while moving toward becoming the technology leader and successfully creating its own global brand?
The case is intended for a senior undergraduate- or graduate-level course on international business strategies; mergers, acquisitions, and corporate restructuring; international strategic alliances; or the competitive strategies of emerging-market firms. After completing this case, students will be able to do the following:
- Discuss competitive strategies of emerging- and developed-market companies.
- Discuss motivations and paths that emerging-market firms use to catch up to and compete with global firms.
- Discuss learning mechanisms that emerging-market companies use to move up the value chain, from providing contract manufacturing services to becoming companies that design and manufacture their own brands.
- Discuss how to approach partnering and integration for effective post-acquisition management.
- Discuss the stages and inherent risks in managing international strategic alliances.
Japan; Taiwan; China, Large, 2018
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