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Log #4 - have to hire more contractors to produce their...

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Kasra Saidi 810-80-7233 BCOR 1010-112 Sony, Sharp to Form LCD Venture Once two highly competitive companies against each other now making agreement on a joint venture factory agreement. Both Tokyo based companies have reached an agreement on a joint venture on a LCD manufacturing plant, which plans to start production in 2010. Both Sony and Sharp realize that in order to capture this increasingly competitive market a big move by both companies was necessary, this plant offers efficiency (producing millions of LCD screens), and a low cost alternative. Sharp invested 66% into the plant and Sony the rest, the total being around 3 billion dollars. Sony did not own any factories to make LCD screens so this will alleviate some future pressure, and for Sharp this will lower the cost burden of producing this facility. I believe that this was a good business decision by both companies. A good business must think about the future in order to maintain their position in the present, and both Sony and Sharp seem to be on top of the ball. Without this new factory Sony would
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Unformatted text preview: have to hire more contractors to produce their LCD’s which can cause many unforeseen problems now they can regulate exactly what is being put into producing these profitable LCD TV’s. A joint venture for Sharp allows for them to cut costs in creating this facility and ally with a large competitor, this is smart business. Both companies are showing exceptional corporate social responsible by creating efficient alternatives that promote efficiency and allegiance. As a shareholder I would like to see the company I am invested in to think outside the box and create a more completive prices in ways that are not always the norm. This merger shows innovation and trust between the two companies canceling out one big competitor and both can now focus on beating out the rest of the LCD TV market in a unified fashion. http://online.wsj.com/article/SB120400393505993347.html? mod=technology_main_whats_news...
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Log #4 - have to hire more contractors to produce their...

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