Abstract
Alliance has merits and demerits, and they determine the success and failure. The case of alliance between Sharp and Hon Hai (the world top of the electronic device contracted manufacture service: EM)) was analyzed. Sharp performed the vertical integration from LCD panel to the assembly of LCD television at Kameyama factory, and it was succeeded. This vertical integration was developed into Sakai factory. However, it expanded to the total cost of 1 trillion yen. Then, Sharp formed the alliance with Hon Hai in March, 2012. It has the complementary relationship between them. However, the alliance was gave a low evaluation by the market, the sharp stock price was dropped. From this case, the advantages and disadvantages and success or failure of the alliance strategy were analyzed.
