Recently Sharp has been struggling with its sales and recorded a significant net loss of $5.3 billion in the fiscal year ended in March of this year.  As a result of Sharp’s lack of success the company has decided to innovate diversify their product line. Sharp plans to experiment with new technology to grow strawberries in Dubai. The technology would kill germs, bacteria and mold on the fruit by growing the fruit under careful conditions and Sharps new technology. Sharp’s target markets would be growers in the Middle Eat because their strawberries are expensive and quick to spoil. While Sharp’s net-income has been in significant decline due to the decrease in demand for their smartphones/televisions they have seen an increase in demand for their solar sell products; therefore, they have decided to pursue agricultural technology. By readjusting their main focus, Sharp needs to take into account the relevant costs of adding new products at the cost of producing less televisions/cellphones. They will have to allocate capital and resources to design, produce, market, and sell the product. As well, Sharp needs to take into account the fixed and variable costs associated with this production process. If they are not successful in the process they will not break-even and their net-loss will increase in the next fiscal year. However, we have seen that innovating is a good decision for a declining business; after all, it was Blockbusters lack of innovation that forced them into bankruptcy. If Sharp weighs the costs in contrast to the forecasted profit margins of their new innovation, they have the potential to redeem their revenue streams.

http://www.businessweek.com/articles/2013-09-27/forget-tvs-dot-sharp-sees-a-future-in-strawberry-farming