Sharp Electronics CEO Discusses Diversification and Industry Challenges

Presenter: Mike Marusic, President & CEO, Sharp Electronics Corporation

At the Executive Connection Summit 2025, Mike Marusic delivered presentation focused on the current challenges in the office equipment industry and the importance of diversification for future growth. He shared his thoughts on market trends, customer opportunities, and strategies for leveraging existing relationships to expand revenue streams.

Key Themes and Takeaways

Industry Challenges: Facing a Declining Core Market

• Marusic acknowledged that the office equipment industry has faced unprecedented challenges in recent years, including:
  • The pandemic’s impact on office environments and remote work trends.
  • Consolidation rumors among OEMs driven by declining supply revenues.
  • A shrinking pool of four- and five-year leases, reflecting a lower volume of equipment in the field.
• While some rebound has occurred, he noted the complacency among dealers who relied on post-pandemic recovery without exploring new revenue streams.

Diversification is Crucial for Sustaining Growth

• Marusic emphasized that the path forward requires dealers to diversify their offerings, not just to grow their businesses but to replace declining revenue.
• He urged attendees to evaluate adjacent markets and consider expanding into areas such as:
  • Managed IT Services: Partnering with platforms like ConnectWise.
  • Unified Communications (UCaaS): Leveraging their position in customer environments.
  • Professional AV and Digital Signage: Citing examples of Sharp’s own success and that of other OEMs like Toshiba and Ricoh.
  • Notebook Computing: A growing market driven by AI-powered devices.

Practical Strategies for Dealers

1. Leverage Customer Relationships

1. • Dealers have a unique advantage as trusted partners with deep access to customer operations.
   • Opportunities lie in identifying additional customer needs during site surveys, such as aging IT equipment or underutilized spaces that could benefit from AV solutions.

2. Upsell and Cross-Sell

1. • By bundling products like laptops, displays, and software, dealers can offer integrated solutions that lock in customers and make them less price-sensitive.
   • Example: A Sharp dealer added AV solutions to a construction company’s fleet tracking project, generating over $500,000 in revenue with significant margins on services.

3. Invest in Demonstration Tools

1. • Marusic highlighted the importance of having showroom-ready products. Dealers who showcase technologies like direct-view LED walls and interactive displays are better equipped to inspire confidence and close deals.

4. Charge for Expertise

1. • Dealers should monetize their knowledge through design work, consultations, and implementation services.
   • Example: A dealer working with schools added recurring revenue through support agreements tied to AV installations.

Success Stories: Diversification in Action

1. School District AV Project

1. • A dealer sold over $1.6 million in AV equipment and services to a school district, securing recurring revenue through support contracts.
   • The dealer’s integration into the district’s operations ensured they retained copier contracts as well.

2. Scoreboards and LED Walls

1. • A dealer identified opportunities to upgrade outdated school scoreboards to LED displays, paired with sound systems and support agreements.
   • The result was a rapidly growing AV business segment projected to surpass their IT revenue.

3. Strategic Investments Pay Off

1. • Sharp’s branches increased gross profit margins by over two points by focusing on cross-selling and offering bundled solutions.

Mike Marusic’s Call to Action

• Play with AI: Dealers were encouraged to dedicate time to learning about AI tools and identifying where they can add value—whether by reselling tools, managing them, or using them to improve internal operations.
• Use Discounts Strategically: OEM discounts should be reinvested into new technologies, training, or marketing to build diversified revenue streams.
• Prioritize Customer Relationships: The copier remains a vital entry point into customer environments, offering opportunities to sell adjacent technologies and build long-term loyalty.

SOURCE Industry Analysts Inc.

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