Bridgestone 2008 Annual Report Download - page 33

2. Strengthen initiatives for strategic tire products
Bridgestone is highly competitive in the eld of radial tires for construction and mining
vehicles. We will strive to respond to changing customer requirements swiftly. In large and
ultralarge off-the-road radial tires, mining demand is declining from its previous levels, and
the previous imbalance between demand and supply is being reduced. Nonetheless,
demand remains rm. The Kitakyushu Plant, a new production facility, is under construction,
and preparations are under way to commence production, as planned, in September 2009.
In aircraft radials, we will move forward, as planned, with the second stage of investment
to increase production capacity at the Tokyo Plant.
3. Develop a “solutions business” utilizing retread tires
Utilizing the Bandag retread system, we are expanding operations on a global basis in the
retread and “solutions business.” We are implementing strategies tailored to the degree of
maturity of each market. In the United States and Europe, both SBUs will take the initiative in
business development, while in Asia, we will establish an organization that will support the
business development of the SBUs.
In Japan, operations at the rst retreading factory, which is located in Aichi Prefecture,
began in December 2008, and we are moving ahead with measures targeting the opening of
new facilities. Moreover, we have opened the Retread Tire Learning Center. This facility is not
just a facility for the education and training of Bridgestone personnel. It also simultaneously
has the function of serving as a showcase for the purpose of fostering greater customer
understanding of the retread and “solutions business.”
In the retread and “solutions business,” we believe that we have a business model that can
meet the needs of markets and society. These needs include reducing customers’ total tire-
related costs, reducing CO2 emissions in tire production, and conserving resources. Utilizing
these facilities, we will actively promote the retread and “solutions business” in Japan.
4. Strengthen retail channels through vertical integration
To realize high-quality sales activities, the Group is bolstering its retail networks in Europe,
China, and other major markets. In the United States, the company-owned retail channel is
well established, and the focus will be on expansion into additional demographically
desirable areas. In Japan, we have already taken steps to strengthen the retail channel, and
in conjunction with the recent changes in the market environment, we are proceeding with
channel development tailored to current needs.
We opened the rst “GREEN PIT” Tire Kan store in November 2008. These stores will
offer a sales channel that can respond to major changes in the market environment. These
include changes in customer composition, such as the increase in the number of senior
citizens who are driving, and changes in customer awareness, such as the increase in
customer concern about conservation and environmental issues. The domestic market is
evolving at an accelerating pace, but this new channel will enable us to approach these
changes as opportunities and work to provide products at a faster pace with an even
greater emphasis on the customer viewpoint.
31