Kenwood 2000 Annual Report Download - page 13

Telephones and
Mobile Communications
Wireless Radios
Wireless Radios
KENWOOD Corporation Annual Report 2000
11
in signing contracts with several network operators in
Europe and Asia. However, as the market expands, the
company has been receiving new buying offers that could
add up to sales of one million units. In order to catch up
with this growing demand, a new R&D facility is being
established in Singapore and, if everything goes as
expected, production facilities will be expanded to increase
the output.
Overview
Sales of wireless radio equipment for the year ended March
2000 were ¥32.0 billion, 7.5% less than the previous year.
In addition to the shrinking amateur radio market
throughout the world, the model change for business use
LMR caused an interruption in supply, decreasing the sales
amount.
Overseas demand is steady and continuous growth can be
expected in various commercial applications, especially in
the LMR market in the US. Thanks to aggressive marketing
efforts in recent years, Kenwood became the second largest
supplier (in terms of sales amount) of LMR equipment in
the world. However, its market share is only 5%, painfully
behind the No.1 manufacturer whose share is believed to be
around 70%. Continuous efforts are being made to increase
our market share.
As for the Japanese market, Kenwood has developed
GPS AVM (Automatic Vehicle Monitoring System), which
is a combination of a handy positioning system and a radio
transmitter/receiver system for business communications.
We are planning to promote this, targeting small-
scale corporations, including
freight agencies.
Strategies and Prospects
As the amateur radio market continues to wane due to the
expansion of mobile communications equipment, Kenwood
has been shifting its emphasis toward LMR equipment in
recent years.
In the US, where further growth is expected in LMR,
the company will cultivate sales by augmenting its product
lineup aimed at public safety institutions, such as police
stations and fire stations, and in the corporate office and
factory sectors. To execute the plan, a new sales and R&D
facility will open in Atlanta in July 2000. Having this new
office working in tandem with the existing L.A. office will
significantly increase Kenwood's sales force in the US.
In Asia, Kenwood's market share for radio terminals is
very close to that of the industry leader, thanks largely to
success in China. However, we lack experience in project
sales and systems integration, as for example, in supplying
equipment for new wireless base stations. Thus, in the
future, the company's priority will be placed on offering
better solutions by integrating various systems according to
specific needs of customers.
Sales of Telephone
and MobileCommunication Products (Consolidated)
(Billions of yen)
1996
1997
1998
1999
2000
0453015
Sales of Wireless Radios (Consolidated)
(Billions of yen)
1996
1997
1998
1999
2000
015 30