Kenwood 2006 Annual Report Download - page 16

Improving competitiveness of the core
businesses
Improving competitiveness of the Car Electronics
Business
Fully-fledged operations for the new line-up of audio
products in 2006 for the consumer market
Because the delay in the closing of former products in the entire
consumer market has had lasting effects until the introduction of
our new products, the Company has started its fully-fledged
operations for the 2006 line-up of car audio products whose
introduction to the global market has been delayed, aims to gain
the top market share in the entire world as it did with the 2005
line-up, actively cultivate new emerging markets, with the emphasis
on the BRICs markets, strengthen the sales system, and increase
revenues of the Car Electronics Consumer (Audio) Division.
Improving the product line-ups of car multimedia
systems for the consumer market
In Japanese market, the Company has started fully-fledged
operations for self developed products, whose line-ups have been
improved after the product launch in February 2006, and in the
overseas market it will focus on mass-merchandised products, the
shipment of which began in February 2006 under the Company’s
new concept. Through these measures, the Company plans to
accelerate growth strategy by increasing sales and carrying out
reform measures for profitability in the Car Electronics Consumer
(Multimedia) business, in which the product line-ups have
temporarily stalled due to strategy changes.
Improving profits in the OEM and multimedia
businesses through production increases at the
Shanghai Plant
As previously mentioned, the expansion of the Shanghai Plant has
allowed fully-fledged production increases and strengthened cost
competitiveness for car electronics components and OEM car audio
products. As a result, the Car Electronics OEM business and the Car
Electronics Consumer (Multimedia) business have both been able to
increase productivity while significantly reducing processing costs,
and the two businesses can engage in the implementation of
growth strategies with a renewed level of competitiveness.
Improving competitiveness of the Communications
Equipment Business
Business expansion by strengthening communication
between the marketing and design sections, and
fully-fledged introduction of digital wireless radio
equipment
The Company strengthens communication between the marketing
and research sections headquartered in Atlanta, US, and the
development and design sections in Japan, and promote business
expansion in Europe, Asia, China, and other emerging countries, as
well as in the main market of the U.S. The Company will also utilize
technological and capital alliances with Icom Inc. in the increasingly
digitized commercial wireless radio field, and accelerate the growth
strategy of the Communications Equipment business by specifically
promoting new consortiums including Trident Microsystems, Inc.,
and conducting research on digital wireless methods and
development of digital wireless radio equipment and network
systems in order to strengthen the network system business.
Improving competitiveness of the Home Electronics
Business
Improving high quality sound models that utilize high
quality sound technologies
The Company will take advantage of the rising popularity of digital
media content and a recovery in demand for high-class audio
Management Policy for the Fiscal Year Ending March 2007
Trident Microsystems, Inc.Icom Inc.
Kenwood Corp.
USB-capable car audio
Car Navigation Systems
HD Radio Tuner
New Strategic Alliance in Communications
Equipment Business
Line-up of products for consumer
market in Car Electronics Business
Enhancing research on digital
wireless methods and
development of digital
wireless radio equipment and
network systems
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