Kenwood 2007 Annual Report Download - page 17

Realization of seamless entertainment
by connecting PC and USB devices
Results from investments in strategic
development in home electronics business
Communication network Telephone line network
An example of radio communication system
(communication management system for public safety)
Zetron’s
Console system
Zetron’s
Radio Controller
Kenwood’s
Radio System
Kenwood’s
Repeater
System
Kenwood’s Radio Terminals
Typically 700 radio terminals
used for 16 radio channels
An example of a base station system
USB
USB
PC
USB devices
Administration
Government
office
Compact Hi-Fi systems
with USB terminal
17
Annual Report 2007
Reproduction
of high quality
sound
for putting sales and profits form this business on a growth track
aimed at turning a profit for the full term.
In the fiscal year under review, Kenwood faced several changes in its
business environment, including substantial price declines in the car
electronics market, particularly in the consumer fields, the fierce
competition in mature markets that intensified more than expected,
and contraction of the home electronics market. To cope with this,
we implemented business alliances and M&A as described below to
further accelerate the growth of our businesses, by exceeding the
limits of growth on our own through conventional businesses.
In the fiscal year ending March 2008, Kenwood will make the
results of these initiatives more obvious and add new projects,
aiming to accelerate its growth strategy.
In the Land Mobile Radio business, the Kenwood’s largest
fundamental business, where it boasts the second largest global
market share, we strove to expand the qualitative scope of its
business from terminals to system solutions and to further form
consortium for digitization. To this end, we converted Zetron, Inc.
into a subsidiary as well as established alliances with EADS Group,
Icom Inc. and other companies for business and joint development
on a global basis, and thus we built the basis for a major leap
forward. In the fiscal year ending March 2008, Kenwood will make
the results from these initiatives become explicit and generate even
greater synergies.
In the overall Communications Equipment business, Kenwood will
endeavor to develop a new organizational structure with a view to
expanding new businesses based on such system businesses as
Zetron’s highly reliable radio communications systems, the Japanese
radio equipment operations that it acquired from the former Toyo
Communication Equipment Co., Ltd. in June 2004, the RFID
business operated by Kenwood Core Corp., a wholly owned
subsidiary.
Kenwood aims to expand its sales and profits in the growing
businesses of multimedia and OEM by strengthening its partnerships
with business partners, including Denso Corp., Garmin International
Inc. of the U.S. and Blaupunkt of Germany, a Bosch Group
company.
In the Consumer (Audio) business, we will accelerate the
exploration of Latin American markets, which are expected to grow
from now on, from the perspectives of both production and sales by
enhancing our partnership with Visteon Corp. of Brazil.
Kenwood will develop new businesses related to its existing
businesses through strategic initiatives.
As described above, Kenwood completed its preparations for
investments in strategic development and advanced technology,
sales expansion and earnings turnaround, and the time has finally
come to put its existing businesses on track for new growth,
focusing on its core business areas by managers of the next
generation. At the same time Kenwood has started to accelerate its
growth beyond the limit of its own with the Chairman being
responsible for strategic initiatives aimed at the medium- and
long-term creation and enhancement of the corporate value.
Car Electronics Business
Communications Equipment Business
Growth strategy through business
alliances and M&A
Peripheral Businesses