Konica Minolta 1999 Annual Report Download - page 7

KONICA 3
the fiscal year, supported by
solid performances of high-
speed network digital copiers/
printers and other multifunc-
tional office equipment. How-
ever, sales in the Photographic
Materials and Photo-Related
Industrial Equipment segment
declined, owing to a dip in
demand for color film, color
paper, cameras, and other
consumer products in Japan
and elsewhere in Asia.
Bold Management
Reforms Prepare
Konica for
Competition in the
21st Century
In October 1998, Konica
took a big step forward with
the launch of a new medium-
term management plan for
the 21st century. The objec-
tive of the plan is to strength-
en Konica’s international
competitiveness by restruc-
turing the Konica Group
based on the new paradigms
emerging in today’s global
business environment.
ROne of the main thrusts
of the plan is to improve the
operating flexibility and prof-
itability of the Konica Group.
This requires a structure in
which lines of responsibility are
clearly defined and decision-
making powers are transferred
to the point of decision imple-
mentation. We have been
taking a more aggressive
approach in reorganizing
unprofitable business units
and subsidiaries and plan to
drastically change our fixed
investments in declining mar-
ket segments.
RAnother aim is to raise the
speed and accuracy with
which information is trans-
ferred from the marketplace
to product planning sections.
Specifically, we will undertake
organizational reform to im-
prove coordination between
marketing and R&D sections
and ensure that decisions at
all levels reinforce our market
development strategies.
RIn recent years, the prolifer-
ation of minilabs in Japan and
the United States has spurred
severe price competition in the
photofinishing industry. To im-
prove the cost-competitiveness
of our photofinishing opera-
tions in the United States, in
March this year we transferred
the majority of the operations
of Konica Photo Service
U.S.A., Inc., to Konica U.S.A.,
Inc., establishing a new sub-
sidiary, Konica Photo Imaging,
Inc., to pursue new strategies
in this field with an emphasis
on the minilab market. In
Japan, in October 1998 we
integrated most of our photo-
finishing operations into a
newly established subsidiary,
Konica Color Imaging Corpora-
tion. The new subsidiary is
concentrating on strengthen-
ing our photofinishing network
throughout Japan and aims
to prepare for emerging digital
services. As a result of these
aggressive restructuring
activities, we incurred losses
that were written off during
the year under review.
The Innovative Appli-
cation of Original
Technologies Creates
Images for a New Era
By integrating expertise in
such fields as photography,
fine chemicals, and opto-
electronics, we have creat-
ed products and services
that enable people to cap-
ture the full potential of
network-related and other
digital technologies. Our
desire to innovate has seen
us set performance stan-
dards in many product
categories.
RWe command one of the
largest shares of the global
market for high-speed digital
copiers, and our latest offer-
ing, the Konica 7065, has
set new standards for image
quality and functionality.