Konica Minolta 2004 Annual Report Download - page 10

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plastic lenses and the former Minolta’s competitive advantage in glass lenses, lens drive sys-
tems and zoom technologies. In combining the strengths of each company, we are able to
meet highly extensive customer needs with high-value-added products and create new markets
in which we maintain an overwhelming market share. As the trend toward more compact and
lightweight personal computers (PCs) and personal digital assistance (PDA) devices increase,
demands for glass hard-disk substrates are anticipated to grow. In this context, management
integration has successfully merged the technological expertise of Minolta with the sales capa-
bilities of Konica, resulting in a substantial contribution to profits.
Q. What issues have you identified in your efforts to generate additional integration benefits?
A. I believe the key to realizing additional integration benefits is to create a new corporate
culture. We conducted a survey among employees in major Group companies. Overall, we
found a positive attitude toward management integration exists, however, we remain con-
vinced that further efforts are necessary to generate additional integration benefits. I feel we
must break the shackles of the past and introduce new schemes related to human resource
management that allow employees to attain their maximum potential. In this context, we are
building an infrastructure that will support implementation of these initiatives. As a result of inte-
gration, the number of highly capable marketing staff and engineers with sophisticated tech-
nologies has increased. I believe that in providing an environment that allows employees to
fulfill their potential, we will see additional benefits from management integration. In this con-
text, employees are encouraged to engage in free and vigorous debate in an effort to achieve
our common goal. This is the corporate climate we are working to establish.
On another front, in the first year of our management integration plan, we have met all tar-
gets for personnel rationalization. We anticipate meeting our targets for the second and ensu-
ing years.
Q. Please outline your thoughts on brand strategy.
A. If we are to truly secure long-term sustainable growth through greater acceptance of the
Konica Minolta brand, I believe we must first abandon preconceived ideas about the brand
concept. Prior to management integration, the former Konica was closely associated with film
and cameras while the Minolta brand was widely known for cameras. Put another way, both
brands penetrated the BtoC market. Our future, however, lies in the Business Technologies and
Optics businesses and accordingly we must make the fundamental shift toward a BtoB business
model. In recognizing this necessity, it is imperative that we develop the optimal brand strate-
gy. An example is the commercial launch of “bizhub,” Konica Minolta’s new brand for MFPs.
The fundamental concept of bizhub, is to put business people at the hub of their business.
Konica Minolta’s brand strategy will play an increasingly important role in identifying new mar-
kets to secure positive contributions to our business overall. We launched bizhub as a global
brand in Spring 2004 and plan to introduce 20 new models over the three years through
March 2007.
Realizing concrete bene-
fits in the Business
Technologies and Optics
businesses through
management integration
Realizing additional inte-
gration benefits through
the creation of a new
corporate culture
Promoting brand strategy
in clearly defined markets
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