Konica Minolta 2005 Annual Report Download - page 11

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9
Monochrome LBP
Color LBP
0
2,500
2,000
1,500
1,000
500
20042003 2005 2009
(Plan)
Color LBP /
Monochrome LBP
Unit Sales
(Thousands units)
recombination of sales companies forced us to revise the V-5 Plan for the fiscal year
ending March 2006. In order to make up for this delay, the Group plans to upgrade
its product lineup by successively introducing new color products beginning with the
bizhub C450 in parallel with the introduction of new monochrome MFP products
incorporating the new integrated firmware.
Under the V-5 Plan, the Group intends to introduce 15 new color MFP models in
order to achieve color MFP sales in the segment 2 and above category of 450,000
units and to gain a worldwide market share of over 20% in the final year of
the V-5 Plan.
THE CHANGING MARKETPLACE AND KONICA MINOLTA’S RESPONSE
Driven by the shift to color office documents in Japan, the United States, Europe and
other developed country markets, the color MFP market is rapidly expanding, with
unit shipments forecast to rapidly rise from approximately 500,000 units in fiscal 2004
to 2 million units in fiscal 2008. On the other hand, as the color LBP market is
growing on dramatic declines in unit prices and faster-than-expected changes in the
market environment, unit volumes are foreseen rising from 1.9 million units in fiscal
2004 to 3.2 million units in fiscal 2008.
Given these market conditions, the Group has created its V-5 Plan with the aim of
proactively responding to changes in market conditions by pursuing further selection
and concentration and adopting a strategy that focuses the Group’s resources on the
development and sales of color products, in order to significantly raise the ratio of
color products to the overall product mix. The Group believes it is necessary to focus
on its strengths and resolutely pursue an effective genre-top strategy in order to
maintain superior competitiveness.
STRENGTHENING GLOBAL COMPETITIVENESS
The shift to color in global MFP markets is proceeding at a very rapid pace, with
particularly rapid demand growth being seen in the European and U.S. markets.
Konica Minolta’s market position in the European and U.S. markets is steadily
growing, and while market share in Europe slipped slightly in fiscal 2004, market
share in the U.S. improved from 14% to 16%. Under the V-5 Plan, the Group aims to
achieve market shares in the color market as defined by segment 2 or above products
of 25% in Europe and 20% in the United States by the end of fiscal 2008.
In addition to the high market shares the Group is maintaining in Europe, market
share is recovering in Japan where the Group had previously been struggling, thanks
to the introduction of the strategic bizhub C450.
In the LBP market, as competition has intensified further in mainly the low-speed
color LBP market segment in Europe and the U.S., the Group aims to strengthen its
product lineup in the high speed product segment.
In terms of marketing, the key is manufacturer direct selling power. Here, the