Olympus 2014 Annual Report Download - page 12

Special Feature
Reliable Growth
in Global Markets
Since successfully creating the world’s  rst gastrocamera, Olympus has continued to provide the world with top-class
technologies, products, services, and solutions centered on gastrointestinal endoscopes. Today, our Medical Business
spreads across the globe with approximately 80% of sales coming from outside of Japan. The two pillars of this business
are early diagnosis, which is made possible by our gastrointestinal endoscopes, and minimally invasive treatments, which
use our surgical devices. By providing value in these two areas, we are helping improve the quality of life of patients
around the world while contributing to lower medical costs. In this special feature, we explain the global strategies and
initiatives being implemented in the Medical Business, which has been positioned as a growth driver for Olympus.
One of the core strengths of the Company’s Medical Busi-
ness is its industry-leading global service network. As
endoscopes are inserted directly into the human body even
a small malfunction can lead to a serious medical accident.
For this reason, instruments that have been repaired must
have the same performance as new instruments. Safe and
reliable use is one of the essential values of an endoscope.
Ever since beginning its endoscope business, Olympus has
continued striving to enhance its service network based on
that mind-set. Currently, there are more than 200 Olympus
repair sites spread across the globe. This global service
network is the industry’s largest and just another way Olympus
works to make sure that patients can undergo endoscopic
examination and treatment procedures with peace of mind.
Operating Environment and Outlook
AmericasJapan
Operating environment chang-
ing rapidly due to introduction of
Healthcare Reform, which aims
to reduce medical costs
Operating environment changes
anticipated to prove benefi cial
in medium-to-long term for
Olympus as provider of early
diagnosis and minimally invasive
treatment methods
Recovery trend due to yen
depreciation and job market
improvement
Stable, ongoing growth forecast
due to sales contributions from
new products, such as EVIS
LUCERA ELITE
Overall macroeconomic outlook
in Europe, Middle East, and
Africa mixed and unsettled
Healthcare providers and hospi-
tals increasingly expect inte-
grated value propositions that
cover clinical and economic
aspects from medical technol-
ogy companies
Growth potential high in China
and other markets
Population and subsequently
number of patients large,
but number of physicians
relatively low
Political issues and strengthen-
ing of regulations by different
countries expected to continue
Europe Asia / Oceania
Nacho Abia
Division Manager of
Medical Business Div.
of Americas, Medical
Business Group
Frank Drewalowski
Division Manager of
Medical Business Div.
of Europe, Medical
Business Group
Mitsuhiro Hikosaka
Division Manager of
Medical Business Div.
of Asia / Oceania,
Medical Business Group
Net Sales for the Medical Business
Industry-Leading Global Service Network
Major repair sites Repair sites
(¥ Billion)
2005/32004/3 2006/3 2007/3 2008/3 2009/3 2011/32010/3 2012/3 2013/3 2014/3
0
200
100
300
500
400
230.5
216.9
266.3
311.7
353.3 350.7
383.8 355.3 349.2
394.7
492.3
137.7
121.0
175.9
(¥ Billion)
0
100
50
150
200
2012/3 2013/3 2014/3
(¥ Billion)
2012/3 2013/3 2014/3
89.5
80.4
105.9
0
100
50
150
200
102.9
91.9
128.7
(¥ Billion)
0
100
50
150
200
2012/3 2013/3 2014/3
(¥ Billion)
0
100
50
150
200
2012/3 2013/3 2014/3
54.3
45.5
69.7
Regional Strategies
Principal Manufacturing and Major Repairs Sites
Net Sales
Revise strategies in energy
device fi eld; strengthen special-
ized sales forces targeting
GPOs and IDNs
Reinforce operations in urology
and ENT areas
Reorganize manufacturing sites
to improve production effi ciency
of surgical devices
Strengthen principal domestic
manufacturing sites to respond
to expanding global demand for
gastrointestinal endoscopes
Enhance solutions capabilities
for operating rooms centered on
surgical and energy devices
Accelerate sales promotions
targeting clinics; strengthen
sales approach for pancreatic-
biliary-area endotherapy devices
Work closely with customers on
a local level and exchange best
practices across countries
Expand sales force in growth
areas, such as surgical energy
and ENT devices
Introduce new, systematic sales
training programs to respond to
evolving customer needs
Further strengthen training sup-
port and service systems that will
be key to expanding markets
Progressively introduce new
products to achieve growth
Track sales results by stringently
managing targets by region
and fi eld
Principal manufacturing sites:
Memphis (TN, U.S.), Norwalk (OH,
U.S.), Maple Grove (MN, U.S.)
(New facility in Brooklyn Park, MN,
scheduled to be operational fall 2014.)
Major repair site:
San Jose (CA, U.S.)
Principal manufacturing sites:
Aizu and Shirakawa (Fukushima),
Aomori, Hinode (Tokyo)
Major repair sites:
Shirakawa (Fukushima),
Ina (Nagano)
Principal manufacturing sites:
Hamburg and Berlin (Germany),
Southend-on-Sea / Cardiff (U.K.),
Prerov (Czech Republic)
Major repair sites:
Germany, U.K., Czech Republic
Principal manufacturing site:
Long Thanh (Vietnam)
Major repair sites:
Shanghai and Guangzhou (China),
Australia, Singapore
China Others
Endotherapy Devices
Boston Scientifi c Corporation (U.S.)
Gastrointestinal Endoscopes
FUJIFILM Medical Co., Ltd. (Japan)
HOYA CORPORATION (Japan)
Surgical Endoscopes
Stryker Corporation (U.S.)
KARL STORZ GmbH & Co. KG
(Germany)
Energy Devices
Ethicon Endo-Surgery Inc. (U.S.)
Covidien plc (U.S.)
Competitors by Field
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OLYMPUS Annual Report 2014
20 OLYMPUS Annual Report 2014