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From CEO
Copyright 2013 © HOYA CORPORATION
2Business Portfolio Management As Hoyas Way
3Hoyas sources of strength
      The Hoya G ro up u se s "por t fol io
management" techniques to ensure the profitability,
stability and growth potential of the Group as a whole
by simultaneously holding several different businesses
and striking an appropriate balance between them.
Generally speaking, some companies focus on one
and only business, while other companies concurrently
operate multiple businesses. Clearly Hoya is the latter
type. Every business has a lifecycle of its own and
passes from its growth stage via a maturity stage into a
decline stage. While companies with a focus on a
single business could be efficient, they may suffer from
a start-up cost of a new business.
On the other hand, Hoya, with its multiple-business
model, has various businesses at different stages of
their life cyc les, allowing the e ntire Group to
sustainably generate steady returns while tolerating a
certain level of risk.
You may think that Hoya is engaged in numerous
unrelated businesses of completely different markets.
In fact, our businesses have a common underlying
know-how, which has been accumulated to become
the unique strength of Hoya across our businesses. I
firmly believe that this strength will be a key to make
our businesses distinct.
      So, what is the common underlying know-
how Hoya possesses? I keep telling everyone at Hoya to
strengthen his or her business in charge. Methods may
differ by business, as each business has a different market,
product, or competitive landscape. Nevertheless,
regardless of the business, our underlying aim is to
become "a big fish in a small pond." It means that we focus
on our areas of strength and endeavor to obtain and retain
dominant position in selected niche markets. It may sound
simple but is not easy to achieve. What is important for us
here is to think about how to become more competent
relative to our competitors under given competitive
conditions. It is of vital importance to establish a market or
a position where Hoya can be overwhelmingly strong. Let
me give an example from the optical lens business, which
is Hoya's original business. Initially Hoya's main operation
was to melt optical glass.
With the aim of differentiating ourselves, we have expanded
from glass melting to manufacturing of glass lenses and
further to assembly of multiple glass lenses into a lens
module. As we focused on how Hoya can create value in
the scene of capturing an image into picture elements
(pixels), our strategies have become clearly visible.
Regarding our business related to hard disk drive glass
disks, we sold our operation for applying magnetic coating
(Media business) and decided to concentrate on
fabricating and polishing glass substrates (Substrate
business) about two years ago. This has enabled us to do
mass production of high-grade substrates at lower costs,
and this has resulted in raising our market share.
Concentrate wholeheartedly on how to become "a big
fish in a small pond." This issue, in my view, is rooted in
the mindset of our employees, which is becoming one
of our strengths.