Square Enix 2005 Annual Report Download - page 7

Download and view the complete annual report

Please find page 7 of the 2005 Square Enix annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 64

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64

Structural Changes Mean a Power Shift
to Customers
Prophets never tell us exactly when future events will
take place. Business people are often overeager to act
in fear that the future will suddenly becomes the present.
If they acted too early one time, the next time they are
overcautious and miss out on opportunities.
We have been bombarded with clichés, such as
“consumer-owned” and “customer-centric,” that herald
a shift in power toward the customer. This time, however,
it is different. The clichés are finally becoming a reality,
and a true power shift is under way.
I firmly believe the most important quality that
management can possess is insight into the timing and
details of structural changes. The next two to three years
will usher in structural changes not only to industry but to
the entire social system. All my managerial strategies are
based on this perspective toward these coming years.
Content is information. That is why these upcoming
structural changes will directly affect our industry as well
as the surrounding industries. When the processing
power of terminals and communication bandwidth
become more than “good enough,” customers will
have the same capability as content providers to
broadcast content. In other words, customers will
inevitably become suppliers of content, and content
providers need to provide support for such customers
to broadcast their own content while remaining content
suppliers themselves.
5
Annual Report 2005
Broadband Penetration Rate for Households in Japan
0
20
40
60
80
100
%
1998 1999 2000 2001 2002 2003 2004
6.8
14.9
29.6
47.8
62.0
19.2
31.8
68.0
81.4
88.1 86.8
44.8
Source: Ministry of Internal Affairs and Communications Communications Usage Trend Survey
Internet Penetration Rate
Broadband Penetration Rate
Broadband Line 2000
DSL, CATV, FWA
Broadband Line 2001-2003
DSL, CATV, FWA, FTTH
Broadband Line 2004
DSL, CATV, FWA, FTTH,
Third-generation Mobile Phone
(In the case of connection to PC only)