Toshiba 1997 Annual Report Download - page 5

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3.
Concentrating Investments on Promising Fields
In this age of mega-competition, only companies able to compete globally with respect to prices
and technology will survive and prosper. This is why Toshiba is realigning operations. The
ultimate goal is to structure our diverse business activities so that each division is based on
products that rank among the world’s best. To do so, we have classified our various operating
divisions as either a high-growth, mainstream or emerging business. We will allocate a large
share of resources to those classified as high-growth or emerging. A mid-term management plan
to transform these goals into actions has been implemented.
PCs, peripherals, semiconductors, LCDs and network computing products are all prime
examples of high-growth sectors. We will foster growing businesses through direct investments as
well as alliances with leading companies in Japan and overseas. Our aim is to be among the first to
capture a position at the forefront of these markets, thereby ensuring a high level of profits.
The heavy electrical apparatus and consumer products segments fall into the mainstream
category. In this category as well, many products exhibit excellent growth potential, and we will
raise emphasis on these products. In the other areas, we will examine the viability of each product
line and individual model. Fields warranting particular emphasis are those where Toshiba has a
technological edge, as well as the rapidly growing market for information-oriented consumer
products that incorporate digital technology. By taking this selective approach to business develop-
ment, we plan to restructure these mainstream categories and build a more solid operating base.
Developing New Businesses
Toshiba’s DVD-video players went on sale in Japan in 1996. Due to a shortage of titles, initial
sales were weak. In 1997, we expect that significant growth in the number of movies and musi-
cal selections available will lead to widespread acceptance of the DVD format. Additionally,
completion of specifications for the rewritable DVD-RAM should spark demand for this tech-
nology in computers. In the networking field, we aim to take part in establishing a de-facto
world standard for cell switch routers, high-speed data processing devices used in the Internet
Fumio Sato (left), Chairman, and Taizo Nishimuro, President