Alpine 2009 Annual Report Download - page 5

Anticipating growing demand for electric and hybrid vehicles and highly fuel-efficient small cars, Alpine has designated four key
areas for its aggressive growth strategy.
1. On the AVNCD strategy,
Alpine will, in addition to systems for
high-end models, focus effort on development of entry-level
equipment with limited feature sets for low-priced cars.
2. On the alliance strategy,
Alpine will tie-up with development
partners whose capabilities match project objectives and
complement Alps group technologies.
3. Our link strategy will start with the ability to connect to a
wider range of mobile devices, adding value to on-board
equipment, and creating more appealing products.
4. Our green strategy will focus on becoming the best choice
for environment-friendly cars, with 50% reductions in both
weight and energy consumption.
2010
Profit Growth
Growth Strategies
¥14 billion monthly B.E.P.
Improve
development
efficiency
Reduce
product costs
Improve
indirect
productivity
Aggressive
Growth Strategy
Defensive
30% Lower
Monthly B.E.P.
¥14 Billion
Structure
New Customer Business Model
Products Matched to Market Changes
Issues
Stronger Order-generating Capability (CTB, GTB)
Lower Product Costs: ¥5 billion
Improved Development Efficiency: ¥6 billion
Rethink global staffing
Lower salaries and bonuses
50% lower facilities investments
40% lower running costs
Improved Indirect Productivity: ¥15 billion
Integrated Organization
Heightened awareness, faster, slimmer
Stronger
Corporate Culture
Alliance Strategy
Tie-ups with partners suitable for themes
Green Strategy
Energy-saving, lighter weight, lower costs
Link Strategy
・
Connectivity with consumer
electronics products
・
First one added-value products
・
OEM orders from market leaders
AVNCD Strategy
High-end
・
Integrated AVNCD features
・
In-car information center
* AVNCD: Audio, Visual, Navigation,
Communication, Drive assist
Entry-level
・
For low-priced, small cars
・
Limited features
Growth Strategy
Aggressive
product creation
Since fiscal 2008, the Alpine Group has been executing the
CHALLENGE 30 medium term business plan, a plan to sustain profitability through
accelerated restructuring. Now, in response to a dramatically changed business environment, we are implementing
CHALLENGE 30+
, taking
emergency steps to improve profitab
ility and ensure future growth. The medium term restructuring plan incorporated in
CHALLENGE 30+
calls for
cutting costs a total of ¥26 billion: ¥15 billion through indirect restructuring, ¥5 billion by reducing product-related costs, and ¥6 billion by restructuring R&D.
As defensive measures, we are taking steps to lower our break-even point by 30%, in line with lower sales, and strengthening our corporate
culture. At the same time, we are focusing the company as a whole on achieving an aggressive growth target of ¥20 billion sales in 2010.
Implementing CHALLENGE 30+
Growth Strategy
5
Plans for the Future