Audiovox 1998 Annual Report Download - page 13

Download and view the complete annual report

Please find page 13 of the 1998 Audiovox 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 44

  • 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

The Division’s ability to attract substantial OE business has been enhanced by the awarding of QS/ISO 9001
Registration. In addition, the company’s Venezuelan subsidiary, which does considerable business with GM and
Chrysler of Venezuela, has also achieved QS/ISO 9001 certification for its assembly facility.
Our core business objective is to increase our earnings by capitalizing on emerging technology opportunities and
increasing our penetration in global markets. Our business strategy is to leverage our ability to source product and our
marketing flexibility to capitalize on consumer trends. Key elements of that strategy are:
■Invest in Emerging Technologies. We believe that our broad distribution network allows us the opportunity to mar-
ket a variety of different products to different channels. We are targeting new technologies such as GPS (Global
Positioning Service), Navigation, Video, including portable DVD and satellite radios for inclusion into the division’s
product mix. We intend to continue our policy controlling the design of our products while having those products
produced by quality manufacturers. This allows us to devote a greater portion of our capital resources to design and
marketing activities and inventory purchases, rather than invest in factories and the associated overhead that would
be required if we manufactured our own products.
■Increase our OE Business. The QS/ISO 9001 Registration both domestic and in our Venezuelan operation, should
help us to increase our vehicle manufacturer OE business. In addition, the new mobile video product line has pro-
vided us with additional opportunities to pursue business with existing OE customers as well as new ones.
■Expand Global Presence. During 1998 we added distribution of our products in England, Spain, and Italy as well as
increased sales in other countries in Western Europe. We believe that the addition of our RDS (European Band)
audio products will increase business opportunities in those regions. In addition, we will continue efforts to expand
into other countries.
■Promote Company Brand Awareness. During our 35-year history, we have invested heavily in promoting the brand
“Audiovox”. This promotion was done through direct advertising in various types of media, market development
funds, advertising brochures and literature. We intend to continue investing in our brand to further leverage its pres-
ence in our expanding sales channels.
VISION
QS/ISO 9001 Registration should go a long way in helping us increase our OE business.
—Patrick Lavelle
11
“”