Bridgestone 2009 Annual Report Download - page 5

development and substantial expansion in demand, but we must
also take into account the growing prominence of manufacturers
based in these countries.
The Bridgestone Group’s earnings structure is also being
affected by these changes, including the impact of raw material
costs and currency appreciation, making it more difcult to be
protable using our previous business models and practices.
I believe that we must implement initiatives within our entire supply
chain, from upstream raw material development to downstream
retail networks, in order to enable us to increase operational
efciencies and compete on a cost basis with manufacturers
from developing countries while producing products of high
quality. This will, ultimately, help the entire Group contribute more
effectively to the enhancement of our brand power.
The changes discussed above affect not only the Bridgestone
Group but also our competitors. However, the Group will strive
to take full advantage of these changes, viewing them as
opportunities to further expand its points of differentiation from
its competitors.
MANAGING FOR SUCCESS IN A CHALLENGING
ENVIRONMENT
Our ultimate management objective is to be the “World’s
undisputed No. 1 tire and rubber company in both name and
reality.” The growth of our subsidiaries on a global basis and the
enhanced vertical integration of our supply chain will allow us to
effectively utilize our management resources. This, in turn, will
allow us to achieve success even in a challenging environment in
accordance with objectives and plans established for the entire
Bridgestone Group.
The Mid-term Management Plan (MTP) and our strategic
business unit (SBU) structure will be important tools as we work
to optimize our operations. Our MTP outlines the Bridgestone
Group’s future vision and the course that we have charted toward
the achievement of that vision. Through a process of rolling
updates with a ve-year perspective, we are positioned to
respond to changes in the operating environment. And the SBUs,
which are charged with identifying and responding to specic
market and customer needs, will implement optimized operations
based on the distinctive characteristics of such individual
markets. The Group, through both the MTP and the SBUs,
will work to achieve sustained and protable growth.
I would like to emphasize that, regardless of the business
environment, the MTP and the SBU structure continue to remain
fundamental to the Group’s global management policy.
IMPLEMENTING A “LEAN AND STRATEGIC”
MANAGEMENT STANCE
The Bridgestone Group operates according to a “Lean and Strategic”
management stance, pursuant to which, we continually reinforce
our operational foundation while looking to the future. I would like
to take this opportunity to share with you some of the initiatives we
have implemented based on this management stance.
To establish our lead over the competition in key markets,
we have taken a number of steps that will further differentiate us,
including the introduction of enhanced environmentally friendly
products such as our ECOPIA brand tires, whose new series,
the ECOPIA EX10, was launched in Japan in February 2010.
In the retread solutions business, which can also contribute to
environmental conservation, the Group is rapidly expanding the
market for retread tires for trucks and buses especially in Japan,
China, and other Asian countries. Other strategic products of
the Group, including environmentally friendly products, are
discussed on pages 10–17.
For the Group to achieve its ultimate management objectives,
it is critical that we further reinforce our competitive position in
a number of important categories. This must include further
reinforcing our technical strengths, enhancing productivity while
maintaining and enhancing the quality and safety of the nal
product, and expanding our production capacity.
With regard to the reinforcement of our technical strengths,
we will accelerate the aggressive development and application
of technologies that foster energy savings and reduced fuel
consumption. In this way, we will transition to a business
framework that will be difcult for competitors to copy and
implement, whether from developing or developed countries.
We are also focused on quickly expanding our production
capacity, as demonstrated by the fact that production at
the Kitakyushu Plant, where we manufacture advanced
technology ultralarge off-the-road radial tires, began three
wE wILL MAINTAIN AN EMPHASIS ON MOVING RAPIDLY
AS wE STRIVE TO ADDRESS THOSE ONGOING CHANGES
THROUGH AN ENHANCED MANAGEMENT SYSTEM.
03Annual Report 2009