Harman Kardon 2011 Annual Report Download - page 23

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Our Strengths
World-class brand portfolio
We believe that our brands and the innovative technologies they represent—many of which Harman
pioneered—have helped establish our Company as a leader in the primary markets we serve. Our brand portfolio
includes such renowned names as AKG, Becker, Crown, Harman/Kardon, Infinity, JBL, Lexicon, Mark Levinson
and Selenium. We have successfully leveraged these brands across our Automotive, Consumer and Professional
segments. Not only does this provide brand reinforcement and recognition across markets, but it also enables us
to share similar foundational technologies that differentiate us from our competitors.
Innovation and technological expertise
We believe that innovation is an important element to gaining market acceptance and strengthening our
market position. We have a history of leveraging our continuous technological innovation across all of the
markets we serve. We employ more than 3,000 engineers in strategically located technical centers around the
globe. We have a well-deserved reputation for delivering premium audio and infotainment solutions across a full
spectrum of applications. We believe that our technological innovation, the quality of our products and our
reputation for on-time delivery have resulted in a substantial amount of awarded business. We have a cumulative
estimated $14.5 billion of future awarded automotive business, which represents the estimated lifetime net sales
for all customers. We calculate our awarded business using various assumptions including global vehicle
production forecasts, customer take rates for our products, revisions to product life cycle estimates and estimated
value of new business awards, among other factors. We update our estimates on an annual basis for total awarded
business utilizing revised assumptions as circumstances change. We believe this will position us well for
follow-on and new business with these existing customers.
Seasoned management team with extensive global experience
Our senior management team possesses substantial experience leading technology-oriented companies,
promoting profitable growth through continuous value-added innovation and providing guidance, leadership and
cost-discipline through challenging economic conditions.
Our Growth Strategy
Continued growth through innovation
We are focused on the next generation of audio and infotainment solutions that will blend advances in
wireless networking, streaming audio, hands-free connectivity, driver assistance, safety systems and more. Our
advanced software capabilities and acoustic expertise will work together to define emerging standards across all
of our segments.
We believe we can grow our business with automotive manufacturers through an increase in the number of
models offering our audio, navigation and infotainment systems; increases in per-vehicle content through the
provision of integrated infotainment and premium branded audio systems; higher penetration levels of high-level
audio and infotainment systems within existing models; and by providing systems that will continue to integrate
advanced driver assist safety measures as they evolve.
We have developed a new mid-range infotainment system that we believe will deliver industry-leading
performance at an affordable price that will allow us to penetrate the emerging mid-range automotive market. We
also are developing, through our GreenEdge initiative, environmentally friendly technologies to reduce power
consumption and product weight, a growing area of opportunity for environmentally conscious customers. We
have partnered with Lotus Engineering (UK) to develop active noise management applications for both
conventional and hybrid/electric cars. We believe that this technology will be an important component for
conventional, hybrid and electric vehicles in the future.
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