JVC 2001 Annual Report Download - page 10

< 8VICTOR COMPANY OF JAPAN, LIMITED 9 >
FOCUSING ON HIGH-VALUE-ADDED BUSINESSES, DOWNSIZING OR OUTSOURCING LOW-END OPERATIONS
Consumer electronics is inherently a high-value-added business for JVC. But our profitability
has been undermined by a strategy, conceived on the basis of the size of the market, of offering
products for all sectors. To redress this situation, we are now implementing a strategy to
fashion a product lineup that pinpoints the high-value-added D&N field, where we can leverage
our core competencies, particularly in audiovisual technology. We have already launched a
succession of products featuring enhanced networking capabilities and sophisticated digital
technologies. Examples include the world’s smallest and lightest digital video camcorder
(DVC); a high-definition, high-resolution D-ILA multimedia projector; a D-VHS system that can
record digital high-vision broadcasts and also play conventional VHS videotapes; next-
generation set-top boxes; an S-VHS hybrid recorder with a built-in HDD; an HDTV and an
HDD-equipped TV. The DVC is carving out an increasing market share at home and abroad,
backed by our recognized brand equity. With D-VHS we aim to expand operations by
capitalizing on the growing popularity of digital broadcasting.
As we earmark resources for D&N products, we are also targeting low-end TVs and videos
for downsizing or outsourcing. Restructuring of TV operations has already started with
production of cathode-ray tube TVs shifted completely overseas. Furthermore, we have adopted
a market-centric framework in Japan to quickly reflect customer feedback in product planning.
Through these actions—channeling resources into D&N products, rightsizing our lineup of
low-margin products and enhancing marketing—we will reestablish our core business of
consumer electronics.
Structural reforms are also the prescription for our professional electronics operations.
Much in the same way as with consumer electronics, we are creating new fields that take
advantage of existing strengths. These include distribution and content conversion systems
such as an HD encoder/decoder that compresses and decompresses digital encoding; security
camera systems and Video Disk Recorders (VDRs); storage equipment such as D-VHS; and
security systems incorporating wireless optical technology. Already, our HD encoder/decoder
commands the top share in the digital broadcasting market in Japan, underscoring our
strengths in professional electronics.
Enhanced networking capabilities