JVC 2004 Annual Report Download - page 25

Annual Report 2004 23.
DVD-RW discs produced using JVC’s years of
experience in disc molding and recording layer
formation technologies, delivering reliable and
stable 4x recording performance
decision to rapidly withdraw from this
underperforming business. These
moves also helped to boost profitability.
Moreover, we worked to reduce the
rapidly rising cost of materials in our
manufacturing operations by care-
fully managing procurement and
manufacturing costs.
Capitalizing on Changes in
the World of Recording Media
In May 2004, JVC became the first
company in the world to launch 4x
DVD-RW discs. We plan to widen the
gap with our rivals further by enhanc-
ing product performance with 6x and
8x versions and raising quality. In the
US, we have already launched 8-cm
DVD discs for DVD camcorders. This
new product takes the improvements
in performance, specifications and
usability we achieved with DVC tape
to the next level.
By forging even closer ties with the
Software business, we also plan to use
the perceptive design capabilities of its
product creation teams to develop and
offer new products.
In order to keep up with changes
in hardware technologies and ensure
our media products are ready on time
to support new product launches and
wider market adoption, we will have
The Media Business and the
Leap Ahead 21 Plan
Against the backdrop of growing
popularity in digital products, the
strategy of the Leap Ahead 21 plan is
to expand JVC’s global presence in
the digital field. This will be achieved
by reinforcing the Media business’
lineup of digital recordable media
such as blank DVD discs and DVC
tape to support JVC’s existing
strengths in digital hardware products,
such as digital video cameras and
DVD players/recorders.
Fiscal 2004 Operating Results
Although sales were stable in the year
under review, profits were up signifi-
cantly, supported by the manufacture
and sale of high-margin products such
as DVD-RW (rewritable DVD) discs,
DVC tape, and prerecorded media.
These products are driving profit-
ability due to a number of reasons: we
have built a predominant market posi-
tion in high-margin DVD-RW discs due
to the quality of our products; DVC
tape margins are high thanks to care-
ful control of the breakeven line; and
strong productivity in prerecorded
software manufacturing.
In the US, we closed down a VHS
tape production facility and made the
to create an operating structure that
allows us to more flexibly launch new
media and create products technologi-
cally compatible with new recording
standards. We have already shown we
are capable of responding to the shift
from analog to digital, high-definition
formats; our next challenge will be to
ensure we can develop and volume
manufacture new products that keep
pace with the continuing evolution of
media standards.
Our Mission
Over the years, JVC has launched
groundbreaking new formats in
recordable media and prerecorded
software, earning the reputation as a
pioneer in the industry. Now, as
competition intensifies and consumer
focus shifts from simply listening to
music to the search for a more complete
high-quality audiovisual experience,
our mission is to maintain our pioneer-
ing reputation and offer consumers
The Perfect Experience.
High-quality Mini-DV cassettes with unique
JVC technology that brings out the best
performance in any DV camcorder
Hiroshi Fujisawa
President, Media Company
Hiroshi Fujisawa