JVC 2005 Annual Report Download - page 9

performed well in the United States, Russia, and countries in Asia outside of Japan, and sales of
LCD TVs equipped with Image Intelligence technology grew in Japan and overseas, increasing
their market share. Furthermore, our worldwide launch of “Everio”, the world’s first compact hard
disk camcorder, went over well. Three-in-one DVD/VHS/hard disk drive combo recorders, audio
systems featuring wood cone speakers—a product that exemplifies our pursuit of accurately
reproducing original sound, dual MD deck compact component systems, and other high-value-
added products also proved popular.
Fiscal 2006 Issues and Objectives
Reorganization of the Consumer Electronics business segment is vital to achieving solid results in
fiscal 2006. One key task will be to redouble efforts to set JVC apart from the competition by
offering a robust lineup of distinct products. In addition, new products must be launched on time
and quality must be ensured. To accomplish this, we need to reduce lead times by managing
development according to specific time frames, strengthen software development capabilities,
and increase concentration on select products. It is also critical that JVC take further steps to
thrive amid intensifying market competition by implementing continuous structural reform encom-
passing the revision of management operations, manufacturing sites, and the employment struc-
ture.
To get our music software business back on track, we need to make the most of our
enhanced earning power gained through structural reforms in the fiscal year under review,
release albums by major artists, and develop the skills of new artists.
Furthermore, in fiscal 2006, all of us at JVC will pull together and make a fresh start, focusing
on eliminating the internal factors that led to our weak fiscal 2005 performance to support a
recovery in our performance. Two key objectives will guide our efforts.
Our first key objective is to strike a balance between high-value-added management and high-
speed management. As for high-value-added management, we will endeavor to raise revenues
and earnings by creating a stream of distinct, groundbreaking products that clearly demonstrate
JVC’s superior ability to innovate. Specifically, we will leverage our core competency in audio-
visual technologies to develop new products with exceptional quality and added value that go a
step farther by meeting customer wants as well as needs. In addition, we will move forward with
our unique approach to product creation, which begins with clear market positioning for each
product and ends with fun, sophisticated, easy-to-use products that inject richness and color
into peoples’ lives and, of course, are acclaimed for their superior sound and image quality.
Turning to high-speed management, JVC will return to the basics and take advantage of its
nimble size to coordinate its development, production, and sales activities within the Company
and throughout the world and ensure that these activities are undertaken from the customers’ per-
spective. In addition, we will work with partners to amass cutting-edge technologies and rapidly
launch new products to establish highly profitable operations anchored in quality rather than size.
Moreover, prompt decision making is essential to strengthening our capacity to respond to
rapid change in the digital age. Therefore, it is crucial that all levels of management keep abreast
of actual workplace conditions through firsthand observation and experience. Going forward, we
will continue to quickly ascertain issues within the Company and put this information to use in
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